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 February 2024
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
Regulatory release.
Shell plc – Three and twelve month periods ended December 31, 2023 Unaudited Condensed Financial Report.
This Report on Form 6-K contains the Unaudited Condensed Financial Report. This Unaudited Condensed Financial Report contains the Unaudited Condensed Consolidated Financial Statements of the Registrant and its subsidiaries for the three and twelve month periods ended December 31, 2023, 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, Shell Finance US Inc. and Shell International Finance B.V. (Registration Numbers 333-276068, 333-276068-01 and 333-276068-02); 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: February 1, 2024


Document

Exhibit 99.1
Regulatory release

Three and twelve month periods ended December 31, 2023
Unaudited Condensed Financial Report
On February 1, 2024, Shell plc released the Unaudited Condensed Financial Report for the three and twelve month periods ended December 31, 2023, of Shell plc and its subsidiaries (collectively, “Shell”).
Contact – Media
International: +44 (0) 207 934 5550
USA: +1 832 337 4355


Document

Exhibit 99.2
Shell plc
Three and twelve month periods ended December 31, 2023
Unaudited Condensed Financial Report
Shell plc            Unaudited Condensed Financial Report            1


SHELL PLC
4th QUARTER 2023 AND FULL YEAR UNAUDITED RESULTS
SUMMARY OF UNAUDITED RESULTS
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022Reference20232022%
4747,044 10,409 -93Income/(loss) attributable to Shell plc shareholders19,36042,309 -54
7,306 6,224 9,814 +17Adjusted EarningsA28,250 39,870 -29
16,335 16,336 20,600 Adjusted EBITDAA68,53884,289-19
12,575 12,332 22,404 +2Cash flow from operating activities54,19668,414-21
(5,657)(4,827)(6,918)Cash flow from investing activities(17,737)(22,448)
6,918 7,505 15,486 Free cash flowG36,460 45,965 
7,113 5,649 7,319 Cash capital expenditureC24,393 24,833 
10,897 10,097 11,114 +8Operating expensesF39,959 39,477 +1
10,565 9,735 11,037 +9Underlying operating expensesF39,201 39,456 -1
8.4%12.0%16.7%ROACE on a Net income basisD8.4%16.7%
11.6%12.5%15.8%ROACE on an Adjusted Earnings plus Non-controlling interest (NCI) basisD11.6%15.8%
81,541 82,147 83,795 Total debtE81,541 83,795 
43,54140,470 44,837 Net debtE43,54144,837
18.8%17.3%18.9%GearingE18.8%18.9%
2,827 2,706 2,831 +4Total production available for sale (thousand boe/d)2,791 2,864 -3
0.071.061.47-93Basic earnings per share ($)2.88 5.76-50
1.110.931.39+19Adjusted Earnings per share ($)B4.205.43-23
0.34400.33100.2875+4Dividend per share ($)1.29351.0375+25
1.Q4 on Q3 change
Quarter Analysis1
Income attributable to Shell plc shareholders, compared with the third quarter 2023, reflected higher LNG trading and optimisation margins, favourable deferred tax movements, and higher production, offset by lower refining margins, lower margins from crude and oil products trading and optimisation, and higher operating expenses.
Fourth quarter 2023 income attributable to Shell plc shareholders also included net impairment charges and reversals ($3.9 billion), and unfavourable movements due to the fair value accounting of commodity derivatives. These charges and unfavourable movements are included in identified items amounting to a net loss of $6.0 billion in the quarter. This compares with identified items in the third quarter 2023 which amounted to a net loss of $0.1 billion, and mainly related to impairment charges, largely offset by favourable movements due to the fair value accounting of commodity derivatives.
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 $0.8 billion.
Cash flow from operating activities for the fourth quarter 2023 was $12.6 billion, and primarily driven by Adjusted EBITDA, and a working capital inflow of $3.3 billion, partly offset by tax payments of $3.6 billion, and a derivatives outflow of $1.0 billion and the timing impact of payments relating to emission certificates and biofuel programmes of $0.9 billion. The working capital inflow mainly reflected inventory movements due to lower prices.
Cash flow from investing activities for the quarter was an outflow of $5.7 billion, and included cash capital expenditure of $7.1 billion, and divestment proceeds of $0.6 billion.
Shell plc            Unaudited Condensed Financial Report            2


