SEC Filing | Shell Plc

View:

Download DOC

Download PDF

Download XLS

Download XBRL

shel-20230630

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 2023

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 ¨

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, 2023 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 Interim Consolidated Financial Statements of the Registrant and its subsidiaries for the three and six month periods ended June 30, 2023, and Business Review in respect of such period.

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 Statements on Form S-8 of Shell plc (Registration Numbers 333-262396 and 333-272192).

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/ Caroline J.M. Omloo

			Name: Caroline J.M. Omloo
			Title: Company Secretary

Date: July 27, 2023

Document

Exhibit 99.1
Regulatory release

Three and six month periods ended June 30, 2023
Unaudited Condensed Interim Financial Report

On July 27, 2023, Shell plc released the Unaudited Condensed Interim Financial Report for the three and six month periods ended June 30, 2023, of Shell plc and its subsidiaries (collectively, “Shell”).


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

shel-20230630_d2

Exhibit 99.2

Shell plc

Three and six month periods ended June 30, 2023
Unaudited Condensed Interim Financial Report

Shell plc Unaudited Condensed Interim Financial Report 1


SHELL PLC 2nd QUARTER 2023 AND HALF YEAR UNAUDITED RESULTS

SUMMARY OF UNAUDITED RESULTS


Quarters				$ million		Half year
Q2 2023	Q1 2023	Q2 2022	%¹		Reference	2023	2022	%
3,134	8,709	18,040	-64	Income/(loss) attributable to Shell plc shareholders		11,843	25,156	-53


5,073	9,646	11,472	-47	Adjusted Earnings	A	14,720	20,601	-29
14,435	21,432	23,150	-33	Adjusted EBITDA	A	35,867	42,177	-15
15,130	14,159	18,655	+7	Cash flow from operating activities		29,289	33,470	-12
(3,015)	(4,238)	(6,207)		Cash flow from investing activities		(7,253)	(10,481)
12,116	9,921	12,448		Free cash flow	G	22,037	22,989

5,130	6,501	7,024		Cash capital expenditure	C	11,631	12,088

9,653	9,312	9,547	+4	Operating expenses	F	18,964	19,004	—
9,607	9,293	9,270	+3	Underlying operating expenses	F	18,900	18,526	+2
11.6%	17.2%	14.3%		ROACE on a Net income basis	D	11.6%	14.3%
13.4%	15.9%	12.4%		ROACE on an Adjusted Earnings plus Non-controlling interest (NCI) basis	D	13.4%	12.4%

40,310	44,224	46,357		Net debt	E	40,310	46,357
17.3%	18.4%	19.3%		Gearing	E	17.3%	19.3%
2,731	2,902	2,898	-6	Total production available for sale (thousand boe/d)		2,816	2,930	-4
0.46	1.26	2.42	-63	Basic earnings per share ($)		1.73	3.34	-48
0.75	1.39	1.54	-46	Adjusted Earnings per share ($)	B	2.15	2.74	-22
0.3310	0.2875	0.2500	+15	Dividend per share ($)		0.6185	0.5000	+24

1.Q2 on Q1 change

Quarter Analysis1

Income attributable to Shell plc shareholders, compared with the first quarter 2023, mainly reflected lower LNG trading and optimisation results, lower realised oil and gas prices, lower refining margins, and lower volumes.

Second quarter 2023 income attributable to Shell plc shareholders also included net impairment charges and reversals of $1.7 billion. These charges are included in identified items amounting to a net loss of $1.6 billion in the quarter. This compares with identified items in the first quarter 2023 which amounted to a net loss of $0.5 billion.

Adjusted Earnings and Adjusted EBITDA2 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 positive $0.3 billion.

Cash flow from operating activities for the second quarter 2023 was $15.1 billion, and included a working capital inflow of $4.8 billion, and tax payments of $3.8 billion. The working capital inflow mainly reflected lower prices on inventories, initial margin inflow, a decrease in over-the-counter collateral, and other accounts receivable and payable movements.

Cash flow from investing activities for the quarter was an outflow of $3.0 billion, and included capital expenditure of $4.6 billion, net other investing cash inflows of $1.1 billion, and divestment proceeds of $0.5 billion.

Net debt and Gearing: At the end of the second quarter 2023, net debt was $40.3 billion, compared with $44.2 billion at the end of the first quarter 2023. Gearing was 17.3% at the end of the second quarter 2023, compared with 18.4% at the end of the first quarter 2023, mainly driven by net debt reduction.

Shell plc Unaudited Condensed Interim Financial Report 2

Shareholder distributions

Total shareholder distributions in the quarter amounted to $5.6 billion comprising repurchases of shares of $3.6 billion and cash dividends paid to Shell plc shareholders of $2.0 billion. Dividends declared to Shell plc shareholders for the second quarter 2023 amount to $0.3310 per share. Shell has now completed the $4 billion of share buybacks announced in the first quarter 2023 results announcement. Today, Shell announces a share buyback programme of $3 billion which is expected to be completed by the third quarter 2023 results announcement. Subject to Board approval, a share buyback programme of at least $2.5 billion is expected to be announced at the third quarter 2023 results announcement.

