Shell Plc 1st Quarter 2024 Unaudited Results
SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS
*SUMMARY OF UNAUDITED RESULTS*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* *%¹* *Reference*
7,358 474 8,709 +1,453 Income/(loss) attributable to Shell plc shareholders
7,734 7,306 9,646 +6 Adjusted Earnings A
18,711 16,335 21,432 +15 Adjusted EBITDA A
13,330 12,575 14,159 +6 Cash flow from operating activities
(3,528) (5,657) (4,238) Cash flow from investing activities
9,802 6,918 9,921 Free cash flow G
4,493 7,113 6,501 Cash capital expenditure C
8,997 10,897 9,312 -17 Operating expenses F
9,054 10,565 9,293 -14 Underlying operating expenses F
12.0% 12.8% 18.1% ROACE2 D
79,931 81,541 85,142 Total debt E
40,513 43,542 44,224 Net debt E
17.7% 18.8% 18.4% Gearing E
2,911 2,827 2,902 +3 Oil and gas production available for sale (thousand boe/d)
1.14 0.07 1.26 +1,529 Basic earnings per share ($)
1.20 1.11 1.39 +8 Adjusted Earnings per share ($) B
0.3440 0.3440 0.2875 — Dividend per share ($)
1.Q1 on Q4 change
2.Effective first quarter 2024, the definition has been amended and comparative information has been revised. See Reference D.
Quarter Analysis1
*Income attributable to Shell plc shareholders*, compared with the fourth quarter 2023, reflected lower operating expenses, higher margins from crude and oil products trading and optimisation, and higher refining margins, partly offset by lower LNG trading and optimisation margins, and unfavourable tax movements in comparison to the fourth quarter 2023.
First quarter 2024 income attributable to Shell plc shareholders also included unfavourable movements due to the fair value accounting of commodity derivatives, and favourable differences in exchange rates and inflationary adjustments on deferred tax. These items are included in identified items amounting to a net loss of $0.6 billion in the quarter. This compares with identified items in the fourth quarter 2023 which amounted to a net loss of $6.0 billion, and included net impairment charges and reversals ($3.9 billion), and unfavourable movements due to the fair value accounting of commodity derivatives.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items and the cost of supplies adjustment of negative $0.3 billion.
Cash flow from operating activities for the first quarter 2024 was $13.3 billion, and primarily driven by Adjusted EBITDA, partly offset by a working capital outflow of $2.8 billion, and tax payments of $2.6 billion. The working capital outflow mainly reflected accounts receivable and payable movements, and inventory movements due to higher crude and oil products prices.
*Cash flow from investing activities *for the quarter was an outflow of $3.5 billion, and included cash capital expenditure of $4.5 billion, and divestment proceeds of $1.0 billion.
*Net debt* and* Gearing: *At the end of the first quarter 2024, net debt was $40.5 billion, compared with $43.5 billion at the end of the fourth quarter 2023, mainly reflecting free cash flow, partly offset by share buybacks, cash dividends paid to Shell plc shareholders, interest payments, and lease additions. Gearing was 17.7% at the end of the first quarter 2024, compared with 18.8% at the end of the fourth quarter 2023, driven by lower net debt.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*Shareholder distributions*
Total shareholder distributions in the quarter amounted to $5.0 billion comprising repurchases of shares of $2.8 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the first quarter 2024 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the fourth quarter 2023 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the second quarter 2024 results announcement.
This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 3.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
3.Not incorporated by reference.
**FIRST QUARTER 2024 PORTFOLIO DEVELOPMENTS**
*Upstream*
In January 2024, we reached an agreement to sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance. Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.
*Chemicals and Products*
In January 2024, we announced the final investment decision to convert the hydrocracker of the Wesseling site at the Energy and Chemicals Park Rheinland in Germany into a production unit for Group III base oils, used in making high-quality lubricants such as engine and transmission oils. Crude oil processing will end at the Wesseling site by 2025 but will continue at the Godorf site.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*PERFORMANCE BY SEGMENT*
*INTEGRATED GAS*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* **%¹** *Reference*
2,761 1,733 2,412 +59 Segment earnings2
(919) (2,235) (2,506) Of which: Identified items A
3,680 3,968 4,919 -7 Adjusted Earnings2 A
6,136 6,584 7,484 -7 Adjusted EBITDA2 A
4,712 3,597 6,286 +31 Cash flow from operating activities A
1,041 1,196 813 Cash capital expenditure C
137 113 138 +22 Liquids production available for sale (thousand b/d)
4,954 4,570 4,825 +8 Natural gas production available for sale (million scf/d)
992 901 970 +10 Total production available for sale (thousand boe/d)
7.58 7.06 7.19 +7 LNG liquefaction volumes (million tonnes)
16.87 18.09 16.97 -7 LNG sales volumes (million tonnes)
1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).
