Shell Global(SHEL) - 2024 Q4 - Annual Report

Strategic Report Chair's message The Chair highlights Shell's 2024 performance, emphasizing the 'more value with less emissions' strategy and key project advancements - Shell's strategy of 'more value with less emissions' is yielding strong results and compelling shareholder returns, with $3 billion or more in buybacks announced for 13 consecutive quarters by early 2025[21] - Significant progress was made on new projects: the Manatee gas field in Trinidad and Tobago, the Whale platform in the Gulf of America, and the Penguins facility in the North Sea all advanced[23] - By the end of 2024, Shell achieved 60% of its target to halve Scope 1 and 2 emissions from operations by 2030 (compared to 2016 levels)[24] - Shell is advancing Carbon Capture and Storage (CCS) with final investment decisions for two projects in Canada and the Northern Lights joint venture in Norway[30][31] Chief Executive Officer's review The CEO review emphasizes strong 2024 financial results and strategic progress driven by performance, discipline, and simplification 2024 Performance at a Glance | Metric | 2024 Value | 2023 Value | | :--- | :--- | :--- | | Income for the period | $16.5 billion | $19.6 billion | | Adjusted Earnings* | $23.7 billion | $28.3 billion | | Cash flow from operating activities | $54.7 billion | $54.2 billion | | Free cash flow* | $39.5 billion | $36.5 billion | | Capital expenditure | $19.6 billion | $23.0 billion | | Share buyback programme | $13.9 billion | $14.6 billion | | Dividends paid | $8.7 billion | $8.4 billion | | Scope 1 and 2 emissions CO2e | 58 million tonnes | 57 million tonnes | | Net carbon intensity (NCI) | 71 gCO2e/MJ | 72 gCO2e/MJ | Non-GAAP measure - The company achieved its target to reduce structural costs by $2-3 billion by the end of 2025, one year ahead of schedule[55] - By the end of 2024, Shell achieved 60% of the required reduction to meet its 2030 Scope 1 and 2 emissions target and reduced total methane emissions by 76% compared to 2016[60][61] - The company installed over 70,000 public charge points for electric vehicles by the end of 2024, achieving its goal a year ahead of schedule[63] Shell's strategy Shell's strategy aims to deliver 'more value with less emissions' by focusing on key business segments and financial targets This is Shell Shell is a global energy company organized into two directorates, leveraging key differentiators like deep-water expertise and LNG capability - Shell's business is organized into two main directorates: Integrated Gas and Upstream, and Downstream, Renewables and Energy Solutions[80][85] - The company's key competitive advantages include deep-water expertise, a world-leading integrated gas and LNG business, advanced technology, and a powerful integrated trading model[83] How we create value Shell creates value by transforming diverse capital inputs through its integrated business activities to meet global energy demand responsibly Key Inputs and Metrics (2024) | Input Category | Metric | 2024 Value | 2023 Value | | :--- | :--- | :--- | :--- | | Financial Capital | Equity attributable to Shell plc shareholders | $178 billion | $187 billion | | | Net debt* | $39 billion | $44 billion | | | Cash capital expenditure* | $21 billion | $24 billion | | Operations | Refinery and chemical plant availability | 92% | 91% | | | Oil & gas production available for sale | 2,836 kboe/d | 2,791 kboe/d | | | LNG liquefaction volumes | 29 million tonnes | 28 million tonnes | | Our People | Number of employees | 96 thousand | 103 thousand | | Intellectual Capital | R&D expenses | $1,099 million | $1,287 million | | Natural Resources | Proved oil and gas reserves | 9,620 million boe | 9,787 million boe | Non-GAAP measure Our strategy The strategy focuses on disciplined investment and a shift to low-carbon solutions, guided by four themes to achieve net-zero by 2050 - The core strategy is to deliver more value with less emissions by growing the integrated gas and LNG business, sustaining liquids production, and focusing the Downstream, Renewables, and Energy Solutions segments[100] 2024 Performance: Generating Shareholder Value | Metric | 2024 Performance | | :--- | :--- | | Total shareholder distributions* | $23 billion ($9B dividends, $14B buybacks) | | Distributions