Net debt and Gearing: At the end of the fourth quarter 2023, net debt was $43.5 billion, compared with $40.5 billion at the end of the third quarter 2023, mainly reflecting share buybacks, cash dividends paid to Shell plc shareholders, lease additions, and interest payments, partly offset by free cash flow. Gearing was 18.8% at the end of the fourth quarter 2023, compared with 17.3% at the end of the third quarter 2023, driven by higher net debt and lower equity.
Shareholder distributions
Total shareholder distributions in the quarter amounted to $6.2 billion comprising repurchases of shares of $4.0 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the fourth quarter 2023 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the third quarter 2023 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the first quarter 2024 results announcement.
Full Year Analysis1
Full year 2023 income attributable to Shell plc shareholders, compared with the full year 2022, reflected lower realised oil and gas prices, lower volumes, and lower refining margins, partly offset by higher LNG trading and optimisation margins, and higher Marketing margins. By focusing the portfolio and simplifying the organisation, $1.0 billion of pre-tax structural cost reductions4 were delivered compared with the full year 2022, mainly driven by divestments.
Full year 2023 income attributable to Shell plc shareholders also included net impairment charges and reversals of $6.2 billion, and unfavourable movements of $1.3 billion due to the fair value accounting of commodity derivatives. These charges and unfavourable movements are included in identified items amounting to a net loss of $8.2 billion. This compares with identified items in the full year 2022 which amounted to a net gain of $1.2 billion.
Adjusted Earnings and Adjusted EBITDA2 for the full year 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 $0.6 billion.
Cash flow from operating activities for the full year 2023 was $54.2 billion, and primarily driven by Adjusted EBITDA, and a working capital inflow of $7.8 billion, partly offset by tax payments of $13.7 billion, and a derivatives outflow of $6.1 billion.
Cash flow from investing activities for the full year 2023 was an outflow of $17.7 billion and included cash capital expenditure of $24.4 billion, divestment proceeds of $3.1 billion, interest received of $2.1 billion, and net other investing cash inflows of $1.4 billion.
This Unaudited Condensed Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors3. Progress to date on the financial targets that were announced during Capital Markets Day in June 2023 is available at www.shell.com/investors/results-and-reporting/progress-on-cmd23.html3.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
3.Not incorporated by reference.
4.Structural cost reductions describe decreases in underlying operating expenses as a result of operational efficiencies, divestments, workforce reductions and other cost-saving measures that are expected to be sustainable compared with 2022 levels.
FOURTH QUARTER 2023 PORTFOLIO DEVELOPMENTS
Integrated Gas
In October 2023, we completed the previously announced sale of 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.
In October 2023, we and our partners in the Oman LNG LLC venture signed an amended shareholders’ agreement for Oman LNG LLC (Oman LNG) extending the business beyond 2024. We will remain the largest private shareholder in Oman LNG, with a 30% shareholding.
Upstream
In December 2023, we announced the start of production of the FPSO Sepetiba in the Mero field, offshore Santos Basin in Brazil. We hold a 19.3% stake in the Mero Unitized Field.
In December 2023, we announced the final investment decision for Sparta, a deep-water development in the US Gulf of Mexico. We hold a 51% interest.
Shell plc            Unaudited Condensed Financial Report            3


In January 2024, we reached an agreement to sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance. Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.
Chemicals and Products
In January 2024, we announced the final investment decision to convert the hydrocracker of the Wesseling site at the Energy and Chemicals Park Rheinland in Germany into a production unit for Group III base oils, used in making high-quality lubricants such as engine and transmission oils. Crude oil processing will end at the Wesseling site by 2025 but will continue at the Godorf site.
Shell plc            Unaudited Condensed Financial Report            4


PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022Reference20232022%
1,728 2,154 5,293 -20
Segment earnings2
7,04622,212 -68
(2,235)(375)(675)Of which: Identified itemsA(6,861)6,075
3,963 2,529 5,968 +57Adjusted Earnings²A13,907 16,137 -14
6,578 4,871 8,332 +35
Adjusted EBITDA2
A23,759 26,569 -11
3,597 4,009 6,409 -10Cash flow from operating activitiesA17,520 27,692 -37
1,196 1,099 1,527 Cash capital expenditureC4,196 4,265 
113 122 123 -7Liquids production available for sale (thousand b/d)128 128 +1
4,570 4,517 4,607 +1Natural gas production available for sale (million scf/d)4,700 4,600 +2
901 900 917 Total production available for sale (thousand boe/d)939 921 +2
7.06 6.88 6.78 +3LNG liquefaction volumes (million tonnes)28.29 29.68 -5
18.09 16.01 16.82 +13LNG sales volumes (million tonnes)67.09 65.98 +2
1.Q4 on Q3 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 third quarter 2023, reflected the net effect of higher contributions from trading and optimisation, and realised prices (increase of $1,559 million), and higher volumes (increase of $81 million), partly offset by higher operating expenses (increase of $146 million), and unfavourable deferred tax movements ($140 million). Trading and optimisation results reflect seasonality and a high number of optimisation opportunities.
Fourth quarter 2023 segment earnings also included unfavourable movements of $1,587 million due to the fair value accounting of commodity derivatives, and impairment charges of $547 million. 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 impairment charges are part of identified items and compare with the third quarter 2023 which included unfavourable movements of $340 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 Adjusted EBITDA, partly offset by net cash outflows related to derivatives of $1,596 million, tax payments of $731 million and working capital outflows of $654 million.
Total oil and gas production was in line with the third quarter 2023. LNG liquefaction volumes increased by 3% mainly due to lower maintenance.
Full Year Analysis1
Segment earnings, compared with the full year 2022, reflected the net effect of lower realised prices and higher contributions from trading and optimisation (decrease of $1,143 million), lower volumes (decrease of $466 million), and unfavourable deferred tax movements ($728 million).
Full year 2023 segment earnings also included unfavourable movements of $4,407 million due to the fair value accounting of commodity derivatives, and net impairment charges and reversals of $2,247 million. These unfavourable movements and net impairment charges and reversals are part of identified items and compare with the full year 2022 which included favourable movements of $6,273 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.
Shell plc            Unaudited Condensed Financial Report            5


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 full year 2023 was primarily driven by Adjusted EBITDA, and a working capital inflow of $2,023 million, partly offset by net cash outflows related to derivatives of $4,668 million, and tax payments of $3,574 million.
Total oil and gas production, compared with the full year 2022, increased by 2% mainly due to ramp-up of new fields in Oman, Canada, Australia, and Trinidad and Tobago, and lower maintenance in Pearl GTL (Qatar) and Trinidad and Tobago, partly offset by derecognition of Sakhalin-related volumes, and production-sharing contract effects in Egypt and Pearl GTL (Qatar). LNG liquefaction volumes decreased by 5% 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 Financial Report            6


UPSTREAM
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022Reference20232022%
2,179 1,9831,380 +10
Segment earnings2
8,528 16,222 -47
(909)(238)(1,681)Of which: Identified itemsA(1,267)(1,096)
3,088 2,221 3,061 +39Adjusted Earnings²A9,794 17,319 -43
7,910 7,412 9,418 +7
Adjusted EBITDA2
A30,607 42,100 -27
5,787 5,336 7,224 +8Cash flow from operating activitiesA21,450 29,641 -28
2,436 2,007 1,845 
Cash capital expenditure
C8,343 8,143 
1,361 1,311 1,331 +4Liquids production available for sale (thousand b/d)1,325 1,333 -1
2,952 2,564 3,067 +15Natural gas production available for sale (million scf/d)2,754 3,272 -16
1,870 1,753 1,859 +7Total production available for sale (thousand boe/d)1,800 1,897 -5
1.Q4 on Q3 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 third quarter 2023, mainly reflected favourable movements in deferred tax positions ($628 million) and higher volumes (increase of $185 million).
Fourth quarter 2023 segment earnings also included net impairment charges and reversals of $454 million, charges of $424 million related to the impact of the weakening Argentine peso on a deferred tax position, and legal provisions of $358 million, partly offset by a gain of $182 million due to the impact of the discount rate change on provisions. These charges and gains are part of identified items, and compare with the third quarter 2023 which included legal provisions of $169 million and charges of $62 million related to the impact of the weakening Brazilian real on a deferred tax position.
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, partly offset by tax payments of $2,015 million.
Total production, compared with the third quarter 2023, increased mainly due to lower scheduled maintenance and growth from new fields.
Full Year Analysis1
Segment earnings, compared with the full year 2022, mainly reflected lower realised oil and gas prices (decrease of $5,696 million) and lower volumes (decrease of $2,001 million).
Full year 2023 segment earnings also included net impairment charges and reversals of $642 million, and net charges of $295 million related to the impact of the weakening Argentine peso and strengthening Brazilian real on a deferred tax position. These charges and gains are part of identified items, and compare with the full year 2022 which included net impairment reversals and charges of $853 million, and charges of $1,385 million relating to the EU solidarity contribution and $802 million relating to the UK Energy Profits Levy.
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 full year 2023 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $8,470 million.
Total production, compared with the full year 2022, decreased mainly due to the impact of divestments. 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.
2.Adjusted EBITDA is without taxation.
Shell plc            Unaudited Condensed Financial Report            7


