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shel-20220630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2022

Commission File Number: 1-32575

Shell plc

(Exact name of registrant as specified in its charter)

England and Wales

(Jurisdiction of incorporation or organization)

Shell Centre

London, SE1 7NA

United Kingdom

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form

40-F.

Form 20-F þ Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Shell plc (the “Registrant”) is filing the following exhibits on this Report on Form 6-K, each of which is hereby incorporated by reference:


Exhibit
No.			Description
99.1			Regulatory release.
99.2			Shell plc – Three and six month periods ended June 30, 2022 Unaudited Condensed Interim Financial Report.

This Unaudited Condensed Interim Financial Report contains the Unaudited Condensed Consolidated Financial Statements of the Registrant and its subsidiaries for the three and six month periods ended June 30, 2022, and Business Review in respect of such period. This Report on Form 6-K contains the Unaudited Condensed Interim Financial Report.

This Report on Form 6-K is incorporated by reference into:

a) the Registration Statement on Form F-3 of Shell plc and Shell International Finance B.V. (Registration Numbers 333-254137 and 333-254137-01); and

b) the Registration Statement on Form S-8 of Shell plc (Registration Number 333-262396).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Shell plc

(Registrant)


By:			/s/ Anthony Clarke

			Name: Anthony Clarke
			Title: Deputy Company Secretary

Date: July 28, 2022

Document

Exhibit 99.1
Regulatory release

Three and six month periods ended June 30, 2022
Unaudited Condensed Interim Financial Report

On July 28, 2022, Shell plc released the Unaudited Condensed Interim Financial Report for the three and six month periods ended June 30, 2022, of Shell plc and its subsidiaries (collectively, “Shell”).


Contact – Investor Relations
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North America:			+1 832 337 2034

Contact – Media
International:			+44 (0) 207 934 5550
USA:			+1 832 337 4355

shel-20220630_d2

Exhibit 99.2

Shell plc

Three and six month periods ended June 30, 2022
Unaudited Condensed Interim Financial Report

Shell plc Unaudited Condensed Interim Financial Report 1


SHELL PLC 2nd QUARTER 2022 AND HALF YEAR UNAUDITED RESULTS

SUMMARY OF UNAUDITED RESULTS


Quarters				$ million		Half year
Q2 2022	Q1 2022	Q2 2021	%¹		Reference	2022	2021	%
18,040	7,116	3,428	+154	Income/(loss) attributable to Shell plc shareholders		25,156	9,087	+177

11,472	9,130	5,534	+26	Adjusted Earnings	A	20,601	8,768	+135
23,150	19,028	13,623	+22	Adjusted EBITDA2	A	42,177	25,195	+67
18,655	14,815	12,617	+26	Cash flow from operating activities		33,470	20,910	+60
(6,207)	(4,273)	(2,946)		Cash flow from investing activities		(10,481)	(3,535)
12,448	10,542	9,671		Free cash flow	G	22,989	17,375
7,024	5,064	4,383		Cash capital expenditure	C	12,088	8,357
9,547	9,457	8,470	+1	Operating expenses	F	19,004	17,905	+6
9,270	9,256	8,505	—	Underlying operating expenses	F	18,526	17,228	+8
14.3%	9.3%	3.2%		ROACE on a Net income basis	D	14.3%	3.2%
12.4%	10.6%	4.9%		ROACE on an Adjusted Earnings plus Non-controlling interest (NCI) basis	D	12.4%	4.9%
46,357	48,489	65,735		Net debt	E	46,357	65,735
19.3%	21.3%	27.7%		Gearing	E	19.3%	27.7%
2,898	2,962	3,254	-2	Total production available for sale (thousand boe/d)		2,930	3,371	-13
2.42	0.94	0.44	+157	Basic earnings per share ($)		3.34	1.17	+185
1.54	1.20	0.71	+28	Adjusted Earnings per share ($)	B	2.74	1.13	+142
0.25	0.25	0.24	—	Dividend per share ($)		0.50	0.41	+21

1. Q2 on Q1 change.

2.With effect from Q3 2021, Adjusted EBITDA includes the non-controlling interest component of Adjusted Earnings. Prior period comparatives have been revised.

Quarter Analysis

Income attributable to Shell plc shareholders, compared with the first quarter 2022, mainly reflected higher realised prices, higher refining margins, and higher gas and power trading and optimisation results, partly offset by lower LNG trading and optimisation results.

Second quarter 2022 income attributable to Shell plc shareholders included post-tax net impairment reversals of $4.3 billion following the revision of Shell's mid- and long-term commodity price assumptions reflecting the current energy market demand and supply fundamentals (see Note 8 to the Condensed Consolidated Interim Financial Statements), and net mark-to-market gains of $1.0 billion. These are included in identified items amounting to $5.2 billion in the quarter.