Integrated Gas includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. Integrated Gas also includes the marketing, trading and optimisation of LNG.
Quarter Analysis*1*
*Segment earnings*, compared with the fourth quarter 2023, reflected the net effect of lower contributions from trading and optimisation and higher realised prices (decrease of $1,153 million), partly offset by favourable deferred tax movements ($327 million), higher volumes (increase of $276 million), and lower operating expenses (decrease of $213 million).
First quarter 2024 segment earnings also included unfavourable movements of $887 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases and sales. As these commodity derivatives are measured at fair value, this creates an accounting mismatch over periods. These unfavourable movements are part of identified items and compare with the fourth quarter 2023 which included unfavourable movements of $1,587 million due to the fair value accounting of commodity derivatives, and impairment charges of $547 million.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA and working capital inflows of $275 million, partly offset by net cash outflows related to derivatives of $1,080 million, and tax payments of $467 million.
Total oil and gas production compared with the fourth quarter 2023 increased by 10% mainly due to lower maintenance at Prelude and Pearl GTL. LNG liquefaction volumes increased by 7% mainly due to lower maintenance at Prelude.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*UPSTREAM*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* **%¹** *Reference*
*2,272* *2,151* *2,789* *+6* *Segment earnings**2*
339 (909) (21) Of which: Identified items A
1,933 3,060 2,810 -37 Adjusted Earnings2 A
7,888 7,872 8,849 — Adjusted EBITDA2 A
5,727 5,787 5,808 -1 Cash flow from operating activities A
2,010 2,436 1,870 Cash capital expenditure C
1,331 1,361 1,346 -2 Liquids production available for sale (thousand b/d)
3,136 2,952 3,078 +6 Natural gas production available for sale (million scf/d)
1,872 1,870 1,877 — Total production available for sale (thousand boe/d)
1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).
The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.
Quarter Analysis*1*
Segment earnings, compared with the fourth quarter 2023, reflected deferred tax help in the fourth quarter 2023 resulting in unfavourable tax movements ($852 million) and higher well write-offs (increase of $383 million).
Furthermore, the first quarter 2024 segment earnings included a gain of $460 million related to the impact of inflationary adjustments in Argentina on a deferred tax position, partly offset by net impairment charges and reversals of $102 million. These gains and charges are part of identified items, and compare with the fourth quarter 2023 which included net impairment charges and reversals of $454 million, charges of $424 million related to the impact of the weakening Argentine peso on a deferred tax position, and legal provisions of $358 million, partly offset by a gain of $182 million due to the impact of the discount rate change on provisions.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $1,802 million.
Total production was in line with the fourth quarter 2023. Higher scheduled maintenance was fully offset by improved performance and new oil delivery.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*MARKETING*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* **%¹** *Reference*
774 226 1,184 +242 Segment earnings2,3
(7) (567) 238 Of which: Identified items3 A
781 794 946 -2 Adjusted Earnings2,3 A
1,686 1,500 1,714 +12 Adjusted EBITDA2,3 A
1,319 1,767 2,101 -25 Cash flow from operating activities3 A
465 1,385 2,737 Cash capital expenditure3 C
2,763 2,997 2,945 -8 Marketing sales volumes (thousand b/d)3
1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).
3.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.
The Marketing segment comprises the Mobility, Lubricants, and Sectors and Decarbonisation businesses. The Mobility business operates Shell’s retail network including electric vehicle charging services and the Wholesale commercial fuels business which provides fuels for transport, industry and heating. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors and Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, marine, and agricultural sectors.
Quarter Analysis*1*
Segment earnings, compared with the fourth quarter 2023, reflected lower operating expenses (decrease of $234 million), offset by higher tax charges (increase of $160 million) due to incidental tax helps in the fourth quarter 2023. Marketing margins were in line with the fourth quarter 2023 and included higher Lubricants margins due to seasonality offset by lower Mobility margins due to seasonality and lower Sectors and Decarbonisation margins.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $427 million, non-cash cost-of-sales (CCS) adjustments of $153 million and dividends (net of profits) from joint ventures and associates of $93 million. These inflows were partly offset by working capital outflows of $792 million and tax payments of $175 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the fourth quarter 2023, decreased mainly due to seasonality.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*CHEMICALS AND PRODUCTS*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* **%¹** *Reference*
1,157 (1,828) 1,753 +163 Segment earnings2,3
(458) (1,857) 46 Of which: Identified items3 A
1,615 29 1,707 +5,476 Adjusted Earnings2,3 A
2,826 670 2,915 +322 Adjusted EBITDA2,3 A
(349) 1,150 1,275 -130 Cash flow from operating activities3 A
500 986 561 Cash capital expenditure3 C
1,430 1,315 1,413 +9 Refinery processing intake (thousand b/d)
2,883 2,588 2,831 +11 Chemicals sales volumes (thousand tonnes)
1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).
3.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.
The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).