as % of CFFO* | 41% | | Cash flow from operating activities (CFFO)* | $55 billion | | Cash capital expenditure* | $21 billion | | Net debt* | $39 billion | | Structural cost reductions* (vs 2022) | $3.1 billion | Non-GAAP measure 2024 Performance: Achieving Net-Zero Emissions | Metric | 2024 Performance | | :--- | :--- | | Scope 1 & 2 emissions reduction (vs 2016) | 30% | | Methane emissions intensity | 0.04% (below 0.2% target) | | Net Carbon Intensity (NCI) reduction (vs 2016) | 9.0% | | Routine flaring from upstream | Stable at 0.1 million tonnes; eliminated from Jan 1, 2025 | | Customer oil product emissions reduction (vs 2021) | 14% (5% reduction in 2024) | Progress against our longer-term targets Shell reports being ahead of schedule on key financial and emissions targets set at its 2023 Capital Markets Day Progress on 'More Value' Targets (vs. CMD 2023) | Target | Goal | 2024 Status | | :--- | :--- | :--- | | Shareholder distributions | 30-40% of CFFO* | 41% in 2024; 42% average since end-2022 | | Structural cost reduction* | $2-3 billion by end-2025 | $3.1 billion delivered by end-2024 (ahead of schedule) | | Price-normalised FCF growth* | >6% per year through 2030 | 27% average annual growth since 2022 | | Price-normalised FCF growth/share* | >10% per year through 2025 | 36% average annual growth since 2022 | Non-GAAP measure Progress on 'Less Emissions' Targets (vs. ETS 2024) | Target | Goal | 2024 Status | | :--- | :--- | :--- | | Halving Scope 1 & 2 emissions | 50% reduction by 2030 (vs. 2016) | 30% reduction achieved | | Net Carbon Intensity (NCI) | 15-20% reduction by 2030 (vs. 2016) | 9.0% reduction achieved (met 2024 interim target) | | Routine flaring (upstream) | Eliminate by 2025 | Target met as of Jan 1, 2025 | | Methane emissions intensity | Near-zero by 2030 | 0.04% in 2024 (well below 0.2% target) | Outlook The company reinforces its strategy with enhanced financial targets for shareholder returns, cost cuts, and disciplined capital expenditure Updated Financial Targets (CMD 2025) | Metric | Updated Target | | :--- | :--- | | Shareholder Distributions | 40-50% of CFFO* through the cycle (up from 30-40%) | | Structural Cost Reduction* | Cumulative $5-7 billion by end-2028 (vs. 2022) | | Cash Capital Expenditure* | $20-22 billion per year for 2025-2028 | | Normalised Free Cash Flow/Share* | >10% average annual growth through 2030 | Non-GAAP measure - Shell will reinforce its leadership in LNG by growing sales 4-5% per year through to 2030 and grow total production by 1% per year to 2030[166][167] - The company will sustain liquids production at 1.4 million barrels per day with increasingly lower carbon intensity[167] Performance in the year Shell reports strong 2024 performance with robust cash flow, operational improvements, and progress on its energy transition goals Performance indicators Key 2024 indicators show improved personal safety and strong cash flow, though process safety incidents increased Key Performance Indicators (2022-2024) | Indicator | Unit | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | :--- | | Personal safety (SIF-F) | cases/100m hours | 1.5 | 2.6 | 2.0 | | Process safety | Tier 1 & 2 events | 90 | 63 | 66 | | Cash flow from operating activities | $ billion | 55 | 54 | 68 | | LNG volumes | million tonnes | 29.1 | 28.3 | 29.7 | | Operational emissions reductions | thousand tonnes CO2 | 1,028 | 1,081 | 2,010 | | EV charge points | thousand | 73 | 54 | 27 | | Upstream controllable availability | % | 88.0 | 84.7 | 87.3 | | Midstream availability | % | 91.4 | 89.1 | 89.3 | | Refinery & chemical plant availability | % | 92.1 | 91.2 | 65.5 | Generating shareholder value This section details Shell's 2024 financial results, capital management, and significant returns to shareholders through dividends and buybacks Group results Shell reports strong 2024 cash flow but lower income and earnings due to weaker LNG trading margins and prices Key Group Financial Metrics ($ million) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Income attributable to Shell plc shareholders | 16,094 | 19,359 | 42,309 | | Adjusted Earnings* | 23,716 | 28,250 | 39,870 | | Cash flow from operating activities | 54,687 | 54,191 | 68,414 | | Free cash flow* | 39,533 | 36,457 | 45,965 | | Cash capital expenditure* | 