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items of $5.2 billion and the cost of supplies adjustment of $1.4 billion.

Cash flow from operating activities for the second quarter 2022 was $18.7 billion, and reflected working capital outflow of $4.2 billion, tax payments of $3.2 billion, and net derivative outflows of $0.7 billion. Working capital outflow is driven by an increase in inventory due to price and volumes (increase of $6.8 billion), and an increase in current receivables, partly offset by an increase in current payables.

Cash flow from investing activities for the quarter was an outflow of $6.2 billion.

Shell plc Unaudited Condensed Interim Financial Report 2

Net debt and Gearing: At the end of the second quarter 2022, net debt was $46.4 billion, compared with $48.5 billion at the end of the first quarter 2022, mainly driven by free cash flow, partly offset by dividends, share buybacks, and lease additions. Gearing was 19.3% at the end of the second quarter 2022, compared with 21.3% at the end of the first quarter 2022, driven by net debt reduction and higher equity.

Shareholder distributions

Total shareholder distributions in the quarter amounted to $7.4 billion. The $8.5 billion share buyback programme for the first half of 2022 was completed on July 5, 2022. Dividends declared to Shell plc shareholders for the second quarter 2022 amount to $0.25 per share. Today, Shell announces a share buyback programme of $6 billion which is expected to be completed by the third quarter 2022 results announcement. With the current energy sector outlook and subject to Board approval, shareholder distributions are expected to remain in excess of 30% of cash flow from operating activities.

Half Year Analysis

Income attributable to Shell plc shareholders, compared with the first half 2021, mainly reflected higher realised prices, higher refining margins, higher trading and optimisation results, partly offset by lower volumes, and lower Chemicals margins.

First half 2022 income attributable to Shell plc shareholders included post-tax net impairment reversals of $1.7 billion and provisions for onerous contracts of $0.5 billion. These are included in identified items amounting to $1.1 billion in the half year.

Adjusted Earnings and Adjusted EBITDA for the first half 2022 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items of positive $1.1 billion and the cost of supplies adjustment of $3.5 billion.

Cash flow from operating activities for the first half 2022 was $33.5 billion, and reflected working capital outflow of $11.7 billion, and tax payments of $5.3 billion.

Cash flow from investing activities for the first half 2022 was an outflow of $10.5 billion.

This announcement, together with supplementary financial and operational disclosure and a separate press release for this quarter, is available at www.shell.com/investors1.

1.Not incorporated by reference.

SECOND QUARTER 2022 PORTFOLIO DEVELOPMENTS

Withdrawal from Russian oil and gas activities

We refer to Note 9 to the Condensed Consolidated Interim Financial Statements.

Integrated Gas

In May 2022, we announced that Shell Australia Pty Ltd and its joint venture partner, SGH Energy, have taken a final investment decision to approve the development of the Crux natural gas field, off the coast of Western Australia.

In July 2022, we were selected by QatarEnergy as a partner in the North Field expansion project in Qatar.

Upstream

In April 2022, we announced that we have signed the production-sharing contract (PSC) to formally acquire a 25% stake in the Atapu Field in Brazil.

In May 2022, we announced the start of production of the FPSO Guanabara in the Mero field, in the offshore Santos Basin in Brazil.

In July 2022, we announced the final investment decision to develop the Jackdaw gas field in the UK North Sea, following regulatory approval earlier this year.

Marketing

In May 2022, we completed the sale of Shell Neft LLC, Shell’s retail stations and lubricants business in Russia, to PJSC LUKOIL.

In June 2022, we completed the acquisition of certain company-owned fuel and convenience retail sites from the Landmark group of companies in the USA, including supply agreements for the independently operated fuel and convenience sites.

Shell plc Unaudited Condensed Interim Financial Report 3

Chemicals and Products

In July 2022, we announced that Shell USA, Inc. and Shell Midstream Partners, L.P. had executed a definitive agreement and plan of merger, pursuant to which Shell USA, Inc. will acquire all of the common units representing limited partner interests in Shell Midstream Partners, L.P. held by the public.

Renewables and Energy Solutions

In April 2022, we signed an agreement with Actis Solenergi Limited to acquire 100% of Solenergi Power Private Limited and with it, the Sprng Energy group of companies in India.

In July 2022, we announced the final investment decision to build Holland Hydrogen I, which will be Europe's largest renewable hydrogen plant once operational in 2025.