Quarter Analysis*1*
Segment earnings, compared with the fourth quarter 2023, reflected higher Products margins (increase of $1,197 million) mainly driven by higher margins from trading and optimisation and higher refining margins due to higher utilisation and global supply disruptions. Segment earnings also reflected higher Chemicals margins (increase of $291 million) due to improved margin environment and utilisation and also included higher income from joint ventures and associates. In addition, the first quarter 2024 reflected lower operating expenses (decrease of $174 million).
First quarter 2024 segment earnings also included unfavourable movements of $319 million due to the fair value accounting of commodity derivatives and impairment charges of $152 million. These unfavourable movements and charges are part of identified items, and compare with the fourth quarter 2023 which included net impairment charges and reversals of $1,968 million mainly relating to the Chemicals assets in Singapore, and charges of $78 million related to redundancy and restructuring partly offset by favourable movements of $138 million due to the fair value accounting of commodity derivatives.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the first quarter 2024, Chemicals had negative Adjusted Earnings of $113 million and Products had positive Adjusted Earnings of $1,729 million.
Cash flow from operating activities for the quarter was primarily driven by outflows relating to working capital of $2,639 million, commodity derivatives of $402 million, the timing impact of payments relating to emission certificates and biofuel programmes of $185 million, and legal provisions of $180 million. These outflows were partly offset by Adjusted EBITDA, and non-cash cost-of-sales (CCS) adjustments of $207 million.
Chemicals manufacturing plant utilisation was 73% compared with 62% in the fourth quarter 2023, due to lower planned and unplanned maintenance in North America.
Refinery utilisation was 91% compared with 81% in the fourth quarter 2023, due to lower planned maintenance in North America.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*RENEWABLES AND ENERGY SOLUTIONS*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* **%¹** *Reference*
553 (272) 2,205 +303 Segment earnings2
390 (445) 1,810 Of which: Identified items A
163 173 395 -6 Adjusted Earnings2 A
267 253 676 +6 Adjusted EBITDA2 A
2,466 (1,265) 1,091 +295 Cash flow from operating activities A
438 1,026 440 Cash capital expenditure C
77 68 68 +14 External power sales (terawatt hours)3
190 175 221 +9 Sales of pipeline gas to end-use customers (terawatt hours)4
1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).
3.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.
4.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.
Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.
*Quarter Analysis**1*
*Segment earnings*, compared with the fourth quarter 2023, reflected lower margins (decrease of $233 million) mainly due to trading and optimisation, partly offset by lower operating expenses (decrease of $231 million).
First quarter 2024 segment earnings also included favourable movements of $306 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory. As these commodity derivatives are measured at fair value, this creates an accounting mismatch over periods. These favourable movements are part of identified items and compare with the fourth quarter 2023 which included impairment charges of $551 million, partly offset by favourable movements of $125 million due to the fair value accounting of commodity derivatives.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Loss-making Renewables and Energy Solutions activities were more than offset by the positive Adjusted Earnings from trading and optimisation.
*Cash flow from operating activities *for the quarter was primarily driven by net cash inflows related to derivatives of $1,979 million, working capital inflows of $481 million, and Adjusted EBITDA, partly offset by tax payments of $244 million.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
**Additional Growth Measures**
*Quarters*
*Q1 2024* *Q4 2023* *Q1 2023* **%¹** Renewable power generation capacity (gigawatt):
3.2 2.5 2.3 +28 – In operation2
3.5 4.1 4.0 -13 – Under construction and/or committed for sale3
1.Q1 on Q4 change
2.Shell's equity share of renewable generation capacity post commercial operation date. It excludes Shell's equity share of associates where information cannot be obtained.
3.Shell's equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA). It excludes Shell's equity share of associates where information cannot be obtained.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*CORPORATE*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* *Reference*
(354) (629) (1,082) Segment earnings1,2
14 (19) (24) Of which: Identified items A
(368) (609) (1,058) Adjusted Earnings1,2 A
(92) (544) (207) Adjusted EBITDA1,2 A
(545) 1,540 (2,403) Cash flow from operating activities A
1.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).
2.From the first quarter 2024, Shell's longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.
The Corporate segment covers the non-operating activities supporting Shell. It comprises Shell’s holdings and treasury organisation, headquarters and central functions, self-insurance activities and centrally managed longer-term innovation portfolio. All finance expense, income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.
Quarter Analysis1
Segment earnings, compared with the fourth quarter 2023, reflected favourable movements in currency exchange rate effects and lower operating expenses, partly offset by an unfavourable movement in tax credits.
Adjusted EBITDA2 was mainly driven by favourable currency exchange rate effects and lower operating expenses.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
**OUTLOOK FOR THE SECOND QUARTER 2024**
Cash capital expenditure for full year 2024 is expected to be within $22 - $25 billion.