Half Year Analysis1

Income attributable to Shell plc shareholders, compared with the first half 2022, reflected lower realised oil and gas prices, lower volumes, and lower refining margins, partly offset by higher Mobility margins.

First half 2023 income attributable to Shell plc shareholders also included net impairment charges and reversals of $2.1 billion which are included in identified items amounting to a net loss of $2.1 billion. This compares with identified items in the first half 2022 which amounted to a net gain of $1.1 billion.

Adjusted Earnings and Adjusted EBITDA2 for the first half 2023 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 positive $0.8 billion.

Cash flow from operating activities for the first half 2023 was $29.3 billion, and included working capital inflows of $4.1 billion, and tax payments of $6.9 billion.

Cash flow from investing activities for the first half 2023 was an outflow of $7.3 billion and included capital expenditure of $10.8 billion, divestment proceeds of $2.2 billion, and net other investing cash inflows of $1.2 billion.

This announcement, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors3.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

3.Not incorporated by reference.

SECOND QUARTER 2023 PORTFOLIO DEVELOPMENTS

Integrated Gas

In July 2023, we agreed to sell our participating interest of 35% in Indonesia's Masela Production Sharing Contract to Indonesia’s PT Pertamina Hulu Energi and PETRONAS Masela Sdn. Bhd. The participating interest includes the Abadi gas project.

Upstream

In April 2023, we completed the restart of operations at the Pierce field in the UK North Sea after a major redevelopment to enable gas production, after years of the field producing only oil. Pierce is a joint arrangement between Shell (92.52%) and Ithaca Energy (UK) Limited (7.48%).

Shell plc Unaudited Condensed Interim Financial Report 3

PERFORMANCE BY SEGMENT

INTEGRATED GAS


Quarters				$ million		Half year
Q2 2023	Q1 2023	Q2 2022	%¹		Reference	2023	2022	%
754	2,410	8,103	-69	Segment earnings2		3,164	11,183	-72
(1,744)	(2,506)	4,346		Of which: Identified items	A	(4,250)	3,332
2,498	4,917	3,758	-49	Adjusted Earnings²	A	7,415	7,850	-6
4,827	7,482	6,529	-35	Adjusted EBITDA2	A	12,309	12,844	-4
3,628	6,286	8,176	-42	Cash flow from operating activities	H	9,914	14,619	-32
1,089	813	919		Cash capital expenditure	C	1,901	1,782
142	138	144	+2	Liquids production available for sale (thousand b/d)		140	132	+6
4,895	4,825	4,642	+1	Natural gas production available for sale (million scf/d)		4,860	4,573	+6
985	970	944	+2	Total production available for sale (thousand boe/d)		978	920	+6
7.17	7.19	7.66	—	LNG liquefaction volumes (million tonnes)		14.35	15.66	-8
16.03	16.97	15.21	-6	LNG sales volumes (million tonnes)		33.00	33.50	-2

1.Q2 on Q1 change

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

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

Quarter Analysis1

Segment earnings, compared with the first quarter 2023, reflected the effect of lower contributions from trading and optimisation due to seasonality and fewer optimisation opportunities and lower realised prices (decrease of $2,413 million), and unfavourable deferred tax movements (decrease of $90 million), partly offset by higher volumes (increase of $55 million).

Second quarter 2023 segment earnings also included net impairment charges and reversals of $1,438 million mainly in North America, and unfavourable movements of $293 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 unfavourable movements and net impairment charges are part of identified items and compare with the first quarter 2023 which included unfavourable movements of $2,188 million due to the fair value accounting of commodity derivatives and impairment charges of $262 million in Australia.

Adjusted Earnings and Adjusted EBITDA2 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 $208 million, partly offset by tax payments of $1,279 million, and net cash outflows related to derivatives of $201 million.

Total oil and gas production, compared with the first quarter 2023, increased by 2% mainly due to the ramp-up of new fields, and lower maintenance.

Half Year Analysis1

Segment earnings, compared with the first half 2022, reflected the net effect of lower realised prices and higher contributions from trading and optimisation (decrease of $433 million) and lower volumes (decrease of $132 million), partly offset by lower operating expenses (decrease of $82 million).

Half year 2023 segment earnings also included unfavourable movements of $2,481 million due to the fair value accounting of commodity derivatives and net impairment charges and reversals of $1,700 million. These losses are part of identified items and compare with the first half 2022 which included favourable movements of $3,562 million due to the fair value accounting of commodity derivatives, and gains of $780 million from net impairment charges and reversals, partly offset by charges of $387 million due to provisions for onerous contracts.

Shell plc Unaudited Condensed Interim Financial Report 4

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half 2023 was primarily driven by Adjusted EBITDA and working capital inflow of $2,329 million, partly offset by net cash outflows related to derivatives of $2,618 million, and tax payments of $2,163 million.

