| 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.
| 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 Analysis1
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 earnings2 | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 Analysis1
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 Analysis1
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 Analysis1
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 Analysis1
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.