Integrated Gas production is expected to be approximately 920 - 980 thousand boe/d. LNG liquefaction volumes are expected to be approximately 6.8 - 7.4 million tonnes. Production and LNG liquefaction outlook reflects seasonality (higher maintenance).
Upstream production is expected to be approximately 1,630 - 1,830 thousand boe/d. Production outlook reflects the scheduled maintenance across the portfolio.
Marketing sales volumes are expected to be approximately 2,700 - 3,200 thousand b/d.
Refinery utilisation is expected to be approximately 87% - 95%. Chemicals manufacturing plant utilisation is expected to be approximately 72% - 80%.
Corporate Adjusted Earnings are expected to be a net expense of approximately $400 - $600 million in the second quarter and a net expense of approximately $1,700 - $2,300 million for the full year 2024. This excludes the impact of currency exchange rate and fair value accounting effects.
**FORTHCOMING EVENTS**
*Date* *Event*
May 21, 2024 Annual General Meeting
August 1, 2024 Second quarter 2024 results and dividends
October 31, 2024 Third quarter 2024 results and dividends
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
**UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**
*CONSOLIDATED STATEMENT OF INCOME*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
72,478 78,732 86,959 Revenue1
1,318 768 1,581 Share of profit/(loss) of joint ventures and associates
907 631 481 Interest and other income/(expenses)2
74,703 80,131 89,021 Total revenue and other income/(expenses)
46,867 54,745 57,502 Purchases
5,810 6,807 6,008 Production and manufacturing expenses
2,975 3,621 3,051 Selling, distribution and administrative expenses
212 469 253 Research and development
750 467 404 Exploration
5,881 11,221 6,285 Depreciation, depletion and amortisation2
1,164 1,166 1,165 Interest expense
63,659 78,496 74,667 Total expenditure
11,044 1,635 14,354 Income/(loss) before taxation
3,604 1,099 5,582 Taxation charge/(credit)2
*7,439 * *536 * *8,772 * *Income/(loss) for the period*
82 62 64 Income/(loss) attributable to non-controlling interest
*7,358 * *474 * *8,709 * *Income/(loss) attributable to Shell plc shareholders*
1.14 0.07 1.26 Basic earnings per share ($)3
1.13 0.07 1.25 Diluted earnings per share ($)3
1.See Note 2 “Segment information”.
2.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.
3.See Note 4 “Earnings per share”.
*CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
*7,439 * *536 * *8,772 * *Income/(loss) for the period* Other comprehensive income/(loss) net of tax: Items that may be reclassified to income in later periods:
(1,995) 2,571 553 – Currency translation differences
(6) 29 18 – Debt instruments remeasurements
53 11 (180) – Cash flow hedging gains/(losses)
— — (52) – Net investment hedging gains/(losses)
(14) (53) (2) – Deferred cost of hedging
(12) 135 (35) – Share of other comprehensive income/(loss) of joint ventures and associates
(1,974) 2,692 302 Total Items that are not reclassified to income in later periods:
439 (1,207) (32) – Retirement benefits remeasurements
78 (84) 8 – Equity instruments remeasurements
10 (186) (8) – Share of other comprehensive income/(loss) of joint ventures and associates
528 (1,477) (33) Total
*(1,445)* *1,215 * *269 * *Other comprehensive income/(loss) for the period*
*5,994 * *1,750 * *9,041 * *Comprehensive income/(loss) for the period*
56 96 84 Comprehensive income/(loss) attributable to non-controlling interest
*5,937 * *1,654 * *8,958 * *Comprehensive income/(loss) attributable to Shell plc shareholders*
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*CONDENSED CONSOLIDATED BALANCE SHEET*
*$ million* *March 31, 2024* *December 31, 2023*
*Assets*
*Non-current assets*
Goodwill 16,554 16,660
Other intangible assets 9,999 10,253
Property, plant and equipment 191,952 194,835
Joint ventures and associates 25,113 24,457
Investments in securities 3,033 3,246
Deferred tax 6,217 6,454
Retirement benefits 9,151 9,151
Trade and other receivables 6,548 6,298
Derivative financial instruments² 381 801 268,948 272,155
*Current assets*
Inventories 26,471 26,019
Trade and other receivables 53,178 53,273
Derivative financial instruments² 12,730 15,098
Cash and cash equivalents 39,949 38,774 132,329 133,164
Assets classified as held for sale1 762 *951* 133,091 134,115
*Total assets* *402,039 * *406,270 *
*Liabilities*
*Non-current liabilities*
Debt 68,886 71,610
Trade and other payables 3,909 3,103
Derivative financial instruments² 2,338 2,301
Deferred tax 15,179 15,347
Retirement benefits 7,101 7,549
Decommissioning and other provisions 22,412 22,531 119,824 122,441
*Current liabilities*
Debt 11,046 9,931
Trade and other payables 65,997 68,237
Derivative financial instruments² 8,919 9,529
Income taxes payable 3,940 3,422
Decommissioning and other provisions 3,714 4,041 93,615 95,160
Liabilities directly associated with assets classified as held for sale1 296 307 93,911 95,467
