Shell (SHEL) Q2 2024 earnings summary

Executive summary

• Achieved $6.3 billion in adjusted earnings and $13.5 billion in cash flow from operations in Q2 2024, reflecting strong operational performance, cost discipline, and expansion of the LNG portfolio.

• Delivered $1.7 billion in structural cost reductions since 2022, with $0.7 billion in 2024 to date.

• Enhanced shareholder returns with a $3.5 billion buyback, $0.344 dividend per share, and $6.1 billion distributed in Q2 2024.

• Progressed energy transition strategy, including major project investments, divestments, and a focus on value with lower emissions.

• Q2 2024 income attributable to shareholders was $3.5 billion, down 52% from Q1, mainly due to lower LNG and refining margins.

Financial highlights

• Q2 2024 adjusted earnings were $6.3 billion, adjusted EBITDA $16.8 billion, and free cash flow $10.2 billion.

• Net debt at quarter-end was $38.3 billion, with gearing at 17.0%.

• Q2 2024 revenue was $74.5 billion; H1 2024 revenue was $146.9 billion.

• Total shareholder distributions in Q2 2024 were $6.1 billion, including $4.0 billion in buybacks and $2.2 billion in dividends.

• H1 2024 adjusted earnings reached $14.0 billion.

Outlook and guidance

• Full-year 2024 cash capex expected within $22–$25 billion, with similar levels for 2025.

• Shareholder distributions targeted at 30-40% of CFFO, with a progressive dividend policy of ~4% annually.

• On track to deliver over 500 kboe/d from new projects by 2025, supporting LNG and upstream growth.

• Q3 2024 guidance: Integrated Gas production 920–980 kboe/d, LNG liquefaction 6.8–7.4 mt, Upstream production 1,580–1,780 kboe/d.

• Continued focus on cost discipline, operational excellence, and selective investment in high-return projects.