Shell plc Unaudited Condensed Interim Financial Report 4

PERFORMANCE BY SEGMENT

INTEGRATED GAS


Quarters				$ million		Half year
Q2 2022	Q1 2022	Q2 2021	%¹		Reference	2022	2021	%
8,103	3,079	969	+163	Segment earnings		11,183	3,421	+227
4,346	(1,013)	(636)		Identified items	A	3,332	245
3,758	4,093	1,605	-8	Adjusted Earnings	A	7,850	3,176	+147
6,529	6,315	3,318	+3	Adjusted EBITDA	A	12,844	6,741	+91
8,176	6,443	2,191	+27	Cash flow from operating activities		14,619	4,753	+208
919	863	765		Cash capital expenditure	C	1,782	1,662
144	120	165	+20	Liquids production available for sale (thousand b/d)		132	179	-26
4,642	4,504	4,817	+3	Natural gas production available for sale (million scf/d)		4,573	4,918	-7
944	896	995	+5	Total production available for sale (thousand boe/d)		920	1,026	-10
7.66	8.00	7.49	-4	LNG liquefaction volumes (million tonnes)		15.66	15.65	—
15.21	18.29	15.92	-17	LNG sales volumes (million tonnes)		33.50	32.30	+4

1. Q2 on Q1 change.

The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. The segment includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver gas and liquids to market as well as the marketing, trading and optimisation of LNG, including LNG as a fuel for heavy-duty vehicles.

Quarter Analysis

Segment earnings, compared with the first quarter 2022, mainly reflected higher production (increase of $109 million, post-tax), more than offset by the net of lower trading and optimisation results and assets realising higher prices (decrease of $296 million, post-tax).

Second quarter 2022 segment earnings included impairment reversals of $2,508 million (see Note 8 to the Condensed Consolidated Interim Financial Statements), gains of $1,979 million due to the fair value accounting of commodity derivatives primarily due to gas price developments, partly offset by charges of $326 million due to provisions for onerous contracts. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases and sales. As these commodity derivatives are measured at fair value, this creates an accounting mismatch over periods. These gains and losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, variation margins cash inflows, the positive impact of timing differences between cash flows of derivatives and physical transactions, and working capital inflows, partly offset by tax payments.

Total oil and gas production, compared with the first quarter 2022, increased by 5% due to lower maintenance in Pearl GTL and Prelude, partly offset by the derecognition of Sakhalin-related volumes. LNG liquefaction volumes decreased by 4% mainly due to the derecognition of Sakhalin-related volumes, partly offset by lower maintenance.

Half Year Analysis

Segment earnings, compared with the first half 2021, mainly reflected higher margins (increase of $5,623 million, post-tax) reflecting higher realised prices and higher trading and optimisation results, partly offset by lower total oil and gas production (decrease of $612 million, post-tax).

First half 2022 segment earnings included gains of $3,562 million due to the fair value accounting of commodity derivatives, and net gains of $780 million from impairments and impairment reversals, partly offset by charges of $387 million due to provisions for onerous contracts. These gains and losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Shell plc Unaudited Condensed Interim Financial Report 5

Cash flow from operating activities for the first half 2022 was primarily driven by Adjusted EBITDA, and the positive impact of derivatives, partly offset by tax payments.

Total oil and gas production, compared with the first half 2021, decreased by 10% due to higher maintenance in Pearl GTL and Prelude, the derecognition of Sakhalin-related volumes, and a divestment in Canada.

Shell plc Unaudited Condensed Interim Financial Report 6

UPSTREAM


Quarters				$ million		Half year
Q2 2022	Q1 2022	Q2 2021	%¹		Reference	2022	2021	%
6,391	3,095	2,458	+106	Segment earnings		9,486	3,370	+181
1,479	(355)	(53)		Identified items	A	1,124	(74)
4,912	3,450	2,511	+42	Adjusted Earnings	A	8,362	3,444	+143
11,167	8,977	6,696	+24	Adjusted EBITDA	A	20,144	11,956	+68
8,110	5,964	4,972	+36	Cash flow from operating activities		14,074	8,864	+59
2,858	1,707	1,693		Cash capital expenditure	C	4,565	3,174
1,325	1,403	1,555	-6	Liquids production available for sale (thousand b/d)		1,364	1,556	-12
3,428	3,606	3,767	-5	Natural gas production available for sale (million scf/d)		3,517	4,248	-17
1,917	2,025	2,205	-5	Total production available for sale (thousand boe/d)		1,970	2,289	-14

1.Q2 on Q1 change.

The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.

Quarter Analysis

Segment earnings, compared with the first quarter 2022, mainly reflected higher realised oil and gas prices (increase of $1,417 million, post-tax), and share of profit of joint ventures and associated gain relating to storage and working gas transfer effects ($480 million, post-tax).

Second quarter 2022 segment earnings included a net gain from impairments and impairment reversals of $1,682 million (see Note 8 to the Condensed Consolidated Interim Financial Statements), partly offset by a $252 million charge related to the impact of the weakening Brazilian real on a deferred tax position. These gains and losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by the timing impact of dividends from joint ventures and associates and tax payments.