*Total liabilities* *213,735 * *217,908 *
Equity attributable to Shell plc shareholders 186,565 186,607
Non-controlling interest 1,739 1,755
*Total equity* *188,304 * *188,362 *
*Total liabilities and equity* *402,039 * *406,270 *
1. See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.
2. See Note 7 “Derivative financial instruments and debt excluding lease liabilities”.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*CONSOLIDATED STATEMENT OF CHANGES IN EQUITY* *Equity attributable to Shell plc shareholders*
*$ million* *Share capital**1* *Shares held in trust* *Other reserves²* *Retained earnings* *Total* *Non-controlling interest* *Total equity*
*At January 1, 2024* *544 * *(997)* *21,145 * *165,915 * *186,607 * *1,755 * *188,362 *
Comprehensive income/(loss) for the period — — (1,420) 7,358 5,937 56 5,994
Transfer from other comprehensive income — — 138 (138) — — —
Dividends³ — — — (2,210) (2,210) (68) (2,278)
Repurchases of shares4 (7) — 7 (3,502) (3,502) — (3,502)
Share-based compensation — 543 (426) (392) (275) — (275)
Other changes — — — 8 8 (4) 4
*At March 31, 2024* *537 * *(455)* *19,445 * *167,038 * *186,565 * *1,739 * *188,304 *
*At January 1, 2023* *584 * *(726)* *21,132 * *169,482 * *190,472 * *2,125 * *192,597 *
Comprehensive income/(loss) for the period — — 250 8,708 8,958 84 9,041
Transfer from other comprehensive income — — (114) 114 — — —
Dividends3 — — — (2,030) (2,030) (10) (2,040)
Repurchases of shares4 (12) — 12 (4,018) (4,018) — (4,018)
Share-based compensation — 501 (372) (191) (62) — (62)
Other changes — — — (2) (2) 14 12
*At March 31, 2023* *572 * *(227)* *20,908 * *172,063 * *193,317 * *2,214 * *195,530 *
1. See Note 5 “Share capital”.
2. See Note 6 “Other reserves”.
3. The amount charged to retained earnings is based on prevailing exchange rates on payment date.
4. Includes shares committed to repurchase under an irrevocable contract and repurchases subject to settlement at the end of the quarter.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*CONSOLIDATED STATEMENT OF CASH FLOWS*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
11,044 1,635 14,354 Income before taxation for the period Adjustment for:
576 571 664 – Interest expense (net)
5,881 11,221 6,285 – Depreciation, depletion and amortisation1
554 243 236 – Exploration well write-offs
(10) (222) (45) – Net (gains)/losses on sale and revaluation of non-current assets and businesses
(1,318) (768) (1,581) – Share of (profit)/loss of joint ventures and associates
738 1,145 896 – Dividends received from joint ventures and associates
(608) 4,088 4,217 – (Increase)/decrease in inventories
(195) (704) 5,943 – (Increase)/decrease in current receivables
(1,949) (701) (10,806) – Increase/(decrease) in current payables2
1,386 328 (2,336) – Derivative financial instruments
(61) (68) 15 – Retirement benefits
(600) 430 (210) – Decommissioning and other provisions2
509 (1,021) (330) – Other1
(2,616) (3,604) (3,144) Tax paid
*13,330 * **12,575*** * **14,159*** * *Cash flow from operating activities*
(3,980) (6,960) (6,161) Capital expenditure
(500) (109) (307) Investments in joint ventures and associates
(13) (44) (33) Investments in equity securities
(4,493) *(7,113)* *(6,501)* Cash capital expenditure
323 540 1,479 Proceeds from sale of property, plant and equipment and businesses
133 49 257 Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans
569 24 2 Proceeds from sale of equity securities
577 568 448 Interest received
857 960 700 Other investing cash inflows
(1,494) (685) (623) Other investing cash outflows1
*(3,528)* *(5,657)* **(4,238)** *Cash flow from investing activities*
(107) (27) (86) Net increase/(decrease) in debt with maturity period within three months Other debt:
167 64 415 – New borrowings
(1,532) (4,054) (1,453) – Repayments
(911) (1,366) (869) Interest paid
(297) 702 200 Derivative financial instruments
(4) (1) (30) Change in non-controlling interest Cash dividends paid to:
(2,210) (2,201) (2,029) – Shell plc shareholders
(68) (128) (10) – Non-controlling interest
(2,824) (3,977) (4,291) Repurchases of shares
(462) (714) (232) Shares held in trust: net sales/(purchases) and dividends received
*(8,248)* **(11,703)** **(8,385)** *Cash flow from financing activities*
(379) 529 293 Effects of exchange rate changes on cash and cash equivalents
*1,175 * **(4,256)** **1,829*** * *Increase/(decrease) in cash and cash equivalents*
*38,774 * **43,031*** * **40,246*** * *Cash and cash equivalents at beginning of period*
*39,949 * **38,774*** * **42,074*** * *Cash and cash equivalents at end of period*
1.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.