Total oil and gas production, compared with the first half 2022, increased by 6% mainly due to lower maintenance in Pearl GTL, Prelude, Trinidad and Tobago, and ramp-up of new fields in Oman and Canada, partly offset by derecognition of Sakhalin-related volumes and production-sharing contract effects. LNG liquefaction volumes decreased by 8% mainly due to the derecognition of Sakhalin-related volumes.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Shell plc Unaudited Condensed Interim Financial Report 5

UPSTREAM


Quarters				$ million		Half year
Q2 2023	Q1 2023	Q2 2022	%¹		Reference	2023	2022	%
1,586	2,779	6,391	-43	Segment earnings2		4,365	9,486	-54
(98)	(21)	1,479		Of which: Identified items	A	(120)	1,124
1,684	2,801	4,912	-40	Adjusted Earnings²	A	4,485	8,362	-46
6,447	8,837	11,167	-27	Adjusted EBITDA2	A	15,284	20,144	-24
4,519	5,808	8,110	-22	Cash flow from operating activities	H	10,327	14,074	-27
2,029	1,870	2,858		Cash capital expenditure	C	3,899	4,565
1,283	1,346	1,325	-5	Liquids production available for sale (thousand b/d)		1,314	1,364	-4
2,425	3,078	3,428	-21	Natural gas production available for sale (million scf/d)		2,749	3,517	-22
1,701	1,877	1,917	-9	Total production available for sale (thousand boe/d)		1,788	1,970	-9

1.Q2 on Q1 change

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

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 first quarter 2023, mainly reflected lower prices (decrease of $741 million) and lower volumes (decrease of $718 million), partly offset by lower operating expenses (decrease of $116 million) and lower depreciation, depletion and amortisation charges (decrease of $54 million).

Second quarter 2023 segment earnings also included charges of $127 million due to Brazil Oil export tax and a $65 million charge relating to impairments, partly offset by gains of $92 million related to the impact of the strengthening Brazilian real on a deferred tax position. These gains and losses are part of identified items, and compare with the first quarter 2023 which amounted to a net loss of $21 million.

Adjusted Earnings and Adjusted EBITDA2 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 $772 million, partly offset by tax payments of $2,346 million.

Total production, compared with the first quarter 2023, decreased mainly due to scheduled maintenance and divestments, partly offset by growth from new fields.

Half Year Analysis1

Segment earnings, compared with the first half 2022, mainly reflected lower realised oil and gas prices (decrease of $3,077 million) and lower volumes (reduction of $844 million) mainly as a result of divestments.

First half 2023 segment earnings also included charges of $176 million from impairments, and charges of $127 million relating to Brazil Oil export tax, partly offset by gains of $140 million related to the impact of the strengthening Brazilian real on a deferred tax position. These gains and losses are part of identified items, and compare with the first half 2022 which included a net gain from impairments and impairment reversals of $1,285 million, partly offset by unfavourable movements of $346 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half 2023 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $4,364 million and the timing impact of dividends from joint ventures and associates of $486 million.

Total production, compared with the first half 2022, decreased mainly due to the impact of divestments, partly offset by growth from new fields.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Shell plc Unaudited Condensed Interim Financial Report 6

MARKETING


Quarters				$ million		Half year
Q2 2023	Q1 2023	Q2 2022	%¹		Reference	2023	2022	%
970	1,137	836	-15	Segment earnings²		2,107	1,000	+111
76	262	85		Of which: Identified items	A	338	(487)
894	874	751	+2	Adjusted Earnings²	A	1,768	1,488	+19
1,604	1,578	1,452	+2	Adjusted EBITDA2	A	3,181	2,775	+15
1,412	1,086	(454)	+30	Cash flow from operating activities	H	2,498	(984)	+354
670	2,685	1,620		Cash capital expenditure	C	3,355	2,092
2,607	2,446	2,515	+7	Marketing sales volumes (thousand b/d)		2,527	2,444	+3

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, marine, commercial road transport and agricultural sectors.

Quarter Analysis1

Segment earnings, compared with the first quarter 2023, reflected higher Marketing margins (increase of $153 million) mainly driven by seasonal effects and improved unit margins in Mobility, partly offset by lower margins in Lubricants and Sectors & Decarbonisation. The second quarter 2023 also included lower taxes (decrease of $41 million). These net gains were partly offset by higher operating expenses (increase of $173 million).

Second quarter 2023 segment earnings also included a gain of $88 million related to indirect tax credits. This gain is part of identified items, and compares with the first quarter 2023 which included a gain of $210 million related to similar indirect tax credits.

Adjusted Earnings and Adjusted EBITDA2 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 the timing of payments relating to emissions and biofuel programmes of $103 million. These inflows were partly offset by tax payments of $169 million, working capital outflows of $83 million, and non-cash cost-of-sales (CCS) adjustments of $54 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first quarter 2023, increased mainly due to seasonal effects.

Half Year Analysis1

Segment earnings, compared with the first half 2022, reflected higher Marketing margins (increase of $830 million) due to higher volumes in Mobility and Aviation and higher margins in Lubricants and Sectors & Decarbonisation. These were partly offset by higher operating expenses (increase of $363 million) including the impact of higher volumes, and higher depreciation charges (increase of $95 million).

