London, January 30, 2025
"2024 was another year of strong financial performance across Shell. Despite the lower earnings this quarter, cash delivery remained solid and we generated free cash flow of $40 billion across the year, higher than 2023, in a lower price environment. Our continued focus on simplification helped to deliver over $3 billion in structural cost reductions since 2022, meeting our target ahead of schedule, whilst also making significant progress against all our other financial targets1.
Today, we announce a 4% increase in our dividends and another $3.5 billion buyback programme, making this the 13th consecutive quarter of at least $3 billion of buybacks, all whilst further strengthening our balance sheet this year to position us well for the future.
We will outline the next steps in our strategy to deliver more value with less emissions at our Capital Markets Day in March."
Shell plc Chief Executive Officer, Wael Sawan
SOLID CASH FLOW GENERATION; RESILIENT DISTRIBUTIONS
- Robust CFFO of $13.2 billion in Q4 2024, with CFFO of $54.7 billion and free cash flow of $39.5 billion for the full year 2024. $22.6 billion distributed to shareholders in 2024, representing 41% of CFFO generated.
- Q4 2024 Adjusted Earnings2 of $3.7 billion reflect lower prices and margins, higher exploration well write-offs, and the non-cash impact of expiring hedging contracts on LNG trading and optimisation results.
- Structural cost reductions of $3.1 billion achieved since 2022, meeting the 2023 Capital Markets Day (CMD23) target a year early, with significant progress against the other CMD23 financial targets1.
- Focus on disciplined capital allocation drove down 2024 cash capex to $21.1 billion; our cash capex range for the full year 2025 is expected to be lower than our 2024 range, with more guidance to come at the Capital Markets Day in March.
- Increasing dividend per share by 4% to $0.358 for the fourth quarter, while commencing a $3.5 billion share buyback programme, expected to be completed by Q1 2025 results announcement.
$ million2 | Adj. Earnings | Adj. EBITDA | CFFO | Cash capex | |
Integrated Gas | 2,165 | 4,568 | 4,391 | 1,337 | |
Upstream | 1,682 | 7,676 | 4,509 | 2,076 | |
Marketing | 839 | 1,709 | 1,363 | 811 | |
Chemicals & Products3 | (229) | 475 | 2,032 | 1,392 | |
Renewables & Energy Solutions | (311) | (123) | 850 | 1,277 | |
Corporate | (380) | (24) | 16 | 30 | |
Less: Non-controlling interest (NCI) | 106 | ||||
Shell | Q4 2024 | 3,661 | 14,281 | 13,162 | 6,924 |
Q3 2024 | 6,028 | 16,005 | 14,684 | 4,950 | |
FY 2024 | 23,716 | 65,803 | 54,684 | 21,084 | |
FY 2023 | 28,250 | 68,538 | 54,191 | 24,392 |
2Income/(loss) attributable to shareholders for Q4 2024 is $0.9 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available at www.shell.com/investors.
3Chemicals & Products Adjusted Earnings at a subsegment level are as follows - Chemicals $(0.3) billion and Products $0.0 billion.
- CFFO of $13.2 billion for Q4 2024 includes a working capital inflow of $2.4 billion. CFFO reflects tax payments of $2.9 billion, and a $1.4 billion outflow1 related to the timing impact of payments for emissions certificates and biofuel programmes.
- Net debt increased by $3.6 billion over the quarter to $38.8 billion, reflecting the recognition of the LNG Canada pipeline lease liability. Net debt at the end of 2024 was $4.7 billion lower than at the beginning of the year.
$ billion2 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
Divestment proceeds | 0.6 | 1.0 | 0.8 | 0.2 | 0.8 |
Free cash flow | 6.9 | 9.8 | 10.2 | 10.8 | 8.7 |
Net debt | 43.5 | 40.5 | 38.3 | 35.2 | 38.8 |
2 Reconciliation of non-GAAP measures can be found in the unaudited results, available at www.shell.com/investors.
Q4 2024 FINANCIAL PERFORMANCE DRIVERS
Key data | Q3 2024 | Q4 2024 | Q1 2025 outlook |
Realised liquids price ($/bbl) | 63 | 63 | - |
Realised gas price ($/thousand scf) | 7.9 | 8.1 | - |
Production (kboe/d) | 941 | 905 | 930 - 990 |
LNG liquefaction volumes (MT) | 7.5 | 7.1 | 6.6 - 7.2 |
LNG sales volumes (MT) | 17.0 | 15.5 | - |
- Adjusted Earnings reflect lower trading and optimisation results driven by the (non-cash) impact of expiring hedging contracts, and lower volumes due to Pearl GTL turnaround, lower feedgas supply and lower liftings (timing) versus Q3 2024.
