Document

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 October 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
Regulatory release.
Shell plc – Three and nine month periods ended September 30, 2022 Unaudited Condensed Interim Financial Report.
This Report on Form 6-K contains the 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 nine month periods ended September 30, 2022, and Business Review in respect of such periods.
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: October 27, 2022


Document

Exhibit 99.1
Regulatory release
Three and nine month periods ended September 30, 2022
Unaudited Condensed Interim Financial Report
On October 27, 2022, Shell plc released the Unaudited Condensed Interim Financial Report for the three and nine month periods ended September 30, 2022, of Shell plc and its subsidiaries (collectively, “Shell”).
Contact – Investor Relations
International: +31 (0)70 377 4540
North America: +1 832 337 2034
Contact – Media
International: +44 (0) 207 934 5550
USA: +1 832 337 4355


Document

Exhibit 99.2
Shell plc
Three and nine month periods ended September 30, 2022
Unaudited Condensed Interim Financial Report


Shell plc            Unaudited Condensed Interim Financial Report            1


SHELL PLC
3rd QUARTER 2022 UNAUDITED RESULTS

SUMMARY OF UNAUDITED RESULTS
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021Reference20222021%
6,74318,040 (447)-63Income/(loss) attributable to Shell plc shareholders31,8998,640 +269
9,454 11,472 4,130 -18Adjusted EarningsA30,055 12,898 +133
21,512 23,150 13,460 -7Adjusted EBITDAA63,68938,656+65
12,539 18,655 16,025 -33Cash flow from operating activities46,00936,935+25
(5,049)(6,207)(3,804)Cash flow from investing activities(15,530)(7,339)
7,490 12,448 12,221 Free cash flowG30,479 29,596 
5,426 7,024 4,840 Cash capital expenditureC17,515 13,197 
9,359 9,547 8,359 -2Operating expensesF28,363 26,264 +8
9,893 9,270 8,696 +7Underlying operating expensesF28,419 25,924 +10
17.3%14.3%2.9%ROACE on a Net income basisD17.3%2.9%
14.7%12.4%6.1%ROACE on an Adjusted Earnings plus Non-controlling interest (NCI) basisD14.7%6.1%
48,34346,357 57,492 Net debtE48,34357,492
20.3%19.3%25.6%GearingE20.3%25.6%
2,766 2,898 3,068 -5Total production available for sale (thousand boe/d)2,875 3,269 -12
0.932.42(0.06)-62Basic earnings per share ($)4.29 1.11+286
1.301.540.53-16Adjusted Earnings per share ($)B4.041.66+143
0.250.250.24Dividend per share ($)0.750.6535+15
1.Q3 on Q2 change
Quarter Analysis1
Income attributable to Shell plc shareholders, compared with the second quarter 2022, mainly reflected lower LNG trading and optimisation results, lower chemicals and refining margins, as well as higher underlying operating expenses, partly offset by increased volumes from higher-value barrels in Deep Water.
Third quarter 2022 income attributable to Shell plc shareholders also included net losses of $1.0 billion due to the fair value accounting of commodity derivatives, and impairment charges of $0.4 billion. These net losses are included in identified items amounting to a charge of $1.4 billion in the quarter. This compares with identified items in the second quarter 2022 which amounted to a net gain of $5.2 billion.
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 and the cost of supplies adjustment of $1.4 billion.
Cash flow from operating activities for the third quarter 2022 was $12.5 billion, and included working capital outflows of $4.2 billion, and tax payments of $3.4 billion. The working capital outflows are mainly driven by the increase in European gas inventories, and initial margin outflows, partly offset by lower prices on crude inventories.
Cash flow from investing activities for the quarter was an outflow of $5.0 billion.
Net debt and Gearing: At the end of the third quarter 2022, net debt was $48.3 billion, compared with $46.4 billion at the end of the second quarter 2022, mainly reflecting lower cash flow from operating activities and the absorption of debt from the
Shell plc            Unaudited Condensed Interim Financial Report            2


acquisition of Sprng Energy. Gearing was 20.3% at the end of the third quarter 2022, compared with 19.3% at the end of the second quarter 2022, mainly driven by the increase in net debt.
Shareholder distributions
Total shareholder distributions in the quarter amounted to $6.8 billion. Dividends declared to Shell plc shareholders for the third quarter 2022 amount to $0.25 per share. Shell has now completed $6 billion of share buybacks announced in the second quarter 2022 results announcement. Today, Shell announces a share buyback programme of $4 billion which is expected to be completed by the fourth quarter 2022 results announcement. Shareholder distributions are in excess of 30% of cash flow from operating activities for the last four quarters. Subject to Board approval, Shell intends to increase the dividend per share by an expected 15% for the fourth quarter 2022, which will be paid in March 2023.
Nine Months Analysis1
Income attributable to Shell plc shareholders, compared with the first nine months 2021, mainly reflected higher realised prices, higher refining margins, higher trading and optimisation results, partly offset by lower volumes, and lower chemicals margins.
First nine months 2022 income attributable to Shell plc shareholders also included net losses of $0.8 billion due to the fair value accounting of commodity derivatives, the write-down of a loan of $0.8 billion, and net impairment reversals of $1.4 billion. These gains and losses are included in identified items amounting to a net charge of $0.3 billion in the first nine months. This compares with identified items in the first nine months 2021 which amounted to a net charge of $6.9 billion.
Adjusted Earnings and Adjusted EBITDA for the first nine months 2022 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items and the cost of supplies adjustment of negative $2.1 billion.
Cash flow from operating activities for the first nine months 2022 was $46.0 billion, and reflected working capital outflows of $15.8 billion, and tax payments of $8.7 billion.
Cash flow from investing activities for the first nine months 2022 was an outflow of $15.5 billion.
This announcement, together with supplementary financial and operational disclosure and a separate press release for this quarter, is available at www.shell.com/investors2.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Not incorporated by reference.
THIRD QUARTER 2022 PORTFOLIO DEVELOPMENTS
Withdrawal from Russian oil and gas activities
We refer to Note 8 to the Condensed Consolidated Interim Financial Statements.
Integrated Gas
In July 2022, we were selected by QatarEnergy as a partner in the North Field East expansion project in Qatar, and in October 2022, we were selected as a partner in the North Field South project.
Upstream
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.
In September 2022, we announced the agreement to sell our 100% interest in Shell Onshore Ventures LLC, which holds a 51.8% membership interest in Aera Energy LLC in the USA.
In September 2022, we announced the final investment decision to develop the Rosmari-Marjoram gas project in Sarawak, Malaysia.
Chemicals and Products
In October 2022, we announced that Shell USA, Inc. and Shell Midstream Partners, L.P. had completed the definitive agreement and plan of merger announced in July 2022, pursuant to which Shell USA, Inc. acquired all of the common units representing limited partner interests in Shell Midstream Partners, L.P. not held by Shell USA, Inc. or its affiliates.
Shell plc            Unaudited Condensed Interim Financial Report            3


Renewables and Energy Solutions
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.
In August 2022, we completed the 100% acquisition of Solenergi Power Private Limited and with it, the Sprng Energy group of companies in India, which develops and manages renewable energy facilities such as solar and wind farms and infrastructure assets.
Shell plc            Unaudited Condensed Interim Financial Report            4


PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021Reference20222021%
5,736 8,103 (131)-29
Segment earnings
16,9193,290 +414
3,417 4,346 (1,968)Of which: Identified itemsA6,750(1,723)
2,319 3,758 1,837 -38Adjusted EarningsA10,169 5,012 +103
5,393 6,529 3,922 -17Adjusted EBITDAA18,237 10,663 +71
6,664 8,176 1,915 -18Cash flow from operating activities21,283 6,668 +219
956 919 827 Cash capital expenditureC2,739 2,488 
123 144 168 -14Liquids production available for sale (thousand b/d)129 175 -26
4,645 4,642 4,760 0Natural gas production available for sale (million scf/d)4,597 4,865 -6
924 944 989 -2Total production available for sale (thousand boe/d)922 1,014 -9
7.24 7.66 7.39 -5LNG liquefaction volumes (million tonnes)22.90 23.04 -1
15.66 15.21 15.18 +3LNG sales volumes (million tonnes)49.16 47.48 +4
1.Q3 on Q2 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 Analysis1
Segment earnings, compared with the second quarter 2022, reflected the net effect of lower contributions from trading and optimisation and higher realised prices (decrease of $994 million). The trading and optimisation contributions were mainly impacted by a combination of seasonality and supply constraints, coupled with substantial differences between paper and physical realisations in a volatile and dislocated market.
Third quarter 2022 segment earnings also included gains of $3,419 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 and sales. As these commodity derivatives are measured at fair value, this creates an accounting mismatch over periods. These gains are part of identified items and compare with the second quarter 2022 which included net impairment reversals of $2,508 million and gains of $1,979 million due to the fair value accounting of commodity derivatives, partly offset by charges of $326 million due to provisions for onerous contracts.
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, and net cash inflows related to derivatives (inflow of $3,591 million). This was partly offset by working capital movements (outflow of $1,174 million) and tax payments (outflow of $845 million).
Total oil and gas production, compared with the second quarter 2022, decreased by 2% mainly due to "Permitted Industrial Actions" at Prelude and production sharing contract effects, partly offset by lower maintenance activities in Trinidad & Tobago. LNG liquefaction volumes decreased by 5% mainly due to "Permitted Industrial Actions" at Prelude and higher maintenance activities.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2021, reflected higher realised prices and contributions from trading and optimisation (increase of $6,700 million). This was partly offset by lower volumes (decrease of $892 million) and higher operating expenses (increase of $394 million).
First nine months 2022 segment earnings also included gains of $6,980 million due to the fair value accounting of commodity derivatives and net impairment reversals of $779 million, partly offset by other impacts of $608 million, which mainly comprised loan write-downs, as well as charges of $387 million due to provisions for onerous contracts. These gains and losses
Shell plc            Unaudited Condensed Interim Financial Report            5


are part of identified items and compare with the first nine months 2021 which included losses of $2,382 million due to the fair value accounting of commodity derivatives and impairment charges of $389 million, partly offset by gains of $1,104 million related to the sale of assets.
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 nine months 2022 was primarily driven by Adjusted EBITDA and net cash inflows related to derivatives (inflow of $7,053 million), partly offset by tax payments (outflow of $2,112 million) and working capital movements (outflow of $1,479 million).
Total oil and gas production, compared with the first nine months 2021, decreased by 9% due to higher maintenance and production sharing contract effects, derecognition of Sakhalin-related volumes and "Permitted Industrial Actions" at Prelude, partly offset by new field ramp up's in Trinidad & Tobago. LNG liquefaction volumes decreased by 1% due to the derecognition of Sakhalin-related volumes, "Permitted Industrial Actions" at Prelude and lower feedgas supply, partly offset by lower maintenance.
1.All earnings amounts are shown post-tax, unless stated otherwise.
Shell plc            Unaudited Condensed Interim Financial Report            6


UPSTREAM
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021Reference20222021%
5,357 6,3911,318 -16
Segment earnings
14,843 4,689 +217
(539)1,479 (415)Of which: Identified itemsA585 (489)
5,896 4,912 1,734 +20Adjusted EarningsA14,258 5,178 +175
12,539 11,167 6,768 +12Adjusted EBITDAA32,682 18,724 +75
8,343 8,110 5,724 +3Cash flow from operating activities22,417 14,588 +54
1,733 2,858 1,490 
Cash capital expenditure
C6,298 4,663 
1,273 1,325 1,495 -4Liquids production available for sale (thousand b/d)1,333 1,536 -13
2,995 3,428 3,103 -13Natural gas production available for sale (million scf/d)3,341 3,866 -14
1,789 1,917 2,030 -7Total production available for sale (thousand boe/d)1,909 2,202 -13
1.Q3 on Q2 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 Analysis1
Segment earnings, compared with the second quarter 2022, mainly reflected increased volumes from higher-value barrels in Deep Water this quarter ($442 million), non-cash provision releases ($503 million), and share of profit of joint ventures and associated gain relating to storage transfer effects ($209 million).
Third quarter 2022 segment earnings also included a gain of $312 million due to the impact of the discount rate change on provisions and charges of $361 million relating to UK Energy Profits Levy and an impairment charge of $303 million. These gains and losses are part of identified items, and compare with the second quarter 2022 which included net gains from impairments and impairment reversals of $1,682 million and a $252 million charge related to the impact of the weakening Brazilian real on a deferred tax position.
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 of $1,543 million and tax payments of $2,372 million.
Total production, compared with the second quarter 2022, decreased mainly due to the derecognition of Salym in Russia and unscheduled deferments, which are partly offset by higher scheduled maintenance in the second quarter 2022.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2021, mainly reflected higher realised oil and gas prices (increase of $8,343 million) and a gain of $979 million relating to storage and working gas transfer effects, partly offset by lower volumes (reduction of $1,842 million), mainly as a result of divestments.
First nine month 2022 segment earnings also included a gain from net impairment and impairment reversals of $982 million and losses of $529 million due to the fair value accounting of commodity derivatives. These gains and losses are part of identified items, and compare with the first nine months 2021 which included losses of $378 million due to the fair value accounting of commodity derivatives, a net charge of $99 million related to the impact of the weakening Brazilian real on a deferred tax position, impairment charges of $226 million, and a net gain of $236 million related to the sale of assets.
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 nine months of 2022 was primarily driven by Adjusted EBITDA, partly offset by the timing impact of dividends from joint ventures and associates of $2,843 million and tax payments of $6,060 million.
Total production, compared with the first nine months 2021, decreased due to the impact of divestments and scheduled maintenance. The impact of field decline was more than offset by growth from new fields.
1.All earnings amounts are shown post-tax, unless stated otherwise.
Shell plc            Unaudited Condensed Interim Financial Report            7



MARKETING
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021
%¹
Reference20222021%
757 836 1,432 -9
Segment earnings²
1,758 3,065 -43
(63)85 332 Of which: Identified items A(550)208 
820 751 1,099 +9
Adjusted Earnings²
A2,308 2,857 -19
1,505 1,452 1,760 +4
Adjusted EBITDA2
A4,280 4,896 -13
2,299 (454)1,843 +606Cash flow from operating activities1,315 3,802 -65
746 1,620 595 Cash capital expenditureC2,838 1,445 
2,581 2,515 2,578 +3Marketing sales volumes (thousand b/d)2,490 2,403 +4
1.Q3 on Q2 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 Analysis1
Segment earnings, compared with the second quarter 2022, reflected higher Marketing unit margins (increase of $148 million) mainly driven by seasonal impacts in Mobility, partly offset by lower Lubricants and Sectors & Decarbonisation margins. The third quarter 2022 also included higher operating expenses (increase of $73 million).
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, and working capital inflows of $910 million, partly offset by tax payments of $112 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the second quarter 2022, increased mainly due to seasonal effects in Mobility and Sectors & Decarbonisation, partly offset by lower Lubricants sales volumes which were impacted by market exits.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2021, reflected higher operating expenses partly driven by increased volumes (increase of $567 million), partly offset by higher Marketing margins (increase of $128 million).
First nine months 2022 segment earnings also included net losses of $236 million from impairments and impairment reversals, net losses of $111 million related to the sale of assets, losses of $88 million due to the fair value accounting of commodity derivatives, and provisions for onerous contracts of $62 million. These net losses are part of identified items and compare with the first nine months 2021 which included gains of $312 million related to the sale of assets, partly offset by charges of $120 million related to redundancy and restructuring costs.
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 nine months 2022 was primarily driven by Adjusted EBITDA, and non-cash cost-of-sales adjustments of $691 million, partly offset by working capital outflows of $3,304 million, and tax payments of $333 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the first nine months 2022, increased mainly due to demand recovery in Aviation (within Sectors & Decarbonisation).
1.All earnings amounts are shown post-tax, unless stated otherwise
Shell plc            Unaudited Condensed Interim Financial Report            8