21,085 | 24,392 | 24,833 | | ROACE on an Adjusted Earnings basis* | 11.3% | 12.8% | 18.0% | Non-GAAP measure Segment Adjusted Earnings* ($ million) | Segment | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Integrated Gas | 11,390 | 13,919 | 16,146 | | Upstream | 8,395 | 9,806 | 17,354 | | Marketing | 3,885 | 3,312 | 2,905 | | Chemicals and Products | 2,934 | 3,617 | 4,592 | | Renewables and Energy Solutions | (497) | 756 | 1,778 | | Corporate | (1,968) | (2,875) | (2,472) | On a current cost of supplies basis - Oil and gas production available for sale increased to 2,836 thousand boe/d in 2024 from 2,791 thousand boe/d in 2023, driven by growth from new fields[230][231] - Proved reserves decreased by 167 million boe in 2024 to 9,620 million boe, after accounting for production of 1,084 million boe[233] Liquidity and capital resources Shell maintained strong liquidity in 2024, reducing net debt and gearing while funding operations through cash flow and divestments Capitalization and Debt ($ million) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Equity attributable to Shell plc shareholders | 178,307 | 186,607 | | Total debt | 77,078 | 81,541 | | Net debt* | 38,809 | 43,542 | | Gearing* | 17.7% | 18.8% | Non-GAAP measure - In 2024, Shell returned $22.6 billion to shareholders, comprising $8.7 billion in dividends and $13.9 billion in share buybacks, representing 41% of cash flow from operating activities[255] Cash Capital Expenditure by Segment* ($ million) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Integrated Gas | 4,767 | 4,196 | | Upstream | 7,890 | 8,343 | | Marketing | 2,445 | 5,790 | | Chemicals and Products | 3,290 | 3,014 | | Renewables and Energy Solutions | 2,549 | 2,681 | | Total | 21,085 | 24,392 | Non-GAAP measure Market overview The 2024 market saw resilient economic growth but lower, volatile energy prices and weaker demand growth from China Average Industry Prices | Marker | 2024 | 2023 | | :--- | :--- | :--- | | Brent ($/b) | 81 | 83 | | West Texas Intermediate ($/b) | 76 | 78 | | Henry Hub ($/MMBtu) | 2.2 | 2.5 | | EU TTF ($/MMBtu) | 11 | 13 | - Global liquids demand growth slowed to 0.9 mb/d in 2024 from over 2 mb/d in 2023, largely due to reduced demand growth from China[275] - Global gas prices weakened in 2024, with European TTF averaging $10.95/MMBtu (17% lower YoY) and Asian JKM averaging $11.89 (14% lower YoY)[280][281] Indicative Margins | Margin Type | 2024 | 2023 | | :--- | :--- | :--- | | Global indicative refining margin ($/bbl) | 7.74 | 12.45 | | Global indicative chemical margin ($/tonne) | 151.72 | 132.63 | Integrated Gas The Integrated Gas segment delivered strong 2024 operational performance with increased LNG volumes and strategic portfolio growth Integrated Gas Key Metrics | Metric | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Segment earnings* | $ million | 9,590 | 7,057 | | Adjusted Earnings* | $ million | 11,390 | 13,919 | | Cash flow from operating activities | $ million | 16,909 | 17,520 | | Total production available for sale | thousand boe/d | 954 | 939 | | LNG liquefaction volumes | million tonnes | 29.1 | 28.3 | | LNG sales volumes | million tonnes | 65.8 | 67.1 | On a current cost of supplies basis - LNG liquefaction volumes increased by 3% compared to 2023, primarily due to lower maintenance in Australia, with Prelude and QGC achieving record production[301][312] - Significant portfolio developments include the agreement to acquire Pavilion Energy, a final investment decision on the Manatee gas project, and an investment in the ADNOC Ruwais LNG project[322] Upstream The Upstream segment delivered consistent 2024 performance with increased production and strategic investments in high-margin deep-water assets Upstream Key Metrics | Metric | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Segment earnings* | $ million | 7,772 | 8,540 | | Adjusted Earnings* | $ million | 8,395 | 9,806 | | Cash flow from operating activities | $ million | 21,244 | 21,450 | | Total production available for sale | thousand boe/d | 1,831 | 1,800 | | Liquids production available for sale | thousand b/d | 1,320 | 1,325 | | Natural gas production available for sale | million scf/d | 2,964 | 2,754 | On a current cost of supplies basis - Total production increased compared to 2023, mainly due