MARKETING
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022
%¹
Reference20232022%
143 702 375 -80
Segment earnings²
2,951 2,133 +38
(549)(18)(72)Of which: Identified items A(229)(622)
692 720 446 -4
Adjusted Earnings²
A3,180 2,754 +15
1,337 1,519 1,045 -12
Adjusted EBITDA2
A6,037 5,324 +13
2,709 880 1,062 +208Cash flow from operating activitiesA6,088 2,376 +156
1,339 917 1,993 Cash capital expenditureC5,612 4,831 
2,508 2,654 2,543 -5Marketing sales volumes (thousand b/d)2,554 2,503 +2
1.Q4 on Q3 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, and agricultural sectors.
Quarter Analysis1
Segment earnings, compared with the third quarter 2023, reflected lower Marketing margins (decrease of $101 million) including lower Lubricants margins due to higher feedstock costs and impact of seasonality on Mobility margins, partly offset by higher Sectors & Decarbonisation margins. Fourth quarter 2023 segment earnings also included lower tax charges (decrease of $121 million) mainly due to one-off tax helps.
Fourth quarter 2023 segment earnings also included impairment charges of $406 million, and charges of $97 million related to redundancy and restructuring. These charges are part of identified items.
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 $1,843 million. These inflows were partly offset by tax payments of $280 million and non-cash cost-of-sales (CCS) adjustments of $81 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the third quarter 2023, decreased mainly due to seasonality.
Full Year Analysis1
Segment earnings, compared with the full year 2022, reflected higher Marketing margins (increase of $1,465 million) including higher unit margins in Mobility, higher margins in Lubricants due to lower feedstock costs and higher volumes in Sectors & Decarbonisation. These were partly offset by higher operating expenses (increase of $703 million) and higher depreciation charges (increase of $264 million) mainly due to asset acquisitions.
Full year 2023 segment earnings also included net impairment charges and reversals of $457 million, and charges of $111 million related to redundancy and restructuring partly offset by gains of $298 million related to indirect tax credits. These charges and gains are part of identified items and compare with the full year 2022 which included net impairment charges and reversals of $321 million, net losses of $135 million related to the sale of assets, and provisions for onerous contracts of $62 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 full year 2023 was primarily driven by Adjusted EBITDA, working capital inflows of $873 million, and the timing impact of payments relating to emission certificates and biofuel programmes of $296 million. These inflows were partly offset by tax payments of $744 million, and non-cash cost-of-sales (CCS) adjustments of $221 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the full year 2022, increased mainly due to improved demand in Aviation.
1.All earnings amounts are shown post-tax, unless stated otherwise.
Shell plc            Unaudited Condensed Financial Report            8


2.Adjusted EBITDA is without taxation.
Shell plc            Unaudited Condensed Financial Report            9


