Q4 2024 Shell PLC Earnings Call Transcript

Jan 30, 2025 / 02:30PM GMT

Release Date Price: $66.65 (+2.89%)

Transcript

Key Points

Positve

Shell PLC (SHEL) delivered the second highest cash flow from operations in its history in 2024.
The company achieved a structural cost reduction of $3.1 billion by the end of 2024, ahead of its 2025 target.
Shell PLC (SHEL) returned more than $22.5 billion to shareholders in 2024, primarily through buybacks.
The company abated over 1 million tonnes of CO2 from its operations in 2024, keeping Scope 1 and 2 emissions flat.
Shell PLC (SHEL) achieved significant progress in its Deepwater business, with new projects adding substantial production volumes.

Negative

Q4 earnings were impacted by non-cash items, including well write-offs and lower trading and optimization.
The Renewable and Energy Solutions business remained loss-making for most of 2024.
Shell PLC (SHEL) faced challenges in commercializing its exploration in Namibia, leading to write-offs.
The chemicals segment experienced a deeper loss in Q4, despite operational improvements.
The company continues to face a low valuation in the market, with shares trading at a low multiple despite strong performance.

Wael Sawan

Shell PLC - Chief Executive Officer, Member of the Executive Committee, Executive Director

Welcome, everyone. Today, Sinead and I will present Shell's Fourth Quarter and Full Year 2024 Results. 2024 was another strong year for Shell, despite some softness in our Q4 earnings impacted by some non-cash items. This year, we delivered the second highest cash flow from operations in our history. The culture that we are building with a focus on performance, discipline, and simplification has been key to achieving these results, enabling us to make great progress in delivering more value with less emissions.

Let me start with safety, which remains our top priority. Whilst I'm pleased with the improvements we've seen in personal safety this year, we must continue to do more on process safety and focus on delivering the fundamentals. We will focus on returning to the downward from the previous years including leveraging new technologies such as sensors, robotics and AI. These technologies have already started to have an impact, but there is so much more running room to go, and I'm encouraged by

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