Total production, compared with the first quarter 2022, decreased mainly due to scheduled maintenance.

Half Year Analysis

Segment earnings, compared with the first half 2021, mainly reflected higher realised oil and gas prices (increase of $5,930 million, post-tax), partly offset by lower volumes (reduction of $1,823 million, post-tax), mainly as a result of divestments.

First half 2022 segment earnings included a net gain from impairments and impairment reversals of $1,285 million, partly offset by losses of $346 million due to the fair value accounting of commodity derivatives. These gains and losses are included in identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half of 2022 was primarily driven by Adjusted EBITDA, partly offset by the timing impact of dividends from joint ventures and associates and tax payments.

Total production, compared with the first half 2021, decreased due to the impact of divestments and scheduled maintenance. The impact of field decline was offset by growth from new fields.

Shell plc Unaudited Condensed Interim Financial Report 7

MARKETING


Quarters				$ million		Half year
Q2 2022	Q1 2022	Q2 2021	%¹		Reference	2022	2021	%
836	165	977	+408	Segment earnings²		1,000	1,633	-39
85	(572)	22		Identified items	A	(487)	(125)
751	737	955	+2	Adjusted Earnings²	A	1,488	1,757	-15
1,452	1,323	1,710	+10	Adjusted EBITDA2	A	2,775	3,136	-12
(454)	(530)	1,133	+14	Cash flow from operating activities		(984)	1,959	-150
1,620	473	467		Cash capital expenditure	C	2,092	850
2,515	2,372	2,406	+6	Marketing sales volumes (thousand b/d)		2,444	2,313	+6

1.Q2 on Q1 change.

2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).

The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonisation businesses. The Mobility business operates Shell’s retail network including electric vehicle charging services. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors & Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, shipping, commercial road transport and agricultural sectors.

Quarter Analysis

Segment earnings, compared with the first quarter 2022, reflected higher Marketing margins (increase of $127 million, post-tax) including higher Mobility sales volumes due to seasonality, partly offset by lower Lubricants margins due to higher feedstock costs. These were partly offset by tax charges mainly linked to hyperinflation (increase of $96 million, post-tax).

Second quarter 2022 segment earnings included a net gain of $128 million from impairments and impairment reversals, and reversals of provisions for expected credit losses of $103 million. These net gains were partly offset by net losses of $99 million related to the sale of assets and a loss of $60 million due to the fair value accounting of commodity derivatives. These gains and losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by working capital outflows of $2,272 million, partly offset by Adjusted EBITDA, and non-cash cost-of-sales adjustments of $396 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first quarter 2022, increased mainly due to seasonal effects in Mobility, and Sectors & Decarbonisation.

Half Year Analysis

Segment earnings, compared with the first half 2021, mainly reflected higher operating expenses (increase of $338 million, post-tax), with Marketing margins in line with the first half 2021.

Half year 2022 segment earnings included net losses of $230 million from impairments and impairment reversals, net losses of $98 million related to the sale of assets, provisions for onerous contracts of $62 million, provisions for expected credit losses of $57 million and losses of $42 million due to the fair value accounting of commodity derivatives. These losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the half year 2022 was primarily driven by working capital outflows of $4,215 million, and tax payments of $222 million, partly offset by Adjusted EBITDA, and non-cash cost-of-sales adjustments of $664 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first half 2021, increased mainly due to demand recovery in Aviation (within Sectors & Decarbonisation).

Shell plc Unaudited Condensed Interim Financial Report 8

CHEMICALS AND PRODUCTS


Quarters				$ million		Half year
Q2 2022	Q1 2022	Q2 2021	%¹		Reference	2022	2021	%
2,131	1,072	(508)	+99	Segment earnings²		3,203	152	+2002
96	(96)	(1,496)		Identified items	A	1	(1,618)
2,035	1,168	989	+74	Adjusted Earnings²	A	3,203	1,770	+81
3,184	2,006	1,909	+59	Adjusted EBITDA2	A	5,191	3,612	+44
2,728	3,673	2,180	-26	Cash flow from operating activities		6,402	2,557	+150
1,226	998	1,311		Cash capital expenditure	C	2,224	2,329
1,342	1,397	1,833	-4	Refinery processing intake (thousand b/d)		1,370	1,792	-24
1,596	1,598	2,145	—	Refining & Trading sales volumes (thousand b/d)		1,597	2,045	-22
3,054	3,330	3,609	-8	Chemicals sales volumes (thousand tonnes)		6,384	7,192	-11

1.Q2 on Q1 change.

2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a CCS basis (see Note 2).

The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the Pipeline business, Trading of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).