to an 8% increase in natural gas production, partly offset by field decline[363] - Key portfolio developments include final investment decisions on the Atapu-2 project in Brazil and the Bonga North deep-water project in Nigeria[365][372] Oil and gas information This section provides supplementary data on oil and gas activities, showing a slight decrease in total proved reserves in 2024 Proved Oil and Gas Reserves (million boe) | Category | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Crude oil and natural gas liquids | 3,889 | 3,904 | | Synthetic crude oil | 741 | 757 | | Natural gas | 4,990 | 5,126 | | Total | 9,620 | 9,787 | - Before production, proved reserves increased by 917 million boe in 2024; after accounting for production, total proved reserves decreased by 167 million boe[450] Average Realised Prices (2024) | Product | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Crude oil and NGL (Subsidiaries) | $/bbl | 74.04 | 75.12 | | Synthetic crude oil (Subsidiaries) | $/bbl | 68.35 | 69.26 | | Natural gas (Subsidiaries) | $/thousand scf | 6.47 | 7.40 | Marketing The Marketing segment grew 2024 earnings through higher margins and advanced its EV charging strategy ahead of schedule Marketing Key Metrics | Metric | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Segment earnings* | $ million | 1,894 | 3,057 | | Adjusted Earnings* | $ million | 3,885 | 3,312 | | Cash flow from operating activities | $ million | 7,363 | 5,561 | | Marketing sales volumes | thousand b/d | 2,843 | 3,045 | On a current cost of supplies basis - Adjusted Earnings increased by $573 million compared to 2023, driven by higher unit margins in Lubricants and Mobility[494] - The number of public electric vehicle charge points reached almost 73,000 by the end of 2024, achieving the 70,000 target a year early[491][501][504] - Shell is divesting around 500 low-return retail sites annually until 2025, with the sale of Shell Pakistan contributing to this goal[503] Chemicals and Products The Chemicals and Products segment saw improved plant utilisation and earnings in 2024, driven by strategic portfolio adjustments Chemicals and Products Key Metrics | Metric | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Segment earnings* | $ million | 1,757 | 1,482 | | Adjusted Earnings* | $ million | 2,934 | 3,617 | | Cash flow from operating activities | $ million | 7,253 | 7,513 | | Chemicals manufacturing plant utilisation | % | 76 | 68 | | Refinery utilisation | % | 85 | 85 | | Product sales volumes | thousand b/d | 1,052 | 1,078 | | Chemicals sales volumes | thousand tonnes | 11,875 | 11,245 | On a current cost of supplies basis - Chemicals manufacturing plant utilisation increased by 8 percentage points from 2023, mainly due to the ramp-up of Shell Polymers Monaca[543] - Significant portfolio developments include the decision to convert the Wesseling site in Germany, the sale of the Energy and Chemicals Park in Singapore, and the FID to expand the CSPC petrochemical complex in China[556] Renewables and Energy Solutions The Renewables and Energy Solutions segment advanced its low-carbon portfolio in 2024 despite reporting a loss due to lower trading margins Renewables and Energy Solutions Key Metrics | Metric | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Segment earnings* | $ million | (1,229) | 3,089 | | Adjusted Earnings* | $ million | (497) | 756 | | Cash flow from operating activities | $ million | 3,798 | 2,984 | | External power sales | TWh | 306 | 279 | | Sales of pipeline gas to end-use customers | TWh | 652 | 738 | On a current cost of supplies basis - The segment's strategy was refreshed to shift the asset portfolio towards energy storage and flexible generation and increase focus on gas and power trading[600] - Key developments include the Hollandse Kust Noord offshore wind park achieving commercial operation and FIDs on two CCS projects in Canada[598][609] Renewable Power Generation Capacity (Shell interest - GW) | Status | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | In operation | 3.4 | 2.5 | 2.2 | | In development | 4.0 | 4.1 | 4.2 | Corporate The Corporate segment, comprising non-operating and central functions, reported a slightly increased expense of $3.0 billion in 2024 Corporate Segment Key Metrics ($ million) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Segment earnings* | (2,992) | (2,944) | (2,562) | | Adjusted Earnings* | (1,968) | (2,875) | (2,472) | | Cash flow from operating activities | (1,882) | (832) | 2,001 | On a current cost of supplies basis Our journey to net zero Shell advances its 2050 net-zero goal by transforming its product mix and cutting operational and customer emissions - Shell's target is to become a net-zero emissions energy business by 2050, which it believes supports the 1.5°C goal of the Paris Agreement[651] Key Climate Targets and Ambition | Category | Target/Ambition | | :--- | :--- | | Overall Target | Net-zero emissions by 2050 (Scope 1, 2, and 3) | | Operations (Scope 1 & 2) | Halve emissions by 2030 (vs. 2016 baseline) | | Methane | Near-zero methane emissions by 2030 | | Flaring | Eliminate routine flaring from Upstream by 2025 (Achieved Jan 1, 2025) | | Products (NCI) | Reduce Net Carbon Intensity by 15-20% by 2030 (vs. 2016) | | Oil Products (Scope 3) | Reduce customer emissions from oil products by 15-20% by 2030 (vs. 2021) | - In 2024, R&D expenditure on projects contributing to decarbonization was approximately $497 million, representing about 45% of total R&D spending[728] Respecting nature Shell is committed to protecting the environment by managing its impact on biodiversity, water, and promoting a circular economy - Shell aims for a net positive impact on biodiversity for new projects in critical habitats and net-zero deforestation from new activities[906] - In 2024, fresh-water consumption in high-stress areas was reduced by 36% compared to the 2018 baseline, surpassing the 15% reduction target for 2025[913] - The volume of operational spills of oil and oil products increased to 1.2 thousand tonnes in 2024 from 0.37 thousand tonnes in 2023[927] - In Nigeria, about 81% of crude oil spill incidents from SPDC JV facilities were caused by illegal third-party activities[935] Powering lives Shell aims to positively impact society by providing essential energy, contributing to local economies, and fostering an inclusive workplace - In 2024, Shell's ventures spent around $42 billion on goods and services and paid $18 billion in taxes to governments[1003][1006] Employee and Diversity Metrics (as of Dec 31, 2024) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Employees | 96,000 | 103,000 | | Women Employees | 35% | - | | Women in Senior Leadership | 33% | 32% | | Women on the Board | 42% | 42% | | Women on Executive Committee | 57% | 43% | - The company spent $165 million on social investment in 2024, with $78 million being voluntary and $87 million required by regulations[1014] Safety Shell's commitment to safety is encapsulated in its 'Goal Zero' ambition of no harm to people and no leaks - Tragically, two contractor colleagues in Shell-operated ventures lost their lives in incidents during 2024[1042] Safety Performance Metrics | Metric | Unit | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Serious Injury, Illness and Fatality Frequency (SIF-F) | cases per 100m working hours | 1.5 | 2.6 | | Tier 1 and Tier 2 process safety events | Number of events | 90 | 63 | - The increase in process safety events was driven by the Downstream, Renewables and Energy Solutions business, prompting corrective actions[1047] Living by our values Shell's core values of honesty, integrity, and respect are fundamental to its commitment to ethical business conduct - In 2024, there were 2,025 reports to the Shell Global Helpline, leading to 343 confirmed breaches of the Code of Conduct and the dismissal of 110 individuals[1056] - Shell's Ethics and Compliance Manual defines requirements for complying with laws on anti-bribery, antitrust, data privacy, and trade compliance[1057][1058] - The company maintains a mature data privacy compliance program based on its Binding Corporate Rules (BCRs) to ensure personal data is managed lawfully[1064] Our approach to sustainability Shell's approach to sustainability is integrated into its core strategy and managed through a comprehensive governance structure - For the first time, Shell has voluntarily prepared a Sustainability Statements section in accordance with the EU Corporate Sustainability Reporting Directive (CSRD)[1073] - The Board has primary oversight of sustainability, supported by