Shell Plc publishes fourth quarter 2022 press release

London, February 2, 2023                                                                                                                         

"Our results in Q4 and across the full year demonstrate the strength of Shell's differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.
We believe that Shell is well positioned to be the trusted partner through the energy transition. As we continue to put our Powering Progress strategy into action, we will build on our core strengths, further simplify the organisation and focus on performance. We intend to remain disciplined while delivering compelling shareholder returns, as demonstrated by the 15% dividend increase and the $4 billion share buyback programme announced today." 

Shell plc Chief Executive Officer, Wael Sawan 

STRONG RESULTS, DISCIPLINED CAPITAL ALLOCATION

• Strong performance in a continuing uncertain economic environment. Q4 2022 Adjusted Earnings of $9.8 billion, with Adjusted EBITDA of $20.6 billion, despite lower oil and gas prices compared with Q3 2022, with higher LNG trading and optimisation results. 
• 15% dividend per share increase for the fourth quarter. $4 billion share buybacks announced, expected to be completed by Q1 2023 results announcement. 
• 2022 full year shareholder distributions $26 billion. Total distributions in excess of 35% of CFFO for 2022.
• Strengthening the portfolio with the announced acquisition of Nature Energy (Denmark), a renewable natural gas producer, winning the wind tender for Hollandse Kust (west) VI as part of the Ecowende joint venture and further simplifying the portfolio with the merger of Shell Midstream Partners (USA).
• 2023 cash capex outlook: $23 - 27 billion.

¹Income/(loss) attributable to shareholders for Q4 2022 is $10.4 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available on www.shell.com/investors.

• CFFO of $22.4 billion for Q4 2022 benefited from a working capital inflow of $10.4 billion. The working capital inflow reflects the impact of lower oil and gas prices, active management of initial margin positions, decrease in accounts receivable and cash relating to joint ventures. Tax paid was higher at $4.4 billion in Q4 2022. As a result, net debt decreased by ~$3.5 billion (~7%) compared with last quarter, to $44.8 billion in Q4 2022.

Q4 2022 FINANCIAL PERFORMANCE DRIVERS

INTEGRATED GAS

• Lower liquefaction volumes mainly reflect longer-than-expected maintenance at Prelude and operational issues at QGC in Australia.
• Adjusted Earnings were higher than in Q3 2022 due to higher trading and optimisation results coupled with favourable movements in deferred tax positions.
• Trading and optimisation results driven by seasonality combined with capturing unique optimisation opportunities generated through the large scale and scope of our LNG trading portfolio. 

UPSTREAM

• Q4 2022 production was higher than in Q3 2022, mainly driven by lower scheduled maintenance and lower unscheduled deferment.
• Adjusted Earnings impacted by a decline in oil and gas prices. Q3 2022 earnings benefited from one-off non-cash provision releases and gains related to storage transfer effects in a joint venture.

MARKETING

• Marketing earnings were lower than in Q3 2022, due to the seasonal impact of lower volumes and lower margins in Mobility, as well as higher opex.

CHEMICALS & PRODUCTS

   
* Products covers refining and trading

• Lower trading and optimisation margins were offset by higher refining margins.
• Higher opex and depreciation includes the impact of commencement of operations at Shell Polymers Monaca (the Pennsylvania project) partly offset by favourable movements in deferred tax positions.

**With effect from Q2 2022, the methodology applied in calculating both Chemicals manufacturing plant utilisation and Refinery utilisation has been revised. For details, see the Quarterly Results Announcement.

RENEWABLES & ENERGY SOLUTIONS