Shell plc
Shell Plc 2nd Quarter 2022 and Half Year Unaudited Results
| SHELL PLC 2nd QUARTER 2022 AND HALF YEAR UNAUDITED RESULTS |
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| SUMMARY OF UNAUDITED RESULTS | ||||||||||||||||||||||||||
| Quarters | $ million | Half year | ||||||||||||||||||||||||
| Q2 2022 | Q1 2022 | Q2 2021 | %¹ | Reference | 2022 | 2021 | % | |||||||||||||||||||
| 18,040 | 7,116 | 3,428 | +154 | Income/(loss) attributable to Shell plc shareholders | 25,156 | 9,087 | +177 | |||||||||||||||||||
| 11,472 | 9,130 | 5,534 | +26 | Adjusted Earnings | A | 20,601 | 8,768 | +135 | ||||||||||||||||||
| 23,150 | 19,028 | 13,623 | +22 | Adjusted EBITDA2 | A | 42,177 | 25,195 | +67 | ||||||||||||||||||
| 18,655 | 14,815 | 12,617 | +26 | Cash flow from operating activities | 33,470 | 20,910 | +60 | |||||||||||||||||||
| (6,207) | (4,273) | (2,946) | Cash flow from investing activities | (10,481) | (3,535) | |||||||||||||||||||||
| 12,448 | 10,542 | 9,671 | Free cash flow | G | 22,989 | 17,375 | ||||||||||||||||||||
| 7,024 | 5,064 | 4,383 | Cash capital expenditure | C | 12,088 | 8,357 | ||||||||||||||||||||
| 9,547 | 9,457 | 8,470 | +1 | Operating expenses | F | 19,004 | 17,905 | +6 | ||||||||||||||||||
| 9,270 | 9,256 | 8,505 | — | Underlying operating expenses | F | 18,526 | 17,228 | +8 | ||||||||||||||||||
| 14.3% | 9.3% | 3.2% | ROACE on a Net income basis | D | 14.3% | 3.2% | ||||||||||||||||||||
| 12.4% | 10.6% | 4.9% | ROACE on an Adjusted Earnings plus Non-controlling interest (NCI) basis | D | 12.4% | 4.9% | ||||||||||||||||||||
| 46,357 | 48,489 | 65,735 | Net debt | E | 46,357 | 65,735 | ||||||||||||||||||||
| 19.3% | 21.3% | 27.7% | Gearing | E | 19.3% | 27.7% | ||||||||||||||||||||
| 2,898 | 2,962 | 3,254 | -2 | Total production available for sale (thousand boe/d) | 2,930 | 3,371 | -13 | |||||||||||||||||||
| 2.42 | 0.94 | 0.44 | +157 | Basic earnings per share ($) | 3.34 | 1.17 | +185 | |||||||||||||||||||
| 1.54 | 1.20 | 0.71 | +28 | Adjusted Earnings per share ($) | B | 2.74 | 1.13 | +142 | ||||||||||||||||||
| 0.25 | 0.25 | 0.24 | — | Dividend per share ($) | 0.50 | 0.41 | +21 | |||||||||||||||||||
1. Q2 on Q1 change.
2.With effect from Q3 2021, Adjusted EBITDA includes the non-controlling interest component of Adjusted Earnings. Prior period comparatives have been revised.
Quarter Analysis
Income attributable to Shell plc shareholders, compared with the first quarter 2022, mainly reflected higher realised prices, higher refining margins, and higher gas and power trading and optimisation results, partly offset by lower LNG trading and optimisation results.
Second quarter 2022 income attributable to Shell plc shareholders included post-tax net impairment reversals of $4.3 billion following the revision of Shell's mid- and long-term commodity price assumptions reflecting the current energy market demand and supply fundamentals (see Note 8 to the Condensed Consolidated Interim Financial Statements), and net mark-to-market gains of $1.0 billion. These are included in identified items amounting to $5.2 billion in the quarter.
Adjusted Earnings and Adjusted EBITDA were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items of $5.2 billion and the cost of supplies adjustment of $1.4 billion.
Cash flow from operating activities for the second quarter 2022 was $18.7 billion, and reflected working capital outflow of $4.2 billion, tax payments of $3.2 billion, and net derivative outflows of $0.7 billion. Working capital outflow is driven by an increase in inventory due to price and volumes (increase of $6.8 billion), and an increase in current receivables, partly offset by an increase in current payables.
Cash flow from investing activities for the quarter was an outflow of $6.2 billion.
Net debt and Gearing: At the end of the second quarter 2022, net debt was $46.4 billion, compared with $48.5 billion at the end of the first quarter 2022, mainly driven by free cash flow, partly offset by dividends, share buybacks, and lease additions. Gearing was 19.3% at the end of the second quarter 2022, compared with 21.3% at the end of the first quarter 2022, driven by net debt reduction and higher equity.