Highlights

• Q2 2024 Adjusted Earnings of $6.3 billion, reflecting strong operational performance at the start of the summer season.
• CFFO of $13.5 billion for the quarter includes a working capital outflow of $0.3 billion.
• Commencing a $3.5 billion share buyback programme, expected to be completed by Q3 2024 results announcement. Over the last 4 quarters, total shareholder distributions paid were 43% of CFFO. Dividend stable at $0.344 per ordinary share.
• $0.7 billion of structural cost reductions delivered in the first half of 2024, bringing the total reductions since 2022 to $1.7 billion against a Capital Markets Day 2023 target of $2 - 3 billion by the end of 2025.
• 2024 cash capex outlook unchanged ($22 - 25 billion).
• Further strengthened our leadership position in LNG, with agreement to acquire Pavilion Energy in Singapore, partner in the ADNOC Ruwais LNG project in Abu Dhabi, and taking final investment decision (FID) on the Manatee backfill project in Trinidad and Tobago. Enhanced our advantaged Upstream portfolio with a focus on cash flow longevity by taking FID on Atapu-2 in Brazil.

Shell plc Chief Executive Officer, Wael Sawan:
"Shell delivered another strong quarter of operational and financial results. We further strengthened our leading LNG portfolio, and made good progress across our Capital Markets Day 2023 financial targets, including $1.7 billion of structural cost reductions since 2022. Today, we have also announced a further $3.5 billion buyback programme for the next three months. We continue to demonstrate that we are delivering more value with less emissions."

INTEGRATED GAS

• Adjusted Earnings lower than in Q1 2024, due to lower prices and volumes, and lower trading and optimisation results. Trading and optimisation results were lower compared with Q1 2024 due to seasonality.
• Q3 2024 production outlook reflects higher scheduled maintenance across the portfolio.

UPSTREAM

• Adjusted Earnings higher than in Q1 2024, which was impacted by higher well write-offs. 
• Q3 2024 production outlook reflects higher scheduled maintenance across the portfolio.

MARKETING

• Adjusted Earnings higher than in Q1 2024, driven by improved Mobility unit margins and seasonally higher volumes.

CHEMICALS & PRODUCTS

• Q2 2024 lower refining margins driven by a stabilising market with increased supply. Chemicals subsegment achieved break-even this quarter with higher utilisation and improved margins.
• Trading and optimisation lower than in Q1 2024, driven by reduced volatility.

RENEWABLES & ENERGY SOLUTIONS

• Adjusted Earnings, as expected, were lower than in Q1 2024, with lower seasonal demand and volatility driving lower trading
• and optimisation in Europe, as well as lower generation and energy marketing margins.

SECOND QUARTER 2024 PORTFOLIO DEVELOPMENTS

Integrated Gas
In June 2024, we reached an agreement with Carne Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek, to acquire 100% of the shares in Pavilion Energy Pte. Ltd. Pavilion Energy includes a global LNG trading business with a contracted supply volume comprising of about 6.5 million tonnes per annum (mtpa). 

In July 2024, we announced the final investment decision (FID) on the Manatee project, an undeveloped gas field in the East Coast Marine Area (ECMA) in Trinidad and Tobago. 

In July 2024, we signed an agreement to invest in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais LNG project in Abu Dhabi through a 10% participating interest. The Ruwais LNG project will consist of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.

Upstream
In May 2024, the Atapu consortium announced the FID for the Atapu-2 project, a second floating production, storage and offloading (FPSO) vessel to be deployed at the Atapu field, within the offshore Santos basin in Brazil. The Atapu consortium includes Petrobras (65.7% - Operator), Shell (16.7%), TotalEnergies (15%), Petrogal Brasil (1.7%) and PPSA (0.9%). 

In July 2024, the operator of the Jerun field in Malaysia, SapuraOMV Upstream Sdn Bhd, has announced that first gas has been achieved. Jerun is operated by SapuraOMV Upstream (40%) in partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%).

KeyFacts Energy: Shell UK country profile