Shell (SHEL) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with $6.0 billion in adjusted earnings and $14.7 billion cash flow from operations, despite lower crude prices and refining margins.

• Total shareholder distributions reached $5.7 billion, including $3.5 billion in buybacks and $2.2 billion in dividends, with a new $3.5 billion buyback program announced.

• Maintained a resilient balance sheet with net debt at $35.2 billion, or $9.6 billion excluding lease liabilities, the lowest since 2015.

• Advanced energy transition strategy with investments in LNG, deepwater upstream, selective low-carbon projects, and acquisitions in power and LNG.

• Solid operational performance across major segments offset weaker oil prices and refining margins.

Financial highlights

• Q3 2024 adjusted earnings were $6.0 billion, with adjusted EBITDA at $16.0 billion.

• Cash flow from operations totaled $14.7 billion, up from $13.5 billion in Q2 2024.

• Free cash flow for Q3 2024 was $10.8 billion.

• Net debt at quarter-end was $35.2 billion, or $9.6 billion excluding leases; gearing improved to 15.7%.

• Q3 2024 revenue was $71.1 billion, down from $76.4 billion in Q3 2023.

Outlook and guidance

• Full-year 2024 cash CapEx expected below the lower end of the $22–$25 billion range.

• 2025 CapEx guidance remains at $22–$25 billion, with flexibility for growth opportunities.

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

• Structural cost reductions of $2–3 billion targeted by end-2025.

• Q4 2024 production guidance: Integrated Gas 900–960 kboe/d, Upstream 1,750–1,950 kboe/d, refinery utilization 75%–83%.