Shell Global(SHEL) - 2024 Q4 - Annual Report

Corporate Structure and Governance - Shell plc reported outstanding shares of 6,084,228,376 ordinary shares with a nominal value of €0.07 each as of December 31, 2024[7]. - The company is classified as a large accelerated filer under the Securities Exchange Act[9]. - Shell plc has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months[8]. - The company has submitted electronically every Interactive Data File required during the preceding 12 months[8]. - Shell plc is not classified as a shell company under the Exchange Act[9]. - Sean Ashley serves as the Company Secretary for Shell plc[3]. - The board emphasized the importance of governance and risk management in navigating market uncertainties and regulatory changes[11]. Financial Performance - The company reported a significant increase in operating revenues, reaching $257 billion, reflecting a robust growth compared to the previous year[11]. - Liquidity and capital resources were strong, with cash and cash equivalents amounting to$ 267 billion, ensuring financial stability[12]. - Shell reported adjusted earnings of $23.7 billion for the period, a decrease from$ 28.3 billion in 2023[59]. - Cash flow from operating activities was $54.7 billion, slightly up from$ 54.2 billion in 2023[59]. - Total shareholder distributions reached $23 billion, comprising$ 9 billion in cash dividends and $14 billion in share buybacks, representing 41% of cash flow from operating activities of$ 55 billion[113]. - The annual dividend was $1.390 per share, with the quarterly dividend increasing to$ 0.358 per share for the fourth quarter[114]. - Shareholder returns remain a priority, with a commitment to maintaining or increasing dividends, reflecting confidence in future performance[11]. - The company reported a 37% increase in shareholder value, demonstrating effective management and strategic initiatives[12]. Strategic Focus and Growth - The company is focusing on expanding its integrated gas segment, which contributed $48 billion to the overall revenue, indicating a strategic shift towards cleaner energy sources[11]. - Future guidance indicates an expected revenue growth of 5-7% annually, driven by market expansion and new product launches[11]. - The company is actively pursuing acquisitions to enhance its market position, particularly in the renewable energy sector[12]. - Shell aims to sustain liquids production of at least 1.4 million barrels per day through to 2030 with increasingly lower carbon intensity[100]. - The company is committed to becoming a net-zero emissions energy business by 2050, with climate targets approved by 78% of shareholders at the Annual General Meeting[94]. - The company is transforming its business to include more low-carbon products and services, advocating for policies that generate demand for investment in a low-carbon energy system[108]. Environmental and Sustainability Goals - The company aims to achieve a 20% reduction in greenhouse gas emissions by 2025, aligning with its sustainability goals[12]. - Shell's net carbon intensity includes emissions from production, supply, and customer use of energy products, highlighting the company's commitment to sustainability[25]. - The company achieved a 9% reduction in net carbon intensity of energy products sold compared to 2016, moving closer to the 15-20% reduction target by 2030[72]. - Shell abated over 1 million tonnes of CO₂ through various projects, maintaining Scope 1 and 2 emissions roughly flat compared to 2023[71]. - The company aims to achieve net-zero emissions by 2050 and reduce Scope 1 and 2 absolute emissions by 50% by 2030 compared to 2016 levels[117]. - The Northern Lights joint venture in Norway is set to offer commercial carbon transport and storage as a service, with first CO₂ shipments expected in 2025[52]. Risks and Challenges - The report includes forward-looking statements regarding Shell's financial condition and results, which are subject to various risks and uncertainties[29]. - The company acknowledges potential market risks, including price fluctuations in crude oil and natural gas, which could impact future operations[29]. - The report outlines the significance of environmental and regulatory risks, including climate change, which could affect Shell's business operations[29]. - The company faces significant risks from geopolitical instability, including the ongoing Russia-Ukraine war, which could impact market conditions and operations[159]. - The company is subject to financial risks, including liquidity risk and credit risk, which could impact operations if access to debt markets becomes challenging[166]. - The company has faced litigation related to climate change, which could have material adverse effects on its reputation and financial condition[163]. - The company faces ongoing societal pressures regarding its environmental impact and governance, which could harm its reputation and ability to operate effectively[199][200]. Operational Highlights - Shell's Whale deep-water platform is expected to reach peak production of approximately 100,000 barrels of oil equivalent per day[44]. - The Prelude floating LNG facility achieved record production in 2024, contributing to Shell's operational performance[68]. - The company announced a final investment decision for the Bonga North project, expected to start production by the end of the decade with a peak output of 110,000 barrels of oil equivalent per day[68]. - Total oil and gas production available for sale in 2024 is 1,038 million boe, a slight increase of 1.9% from 1,019 million boe in 2023[144]. - Proved developed and undeveloped oil and gas reserves as of December 31, 2024, total 9,620 million boe, down 1.7% from 9,787 million boe in 2023[145]. - The joint venture with Equinor ASA will contribute 157 million boe of Shell's proved reserves, with Shell reporting 50% of the new joint venture's reserves[148]. Financial Management and Investments - The company has a range of guaranteed notes with varying interest rates and due dates, including 3.25% Guaranteed Notes due 2025 and 4.375% Guaranteed Notes due 2045[6]. - Cash capital expenditure was$ 21 billion, while total debt was reduced to $77 billion and net debt was$ 39 billion as of December 31, 2024[113]. - Structural cost reductions amounted to $3.1 billion from a 2022 baseline, against a target of$ 2-3 billion by the end of 2025[113]. - Cash capital expenditure is lowered to $20-22 billion per year for 2025-2028, down from$ 21 billion in 2024[132]. - The company intends to maintain a strong investment grade rating while achieving a ≥10% return on average capital employed across all segments[131]. Human Resources and Diversity - The representation of women in Senior Leadership grew to 33% in 2024, with a goal to increase it to 40% by 2030[123].