2.To further enhance consistency between working capital and the Balance Sheet and the Statement of Cash Flows, from January 1, 2024, onwards movements in current other provisions are recognised in 'Decommissioning and other provisions' instead of 'Increase/(decrease) in current payables'. Comparatives for the fourth quarter 2023 and first quarter 2023 have been reclassified accordingly by $653 million and $126 million respectively to conform with current period presentation.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**
*1. ***Basis of preparation**
These unaudited Condensed Consolidated Interim Financial Statements of Shell plc (“the Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and on the basis of the same accounting principles as those used in the Company's Annual Report and Accounts (pages 244 to 316) for the year ended December 31, 2023 as will be filed with the Registrar of Companies for England and Wales and as filed with the Autoriteit Financiële Markten (the Netherlands) and Form 20-F (pages 217 to 290) for the year ended December 31, 2023 as filed with the US Securities and Exchange Commission, and should be read in conjunction with these filings.
The financial information presented in the unaudited Condensed Consolidated Interim Financial Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2023 were published in Shell's Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell's Form 20-F. The auditor's report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.
*2. ***Segment information**
Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.
From the first quarter 2024, Wholesale commercial fuels forms part of Mobility with inclusion in the Marketing segment (previously Chemicals and Products segment). The change in segmentation reflects the increasing alignment between the economic characteristics of wholesale commercial fuels and other Mobility businesses, and is consistent with changes in the information provided to the Chief Operating Decision Maker. Prior period comparatives have been revised to conform with current year presentation with an offsetting impact between the Marketing and the Chemicals and Products segment (see below). Also, from the first quarter 2024, Shell's longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments (see below).
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*REVENUE AND CCS EARNINGS BY SEGMENT*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* *Third-party revenue*
9,195 10,437 10,932 Integrated Gas
1,759 1,263 2,062 Upstream
30,041 31,761 32,045 Marketing2
23,735 24,957 26,290 Chemicals and Products2
7,737 10,302 15,619 Renewables and Energy Solutions
11 11 12 Corporate
*72,478 * *78,732 * *86,959 * *Total third-party revenue**1* *Inter-segment revenue*
2,404 2,614 3,534 Integrated Gas
10,287 10,948 11,146 Upstream
1,355 1,243 1,327 Marketing2
10,312 10,163 10,793 Chemicals and Products2
1,005 1,567 1,475 Renewables and Energy Solutions
— — — Corporate *CCS earnings*
2,761 1,733 2,412 Integrated Gas
2,272 2,151 2,789 Upstream
774 226 1,184 Marketing2
1,157 (1,828) 1,753 Chemicals and Products2
553 (272) 2,205 Renewables and Energy Solutions
(354) (629) (1,082) Corporate3
*7,163 * *1,381 * *9,262 * *Total CCS earnings**4*
1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. First quarter 2024 included income of $1,643 million (fourth quarter 2023: $3,021 million income; first quarter 2023: $4,809 million income). This amount includes both the reversal of prior gains of $257 million (fourth quarter 2023: $711 million gains; first quarter 2023: $1,369 million gains) related to sales contracts and prior losses of $235 million (fourth quarter 2023: $248 million losses; first quarter 2023: $772 million losses) related to purchase contracts that were previously recognised and where physical settlement took place in the first quarter 2024.
2.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the fourth quarter 2023 and the first quarter 2023 have been reclassified accordingly, by $5,333 million and $5,766 million respectively for Third-party revenue and by $82 million and $47 million respectively for CCS earnings to conform with current period presentation. For Inter-segment revenue the reallocation and revision of comparative figures for the fourth quarter 2023 and the first quarter 2023 led to an increase in inter-segment revenue in the Marketing segment of $1,058 million and $1,164 million respectively and an increase in the Chemicals and Products segment of $9,553 million and $10,228 million respectively.
3.From January 1, 2024, onwards costs for Shell's centrally managed longer-term innovation portfolio are reported as part of the Corporate segment. Prior period comparatives for Corporate for the fourth quarter 2023 and the first quarter 2023 have been revised by $42 million and $18 million respectively, with a net offsetting impact in all other segments to conform with current period presentation.
4.See Note 3 "Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt".
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.