Quarter Analysis

Segment earnings, compared with the first quarter 2022, reflected higher Products margins (increase of $1,096 million, post-tax) reflecting higher realised Refining margins including the effects of dislocation in product markets, partly offset by lower contributions from trading and optimisation, as well as lower operating expenses (decrease of $111 million, post-tax). These were partly offset by lower Chemicals margins (decrease of $160 million, post-tax) due to higher feedstock and utility costs as well as higher turnarounds.

Second quarter 2022 segment earnings included gains of $74 million due to the fair value accounting of commodity derivatives, and gains of $64 million related to the sale of assets. These gains were partly offset by impairment charges of $41 million. These gains and losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items. Adjusted Earnings for the second quarter were a loss of $158 million for Chemicals and positive earnings of $2,193 million for Products.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, non-cash cost-of-sales adjustments of $1,579 million, the timing of payments relating to emissions and biofuel programmes of $557 million, a long-term payable for a volume purchase contract of $507 million, and dividends from joint ventures and associates of $462 million. These inflows were partly offset by working capital outflows of $3,673 million.

Chemicals manufacturing plant utilisation was 78% (previous methodology: 71%) compared with 85% (previous methodology: 78%) in the first quarter 2022, due to higher turnarounds.

Refinery utilisation was 84% (previous methodology: 69%) compared with 81% (previous methodology: 71%) in the first quarter 2022, due to turnaround completion in the second quarter 2022.

With effect from the second quarter 2022, the methodology applied in calculating both Chemicals manufacturing plant utilisation and Refinery utilisation has been revised to further align with industry disclosures. The revisions include moving from stream days capacity (defined as the maximum throughput, excluding the impact of maintenance or operational outages) to calendar days capacity (defined as the throughput including typical limitations such as maintenance over an extended period of time). Furthermore, Refinery utilisation is now specific to the capacity of the crude distillation unit (except for Scotford Refinery which uses the capacity of the hydrocracker), and no longer the capacity across all refinery units.

Half Year Analysis

Segment earnings, compared with the first half 2021, reflected higher Products margins (increase of $3,055 million, post-tax) reflecting higher realised Refining margins and higher contributions from trading and optimisation, as well as lower depreciation charges (decrease of $165 million, post-tax). These were partly offset by lower Chemicals margins (decrease of $1,447 million, post-tax) and higher operating expenses (increase of $331 million, post-tax).

Shell plc Unaudited Condensed Interim Financial Report 9

Half year 2022 segment earnings included gains of $172 million related to the sale of assets, and gains of $94 million related to the remeasurement of redundancy and restructuring costs. These net gains were partly offset by charges of $159 million related to the fair value accounting of commodity derivatives, and impairment charges of $87 million. These gains and losses are part of identified items (see Reference A).

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items. Adjusted Earnings for the first half 2022 were a loss of $127 million for Chemicals and positive earnings of $3,330 million for Products.

Cash flow from operating activities for the half year 2022 was primarily driven by Adjusted EBITDA, non-cash cost-of-sales adjustments of $4,173 million, the timing of payments relating to emissions and biofuel programmes of $991 million, a long-term payable for a volume purchase contract of $507 million, and dividends from joint ventures and associates of $390 million. These inflows were partly offset by working capital outflows of $4,738 million, and cash outflows related to commodity derivatives of $653 million.

Chemicals manufacturing plant utilisation was 82% (previous methodology: 75%) compared with 88% (previous methodology: 81%) in the first half 2021, due to higher turnarounds.

Refinery utilisation was 82% (previous methodology: 70%) compared with 82% (previous methodology: 74%) in the first half 2021, due to the impact of divestments and turnarounds.

Shell plc Unaudited Condensed Interim Financial Report 10

RENEWABLES AND ENERGY SOLUTIONS


Quarters				$ million		Half year
Q2 2022	Q1 2022	Q2 2021	%¹		Reference	2022	2021	%
(173)	(1,536)	(564)	+89	Segment earnings		(1,709)	(282)	-507
(898)	(1,880)	(551)		Identified items	A	(2,778)	(167)
725	344	(13)	+111	Adjusted Earnings	A	1,069	(115)	+1030
1,013	521	89	+95	Adjusted EBITDA	A	1,534	23	+6645
(558)	(459)	1,686	-22	Cash flow from operating activities		(1,017)	1,846	-155
321	985	117		Cash capital expenditure	C	1,307	286
54	57	61	-5	External power sales (terawatt hours)2		111	125	-12
188	257	197	-27	Sales of pipeline gas to end-use customers (terawatt hours)3		445	458	-3

1.Q2 on Q1 change.

2.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.

3.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.

The Renewables and Energy Solutions segment includes Shell’s Integrated Power activities, comprising electricity generation, marketing, trading and optimisation of power and pipeline gas, and digitally enabled customer solutions. The segment also includes production and marketing of hydrogen, development of commercial carbon capture & storage hubs, trading of carbon credits and investment in nature-based projects that avoid or reduce carbon.