CHEMICALS AND PRODUCTS
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021Reference20222021%
980 2,131 255 -54
Segment earnings²
4,183407+928
208 96 (221)Identified items A208(1,838)
772 2,035 475 -62Adjusted Earnings²A3,9752,245+77
1,797 3,184 1,282 -44
Adjusted EBITDA2
A6,9884,894+43
3,385 2,728 2,724 +24Cash flow from operating activities9,7875,281+85
828 1,226 1,436 Cash capital expenditureC3,0513,765
1,434 1,342 1,629 +7Refinery processing intake (thousand b/d)1,3911,737-20
1,803 1,596 2,087 +13Refining & Trading sales volumes (thousand b/d)1,6662,059-19
2,879 3,054 3,549 -6Chemicals sales volumes (thousand tonnes)9,26410,741-14
1.Q3 on Q2 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 Analysis1
Segment earnings, compared with the second quarter 2022, reflected lower Products margins (decrease of $833 million) mainly due to lower Refining margins due to recovery in global product supply to meet demand, lower Chemicals margins (decrease of $276 million) due to higher feedstock and utility costs, and higher operating expenses (increase of $134 million).
Third quarter 2022 segment earnings also included gains of $226 million due to the fair value accounting of commodity derivatives. These gains are part of identified items, and compare with the second quarter 2022 which included gains of $74 million due to the fair value accounting of commodity derivatives, gains of $64 million related to the sale of assets, and impairment charges of $41 million.
Adjusted Earnings and Adjusted EBITDA were driven by the same factors as the segment earnings and adjusted for identified items. Adjusted Earnings for the third quarter were a loss of $555 million for Chemicals and positive earnings of $1,327 million for Products, from high Refining margins in the third quarter 2022, although lower than in the second quarter 2022.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, working capital inflows of $2,419 million, the timing of payments relating to emissions and biofuel programmes of $563 million, and cash inflows relating to commodity derivatives of $410 million. These net inflows were partly offset by non-cash cost-of-sales adjustments of $1,878 million.
Chemicals manufacturing plant utilisation was 76% (previous methodology: 70%) compared with 78% (previous methodology: 71%) in the second quarter 2022, due to optimisation in the current low-margin environment.
Refinery utilisation was 88% (previous methodology: 79%) compared with 84% (previous methodology: 69%) in the second quarter 2022, due to lower unplanned maintenance.
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.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2021, reflected higher Products margins (increase of $4,375 million) reflecting higher realised Refining margins and higher contributions from trading and optimisation, as well as lower depreciation charges (decrease of $239 million). These were partly offset by lower Chemicals margins (decrease of $2,306 million) and higher operating expenses (increase of $465 million).
Shell plc            Unaudited Condensed Interim Financial Report            9


First nine months 2022 segment earnings also included gains of $181 million related to the sale of assets, gains of $87 million related to the remeasurement of redundancy and restructuring costs, gains of $67 million related to the fair value accounting of commodity derivatives, and impairment charges of $142 million. These gains and losses are part of identified items, and compare with the first nine months 2021 which included impairment charges of $1,487 million, charges of $177 million related to the fair value accounting of commodity derivatives, and charges of $82 million related to provisions for onerous contracts.
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 nine months 2022 were a loss of $683 million for Chemicals and positive earnings of $4,658 million for Products.
Cash flow from operating activities for the first nine months 2022 was primarily driven by Adjusted EBITDA, non-cash cost-of-sales adjustments of $2,295 million, the timing of payments relating to emissions and biofuel programmes of $1,553 million, dividends from joint ventures and associates of $518 million, and a long-term payable for a volume purchase contract of $507 million. These inflows were partly offset by working capital outflows of $2,318 million.
Chemicals manufacturing plant utilisation was 79% (previous methodology: 73%) compared with 87% (previous methodology: 79%) in the first nine months 2021, due to higher turnarounds and optimisation for the low margin environment during the first nine months 2022.
Refinery utilisation was 84% (previous methodology: 74%) compared with 81% (previous methodology: 73%) in the first nine months 2021.
1.All earnings amounts are shown post-tax, unless stated otherwise.
Shell plc            Unaudited Condensed Interim Financial Report            10


RENEWABLES AND ENERGY SOLUTIONS
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021Reference20222021%
(4,023)(173)(3,127)-2221
Segment earnings
(5,732)(3,408)-68
(4,406)(898)(2,956)Of which: Identified itemsA(7,184)(3,122)
383 725 (171)-47Adjusted EarningsA1,452(286)+608
530 1,013 (124)-48Adjusted EBITDAA2,064(101)+2147
(8,051)(558)3,842 -1344Cash flow from operating activities(9,068)5,687-259
1,086 321 456 
Cash capital expenditure
C2,393742
67 54 64 +24
External power sales (terawatt hours)2
177188-6
157 188 192 -16
Sales of pipeline gas to end-use customers (terawatt hours)3
603650-7
1.Q3 on Q2 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 Analysis1

Segment earnings, compared with the second quarter 2022, mainly reflected lower trading and optimisation results for gas and power due to price volatility across North America, Europe and Australia, as well as higher operating expenses.
Third quarter 2022 segment earnings also included net losses of $4,414 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. These losses are part of identified items and compare with the second quarter 2022 which included net losses of $898 million due to the fair value accounting of commodity derivatives.
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 movements (outflow of $5,694 million) and net cash outflows related to derivatives (outflow of $2,695 million), partly offset by Adjusted EBITDA.
Nine Months Analysis1

Segment earnings, compared with the first nine months 2021, reflected higher trading and optimisation results for gas and power, partly offset by higher operating expenses.
However, first nine months 2022 segment earnings also included net losses of $7,192 million due to the fair value accounting of commodity derivatives. These losses are part of identified items and compare with the first nine months 2021 which included net losses of $3,067 million due to the fair value accounting of commodity derivatives.
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 nine months 2022 was primarily driven by working capital movements (outflow of $7,256 million) and net cash outflows related to derivatives (outflow of $3,676 million), partly offset by Adjusted EBITDA.
1.All earnings amounts are shown post-tax, unless stated otherwise.
Additional Growth Measures
Shell plc            Unaudited Condensed Interim Financial Report            11


QuartersNine months
Q3 2022Q2 2022Q3 202120222021%
Renewable power generation capacity (gigawatt):
2.2 0.5 0.7 +354
– In operation2
2.2 0.7 +230
3.0 2.4 2.1 +24
– Under construction and/or committed for sale3
3.0 2.1 +43
1.Q3 on Q2 change
2.Shell's equity share of renewable generation capacity post commercial operation date. It excludes Shell's equity share of associates where information cannot be obtained and prior period comparatives have been revised accordingly.
3.Shell's equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA). Q2 2022 has been revised for updated information. It excludes Shell's equity share of associates where information cannot be obtained and prior period comparatives have been revised accordingly.