*CASH CAPITAL EXPENDITURE BY SEGMENT*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023* **Capital expenditure**
858 1,034 697 Integrated Gas
1,766 2,547 1,752 Upstream
427 1,383 2,728 Marketing1
474 983 559 Chemicals and Products1
421 932 375 Renewables and Energy Solutions
34 81 50 Corporate
**3,980*** * **6,960*** * **6,161*** * **Total capital expenditure** **Add: Investments in joint ventures and associates**
184 162 116 Integrated Gas
244 (111) 118 Upstream
38 2 9 Marketing
26 2 2 Chemicals and Products
8 56 46 Renewables and Energy Solutions
— (2) 16 Corporate
*500 * *109 * *307 * *Total investments in joint ventures and associates* **Add: Investments in equity securities**
— — — Integrated Gas
— — — Upstream
— — — Marketing
— — — Chemicals and Products
10 38 19 Renewables and Energy Solutions
3 6 14 Corporate
*13 * *44 * *33 * *Total investments in equity securities* **Cash capital expenditure**
1,041 1,196 813 Integrated Gas
2,010 2,436 1,870 Upstream
465 1,385 2,737 Marketing1
500 986 561 Chemicals and Products1
438 1,026 440 Renewables and Energy Solutions
37 85 81 Corporate
*4,493 * *7,113 * *6,501 * *Total Cash capital expenditure*
1.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the fourth quarter 2023 and the first quarter 2023 have been reclassified accordingly by $46 million and $52 million respectively for capital expenditure and cash capital expenditure to conform with current period presentation.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*3. Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt*
*RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
7,358 474 8,709 Income/(loss) attributable to Shell plc shareholders
82 62 64 Income/(loss) attributable to non-controlling interest
*7,439 * *536 * *8,772 * *Income/(loss) for the period* Current cost of supplies adjustment:
(332) 1,089 647 Purchases
84 (263) (171) Taxation
(28) 19 13 Share of profit/(loss) of joint ventures and associates
*(276)* *846 * *489 * *Current cost of supplies adjustment* Of which:
(264) 811 481 Attributable to Shell plc shareholders
(12) 34 8 Attributable to non-controlling interest
*7,163 * *1,381 * *9,262 * *CCS earnings* Of which:
7,093 1,285 9,190 CCS earnings attributable to Shell plc shareholders
70 97 72 CCS earnings attributable to non-controlling interest
*RECONCILIATION OF OPERATING EXPENSES *
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
5,810 6,807 6,008 Production and manufacturing expenses
2,975 3,621 3,051 Selling, distribution and administrative expenses
212 469 253 Research and development
*8,997 * *10,897 * *9,312 * **Operating expenses**
*RECONCILIATION OF TOTAL DEBT*
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
*March 31, 2024* *December 31, 2023* *March 31, 2023*
11,046 9,931 9,044 Current debt
68,886 71,610 76,098 Non-current debt
*79,931 * *81,541 * *85,142 * *Total debt*
*4. ***Earnings per share**
*EARNINGS PER SHARE*
*Quarters*
*Q1 2024* *Q4 2023* *Q1 2023*
7,358 474 8,709 Income/(loss) attributable to Shell plc shareholders ($ million) Weighted average number of shares used as the basis for determining:
6,440.1 6,558.3 6,918.9 Basic earnings per share (million)
6,504.3 6,631.1 6,982.1 Diluted earnings per share (million)
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
*5. ***Share capital**
*ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH* *Number of shares * *Nominal value
($ million)*
*At January 1, 2024* **6,524,109,049*** * *544 *
Repurchases of shares (88,893,999) (7)
*At March 31, 2024* *6,435,215,050 * *537 *
*At January 1, 2023* *7,003,503,393 * *584 *
Repurchases of shares (146,672,469) (12)
*At March 31, 2023* *6,856,830,924 * *572 *
At Shell plc’s Annual General Meeting on May 23, 2023, the Board was authorised to allot ordinary shares in Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Shell plc, up to an aggregate nominal amount of approximately €161 million (representing approximately 2,307 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 22, 2024, or the end of the Annual General Meeting to be held in 2024, unless previously renewed, revoked or varied by Shell plc in a general meeting.
*6. ***Other reserves**
*OTHER RESERVES*
*$ million* *Merger reserve* *Share premium reserve* *Capital redemption reserve* *Share plan reserve* *Accumulated other comprehensive income* *Total*
*At January 1, 2024* *37,298 * *154 * *236 * *1,308 * *(17,851)* *21,145 *
Other comprehensive income/(loss) attributable to Shell plc shareholders — — — — (1,420) (1,420)
Transfer from other comprehensive income — — — — 138 138
Repurchases of shares — — 7 — — 7
Share-based compensation — — — (426) — (426)
*At March 31, 2024* *37,298 * *154 * *244 * *882 * *(19,132)* *19,445 *
*At January 1, 2023* *37,298 * *154 * *196 * *1,140 * *(17,656)* *21,132 *
Other comprehensive income/(loss) attributable to Shell plc shareholders — — — — 250 250
Transfer from other comprehensive income — — — — (114) (114)
Repurchases of shares — — 12 — — 12
Share-based compensation — — — (372) — (372)
*At March 31, 2023* *37,298 * *154 * *209 * *767 * *(17,519)* *20,908 *
The merger reserve and share premium reserve were established as a consequence of Shell plc (formerly Royal Dutch Shell plc) becoming the single parent company of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.