Quarter Analysis

Segment earnings, compared with the first quarter 2022, mainly reflected higher trading and optimisation results for gas and power, due to extraordinary gas and power price volatility, across North America, Europe and Australia, and favourable movements in joint venture earnings related to tax.

Identified items (post-tax): Second quarter 2022 segment earnings included net losses of $898 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory. As these commodity derivatives are measured at fair value, this creates an accounting mismatch over periods. See Reference A.

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the second quarter 2022 was primarily driven by net cash outflows related to derivatives, partly offset by Adjusted EBITDA, and working capital inflows.

Half Year Analysis

Segment earnings, compared with the first half 2021, reflected higher trading and optimisation results for gas and power, due to the extraordinary market environment, and lower operating expenses.

Identified items (post-tax): First half 2022 segment earnings included net charges of $2,778 million due to the fair value accounting of commodity derivates.

Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half 2022 was primarily driven by working capital outflows, net cash outflows related to derivatives, partly offset by Adjusted EBITDA.

Additional Growth Measures

Shell plc Unaudited Condensed Interim Financial Report 11


Quarters					Half year
Q2 2022	Q1 2022	Q2 2021	%¹		2022	2021	%
				Renewable power generation capacity (gigawatt):
1.1	1.0	1.2	+5	– In operation2	1.1	1.2	-10
4.6	3.6	3.1	+28	– Under construction and/or committed for sale3	4.6	3.1	+50

1.Q2 on Q1 change.

2.Shell's equity share of renewable generation capacity post commercial operation date.

3.Shell's equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA).

Shell plc Unaudited Condensed Interim Financial Report 12

CORPORATE


Quarters			$ million		Half year
Q2 2022	Q1 2022	Q2 2021		Reference	2022	2021
(529)	(736)	(592)	Segment earnings		(1,264)	(1,124)
97	(187)	(193)	Identified items	A	(90)	(59)
(626)	(548)	(399)	Adjusted Earnings	A	(1,174)	(1,065)
(197)	(114)	(101)	Adjusted EBITDA	A	(310)	(274)
652	(277)	454	Cash flow from operating activities		375	932

The Corporate segment covers the non-operating activities supporting Shell, comprising Shell’s holdings and treasury organisation, its self-insurance activities and its headquarters and central functions. All finance expense and income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.

Quarter Analysis

Segment earnings, compared with the first quarter 2022, reflected favourable movements in tax credits and lower net interest expense, partly offset by unfavourable currency exchange rate effects.

Second quarter 2022 segment earnings included a gain of $99 million from the deferred tax impact of the weakening Brazilian real on financing positions, which is part of identified items (see Reference A).

Adjusted Earnings are derived from segment earnings, adjusted for identified items. Adjusted EBITDA were mainly driven by unfavourable currency exchange effects.

Half Year Analysis

Segment earnings, compared with the first half 2021, reflected unfavourable movements in tax credits, partly offset by lower net interest expense.

First half 2022 segment earnings included a loss of $87 million from the deferred tax impact of the strengthening Brazilian real on financing positions, which is part of identified items (see Reference A).

Adjusted Earnings are derived from segment earnings, adjusted for identified items. Adjusted EBITDA were mainly driven by unfavourable currency exchange effects.

OUTLOOK FOR THE THIRD QUARTER 2022

Cash capital expenditure is expected to be in line with the $23 - $27 billion range for the full year.

Integrated Gas production is expected to be approximately 890 - 940 thousand boe/d.

LNG liquefaction volumes are expected to be approximately 6.9 - 7.5 million tonnes.

Third quarter 2022 outlook includes substantially more planned maintenance compared with second quarter 2022 and uncertainty around the impact of “Permitted Industrial Actions” at Prelude.

Upstream production is expected to be approximately 1,750 - 1,950 thousand boe/d in the third quarter 2022.

The third quarter production outlook reflects that Salym-related volumes in Russia are no longer recognised.

Marketing sales volumes are expected to be approximately 2,350 - 2,850 thousand b/d.

Refinery utilisation is expected to be approximately 90% - 98%.

Chemicals manufacturing plant utilisation is expected to be approximately 82% - 90%.

The utilisation ranges presented use the revised methodology (please refer to 'Chemicals and Products' in the 'Performance by Segment' section).

Chemicals sales volumes are expected to be approximately 3,100 - 3,600 thousand tonnes.

Corporate Adjusted Earnings are expected to be a net expense of approximately $450 - $650 million in the third quarter 2022 and a net expense of approximately $2,000 - $2,400 million for the full year 2022. This excludes the impact of currency exchange rate effects.