Shell plc            Unaudited Condensed Interim Financial Report            12


CORPORATE
Quarters$ millionNine months
Q3 2022Q2 2022Q3 2021Reference20222021
(543)(529)(623)
Segment earnings
(1,807)(1,747)
28 97 109 Of which: Identified itemsA(62)50 
(571)(626)(732)Adjusted EarningsA(1,745)(1,797)
(251)(197)(147)Adjusted EBITDAA(562)(421)
(100)652 (22)Cash flow from operating activities276 909 
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 Analysis1
Segment earnings, compared with the second quarter 2022, reflected favourable movements in the net interest expense, partly offset by unfavourable currency exchange rate effects and lower tax credits.
Third quarter 2022 segment earnings also included a gain of $26 million from the deferred tax impact of the weakening Brazilian real on financing positions. This gain is part of identified items, and compare with the second quarter 2022 which included a gain of $99 million from the deferred tax impact of the weakening Brazilian real on financing positions.
Adjusted EBITDA was mainly driven by unfavourable currency exchange effects.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2021, reflected lower tax credits and unfavourable currency exchange rate movements, partly offset by lower net interest expense.
First nine month segment earnings also included a loss of $61 million from the deferred tax impact of the strengthening Brazilian real on financing positions. This loss is part of identified items, and compare with the first nine months 2021 which included a gain of $50 million from the deferred tax impact of the weakening Brazilian real on financing positions.
Adjusted EBITDA was mainly driven by unfavourable currency exchange effects.
1.All earnings amounts are shown post-tax, unless stated otherwise.
OUTLOOK FOR THE FOURTH QUARTER 2022
Cash capital expenditure is expected to be in line with the $23 - $27 billion range for the full year.
A cash outflow of approximately $1.96 billion is expected in the fourth quarter 2022 following the completion of the transactions to acquire all of the common units representing limited partner interests in Shell Midstream Partners, L.P. not held by Shell USA, Inc. or its affiliates.
Integrated Gas production is expected to be approximately 910 - 960 thousand boe/d.
LNG liquefaction volumes are expected to be approximately 7.0 - 7.6 million tonnes.
Upstream production is expected to be approximately 1,750 - 1,950 thousand boe/d in the fourth quarter 2022.
Marketing sales volumes are expected to be approximately 2,250 - 2,750 thousand b/d.
Refinery utilisation is expected to be approximately 88% - 96%.
Chemicals manufacturing plant utilisation is expected to be approximately 72% - 80%.
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 2,700 - 3,200 thousand tonnes.
Corporate Adjusted Earnings are expected to be a net expense of approximately $450 - $650 million in the fourth quarter 2022 and a net expense of approximately $2,200 - $2,400 million for the full year 2022. This excludes the impact of currency exchange rate effects.
FORTHCOMING EVENTS
Fourth quarter 2022 and full year results and dividends are scheduled to be announced on February 2, 2023.
Shell plc            Unaudited Condensed Interim Financial Report            13


UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
95,749 100,059 60,044 
Revenue1, 4
280,011 176,224 
2,512 2,031 1,014 
Share of profit/(loss) of joint ventures and associates4
4,240 3,122 
498 993 497 
Interest and other income/(expenses)2, 4
755 3,087 
98,759 103,083 61,555 Total revenue and other income/(expenses)285,006 182,434 
70,684 66,658 44,260 Purchases192,999 118,346 
5,910 6,359 5,322 Production and manufacturing expenses18,298 17,292 
3,229 2,924 2,892 
Selling, distribution and administrative expenses4
9,392 8,461 
220 264 145 Research and development672 511 
424 370 526 Exploration1,063 1,143 
6,124 (348)6,358 
Depreciation, depletion and amortisation2, 4
12,071 20,477 
734 695 859 Interest expense2,140 2,643 
87,324 76,923 60,362 Total expenditure236,635 168,874 
11,435 26,160 1,193 Income/(loss) before taxation48,371 13,560 
4,587 7,922 1,510 Taxation charge/(credit)15,966 4,535 
6,848 18,238 (317)
Income/(loss) for the period¹
32,405 9,025 
104 198 130 Income/(loss) attributable to non-controlling interest505 385 
6,743 18,040 (447)Income/(loss) attributable to Shell plc shareholders31,899 8,640 
0.932.42 (0.06)
Basic earnings per share ($)3
4.291.11 
0.922.40 (0.06)
Diluted earnings per share ($)3
4.251.10 
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 8 “Withdrawal from Russian oil and gas activities”.

Shell plc            Unaudited Condensed Interim Financial Report            14


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
6,848 18,238 (317)Income/(loss) for the period32,405 9,025 
Other comprehensive income/(loss) net of tax:
Items that may be reclassified to income in later periods:
(3,456)(2,644)(943)– Currency translation differences(5,841)(1,219)
(25)(24)(1)– Debt instruments remeasurements(90)(17)
(57)(98)102 
– Cash flow hedging gains/(losses)
112 150 
183 211 89 
– Net investment hedging gains/(losses)
444 209 
11 16 – Deferred cost of hedging233 (38)
30 (22)(104)– Share of other comprehensive income/(loss) of joint ventures and associates198 (167)
(3,315)(2,567)(841)Total(4,945)(1,083)
Items that are not reclassified to income in later periods:
126 5,712 291 – Retirement benefits remeasurements7,556 6,594 
(21)(457)(25)– Equity instruments remeasurements(454)25 
12 36 41 – Share of other comprehensive income/(loss) of joint ventures and associates(26)(26)
117 5,291 307 Total7,076 6,592 
(3,198)2,724 (534)Other comprehensive income/(loss) for the period2,131 5,510 
3,649 20,962 (851)Comprehensive income/(loss) for the period34,536 14,535 
(38)327 85 Comprehensive income/(loss) attributable to non-controlling interest507 351 
3,687 20,635 (937)Comprehensive income/(loss) attributable to Shell plc shareholders34,029 14,184 

Shell plc            Unaudited Condensed Interim Financial Report            15


CONDENSED CONSOLIDATED BALANCE SHEET
$ million
September 30, 2022December 31, 2021
Assets
Non-current assets
Intangible assets24,362 24,693 
Property, plant and equipment
193,681 194,932 
Joint ventures and associates24,489 23,415 
Investments in securities3,491 3,797 
Deferred tax1
7,885 12,426 
Retirement benefits1
13,314 8,471 
Trade and other receivables5,841 7,065 
Derivative financial instruments²
978 815 
274,040 275,614 
Current assets
Inventories34,721 25,258 
Trade and other receivables66,699 53,208 
Derivative financial instruments²
23,585 11,369 
Cash and cash equivalents35,978 36,970 
160,982 126,805 
Assets classified as held for sale1
2,335 1,960 
163,318 128,765 
Total assets437,358 404,379 
Liabilities
Non-current liabilities
Debt73,944 80,868 
Trade and other payables3,475 2,075 
Derivative financial instruments²
5,110 887 
Deferred tax1
16,893 12,547 
Retirement benefits1
7,475 11,325 
Decommissioning and other provisions1
21,551 25,804 
128,448 133,506 
Current liabilities
Debt8,046 8,218 
Trade and other payables70,341 63,173 
Derivative financial instruments²
32,011 16,311 
Income taxes payable4,332 3,254 
Decommissioning and other provisions2,459 3,338 
117,190 94,294 
Liabilities directly associated with assets classified as held for sale1
1,483 1,253 
118,672 95,547 
Total liabilities247,121 229,053 
Equity attributable to Shell plc shareholders186,523 171,966 
Non-controlling interest3,715 3,360 
Total equity190,237 175,326 
Total liabilities and equity437,358 404,379 
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”.