First half 2023 segment earnings also included gains of $298 million related to indirect tax credits, and favourable movements of $58 million due to the fair value accounting of commodity derivatives. These gains are part of identified items and compare with the first half 2022 which included losses of $230 million from net impairments and 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 unfavourable movements of $42 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half 2023 was primarily driven by Adjusted EBITDA, the timing of payments relating to emissions and biofuel programmes of $189 million, and dividends from joint ventures and associates of $106 million. These inflows were partly offset by working capital outflows of $438 million, tax payments of $240 million and non-cash cost-of-sales (CCS) adjustments of $210 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first half 2022, increased mainly due to Mobility asset acquisitions and improved demand in Aviation.

Shell plc Unaudited Condensed Interim Financial Report 7

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Shell plc Unaudited Condensed Interim Financial Report 8

CHEMICALS AND PRODUCTS


Quarters				$ million		Half year
Q2 2023	Q1 2023	Q2 2022	%¹		Reference	2023	2022	%
349	1,799	2,131	-81	Segment earnings²		2,148	3,203	-33
(100)	22	96		Of which: Identified items	A	(78)	1
450	1,777	2,035	-75	Adjusted Earnings²	A	2,226	3,203	-30
1,300	3,050	3,184	-57	Adjusted EBITDA2	A	4,350	5,191	-16
2,110	2,290	2,728	-8	Cash flow from operating activities	H	4,401	6,402	-31
669	613	1,226		Cash capital expenditure	C	1,281	2,224
1,335	1,413	1,342	-6	Refinery processing intake (thousand b/d)		1,374	1,370	—
1,466	1,706	1,596	-14	Refining & Trading sales volumes (thousand b/d)		1,585	1,597	-1
2,828	2,831	3,054	—	Chemicals sales volumes (thousand tonnes)		5,658	6,384	-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 Analysis1

Segment earnings, compared with the first quarter 2023, reflected lower Products margins (decrease of $1,099 million) mainly driven by lower refining margins and lower contributions from trading and optimisation, and lower Chemicals margins (decrease of $80 million) including weaker demand and lower income from joint ventures and associates. Segment earnings also reflected higher operating expenses (increase of $122 million) due to higher maintenance spend and provisions for site restoration.

Second quarter 2023 segment earnings also included impairment charges of $76 million. These losses are part of identified items, and compare with the first quarter 2023 which included favourable movements of $134 million due to the fair value accounting of commodity derivatives, and impairment charges of $72 million.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the second quarter 2023, Chemicals had negative adjusted earnings of $468 million and Products had positive adjusted earnings of $917 million.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, working capital inflows of $679 million, the timing of payments relating to emissions and biofuel programmes of $574 million, and dividends from joint ventures and associates of $112 million. These inflows were partly offset by non-cash cost-of-sales (CCS) adjustments of $376 million, cash outflows relating to commodity derivatives of $206 million, and tax payments of $113 million.

Chemicals manufacturing plant utilisation was 70% compared with 71% in the first quarter 2023.

Refinery utilisation was 85% compared with 91% in the first quarter 2023 due to higher planned and unplanned maintenance.

Half Year Analysis1

Segment earnings, compared with the first half 2022, reflected lower Products margins (decrease of $773 million) mainly driven by lower refining margins, as well as higher depreciation charges (increase of $286 million) and higher operating expenses (increase of $129 million).

First half 2023 segment earnings also included impairment charges of $148 million, and favourable movements of $137 million related to the fair value accounting of commodity derivatives. These gains and losses are part of identified items, and compare with the first half 2022 which included gains of $172 million related to the sale of assets, gains of $94 million related to the remeasurement of redundancy and restructuring costs, unfavourable movements of $159 million related to the fair value accounting of commodity derivatives, and impairment charges of $87 million.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the first half 2023, Chemicals had negative adjusted earnings of $801 million and Products had positive adjusted earnings of $3,027 million.

Shell plc Unaudited Condensed Interim Financial Report 9

Cash flow from operating activities for the first half 2023 was primarily driven by Adjusted EBITDA, cash inflows relating to commodity derivatives of $607 million, the timing of payments relating to emissions and biofuel programmes of $380 million, and dividends from joint ventures and associates of $101 million. These inflows were partly offset by non-cash cost-of-sales (CCS) adjustments of $880 million, tax payments of $263 million and working capital outflows of $125 million.

Chemicals manufacturing plant utilisation was 71% compared with 82% in the first half 2022, mainly due to economic optimisation in the first half 2023.