*7. ***Derivative financial instruments and debt excluding lease liabilities**
As disclosed in the Consolidated Financial Statements for the year ended December 31, 2023, presented in the Annual Report and Accounts and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at March 31, 2024, are consistent with those used in the year ended December 31, 2023, though the carrying amounts of derivative financial instruments have changed since that date.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
The movement of the derivative financial instruments between December 31, 2023 and March 31, 2024 is a decrease of $2,368 million for the current assets and a decrease of $610 million for the current liabilities.
The table below provides the comparison of the fair value with the carrying amount of debt excluding lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.
*DEBT EXCLUDING LEASE LIABILITIES*
*$ million* *March 31, 2024* *December 31, 2023*
Carrying amount 53,046 53,832
Fair value¹ 49,744 50,866
1. Mainly determined from the prices quoted for these securities.
*8. Other notes to the unaudited Condensed Consolidated Interim Financial Statements *
*Consolidated Statement of Income*
Interest and other income
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
*907 * *631 * *481 * **Interest and other income/(expenses)** Of which:
588 595 500 Interest income
23 14 — Dividend income (from investments in equity securities)
10 222 45 Net gains/(losses) on sales and revaluation of non-current assets and businesses
66 (398) (236) Net foreign exchange gains/(losses) on financing activities
219 199 171 Other
Depreciation, depletion and amortisation
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
*5,881 * *11,221 * *6,285 * **Depreciation, depletion and amortisation** Of which:
5,654 5,986 5,697 Depreciation
382 5,508 589 Impairments
(154) (273) — Impairment reversals
Impairments recognised in the first quarter 2024 of $382 million pre-tax ($332 million post-tax) include various smaller impairments in various segments. Impairments recognised in the fourth quarter 2023 of $5,508 million pre-tax ($4,044 million post-tax) related to various assets in Chemicals and Products ($2,490 million), Upstream ($1,161 million), Integrated Gas ($873 million), Renewables and Energy Solutions ($614 million) and Marketing ($370 million). Impairments in the first quarter 2023 mainly related to an asset in Integrated Gas.
Taxation charge/credit
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
*3,604 * *1,099 * *5,582 * **Taxation charge/(credit)** Of which:
3,525 1,099 5,582 Income tax excluding Pillar Two income tax
79 — — Income tax related to Pillar Two income tax
On June 20, 2023, the UK substantively enacted Pillar Two Model Rules, effective as from January 1, 2024.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
As required by IAS 12 Income Taxes, Shell has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
*Condensed Consolidated Balance Sheet*
Assets classified as held for sale
**$ million** *March 31, 2024* *December 31, 2023*
Assets classified as held for sale 762 951
Liabilities directly associated with assets classified as held for sale 296 307
Assets classified as held for sale and associated liabilities at March 31, 2024 principally relate to an asset in Chemicals and Products in Europe, a Renewables and Energy Solutions project in North America and an asset in Marketing in Asia. The major classes of assets and liabilities classified as held for sale at March 31, 2024, are Inventories ($380 million; December 31, 2023: $463 million) and Property, plant and equipment ($228 million; December 31, 2023: $250 million).
*Consolidated Statement of Cash Flows*
Cash flow from operating activities - Other
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
509 (1,021) (330) Other
'Cash flow from operating activities - Other' for the first quarter 2024 includes $188 million of net inflows (fourth quarter 2023: $875 million net outflows; first quarter 2023: $69 million net outflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America. It also includes net inflows of $253 million in relation to reversal of currency exchange losses on Cash and cash equivalents (fourth quarter 2023: net outflows of $398 million; first quarter 2023: net outflows of $288 million).
Cash flow from investing activities - Other investing cash outflows
*Quarters* *$ million*
*Q1 2024* *Q4 2023* *Q1 2023*
(1,494) (685) (623) Other investing cash outflows
'Other investing cash outflows' for the first quarter 2024 includes $645 million of debt securities acquired in the Corporate segment.
*Legal proceedings and other contingencies*
Shell has several matters in dispute involving Shell non-operated ventures and the Republic of Kazakhstan, including court proceedings in respect of a Sulphur permitting inspection outcome and arbitrations under the applicable production-sharing contracts. Statements of Claim have been filed in the arbitration matters, however it is not possible to reliably estimate the magnitude and timing of any possible obligations or payments in respect of the matters above or whether any payments will be due. There remains a high degree of uncertainty regarding the ultimate outcomes, as well as the potential effect on future operations, earnings, cash flows and Shell’s financial condition.
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*SHELL PLC*
1st QUARTER 2024 UNAUDITED RESULTS
**ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES**
A.*Adjusted Earnings, Adjusted earnin