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 trustOther reserves²Retained earningsTotalNon-controlling interestTotal equity
At January 1, 2022641 (610)18,909 153,026 171,966 3,360 175,326 
Comprehensive income/(loss) for the period— — 2,130 31,899 34,029 507 34,536 
Transfer from other comprehensive income— — 13 (13)— — — 
Dividends³— — — (5,497)(5,497)(164)(5,662)
Repurchases of shares4
(43)— 43 (14,523)(14,523)— (14,523)
Share-based compensation— 444 18 133 594 — 594 
Other changes— — — (46)

(46)

11 (35)
At September 30, 2022598 (167)21,113 164,978 186,523 3,715 190,237 
At January 1, 2021651 (709)12,752 142,616 155,310 3,227 158,537 
Comprehensive income/(loss) for the period— — 5,544 8,640 14,184 351 14,535 
Transfer from other comprehensive income— — (14)14 — — — 
Dividends3
— — — (4,475)(4,475)(305)(4,780)
Repurchases of shares(4)— (2,003)(2,003)— (2,003)
Share-based compensation— 350 (68)93 375 — 375 
Other changes— — — (1)(1)20 19 
At September 30, 2021647 (359)18,218 144,884 163,390 3,293 166,683 
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$ millionNine months
Q3 2022Q2 2022Q3 202120222021
11,435 26,160 1,193 
Income before taxation for the period
48,371 13,560 
Adjustment for:
389 551 723 – Interest expense (net)1,539 2,277 
6,124 (348)6,358 
– Depreciation, depletion and amortisation1
12,071 20,477 
218 189 323 – Exploration well write-offs486 567 
(93)(334)(298)– Net (gains)/losses on sale and revaluation of non-current assets and businesses (621)(2,316)
(2,512)(2,031)(1,014)– Share of (profit)/loss of joint ventures and associates(4,240)(3,122)
814 1,245 956 – Dividends received from joint ventures and associates2,985 2,318 
484 (6,833)(538)– (Increase)/decrease in inventories(11,263)(6,459)
(98)(4,066)(2,859)– (Increase)/decrease in current receivables(14,168)(13,768)
(4,544)6,656 1,950 – Increase/(decrease) in current payables9,606 12,831 
3,334 (1,779)10,116 – Derivative financial instruments5,050 12,474 
(87)123 (113)
– Retirement benefits
282 43 
(744)571 (206)
– Decommissioning and other provisions
(183)(252)
1,258 1,706 894 
– Other1
4,841 2,038 
(3,438)(3,155)(1,459)Tax paid(8,748)(3,733)
12,539 18,655 16,025 Cash flow from operating activities46,009 36,935 
(5,268)(6,677)(4,648)Capital expenditure(16,182)(12,764)
(95)(264)(151)Investments in joint ventures and associates(1,114)(335)
(63)(83)(41)
Investments in equity securities
(218)(98)
39 783 1,122 Proceeds from sale of property, plant and equipment and businesses1,379 5,390 
203 51 168 Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans392 447 
36 
Proceeds from sale of equity securities
52 145 
253 160 93 Interest received505 302 
496 293 929 
Other investing cash inflows
1,542 2,440 
(650)(474)(1,283)
Other investing cash outflows
(1,886)(2,866)
(5,049)(6,207)(3,804)Cash flow from investing activities(15,530)(7,339)
(206)640 (33)
Net increase/(decrease) in debt with maturity period within three months
566 46 
Other debt:
103 35 23 
– New borrowings
239 189 
(1,171)(2,531)(4,077)– Repayments(6,243)(13,684)
(747)(1,090)(788)Interest paid(2,494)(2,756)
(843)(828)(268)
Derivative financial instruments
(2,155)(774)
Change in non-controlling interest19 
Cash dividends paid to:
(1,818)(1,851)(1,812)
– Shell plc shareholders2
(5,620)(4,414)
(54)(63)(40)– Non-controlling interest(164)(305)
(4,950)(5,541)(971)Repurchases of shares(13,963)(1,187)
(25)78 34 Shares held in trust: net sales/(purchases) and dividends received(50)(32)
(9,707)(11,150)(7,930)Cash flow from financing activities(29,876)(22,900)
(774)(688)(322)Effects of exchange rate changes on cash and cash equivalents(1,596)(453)
(2,992)609 3,969 Increase/(decrease) in cash and cash equivalents(993)6,244 
38,970 38,360 34,104 Cash and cash equivalents at beginning of period36,970 31,830 
35,978 38,970 38,073 Cash and cash equivalents at end of period35,978 38,073 
1. See Note 7 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.
Shell plc            Unaudited Condensed Interim Financial Report            18


2. Cash dividends paid represents the payment of net dividends (after deduction of withholding taxes where applicable) and payment of withholding taxes on dividends paid in the previous quarter.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1.    Basis of preparation
These unaudited Condensed Consolidated Interim Financial Statements (“Interim Statements”) of Shell plc (“the Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”) and adopted by the UK, and on the basis of the same accounting principles as those used in the Company's Annual Report and Accounts (pages 228 to 283) and Form 20-F (pages 204 to 261) for the year ended December 31, 2021 as filed with the Registrar of Companies for England and Wales, the Autoriteit Financiële Markten (the Netherlands) and the US Securities and Exchange Commission, and should be read in conjunction with these filings.
The financial information presented in the unaudited Interim Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2021 were published in Shell’s Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell's Form 20-F. The auditor’s report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.
Key accounting considerations, significant judgements and estimates
Future long-term commodity price assumptions and management’s view on the future development of refining margins represent a significant estimate. Future long-term commodity price assumptions were subject to change in the second quarter 2022. These assumptions continue to apply for impairment testing purposes in the third quarter 2022.

The discount rate applied to provisions is reviewed on a regular basis. The discount rate was reviewed and adjusted in the third quarter 2022. See Note 7.

Changes to IFRS not yet adopted
IFRS 17 Insurance contracts was issued in 2017, with amendments published in 2020 and 2021, and is required to be adopted for annual reporting periods beginning on or after January 1, 2023. Shell is in the process of implementing the standard. The standard is not expected to have a significant effect on future financial reporting.
2.    Segment information
As from January 1, 2022, onwards reporting segments are aligned with Shell’s Powering Progress strategy. The Renewables and Energy Solutions business is now reported separately from Integrated Gas. Oil Products and Chemicals were reorganised into two segments – Marketing and Chemicals and Products. The shales assets in Canada are now reported as part of the Integrated Gas segment instead of the Upstream segment. Prior period comparatives have been revised to conform with current year presentation. The reporting segment changes have no impact on a Shell Group level.
Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.
Shell plc            Unaudited Condensed Interim Financial Report            19


INFORMATION BY SEGMENT
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
Third-party revenue
14,471 12,403 5,661 Integrated Gas40,948 17,220 
1,623 2,253 2,360 Upstream5,407 6,576 
31,965 34,121 22,787 Marketing92,222 59,529 
37,649 39,793 27,895 Chemicals and Products110,862 82,647 
10,031 11,477 1,330 Renewables and Energy Solutions30,534 10,216 
10 12 11 Corporate38 36 
95,749 100,059 60,044 Total third-party revenue¹280,011176,224
Inter-segment revenue
5,666 4,176 1,728 Integrated Gas13,374 5,198 
13,164 13,951 9,099 Upstream39,056 24,951 
169 153 76 Marketing423 184 
696 718 524 Chemicals and Products2,081 1,399 
1,992 1,522 997 Renewables and Energy Solutions4,756 2,665 
— — — Corporate— — 
CCS earnings
5,736 8,103 (131)Integrated Gas16,919 3,290 
5,357 6,391 1,318 Upstream14,843 4,689 
757 836 1,432 Marketing1,758 3,065 
980 2,131 255 Chemicals and Products4,183 407 
(4,023)(173)(3,127)Renewables and Energy Solutions(5,732)(3,408)
(543)(529)(623)Corporate(1,807)(1,747)
8,264 16,759 (876)Total CCS earnings30,163 6,295 
1.    Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Third quarter 2022 included losses of $440 million (Q2 2022: $3,477 million income; Q3 2021: $5,032 million losses). This amount includes both the reversal of prior losses of $4,233 million (Q2 2022: $2,094 million losses; Q3 2021: $1,205 million losses) related to sales contracts and prior gains of $4,114 million (Q2 2022: $1,982 million gains; Q3 2021: $1,517 million gains) related to purchase contracts that were previously recognised and where physical settlement took place in the third quarter 2022.
Shell plc            Unaudited Condensed Interim Financial Report            20


RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
6,743 18,040 (447)Income/(loss) attributable to Shell plc shareholders31,899 8,640 
104 198 130 Income/(loss) attributable to non-controlling interest505 385 
6,848 18,238 (317)Income/(loss) for the period32,405 9,025 
Current cost of supplies adjustment:
1,800 (1,929)(666)Purchases(2,923)(3,291)
(433)496 142 Taxation745 703 
51 (46)(35)Share of profit/(loss) of joint ventures and associates(63)(143)
1,417 (1,479)(559)
Current cost of supplies adjustment
(2,242)(2,730)
of which:
1,354 (1,363)(541)Attributable to Shell plc shareholders(2,099)(2,648)
62 (116)(18)Attributable to non-controlling interest(143)(82)
8,264 16,759 (876)CCS earnings30,163 6,295 
of which:
8,098 16,677 (988)CCS earnings attributable to Shell plc shareholders29,800 5,992 
167 82 112 CCS earnings attributable to non-controlling interest363 303 

3.    Earnings per share
EARNINGS PER SHARE
QuartersNine months
Q3 2022Q2 2022Q3 202120222021
6,743 18,040 (447)Income/(loss) attributable to Shell plc shareholders ($ million)31,899 8,640 
Weighted average number of shares used as the basis for determining:
7,276.7 7,453.2 7,773.3 Basic earnings per share (million)7,443.1 7,781.8 
7,341.3 7,518.5 7,773.3 Diluted earnings per share (million)7,505.9 7,827.9 
4.    Share capital
ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH1
Number of sharesNominal value ($ million)
ABOrdinary sharesABOrdinary sharesTotal
At January 1, 20224,101,239,499 3,582,892,954 345 296 641 
Repurchases of shares before assimilation— (34,106,548)— (3)(3)
Assimilation of ordinary A and B shares into ordinary shares on January 29, 2022(4,101,239,499)(3,548,786,406)7,650,025,905 (345)(293)638 — 
Repurchases of B shares on January 27 and 28, 2022, cancelled as ordinary shares on February 2 and 3, 2022 (507,742)— — 
Repurchases of shares after assimilation(481,555,025)(40)(40)
At September 30, 20227,167,963,138 598 598 
At January 1, 20214,101,239,499 3,706,183,836 345 306 651 
Repurchases of shares— (48,493,633)— (4)(4)
At September 30, 20214,101,239,499 3,657,690,203 345 302 647 
1. .Share capital at September 30, 2022 also included 50,000 issued and fully paid sterling deferred shares of £1 each.
Shell plc            Unaudited Condensed Interim Financial Report            21


On January 29, 2022, as part of the simplification announced on December 20, 2021, the Company's A shares and B shares assimilated into a single line of ordinary shares. This is reflected in the above table.
At Shell plc’s Annual General Meeting on May 24, 2022, the Board was authorised to allot ordinary shares in Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Shell plc, up to an aggregate nominal amount of €177 million (representing 2,530 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 24, 2023, and the end of the Annual General Meeting to be held in 2023, unless previously renewed, revoked or varied by Shell plc in a general meeting.
5.    Other reserves
OTHER RESERVES
$ millionMerger reserveShare premium reserveCapital redemption reserveShare plan reserveAccumulated other comprehensive incomeTotal
At January 1, 202237,298 154 139 964 (19,646)18,909 
Other comprehensive income/(loss) attributable to Shell plc shareholders— — — — 2,130 2,130 
Transfer from other comprehensive income— — — — 13 13 
Repurchases of shares— — 43 — — 43 
Share-based compensation— — — 18 — 18 
At September 30, 202237,298 154 183 981 (17,502)21,113 
At January 1, 202137,298 154 129 906 (25,735)12,752 
Other comprehensive income/(loss) attributable to Shell plc shareholders— — — — 5,544 5,544 
Transfer from other comprehensive income— — — — (14)(14)
Repurchases of shares— — — — 
Share-based compensation— — — (68)— (68)
At September 30, 202137,298 154 133 838 (20,206)18,218 
The merger reserve and share premium reserve were established as a consequence of Shell plc (formerly Royal Dutch Shell plc) becoming the single parent company of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.
6.    Derivative financial instruments and debt excluding lease liabilities
As disclosed in the Consolidated Financial Statements for the year ended December 31, 2021, presented in the Annual Report and Accounts and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at September 30, 2022, are consistent with those used in the year ended December 31, 2021, though the carrying amounts of derivative financial instruments measured using predominantly unobservable inputs have changed since that date.
The table below provides the comparison of the fair value with the carrying amount of debt excluding lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.
DEBT EXCLUDING LEASE LIABILITIES
$ million
September 30, 2022December 31, 2021
Carrying amount55,43061,579
Fair value¹50,68667,066
1.    Mainly determined from the prices quoted for these securities.
7. Other notes to the unaudited Condensed Consolidated Interim Financial Statements

Shell plc            Unaudited Condensed Interim Financial Report            22


Consolidated Statement of Income

Interest and other income
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
498993497Interest and other income/(expenses)755 3,087 
of which:
346 144 136 Interest income601 366 
198 Dividend income (from investments in equity securities)202 44 
93 334 298 Net gains on sales and revaluation of non-current assets and businesses621 2,316 
(12)166 (42)Net foreign exchange gains/(losses) on financing activities170 48 
69 151 96 Other(838)313 
For the first nine months 2022, Other includes the write-down of the loan to Nord Stream 2 amounting to $1,126 million. See Note 8.
Depreciation, depletion and amortisation
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
6,124(348)6,358Depreciation, depletion and amortisation12,071 20,477 
of which:
5,665 5,608 6,005 Depreciation16,662 17,707 
466 153 352 Impairments1,525 2,974 
(8)(6,109)— Impairment reversals(6,117)(205)

Impairments in the third quarter 2022 mainly relate to the classification of an Upstream asset as held for sale. In the second quarter 2022, gains from impairment reversals were recognised of $6,169 million pre-tax of which $6,109 million recognised in depreciation, depletion and amortisation and $60 million recognised in share of profit of joint ventures and associates.

Condensed Consolidated Balance Sheet
Application of IAS 29 Financial Reporting in Hyperinflationary Economies
As from the second quarter 2022, Shell applies IAS 29 Financial Reporting in Hyperinflationary Economies (IAS 29) for its Turkish lira functional currency entities. The application of IAS 29 had no significant impact.
Deferred tax
$ million
September 30, 2022December 31, 2021
Non-current assets
Deferred tax
7,88512,426
Non-current liabilities
Deferred tax
16,89312,547
Net deferred liability(9,008)(121)
The presentation in the balance sheet takes into consideration the offsetting of deferred tax assets and deferred tax liabilities within the same tax jurisdiction, where this is permitted. The overall deferred tax position in a particular tax jurisdiction determines if a deferred tax balance related to that jurisdiction is presented within deferred tax assets or deferred tax liabilities.