Refinery utilisation was 88% compared with 82% in the first half 2022, due to lower planned maintenance partly offset by portfolio activities.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Shell plc Unaudited Condensed Interim Financial Report 10

RENEWABLES AND ENERGY SOLUTIONS


Quarters				$ million		Half year
Q2 2023	Q1 2023	Q2 2022	%¹		Reference	2023	2022	%
530	2,200	(173)	-76	Segment earnings2		2,729	(1,709)	+260
301	1,810	(898)		Of which: Identified items	A	2,112	(2,778)
228	389	725	-41	Adjusted Earnings2	A	617	1,069	-42
438	668	1,013	-35	Adjusted EBITDA2	A	1,106	1,534	-28
3,192	1,091	(558)	+193	Cash flow from operating activities	H	4,283	(1,017)	+521
556	440	321		Cash capital expenditure	C	996	1,307
67	68	54	-2	External power sales (terawatt hours)3		135	110	+23
172	221	188	-22	Sales of pipeline gas to end-use customers (terawatt hours)4		393	445	-12

1.Q2 on Q1 change

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

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

4.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.

Renewables and Energy Solutions includes renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.

Quarter Analysis1

Segment earnings, compared with the first quarter 2023, reflected higher operating expenses (increase of $99 million), and lower margins (decrease of $75 million) mainly from trading and optimisation results in the Americas due to seasonally lower demand and decreased volatility, partly offset by lower taxes (decrease of $63 million).

Second quarter 2023 segment earnings also included favourable movements of $310 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 favourable movements are part of identified items and compare with the first quarter 2023 which included favourable movements of $1,815 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 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 inflows of $2,958 million, and Adjusted EBITDA, partly offset by net cash outflows related to derivatives of $170 million, and tax payments of $86 million.

Half Year Analysis1

Segment earnings, compared with the first half 2022, reflected higher operating expenses (increase of $207 million), and lower margins (decrease of $170 million) mainly from trading and optimisation results for gas and power in the Americas and Australia, partly offset by Marketing in Europe.

Half year 2023 segment earnings also included favourable movements of $2,125 million due to the fair value accounting of commodity derivatives. These favourable movements are part of identified items and compare with the first half 2022 which included unfavourable movements of $2,778 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half 2023 was primarily driven by working capital inflows of $3,505 million, and Adjusted EBITDA, partly offset by net cash outflows related to derivatives of $313 million.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Shell plc Unaudited Condensed Interim Financial Report 11

Additional Growth Measures


Quarters					Half year
Q2 2023	Q1 2023	Q2 2022	%¹		2023	2022	%
				Renewable power generation capacity (gigawatt):
2.5	2.3	0.5	+6	– In operation2	2.5	0.5	+413
4.6	4.0	2.4	+14	– Under construction and/or committed for sale3	4.6	2.4	+89

1.Q2 on Q1 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). 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			$ million		Half year
Q2 2023	Q1 2023	Q2 2022		Reference	2023	2022
(701)	(1,064)	(529)	Segment earnings1		(1,765)	(1,264)
(48)	(24)	97	Of which: Identified items	A	(72)	(90)
(654)	(1,039)	(626)	Adjusted Earnings1	A	(1,693)	(1,174)
(180)	(183)	(197)	Adjusted EBITDA1	A	(363)	(310)
269	(2,403)	652	Cash flow from operating activities	H	(2,134)	375

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

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 first quarter 2023, reflected favourable movements in tax credits and lower net interest expense.

Adjusted EBITDA2 was in line with the previous quarter.

Half Year Analysis1

Segment earnings, compared with the first half 2022, reflected unfavourable movements in tax credits and unfavourable currency exchange rate effects.

Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

OUTLOOK FOR THE THIRD QUARTER 2023

Cash capital expenditure range for the full year has been lowered and is expected to be within $23 - 26 billion.

Integrated Gas production is expected to be approximately 870 - 930 thousand boe/d. LNG liquefaction volumes are expected to be approximately 6.3 - 6.9 million tonnes. Production and LNG liquefaction outlook reflects scheduled maintenance (including Prelude and Trinidad and Tobago).

Upstream production is expected to be approximately 1,600 - 1,800 thousand boe/d. Production outlook reflects scheduled maintenance across the portfolio.

Marketing sales volumes are expected to be approximately 2,450 - 2,950 thousand b/d.

Refinery utilisation is expected to be approximately 82% - 90%. Chemicals manufacturing plant utilisation is expected to be approximately 67% - 75%.

Corporate Adjusted Earnings are expected to be a net expense of approximately $500 - $700 million in the third quarter 2023 and a net expense of approximately $2,400 - $2,800 million for the full year 2023. This excludes the impact of hedge effectiveness and currency exchange rate effects.

FORTHCOMING EVENTS

Third quarter 2023 results and dividends are scheduled to be announced on November 2, 2023.

