Shell plc has announced robust operational and financial results for the second quarter of 2024, highlighting significant achievements across its portfolio and outlining plans for further shareholder returns.
Key financial highlights:
- Adjusted Earnings: $6.3 billion, driven by strong operational performance at the start of the summer season.
- Cash Flow from Operating Activities: $13.5 billion, despite a working capital outflow of $0.3 billion.
- Share Buyback Programme: A new $3.5 billion buyback programme is set to be completed by the Q3 2024 results announcement. Over the past year, total shareholder distributions amounted to 43 percent of CFFO.
- Cost Reductions: Achieved $0.7 billion in structural cost reductions in H1 2024, totaling $1.7 billion since 2022 against a target of $2-3 billion by the end of 2025.
- Capital Expenditure: The 2024 cash capex outlook remains unchanged at $22-25 billion.
Segment Performance:
- Integrated Gas: Adjusted earnings of $2.7 billion, with lower prices and volumes compared to Q1 2024. Notable agreements include acquiring Pavilion Energy in Singapore and partnering in the ADNOC Ruwais LNG project.
- Upstream: Adjusted earnings of $2.3 billion, supported by higher prices and volumes. Key investments include the final investment decision on Atapu-2 in Brazil.
- Marketing: Adjusted earnings of $1.1 billion, benefiting from improved margins and higher seasonal volumes.
- Chemicals & Products: Adjusted earnings of $1.1 billion, with the chemicals subsegment achieving break-even due to higher utilisation and improved margins.
- Renewables & Energy Solutions: Adjusted earnings of -$0.2 billion, impacted by lower seasonal demand and reduced volatility.
Strategic Initiatives and Outlook:
- LNG Leadership: strengthened position with key acquisitions and projects, including the Manatee backfill project in Trinidad and Tobago.
- Upstream Portfolio Enhancement: Focus on cash flow longevity with strategic investments in high-potential projects.
- Renewables Expansion: Continued growth in renewable power generation capacity, reaching 7.1 GW in Q2 2024.
Corporate Developments:
- Net Debt Reduction: Net debt decreased by $2.2 billion over the quarter to $38.3 billion.
- Dividend Stability: Dividend remains stable at $0.344 per ordinary share.
- Upcoming Investor Events: Third quarter 2024 results and dividends will be announced on October 31, 2024.
Shell’s CEO, Wael Sawan, stated, “Shell delivered another strong quarter of operational and financial results. We further strengthened our leading LNG portfolio and made good progress across our financial targets. We continue to demonstrate that we are delivering more value with less emissions.”
The company’s strategic focus on operational efficiency, shareholder returns, and sustainable growth underscores its commitment to driving long-term value in the evolving energy landscape.
For more information visit www.shell.com