Shell's net deferred tax position was a liability of $9,008 million at September 30, 2022 (December 31, 2021: $121 million). The increase in the net liability since December 31, 2021, was mainly driven by utilisation of tax losses ($2.7 billion), pension remeasurements ($2.4 billion), impairment reversals ($1.8 billion) and recognition of a deferred tax liability for marked to market gains ($0.9 billion).
Shell plc            Unaudited Condensed Interim Financial Report            23


On July 14, 2022, the Energy (Oil & Gas) Profits Levy Act 2022 (EPL) was enacted in the UK which applies an additional tax on the profits earned by oil and gas companies from the production of oil and gas on the United Kingdom Continental Shelf. The new tax will be applied to income generated after May 26, 2022. The enactment of the EPL led to remeasurement of deferred tax positions resulting in a charge of $361 million in the third quarter 2022.
On August 16, 2022, the Inflation Reduction Act (IRA) was enacted in the USA. As from 2023, under the IRA a Corporate Minimum Tax on Book Earnings (BMT) applies a 15% tax on adjusted financial statement income. The enactment of the IRA had no impact in the third quarter 2022.
On September 30, 2022, EU energy ministers reached an agreement on the introduction of an EU mandatory solidarity contribution of at least 33% levied over 2022 and/or 2023 excess profits generated from activities in the oil, gas, coal and refinery sectors. Enactment by the respective EU Member States is expected in the fourth quarter 2022.


Assets classified as held for sale
$ million
September 30, 2022December 31, 2021
Assets classified as held for sale2,3351,960
Liabilities directly associated with assets classified as held for sale1,4831,253
Assets classified as held for sale and associated liabilities at September 30, 2022 relate to two Upstream entities held for sale. The major classes of assets and liabilities classified as held for sale are Property, plant and equipment ($2,112 million; December 31, 2021: $896 million), Decommissioning and other provisions ($1,042 million; December 31, 2021: $229 million) and Trade and other payables ($353 million; December 31, 2021: $375 million).
Retirement benefits
$ million
September 30, 2022December 31, 2021
Non-current assets
Retirement benefits
13,3148,471
Non-current liabilities
Retirement benefits
7,47511,325
Surplus/(deficit)5,839 (2,854)

Amounts recognised in the balance sheet in relation to defined benefit plans include both plan assets and obligations that are presented on a net basis on a plan-by-plan basis. The change of the net retirement benefit liability as at December 31, 2021, into the net retirement benefit asset as at September 30, 2022, is mainly driven by an increase of the market yield on high-quality corporate bonds in the USA, the UK and Eurozone as well as a decrease in long-term UK and Eurozone inflation rate expectations partly offset by losses on plan assets.

Decommissioning and other provisions
$ million
Non-current liabilitiesSeptember 30, 2022December 31, 2021
Decommissioning and other provisions21,55125,804

The discount rate applied at September 30, 2022 was 3.25% (June 30, 2022: 2.0%, December 31, 2021: 2.0%). Non-current decommissioning and other provisions decreased by $3,383 million as a result of the change in the discount rate.


Consolidated Statement of Cash Flows

Cash flow from operating activities - Other
Shell plc            Unaudited Condensed Interim Financial Report            24


Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
1,2581,706894
Other
4,8412,038

Cash flow from operating activities - Other for the third quarter 2022 includes $625 million of net inflows (second quarter 2022: $685 million; third quarter 2021: $394 million) due to the timing of payments relating to emissions and biofuel programmes in Europe and North America and $478 million (second quarter 2022: $425 million; third quarter 2021: $231 million) in relation to reversal of currency losses on Cash and cash equivalents. In the first quarter 2022, it also included $1,126 million for the write-down of the Nord Stream 2 loan (see Note 8).
8. Withdrawal from Russian oil and gas activities

Following the invasion of Ukraine by Russia, Shell announced in the first quarter 2022 its intent to:
a.Withdraw from its ventures in Russia with Gazprom and related entities, and to end its involvement in the Nord Stream 2 pipeline project;
b.Withdraw from its service station and lubricants operations in Russia. Shell is working on a plan to help to achieve this in a phased manner, ensuring it is done safely for Shell's staff and operations; and
c.Orderly withdrawal from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and LNG in a phased manner, aligned with new government guidance. Since these announcements, Shell has stopped all spot purchases of Russian crude, liquefied natural gas, and of cargoes of refined products directly exported from Russia. Shell will not renew long-term contracts for Russian oil, unless under explicit government direction, but is still legally obliged to take delivery of crude bought under contracts that were signed before the invasion. By the end of this year, all of Shell's long-term 3rd party purchases of Russian crude will stop, except for two contracts with a small, independent Russian producer. All of Shell's contracts to purchase refined products exported from Russia will also end. Shell still has long-term contractual commitments for Russian LNG. Reducing European reliance on piped natural gas supplies from Russia is also a very complex challenge that requires concerted action by governments, as well as energy suppliers and customers.

Subsequently, this led to recognition of net pre-tax charges of $4,235 million (post-tax: $3,894 million) in the first quarter 2022, net pre-tax negative charges of $111 million (post-tax: $136 million) in the second quarter 2022 and net pre-tax negative charges of $55 million (post-tax: $55 million) in the third quarter 2022. These were recognised in:

Q3 2022Q2 2022Nine months 2022
Revenue— (133)(468)
Share of profit of joint ventures and associates— — (1,614)
Interest and other income/(expenses)81 
1
(71)(1,116)
Selling, distribution and administrative expenses— 115 (104)
Depreciation, depletion and amortisation— 163 (695)
Other(26)37 (72)
Income/(loss) before taxation55 111 (4,069)
Taxation charge/(credit)— (25)(366)
Income/(loss) for the period55 136 (3,703)
1.Impact of reclassification from joint operation to financial asset.
In relation to the assets with a potential exposure to Shell's intended exit from all Russian hydrocarbons, including those assets for which the above charges were recognised during the first nine months 2022, there is no remaining balance sheet carrying amount as at September 30, 2022 (June 30, 2022: $0.2 billion; March 31, 2022: $1 billion).

Further details are provided below.

Integrated Gas

Sakhalin-2
Shell holds a 27.5% (minus one share) interest in Sakhalin Energy Investment Company Ltd. (SEIC), Other ownership interests were Gazprom 50% (plus one share), Mitsui 12.5%, Mitsubishi 10%. Up to March 31, 2022, this investment was accounted for as an associate applying the equity method. Following the first quarter announcements, the recoverable amount of the investment was estimated as the risk-adjusted dividends declared on Sakhalin's 2021 results, of which the first part was received in April 2022. This resulted in recognition of an impairment charge of $1,614 million in the first quarter 2022. Significant
Shell plc            Unaudited Condensed Interim Financial Report            25


influence over the Sakhalin-2 investment was lost from April 1, 2022, with the resignation of Shell's executive directors and withdrawal of managerial and technical staff, leading to recognition, without financial impact, of the investment as a financial asset accounted for at fair value from that date, with subsequent changes in fair value recognised in other comprehensive income.

On June 30, 2022, a Russian Presidential Decree was passed requiring the transfer of all licences, rights and obligations of SEIC into a newly-created Russian company (LLC) that would assume the rights and obligations of SEIC. The decree stated that the foreign shareholders will be invited to apply for shares in that entity equivalent to their shareholding in SEIC. Following the receipt of dividends in the second quarter 2022 and the Presidential Decree, appropriate fair value adjustments to the investment value have been recognised, against other comprehensive income.

Shell understands that pursuant to the Presidential Decree, all licences, assets, rights and obligations of SEIC were purportedly transferred to the LLC on August 17, 2022. On September 1, 2022, Shell formally advised the Russian Federation (RFG) that it would not apply for shares in the LLC, that it objected to the purported transfers from SEIC to the LLC and that it reserved all rights and remedies. The RFG is now expected to begin the process to sell Shell’s 27.5% (minus one share) share. This process is expected to be completed in the first quarter 2023. Pursuant the Presidential decree, the RFG is also expected to conduct an audit of 'the activities of foreign shareholders in SEIC and/or individuals', based on which the RFG will determine the 'amount of damage caused' and 'persons liable to indemnify it'. The remaining carrying value of the investment is zero as at September 30, 2022 (June 30, 2022: zero).