four committees: Sustainability (SUSCO), Remuneration (REMCO), Audit and Risk (ARC), and Nomination and Succession (NOMCO)[1076][1079] - Shell's sustainability management is underpinned by its Commitment and Policy on HSSE & SP and the Safety, Environment and Asset Management (SEAM) Standards[1095][1096] Risk management and risk factors The Board oversees a comprehensive risk management framework to identify, assess, and respond to strategic, operational, and cultural risks - The Board oversees a risk management process that involves risk identification, assessment of impact and likelihood, and development of risk responses[1127][1129][1133] - Key risk factors include portfolio risks (commodity price volatility, competition), climate change and the energy transition (demand shifts, regulatory costs), and country risks[1139][1151][1158] - Financial risks such as liquidity, interest rate, and credit risk are actively managed, alongside risks from trading operations and physical security[1164][1173][1177] Principal decisions & stakeholders (Section 172(1) statement) This statement confirms Directors acted to promote the Company's success while considering all key stakeholder interests - The Board confirms it has acted in accordance with Section 172(1) of the Companies Act 2006, considering all key stakeholders in its decision-making[1206] - A principal decision was the approval of the Energy Transition Strategy 2024 (ETS24), which was supported by 78% of shareholders in an advisory vote[1221] - The Board approved significant shareholder distributions, including $14 billion in share buybacks during 2024[1224][1230] - Key strategic investment decisions included the Ruwais LNG project, the Atapu-2 project, the Bonga North project, and the CSPC petrochemical facility expansion[1236][1238][1239][1240] Governance Introduction from the Chair The Chair introduces the governance section, highlighting the Board's focus on performance, discipline, and simplification in 2024 - The Board and Executive Committee focused on performance, discipline, and simplification to transform Shell into a more competitive business[1247] - Shell's Energy Transition Strategy 2024 (ETS24) was endorsed by shareholders at the May 2024 AGM[1251] - The company applies the principles of the 2018 UK Corporate Governance Code, with one noted exception for workforce engagement methods[1254] The Board of Shell plc This section provides biographies of the Board of Directors, outlining their diverse skills and extensive experience - The Board is led by Chair Sir Andrew Mackenzie, with Wael Sawan as Chief Executive Officer and Sinead Gorman as Chief Financial Officer[1270][1278][1283] Board Diversity (as of Dec 31, 2024) | Category | Metric | Value | | :--- | :--- | :--- | | Gender | Female | 42% | | | Male | 58% | | Ethnicity | White British or other White | 75% | | | Asian / Asian British | 17% | | | Other ethnic group | 8% | | Tenure | 0-3 years | 44% | | | 4-6 years | 44% | | | 7-9 years | 11% | Executive Committee The Executive Committee is responsible for Shell's main business areas and was restructured in early 2025 to align with strategy - As of January 2025, Shell announced significant changes to its Executive Committee structure, effective April 2025, to simplify leadership[1351][1352] Executive Committee Diversity (as of Dec 31, 2024) | Category | Metric | Value | | :--- | :--- | :--- | | Gender | Female | 57% | | | Male | 43% | | Ethnicity | White British or other White | 71% | | | Other Minority Ethnic Group | 14% | | | Prefer not to say | 14% | Directors' Remuneration Report This report details director compensation for 2024, aligning pay with performance, strategy, and shareholder interests 2024 Single Figure of Total Remuneration (Audited) | Executive Director | Position | 2024 Total Remuneration (£) | | :--- | :--- | :--- | | Wael Sawan | CEO | 8,615,000 | | Sinead Gorman | CFO | 7,251,000 | - The 2024 annual bonus scorecard had a mathematical outcome of 1.66, but was adjusted down to 1.61 due to tragic fatalities during the year[1548] - The 2022-2024 Long-Term Incentive Plan (LTIP) vested at 136% of target, based on performance against key financial and energy transition metrics[1599] CEO Pay Ratio (Option A) | Year | 25th Percentile Ratio | Median Ratio | 75th Percentile