Shell plc Unaudited Condensed Interim Financial Report 13

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME


Quarters			$ million	Half year
Q2 2023	Q1 2023	Q2 2022		2023	2022
74,578	86,959	100,059	Revenue1	161,538	184,263
629	1,581	2,031	Share of profit/(loss) of joint ventures and associates	2,210	1,728
813	481	993	Interest and other income/(expenses)2	1,294	257
76,020	89,021	103,083	Total revenue and other income/(expenses)	165,041	186,247
51,492	57,502	66,658	Purchases	108,994	122,315
6,041	6,008	6,359	Production and manufacturing expenses	12,049	12,389
3,314	3,051	2,924	Selling, distribution and administrative expenses	6,365	6,163
297	253	264	Research and development	550	452
444	404	370	Exploration	847	639
7,872	6,285	(348)	Depreciation, depletion and amortisation2	14,157	5,947
1,211	1,165	695	Interest expense	2,375	1,406
70,671	74,667	76,923	Total expenditure	145,339	149,311
5,348	14,354	26,160	Income/(loss) before taxation	19,702	36,936
2,195	5,582	7,922	Taxation charge/(credit)	7,776	11,379
3,154	8,772	18,238	Income/(loss) for the period¹	11,926	25,557
20	64	198	Income/(loss) attributable to non-controlling interest	83	401
3,134	8,709	18,040	Income/(loss) attributable to Shell plc shareholders	11,843	25,156
0.46	1.26	2.42	Basic earnings per share ($)3	1.73	3.34
0.46	1.25	2.40	Diluted earnings per share ($)3	1.71	3.31

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”.

Shell plc Unaudited Condensed Interim Financial Report 14

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


Quarters			$ million	Half year
Q2 2023	Q1 2023	Q2 2022		2023	2022
3,154	8,772	18,238	Income/(loss) for the period	11,926	25,557
			Other comprehensive income/(loss) net of tax:
			Items that may be reclassified to income in later periods:
(267)	553	(2,644)	– Currency translation differences	286	(2,385)
(7)	18	(24)	– Debt instruments remeasurements	12	(65)
100	(180)	(98)	– Cash flow hedging gains/(losses)	(80)	169
8	(52)	211	– Net investment hedging gains/(losses)	(44)	261
(53)	(2)	9	– Deferred cost of hedging	(55)	222
(10)	(35)	(22)	– Share of other comprehensive income/(loss) of joint ventures and associates	(46)	168
(229)	302	(2,567)	Total	73	(1,630)
			Items that are not reclassified to income in later periods:
(24)	(32)	5,712	– Retirement benefits remeasurements	(55)	7,430
16	8	(457)	– Equity instruments remeasurements	23	(433)
(24)	(8)	36	– Share of other comprehensive income/(loss) of joint ventures and associates	(32)	(38)
(32)	(33)	5,291	Total	(65)	6,959
(261)	269	2,724	Other comprehensive income/(loss) for the period	8	5,330
2,893	9,041	20,962	Comprehensive income/(loss) for the period	11,934	30,887
(15)	84	327	Comprehensive income/(loss) attributable to non-controlling interest	68	545
2,908	8,958	20,635	Comprehensive income/(loss) attributable to Shell plc shareholders	11,866	30,342

Shell plc Unaudited Condensed Interim Financial Report 15

CONDENSED CONSOLIDATED BALANCE SHEET


$ million
	June 30, 2023	December 31, 2022
Assets
Non-current assets
Goodwill1	17,655	16,039
Other intangible assets	8,642	9,662
Property, plant and equipment	197,177	198,642
Joint ventures and associates	24,434	23,864
Investments in securities	3,431	3,362
Deferred tax1	6,238	7,815
Retirement benefits	10,398	10,200
Trade and other receivables	6,031	6,920
Derivative financial instruments²	541	582
	274,547	277,086
Current assets
Inventories	26,975	31,894
Trade and other receivables	52,383	66,510
Derivative financial instruments²	15,616	24,437
Cash and cash equivalents	45,094	40,246
	140,068	163,087
Assets classified as held for sale1	417	2,851
	140,486	165,938
Total assets	415,033	443,024
Liabilities
Non-current liabilities
Debt	72,252	74,794
Trade and other payables	4,440	3,432
Derivative financial instruments²	3,080	3,563
Deferred tax1	15,955	16,186
Retirement benefits	7,491	7,296
Decommissioning and other provisions	23,592	23,845
	126,810	129,116
Current liabilities
Debt	12,114	9,001
Trade and other payables	63,996	79,357
Derivative financial instruments²	12,513	23,779
Income taxes payable	4,462	4,869
Decommissioning and other provisions	3,037	2,910
	96,123	119,916
Liabilities directly associated with assets classified as held for sale1	6	1,395
	96,129	121,311
Total liabilities	222,939	250,427
Equity attributable to Shell plc shareholders	190,461	190,472
Non-controlling interest1	1,633	2,125
Total equity	192,094	192,597
Total liabilities and equity	415,033	443,024

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 trust	Other reserves²	Retained earnings	Total	Non-controlling interest	Total equity
At January 1, 2023	584	(726)	21,132	169,482	190,472	2,125	192,597
Comprehensive income/(loss) for the period	—	—	24	11,842	11,866	68	11,934
Transfer from other comprehensive income	—	—	(121)	121	—	—	—
Dividends³	—	—	—	(4,014)	(4,014)	(585)	(4,599)
Repurchases of shares4	(22)	—	22	(8,054)	(8,054)	—	(8,054)
Share-based compensation	—	500	(203)	(105)	192	—	192
Other changes	—	—	—	1	1	24	25
At June 30, 2023	562	(227)	20,854	169,272	190,461	1,633	192,094
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