Nord Stream 2
Shell is one of five energy companies which have each committed to provide financing and guarantees for up to 10% of the total cost of the project. Following the first quarter announcements, Shell assessed the recoverability of the loan to Nord Stream 2, leading to a full write-down in the first quarter 2022 of the loan amounting to $1,126 million. On September 26, 2022, one of the two Nord Stream 2 pipelines ruptured resulting in a gas leak and significant damage. Investigations are now under way to determine the cause of the rupture. The rupture had no financial impact in the third quarter 2022, following the full write-down of the loan in the first quarter 2022.

Upstream

Salym
Shell has a 50% interest in Salym Petroleum Development N.V. (Salym), a joint operation with GazpromNeft that is developing the Salym fields in the Khanty Mansiysk Autonomous District of western Siberia. Shell consolidated its share in the joint operation. Following the first quarter announcements, Shell assessed the recoverability of the Salym carrying amounts, leading to full impairment amounting to $233 million in the first quarter 2022. In July 2022, the Shell directors on Salym resigned. Joint control was lost early in the third quarter 2022 and from that date Salym is accounted for as a financial asset at fair value, with a carrying value of zero. Pursuant to Russian legislative changes and court decisions in the second and third quarter 2022, the Russian branch of Salym has purportedly been transformed into a Russian LLC (Salym Development Limited Liability Company). All assets, rights and obligations of the Russian branch of Salym have purportedly been transferred to that entity and Shell is unable dispose of the shares it purportedly holds in the Russian LLC until December 31, 2023 without further RFG and Russian court approvals. Shell has relevantly objected to these events and reserved all rights and remedies.

Gydan
Shell had a 50% interest in LLC Gydan Energy, a joint operation with GazpromNeft to explore and develop blocks in the Gydan peninsula, in north-western Siberia. This project is in the exploration phase, with no production. Following the first quarter announcements, Shell assessed the recoverability of the Gydan carrying amounts, leading to full impairment amounting to $153 million and other charges of $35 million in the first quarter 2022. During the second quarter 2022, all rights and obligations for Shell’s 50% interest were transferred to GazpromNeft with an insignificant impact on the income statement.

Marketing

Shell Neft’s retail network consisted of 240 sites owned by Shell Neft and 171 sites owned by dealers and Shell Neft operated a lubricant blending plant. Shell Neft was a 100% Shell-owned subsidiary and was fully consolidated until the date of the disposal. Following the first quarter announcements, Shell assessed the recoverability of Shell Neft carrying amounts, resulting in an impairment of non-current assets of $358 million and other charges of $236 million. In the second quarter 2022, Shell transferred all shares of Shell Neft to Lukoil leading to net charges of $83 million, including the release of currency translation losses ($343 million).

Other

Marked to market risk adjustments of $335 million related to long-term offtake natural gas contracts, an impairment of right-of-use assets of $114 million and other charges of $36 million were recognised in the first quarter 2022. In the second quarter
Shell plc            Unaudited Condensed Interim Financial Report            26


2022, further marked-to-market risk adjustments of $133 million were recognised following changes demanded to the contractual payment mechanism leading to the suspension by Gazprom of gas deliveries under these long-term offtake contracts. Finally, $140 million was recognised in income in the second quarter 2022 from the derecognition of lease liabilities following the termination of lease arrangements for which the right-of-use assets were impaired in the first quarter 2022.
Shell holds two long-term LNG offtake contracts with Russian entities, accounted for as regular sales and purchase contracts. The counterparty in one of these contracts stopped delivering cargos to Shell in the third quarter 2022.
9. Post-balance sheet events
On October 19, 2022, Shell announced that it acquired all of the common units representing limited partner interests in Shell Midstream Partners, L.P. (SHLX) held by the public for $15.85 per Public Common Unit in cash for a total value of approximately $1.96 billion. In the fourth quarter 2022 consolidated statement of cash flows this transaction will be reflected as 'cash flow from financing activities' and all else being equal net debt of Shell will increase by an equal amount.
Shell plc            Unaudited Condensed Interim Financial Report            27


ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES
A.Adjusted Earnings and Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA)
The “Adjusted Earnings” measure aims to facilitate a comparative understanding of Shell’s financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. These items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shell’s financial results from period to period. This measure excludes earnings attributable to non-controlling interest.
We define "Adjusted EBITDA" as "Income/(loss) for the period" adjusted for current cost of supplies; identified items; tax charge/(credit); depreciation, amortisation and depletion; exploration well write-offs and net interest expense. All items include the non-controlling interest component. Management uses this measure to evaluate Shell's performance in the period and over time.
Adjusted earnings
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
6,743 18,040 (447)Income/(loss) attributable to Shell plc shareholders31,899 8,640 
1,354 (1,363)(541)Add: Current cost of supplies adjustment attributable to Shell plc shareholders (Note 2)(2,099)(2,648)
(1,356)5,205 (5,118)Less: Identified items attributable to Shell plc shareholders(255)(6,906)
9,454 11,472 4,130 Adjusted Earnings30,055 12,898 
Of which:
2,319 3,758 1,837 Integrated Gas10,169 5,012 
5,896 4,912 1,734 Upstream14,258 5,178 
820 751 1,099 Marketing2,308 2,857 
772 2,035 475 Chemicals and Products3,975 2,245 
383 725 (171)Renewables and Energy Solutions1,452 (286)
(571)(626)(732)Corporate(1,745)(1,797)
(165)(82)(112)Less: Non-controlling interest(361)(312)

Shell plc            Unaudited Condensed Interim Financial Report            28


Adjusted EBITDA
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
9,454 11,472 4,130 Adjusted Earnings30,055 12,898 
165 82 112 Add: Non-controlling interest361 312 
5,621 5,248 2,168 Add: Taxation charge/(credit) excluding tax impact of identified items14,587 4,896 
5,665 5,608 6,005 Add: Depreciation, depletion and amortisation excluding impairments16,662 17,707 
218 189 323 Add: Exploration well write-offs486 567 
734 695 859 Add: Interest expense excluding identified items2,139 2,643 
346 144 136 Less: Interest income601 366 
21,512 23,150 13,460 Adjusted EBITDA63,689 38,656 
Of which:
5,393 6,529 3,922 Integrated Gas18,237 10,663 
12,539 11,167 6,768 Upstream32,682 18,724 
1,505 1,452 1,760 Marketing4,280 4,896 
1,797 3,184 1,282 Chemicals and Products6,988 4,894 
530 1,013 (124)Renewables and Energy Solutions2,064 (101)
(251)(197)(147)Corporate(562)(421)
Identified items
Identified items comprise: divestment gains and losses, impairments, redundancy and restructuring, provisions for onerous contracts, fair value accounting of commodity derivatives and certain gas contracts and the impact of exchange rate movements on certain deferred tax balances, and other items.

Shell plc            Unaudited Condensed Interim Financial Report            29


IDENTIFIED ITEMS
Quarters$ millionNine months
Q3 2022Q2 2022Q3 202120222021
Identified items before tax
92 351 316 Divestment gains/(losses)636 2,334 
(458)6,016 (352)Impairment reversals/(impairments)3,038 (2,770)
(26)(11)321 Redundancy and restructuring22 (358)
29(334)(107)Provisions for onerous contracts(508)(107)
(2,199)1,114 (6,110)Fair value accounting of commodity derivatives and certain gas contracts(2,374)(7,095)
608 248 15 
Other
(432)17 
(1,955)7,384 (5,917)Total identified items before tax381 (7,978)
601 (2,179)799 Total tax impact of identified items(634)1,064