Shell Plc – Q2 & Half Year unaudited results

SHELL PLC
2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

SUMMARY OF UNAUDITED RESULTS
Quarters – $ million																		Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
3,517			7,358			3,134			-52			Income/(loss) attributable to Shell plc shareholders						10,874			11,843			-8
6,293			7,734			5,073			-19			Adjusted Earnings			A			14,027			14,720			-5
16,806			18,711			14,435			-10			Adjusted EBITDA			A			35,517			35,867			-1
13,508			13,330			15,130			+1			Cash flow from operating activities						26,838			29,289			-8
(3,338)			(3,528)			(3,015)						Cash flow from investing activities						(6,866)			(7,253)
10,170			9,802			12,116						Free cash flow			G			19,972			22,037
4,719			4,493			5,130						Cash capital expenditure			C			9,211			11,631
8,950			8,997			9,653			-1			Operating expenses			F			17,947			18,964			-5
8,651			9,054			9,607			-4			Underlying operating expenses			F			17,704			18,900			-6
12.8%			12.0%			15.2%						ROACE2			D			12.8%			15.2%
75,468			79,931			84,366						Total debt			E			75,468			84,366
38,314			40,513			40,310						Net debt			E			38,314			40,310
17.0%			17.7%			17.3%						Gearing			E			17.0%			17.3%
2,817			2,911			2,731			-3			Oil and gas production available for sale (thousand boe/d)						2,864			2,816			+2
0.55			1.14			0.46			-52			Basic earnings per share ($)						1.70			1.73			-2
0.99			1.20			0.75			-18			Adjusted Earnings per share ($)			B			2.19			2.15			+2
0.3440			0.3440			0.3310			—			Dividend per share ($)						0.6880			0.6185			+11

Income attributable to Shell plc shareholders, compared with the first quarter 2024, reflected lower LNG trading and optimisation margins, lower refining margins, lower margins from crude and oil products trading and optimisation, and lower Integrated Gas and Upstream volumes, partly offset by higher Marketing margins and volumes.

Second quarter 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals, and reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures. These items are included in identified items amounting to a net loss of $2.7 billion in the quarter. This compares with identified items in the first quarter 2024 which amounted to a net loss of $0.6 billion.

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 positive $0.1 billion.

Cash flow from operating activities for the second quarter 2024 was $13.5 billion, and primarily driven by Adjusted EBITDA, and derivatives inflow, partly offset by tax payments of $3.4 billion, and working capital outflow of $0.3 billion.

Cash flow from investing activities for the quarter was an outflow of $3.3 billion, and included cash capital expenditure of $4.7 billion, and divestment proceeds of $0.8 billion.

Net debt and Gearing: At the end of the second quarter 2024, net debt was $38.3 billion, compared with $40.5 billion at the end of the first quarter 2024, mainly reflecting free cash flow, partly offset by share buybacks, cash dividends paid to Shell plc shareholders, interest payments, and lease additions. Gearing was 17.0% at the end of the second quarter 2024, compared with 17.7% at the end of the first quarter 2024, mainly driven by lower net debt.

Shareholder distributions

Total shareholder distributions in the quarter amounted to $6.1 billion comprising repurchases of shares of $4.0 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the second

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SHELL PLC
2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

quarter 2024 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the first quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the third quarter 2024 results announcement.

Half Year Analysis1

Half year 2024 income attributable to Shell plc shareholders, compared with the first half 2023, reflected lower LNG trading and optimisation margins, lower realised LNG and gas prices, lower trading and optimisation margins of power and pipeline gas, and lower refining margins, partly offset by lower operating expenses, higher Chemicals margins, and higher Integrated Gas and Upstream volumes.

By focusing the portfolio and simplifying the organisation, $1.7 billion of pre-tax structural cost reductions3 were delivered up to the second quarter 2024 compared with 2022 levels, with $0.7 billion in the first half 2024.

First half 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals of $1.9 billion, reclassifications of $1.1 billion from equity to profit and loss of cumulative currency translation differences related to funding structures, and unfavourable movements of $0.6 billion due to the fair value accounting of commodity derivatives. These charges, reclassifications and unfavourable movements are included in identified items amounting to a net loss of $3.3 billion. This compares with identified items in the first half 2023 which amounted to a net loss of $2.1 billion.

Adjusted Earnings and Adjusted EBITDA2 for the first half 2024 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items and the cost of supplies adjustment of negative $0.2 billion.

Cash flow from operating activities for the first half 2024 was $26.8 billion, and primarily driven by Adjusted EBITDA, and derivatives inflow of $1.0 billion, partly offset by tax payments of $6.1 billion, and working capital outflow of $3.0 billion.

Cash flow from investing activities for the first half 2024 was an outflow of $6.9 billion and included cash capital expenditure of $9.2 billion, net other investing cash outflows of $0.7 billion, divestment proceeds of $1.8 billion, and interest received of $1.2 billion.

This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 4 .