Ratio | | :--- | :--- | :--- | :--- | | 2024 | 83:1 | 61:1 | 40:1 | | 2023 | 80:1 | 58:1 | 39:1 | Financial Statements and Supplements Independent Auditor's Report The auditor issued an unqualified opinion, identifying four key audit matters related to climate change, reserves, impairment, and trading - The auditor issued an unqualified opinion, confirming the financial statements give a true and fair view and are prepared in accordance with accounting standards[1807] - The key audit matters identified were: 1) Impact of climate change, 2) Estimation of oil and gas reserves, 3) Impairment assessment of PP&E, and 4) Accounting for complex trading transactions[1811] - The audit materiality was set at $2.0 billion, based on a three-year normalized pre-tax Adjusted Earnings[1811] Consolidated Financial Statements Shell's 2024 financial statements show lower revenue and income but strong operating cash flow, prepared in accordance with IFRS Consolidated Statement of Income ($ million) | Item | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Revenue | 284,312 | 316,620 | 381,314 | | Income before taxation | 29,922 | 32,627 | 64,809 | | Income for the period | 16,521 | 19,636 | 42,874 | | Income attributable to Shell plc shareholders | 16,094 | 19,359 | 42,309 | | Basic earnings per share ($) | 2.55 | 2.88 | 5.76 | Consolidated Balance Sheet ($ million) | Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total assets | 387,609 | 406,459 | | Total liabilities | 207,441 | 217,998 | | Total equity | 180,168 | 188,461 | Consolidated Statement of Cash Flows ($ million) | Item | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Cash flow from operating activities | 54,687 | 54,191 | 68,414 | | Cash flow from investing activities | (15,155) | (17,734) | (22,448) | | Cash flow from financing activities | (38,435) | (38,235) | (41,901) | | (Decrease)/increase in cash and cash equivalents | 336 | (1,472) | 3,801 | Supplementary information - oil and gas (unaudited) This section provides unaudited supplementary data on oil and gas reserves and the discounted future net cash flows from them - Proved reserves are estimated by a central group of internal experts with an average of 28 years' experience and are reviewed by internal committees[2333] Change in Proved Reserves of Crude Oil, NGL, Synthetic Crude Oil & Bitumen (million barrels) | Category | Shell Subsidiaries | Shell share of JV & Associates | Total | | :--- | :--- | :--- | :--- | | At Jan 1, 2024 | 4,269 | 392 | 4,661 | | Revisions & reclassifications | 395 | (5) | 390 | | Extensions & discoveries | 52 | 0 | 52 | | Production | (526) | (24) | (550) | | At Dec 31, 2024 | 4,267 | 363 | 4,630 | Change in Proved Reserves of Natural Gas (thousand million scf) | Category | Shell Subsidiaries | Shell share of JV & Associates | Total | | :--- | :--- | :--- | :--- | | At Jan 1, 2024 | 23,276 | 6,453 | 29,729 | | Revisions & reclassifications | (82) | 148 | 66 | | Extensions & discoveries | 1,983 | 149 | 2,132 | | Production | (2,726) | (366) | (3,092) | | At Dec 31, 2024 | 22,558 | 6,384 | 28,942 | Sustainability Statements General This section provides general sustainability disclosures as per ESRS 2, outlining governance, strategy, and risk management - Shell has voluntarily included a Sustainability Statements section for the first time, prepared in accordance with the EU Corporate Sustainability Reporting Directive (CSRD)[4] Environment This section details Shell's environmental disclosures, covering climate, pollution, water, biodiversity, and resource use Social This section covers social disclosures on Shell's workforce, value chain workers, and affected communities Governance This section details governance-related sustainability disclosures, including business conduct, tax, and safety Additional Information Shareholder information This section provides practical information for shareholders, including share listings, dividends, and contact details Non-GAAP measures reconciliations This section provides definitions and reconciliations for non-GAAP measures to their most comparable IFRS measures Appendix: Significant subsidiaries and other related undertakings (audited) This appendix lists Shell's significant subsidiaries and related undertakings, providing transparency on corporate structure