FORTHCOMING EVENTS

The “Shell Insights: Marketing Business Update” event is scheduled for October 6, 2022. Third quarter 2022 results and dividends are scheduled to be announced on October 27, 2022.

Shell plc Unaudited Condensed Interim Financial Report 13

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME


Quarters			$ million	Half year
Q2 2022	Q1 2022	Q2 2021		2022	2021
100,059	84,204	60,515	Revenue1, 4	184,263	116,181
2,031	(303)	1,114	Share of profit/(loss) of joint ventures and associates4	1,728	2,108
993	(737)	134	Interest and other income/(expenses)2, 4	257	2,590
103,083	83,164	61,764	Total revenue and other income/(expenses)	186,247	120,879
66,658	55,657	39,717	Purchases	122,315	74,086
6,359	6,029	5,162	Production and manufacturing expenses	12,389	11,970
2,924	3,239	3,107	Selling, distribution and administrative expenses4	6,163	5,569
264	189	201	Research and development	452	366
370	269	332	Exploration	639	617
(348)	6,295	8,223	Depreciation, depletion and amortisation4, 5	5,947	14,119
695	711	893	Interest expense	1,406	1,784
76,923	72,388	57,634	Total expenditure	149,311	108,512
26,160	10,776	4,130	Income/(loss) before taxation	36,936	12,367
7,922	3,457	571	Taxation charge/(credit)	11,379	3,024
18,238	7,319	3,559	Income/(loss) for the period¹	25,557	9,343
198	203	131	Income/(loss) attributable to non-controlling interest	401	255
18,040	7,116	3,428	Income/(loss) attributable to Shell plc shareholders	25,156	9,087
2.42	0.94	0.44	Basic earnings per share ($)3	3.34	1.17
2.40	0.93	0.44	Diluted earnings per share ($)3	3.31	1.16

1. See Note 2 “Segment information”.

2. See Note 7 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

3. See Note 3 “Earnings per share”.

4. See Note 9 “Withdrawal from Russian oil and gas activities”.

5. See Note 8 “Impairments and reversals of impairments”.

Shell plc Unaudited Condensed Interim Financial Report 14

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


Quarters			$ million	Half year
Q2 2022	Q1 2022	Q2 2021		2022	2021
18,238	7,319	3,559	Income/(loss) for the period	25,557	9,343
			Other comprehensive income/(loss) net of tax:
			Items that may be reclassified to income in later periods:
(2,644)	259	575	– Currency translation differences	(2,385)	(277)
(24)	(41)	(2)	– Debt instruments remeasurements	(65)	(16)
(98)	267	(84)	– Cash flow hedging gains/(losses)	169	48
211	50	(51)	– Net investment hedging gains/(losses)	261	120
9	212	(20)	– Deferred cost of hedging	222	(54)
(22)	190	(7)	– Share of other comprehensive income/(loss) of joint ventures and associates	168	(63)
(2,567)	938	410	Total	(1,630)	(242)
			Items that are not reclassified to income in later periods:
5,712	1,718	1,675	– Retirement benefits remeasurements	7,430	6,303
(457)	24	10	– Equity instruments remeasurements	(433)	50
36	(74)	(42)	– Share of other comprehensive income/(loss) of joint ventures and associates	(38)	(67)
5,291	1,668	1,643	Total	6,959	6,285
2,724	2,606	2,053	Other comprehensive income/(loss) for the period	5,330	6,044
20,962	9,925	5,612	Comprehensive income/(loss) for the period	30,887	15,386
327	218	145	Comprehensive income/(loss) attributable to non-controlling interest	545	266
20,635	9,707	5,467	Comprehensive income/(loss) attributable to Shell plc shareholders	30,342	15,121

Shell plc Unaudited Condensed Interim Financial Report 15

CONDENSED CONSOLIDATED BALANCE SHEET


$ million
	June 30, 2022	December 31, 2021
Assets
Non-current assets
Intangible assets	25,540	24,693
Property, plant and equipment 3	200,122	194,932
Joint ventures and associates	23,264	23,415
Investments in securities	3,507	3,797
Deferred tax1	8,575	12,426
Retirement benefits1	14,973	8,471
Trade and other receivables	5,853	7,065
Derivative financial instruments²	839	815
	282,674	275,614
Current assets
Inventories	36,087	25,258
Trade and other receivables	66,708	53,208
Derivative financial instruments²	23,257	11,369
Cash and cash equivalents	38,970	36,970
	165,022	126,805
Assets classified as held for sale1	203	1,960
	165,224	128,765
Total assets	447,898	404,379
Liabilities
Non-current liabilities
Debt	77,220	80,868
Trade and other payables	3,829	2,075
Derivative financial instruments²	3,238	887
Deferred tax1	16,145	12,547
Retirement benefits1	8,693	11,325
Decommissioning and other provisions	25,798	25,804
	134,922	133,506
Current liabilities
Debt	6,521	8,218
Trade and other payables	75,445	63,173
Derivative financial instruments²	28,881	16,311
Income taxes payable	4,506	3,254
Decommissioning and other provisions	2,943	3,338
	118,295	94,294
Liabilities directly associated with assets classified as held for sale1	382	1,253
	118,678	95,547
Total liabilities	253,600	229,053
Equity attributable to Shell plc shareholders	190,500	171,966
Non-controlling interest	3,799	3,360
Total equity	194,299	175,326
Total liabilities and equity	447,898	404,379