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 2023	Q1 2023	Q2 2022		2023	2022
5,348	14,354	26,160	Income before taxation for the period	19,702	36,936
			Adjustment for:
612	664	551	– Interest expense (net)	1,276	1,150
7,872	6,285	(348)	– Depreciation, depletion and amortisation1	14,157	5,947
204	236	189	– Exploration well write-offs	440	268
(53)	(45)	(334)	– Net (gains)/losses on sale and revaluation of non-current assets and businesses	(98)	(527)
(629)	(1,581)	(2,031)	– Share of (profit)/loss of joint ventures and associates	(2,210)	(1,728)
884	896	1,245	– Dividends received from joint ventures and associates	1,780	2,171
1,171	4,217	(6,833)	– (Increase)/decrease in inventories	5,389	(11,747)
8,289	5,943	(4,066)	– (Increase)/decrease in current receivables	14,231	(14,071)
(4,619)	(10,932)	6,656	– Increase/(decrease) in current payables	(15,552)	14,150
(907)	(2,336)	(1,779)	– Derivative financial instruments	(3,244)	1,716
14	15	123	– Retirement benefits	30	370
(236)	(84)	571	– Decommissioning and other provisions	(320)	562
954	(330)	1,706	– Other1	624	3,582
(3,773)	(3,144)	(3,155)	Tax paid	(6,917)	(5,310)
15,130	14,159	18,655	Cash flow from operating activities	29,289	33,470
(4,614)	(6,161)	(6,677)	Capital expenditure	(10,774)	(10,914)
(436)	(307)	(264)	Investments in joint ventures and associates	(743)	(1,019)
(80)	(33)	(83)	Investments in equity securities	(114)	(156)
362	1,479	783	Proceeds from sale of property, plant and equipment and businesses	1,841	1,340
100	257	51	Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans	357	190
18	2	4	Proceeds from sale of equity securities	20	16
522	448	160	Interest received	970	252
1,908	700	293	Other investing cash inflows1	2,607	1,046
(794)	(623)	(474)	Other investing cash outflows	(1,417)	(1,236)
(3,015)	(4,238)	(6,207)	Cash flow from investing activities	(7,253)	(10,481)
(186)	(86)	640	Net increase/(decrease) in debt with maturity period within three months	(272)	772
			Other debt:
362	415	35	– New borrowings	777	135
(1,774)	(1,453)	(2,531)	– Repayments	(3,228)	(5,072)
(1,158)	(869)	(1,090)	Interest paid	(2,027)	(1,747)
(152)	200	(828)	Derivative financial instruments	48	(1,311)
2	(30)	2	Change in non-controlling interest	(27)	5
			Cash dividends paid to:
(1,983)	(2,029)	(1,851)	– Shell plc shareholders	(4,013)	(3,802)
(575)	(10)	(63)	– Non-controlling interest	(585)	(110)
(3,624)	(4,291)	(5,541)	Repurchases of shares	(7,915)	(9,013)
86	(232)	78	Shares held in trust: net sales/(purchases) and dividends received	(146)	(25)
(9,003)	(8,385)	(11,150)	Cash flow from financing activities	(17,388)	(20,168)
(93)	293	(688)	Effects of exchange rate changes on cash and cash equivalents	199	(822)
3,020	1,829	609	Increase/(decrease) in cash and cash equivalents	4,848	1,999
42,074	40,246	38,360	Cash and cash equivalents at beginning of period	40,246	36,970
45,094	42,074	38,970	Cash and cash equivalents at end of period	45,094	38,970

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

Shell plc Unaudited Condensed Interim Financial Report 18

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 International Accounting Standard 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 237 to 307) for the year ended December 31, 2022 as filed with the Registrar of Companies for England and Wales and the Autoriteit Financiële Markten (the Netherlands) and Form 20-F (pages 216 to 287) for the year ended December 31, 2022 as filed with the US Securities and Exchange Commission, and should be read in conjunction with these filings.

The financial information presented in the unaudited Condensed Consolidated Interim Financial 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, 2022 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.

On consolidation, assets and liabilities of non-dollar entities are translated to dollars at period-end rates of exchange, while their statements of income, other comprehensive income and cash flows are translated at average rates. Until the end of 2022 this translation was performed at quarterly average rates. As from January 1, 2023 this translation is performed at monthly average rates. This change had no significant impact on Shell's financial reporting.

New standards adopted in 2023

IFRS 17 Insurance contracts (IFRS 17) as issued in 2017, with amendments published in 2020 and 2021, was adopted as from January 1, 2023. The adoption of IFRS 17 had no significant effect on Shell's financial reporting.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income taxes (IAS 12)), published in May 2021, was adopted as from January 1, 2023. The adoption of these amendments had no significant effect on Shell's financial reporting.