- Q1 2025 production outlook reflects Pearl GTL being back in operation; LNG liquefaction volumes outlook is impacted by lower feedgas supply.
Key data | Q3 2024 | Q4 2024 | Q1 2025 outlook |
Realised liquids price ($/bbl) | 75 | 71 | - |
Realised gas price ($/thousand scf) | 6.6 | 7.0 | - |
Liquids production (kboe/d) | 1,321 | 1,332 | - |
Gas production (million scf/d) | 2,844 | 3,056 | - |
Total production (kboe/d) | 1,811 | 1,859 | 1,750 - 1,950 |
- Adjusted Earnings reflect higher volumes, offset by lower prices, above-average well write-offs, and higher year-end opex.
- First production achieved from Mero-3 and Whale (January), and FID taken on Bonga North, supporting portfolio longevity.
Key data | Q3 2024 | Q4 2024 | Q1 2025 outlook |
Marketing sales volumes (kb/d) | 2,945 | 2,795 | 2,500 - 3,000 |
Mobility (kb/d) | 2,119 | 2,041 | - |
Lubricants (kb/d) | 81 | 77 | - |
Sectors & Decarbonisation (kb/d) | 745 | 678 | - |
Comparative information for the Marketing segment and the Chemicals & Products segment has been revised.
- Adjusted Earnings in Q4 2024 reflect the seasonal impact of lower volumes and lower Mobility margins.
- 2024 full year Adjusted Earnings were $3.9 billion, up $0.6 billion from 2023, driven by improved margins and lower opex.
Key data | Q3 2024 | Q4 2024 | Q1 2025 outlook1 |
Refinery processing intake (kb/d) | 1,305 | 1,215 | - |
Chemicals sales volumes (kT) | 3,015 | 2,926 | - |
Refinery utilisation (%) | 81 | 76 | 80 - 88 |
Chemicals manufacturing plant utilisation (%) | 76 | 75 | 78 - 86 |
Global indicative refining margin ($/bbl) | 5.5 | 5.5 | - |
Global indicative chemical margin ($/t) | 164 | 138 | - |
Wholesale commercial fuels, previously reported in the Chemicals & Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024.
Comparative information for the Marketing segment and the Chemicals & Products segment has been revised.
- Adjusted Earnings reflect significantly lower contribution from trading and optimisation, including seasonality effects, and continued weak chemicals margin environment.
Key data | Q3 2024 | Q4 2024 |
External power sales (TWh) | 79 | 76 |
Sales of pipeline gas to end-use customers (TWh) | 148 | 165 |
Renewables power generation capacity (GW)* | 7.3 | 7.4 |
| 3.4 | 3.4 |
| 3.9 | 4.0 |
- Adjusted Earnings were lower than in Q3 2024, largely driven by one-off tax charges in the quarter.
- Acquired a 609 MW combined-cycle gas turbine power plant in Rhode Island, USA.
Key data | Q3 2024 | Q4 2024 | Q1 2025 outlook |
Adjusted Earnings ($ billion) | (0.6) | (0.4) | (0.6) - (0.4) |
$ billion | Adj. Earnings | CFFO excl. WC | CFFO | Cash capex | Free cash flow |
FY 2024 | 23.7 | 52.6 | 54.7 | 21.1 | 39.5 |
FY 2023 | 28.3 | 47.1 | 54.2 | 24.4 | 36.5 |
Operational performance | FY 2023 | FY 2024 | % change |
Oil and gas production (kboe/d) | 2,791 | 2,836 | 2% |
LNG liquefaction volumes (MT) | 28.3 | 29.1 | 3% |
Marketing sales volumes (kb/d) | 3,045 | 2,843 | (7)% |
Refinery processing intake (kb/d) | 1,349 | 1,344 | (0)% |
Chemicals sales volumes (kT) | 11,245 | 11,875 | 6% |
Macro indicators | FY 2023 | FY 2024 | % change |
Brent ($/bbl) | 83 | 81 | (2)% |
Henry Hub ($/MMBtu) | 2.5 | 2.2 | (13)% |
EU TTF ($/MMBtu) | 13.0 | 11.0 | (16)% |
Indicative refining margin ($/bbl) | 12.5 | 7.7 | (38)% |
Indicative chemicals margin ($/t) | 133 | 152 | 14% |
UPCOMING INVESTOR EVENTS
February 25, 2025 | Shell LNG Outlook 2025 publication |
March 25, 2025 | Capital Markets Day 2025 |
May 2, 2025 | First quarter 2025 results and dividends |
May 20, 2025 | Annual General Meeting |
July 31, 2025 | Second quarter 2025 results and dividends |
October 30, 2025 | Third quarter 2025 results and dividends |