1. See Note 7 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

2. See Note 6 “Derivative financial instruments and debt excluding lease liabilities”.

3. See Note 8 “Impairments and reversals of impairments”.

Shell plc Unaudited Condensed Interim Financial Report 16

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


	Equity attributable to Shell plc shareholders
$ million	Share capital1	Shares held in trust	Other reserves²	Retained earnings	Total	Non-controlling interest	Total equity
At January 1, 2022	641	(610)	18,909	153,026	171,966	3,360	175,326
Comprehensive income/(loss) for the period	—	—	5,186	25,156	30,342	545	30,887
Transfer from other comprehensive income	—	—	13	(13)	—	—	—
Dividends³	—	—	—	(3,680)	(3,680)	(110)	(3,790)
Repurchases of shares4	(27)	—	27	(8,544)	(8,544)	—	(8,544)
Share-based compensation	—	427	(137)	175	465	—	465
Other changes	—	—	—	(49)	(49)	3	(47)
At June 30, 2022	614	(184)	23,998	166,072	190,500	3,799	194,299
At January 1, 2021	651	(709)	12,752	142,616	155,310	3,227	158,537
Comprehensive income/(loss) for the period	—	—	6,033	9,087	15,121	266	15,386
Transfer from other comprehensive income	—	—	(15)	15	—	—	—
Dividends3	—	—	—	(2,620)	(2,620)	(265)	(2,886)

Share-based compensation	—	350	(219)	59	190	—	190
Other changes	—	—	—	(2)	(2)	16	15
At June 30, 2021	651	(358)	18,552	149,155	167,999	3,244	171,243

1. See Note 4 “Share capital”.

2. See Note 5 “Other reserves”.

3. The amount charged to retained earnings is based on prevailing exchange rates on payment date.

4. Includes shares committed to repurchase under an irrevocable contract and repurchases subject to settlement at the end of the quarter.

Shell plc Unaudited Condensed Interim Financial Report 17

CONSOLIDATED STATEMENT OF CASH FLOWS


Quarters			$ million	Half year
Q2 2022	Q1 2022	Q2 2021		2022	2021
26,160	10,776	4,130	Income before taxation for the period	36,936	12,367
			Adjustment for:
551	599	797	– Interest expense (net)	1,150	1,554
(348)	6,295	8,223	– Depreciation, depletion and amortisation3	5,947	14,119
189	79	108	– Exploration well write-offs	268	244
(334)	(193)	55	– Net (gains)/losses on sale and revaluation of non-current assets and businesses	(527)	(2,018)
(2,031)	303	(1,114)	– Share of (profit)/loss of joint ventures and associates	(1,728)	(2,108)
1,245	926	782	– Dividends received from joint ventures and associates	2,171	1,361
(6,833)	(4,914)	(2,495)	– (Increase)/decrease in inventories	(11,747)	(5,921)
(4,066)	(10,005)	(4,080)	– (Increase)/decrease in current receivables	(14,071)	(10,909)
6,656	7,495	5,016	– Increase/(decrease) in current payables	14,150	10,881
(1,779)	3,495	2,173	– Derivative financial instruments	1,716	2,358
123	247	47	– Retirement benefits	370	156
571	(9)	(124)	– Decommissioning and other provisions	562	(46)
1,706	1,876	561	– Other1	3,582	1,145
(3,155)	(2,155)	(1,465)	Tax paid	(5,310)	(2,274)
18,655	14,815	12,617	Cash flow from operating activities	33,470	20,910
(6,677)	(4,237)	(4,232)	Capital expenditure	(10,914)	(8,117)
(264)	(755)	(115)	Investments in joint ventures and associates	(1,019)	(184)
(83)	(72)	(36)	Investments in equity securities	(156)	(57)
783	557	1,162	Proceeds from sale of property, plant and equipment and businesses	1,340	4,268
51	138	4	Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans	190	279
4	12	108	Proceeds from sale of equity securities	16	139
160	92	110	Interest received	252	209
293	753	799	Other investing cash inflows	1,046	1,510
(474)	(762)	(746)