International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) as issued on May 23, 2023, was adopted as from that date. The amendments to IAS 12 introduce a temporary mandatory relief from accounting for deferred tax that arises from legislation implementing OECD Pillar Two. On June 20, 2023, the United Kingdom substantively enacted Pillar Two. As required by the amendments to IAS 12, Shell has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

Going concern

These unaudited Condensed Consolidated Interim Financial Statements have been prepared on the going concern basis of accounting. In assessing the appropriateness of the going concern assumption over the period to December 31, 2024 (the ‘going concern period’), management have stress tested Shell’s most recent financial projections to incorporate a range of potential future outcomes by considering Shell’s principal risks, potential downside pressures on commodity prices and long-term demand, and cash preservation measures, including reduced capital expenditure and shareholder distributions. This assessment confirmed that Shell has adequate cash, other liquid resources and undrawn credit facilities to enable it to meet its obligations as they fall due in order to continue its operations during the going concern period. Therefore, the Directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing these unaudited Condensed Consolidated Interim Financial Statements.

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 2023 (see Note 7).

The discount rate applied in assessing value in use represents a significant estimate. The discount rate applied was subject to change in the second quarter 2023 (see Note 7).

2. Segment information

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

Shell plc Unaudited Condensed Interim Financial Report 19

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.

INFORMATION BY SEGMENT


Quarters			$ million	Half year
Q2 2023	Q1 2023	Q2 2022		2023	2022
			Third-party revenue
7,938	10,932	12,403	Integrated Gas	18,869	26,477
1,533	2,062	2,253	Upstream	3,595	3,784
26,573	26,280	34,121	Marketing	52,853	60,257
28,656	32,056	39,793	Chemicals and Products	60,712	73,213
9,866	15,619	11,477	Renewables and Energy Solutions	25,485	20,503
12	12	12	Corporate	24	28
74,578	86,959	100,059	Total third-party revenue1	161,538	184,263
			Inter-segment revenue
2,940	3,534	4,176	Integrated Gas	6,474	7,708
8,859	11,146	13,951	Upstream	20,005	25,892
123	163	153	Marketing	286	254
508	565	718	Chemicals and Products	1,073	1,385
771	1,475	1,522	Renewables and Energy Solutions	2,246	2,764
—	—	—	Corporate	—	—
			CCS earnings
754	2,410	8,103	Integrated Gas	3,164	11,183
1,586	2,779	6,391	Upstream	4,365	9,486
970	1,137	836	Marketing	2,107	1,000
349	1,799	2,131	Chemicals and Products	2,148	3,203
530	2,200	(173)	Renewables and Energy Solutions	2,729	(1,709)
(701)	(1,064)	(529)	Corporate	(1,765)	(1,264)
3,488	9,262	16,759	Total CCS earnings	12,749	21,899

1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Second quarter 2023 included income of $4,247 million (first quarter 2023: $4,809 million income; second quarter 2022: $3,477 million income). This amount includes both the reversal of prior gains of $27 million (first quarter 2023: $1,369 million gains; second quarter 2022: $2,094 million losses) related to sales contracts and prior losses of $88 million (first quarter 2023: $772 million losses; second quarter 2022: $1,982 million gains) related to purchase contracts that were previously recognised and where physical settlement took place in the second quarter 2023.

Shell plc Unaudited Condensed Interim Financial Report 20

RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS


Quarters			$ million	Half year
Q2 2023	Q1 2023	Q2 2022		2023	2022
3,134	8,709	18,040	Income/(loss) attributable to Shell plc shareholders	11,843	25,156
20	64	198	Income/(loss) attributable to non-controlling interest	83	401
3,154	8,772	18,238	Income/(loss) for the period	11,926	25,557
			Current cost of supplies adjustment:
383	647	(1,929)	Purchases	1,030	(4,723)
(96)	(171)	496	Taxation	(267)	1,178
47	13	(46)	Share of profit/(loss) of joint ventures and associates	60	(114)
334	489	(1,479)	Current cost of supplies adjustment	823	(3,659)
			Of which:
326	481	(1,363)	Attributable to Shell plc shareholders	807	(3,453)
8	8	(116)	Attributable to non-controlling interest	16	(205)
3,488	9,262	16,759	CCS earnings	12,749	21,899
			Of which:
3,460	9,190	16,677	CCS earnings attributable to Shell plc shareholders	12,650	21,703
27	72	82	CCS earnings attributable to non-controlling interest	99	196

3. Earnings per share

EARNINGS PER SHARE


Quarters				Half year
Q2 2023	Q1 2023	Q2 2022		2023	2022
3,134	8,709	18,040	Income/(loss) attributable to Shell plc shareholders ($ million)	11,843	25,156

			Weighted average number of shares used as the basis for determining:
6,793.4	6,918.9	7,453.2	Basic earnings per share (million)	6,855.8	7,527.7
6,854.2	6,982.1	7,518.5	Diluted earnings per share (million)	6,917.8	7,589.6

4. Share capital

ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH1


	Number of shares			Nominal value ($ million)
	A	B	Ordinary shares	A	B	Ordinary shares	Total
At January 1, 2023			7,003,503,393			584	584
Repurchases of shares			(268,292,487)			(22)	(22)
At June 30, 2023			6,735,210,906			562	562
At January 1, 2022	4,101,239,499	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