CHEMICALS AND PRODUCTS
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022Reference20232022%
(1,792)1,173 332 -253
Segment earnings²
1,5304,515-66
(1,875)(207)(412)Of which: Identified items A(2,160)(204)
83 1,380 744 -94Adjusted Earnings²A3,6904,719-22
770 2,591 1,574 -70
Adjusted EBITDA2
A7,7108,561-10
207 2,379 3,119 -91Cash flow from operating activitiesA6,98712,906-46
1,031 879 786 Cash capital expenditureC3,1923,838
1,315 1,334 1,434 -1Refinery processing intake (thousand b/d)1,3491,402-4
1,560 1,548 1,800 +1Refining & Trading sales volumes (thousand b/d)1,5701,700-8
2,588 2,998 3,017 -14Chemicals sales volumes (thousand tonnes)11,24512,281-8
1.Q4 on Q3 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 and optimisation 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 third quarter 2023, reflected lower Products margins (decrease of $1,193 million) mainly driven by lower refining margins due to lower global product demand and lower margins from trading and optimisation. Segment earnings also reflected lower Chemicals margins (decrease of $150 million) including the impact of continuing global oversupply as well as weak demand and lower income from joint ventures and associates. In addition, the fourth quarter 2023 reflected higher operating expenses (increase of $76 million). These were partly offset by favourable deferred tax movements (increase of $123 million).
Fourth quarter 2023 segment earnings also included net impairment charges and reversals of $1,977 million mainly relating to the Chemicals assets in Singapore, and charges of $78 million related to redundancy and restructuring partly offset by favourable movements of $130 million due to the fair value accounting of commodity derivatives. These charges and gains are part of identified items, and compare with the third quarter 2023 which included net impairment charges and reversals of $79 million, legal provisions of $74 million, and unfavourable movements of $53 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. In the fourth quarter 2023, Chemicals had negative Adjusted Earnings of $492 million and Products had positive Adjusted Earnings of $576 million.
Cash flow from operating activities for the quarter was primarily driven by working capital inflows of $1,353 million, Adjusted EBITDA, cash inflows relating to commodity derivatives of $294 million, and dividends (net of profits) from joint ventures and associates of $222 million. These inflows were partly offset by non-cash cost-of-sales (CCS) adjustments of $1,028 million, the timing impact of payments relating to emission certificates and biofuel programmes of $970 million, and tax payments of $273 million.
Chemicals manufacturing plant utilisation was 62% compared with 70% in the third quarter 2023, due to higher planned and unplanned maintenance in North America and economic optimisation.
Refinery utilisation was 81% compared with 84% in the third quarter 2023, due to planned maintenance in North America.
Full Year Analysis1
Segment earnings, compared with the full year 2022, reflected lower Products margins (decrease of $1,528 million) mainly driven by lower refining margins partly offset by higher margins from trading and optimisation. The segment earnings also reflected higher depreciation charges (increase of $546 million) due to start-up of operations at Shell Polymers Monaca in the USA. These were partly offset by higher Chemicals margins (increase of $612 million).
Full year 2023 segment earnings also included net impairment charges and reversals of $2,204 million mainly relating to the Chemicals assets in Singapore, and charges of $84 million related to redundancy and restructuring partly offset by favourable
Shell plc            Unaudited Condensed Financial Report            10


movements of $213 million due to the fair value accounting of commodity derivatives. These charges and gains are part of identified items, and compare with the full year 2022 which included net impairment charges and reversals of $226 million, legal provisions of $149 million, unfavourable movements of $147 million related to the fair value accounting of commodity derivatives, tax charges relating to the EU solidarity contribution of $74 million partly offset by gains of $223 million related to the sale of assets, and gains of $104 million related to the remeasurement of redundancy and restructuring costs.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the full year 2023, Chemicals had negative Adjusted Earnings of $1,622 million and Products had positive Adjusted Earnings of $5,313 million.
Cash flow from operating activities for the full year 2023 was primarily driven by Adjusted EBITDA, working capital inflows of $609 million, cash inflows relating to commodity derivatives of $529 million, and dividends (net of profits) from joint ventures and associates of $300 million. These inflows were partly offset by the timing impact of payments relating to emission certificates and biofuel programmes of $1,224 million, non-cash cost-of-sales (CCS) adjustments of $627 million, and tax payments of $484 million.
Chemicals manufacturing plant utilisation was 68% compared with 79% in the full year 2022, mainly due to planned and unplanned maintenance and economic optimisation during the full year 2023.
Refinery utilisation was 85% compared with 86% in the full year 2022.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
Shell plc            Unaudited Condensed Financial Report            11


RENEWABLES AND ENERGY SOLUTIONS
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022Reference20232022%
(291)600 4,673 -148
Segment earnings2
3,038(1,059)+387
(445)667 4,379 Of which: Identified itemsA2,333(2,805)
155 (67)293 +331
Adjusted Earnings2
A7051,745-60
228 79 396 +187
Adjusted EBITDA2
A1,4132,459-43
(1,265)(34)2,674 -3655Cash flow from operating activitiesA2,984(6,394)+147
1,026 659 1,076 
Cash capital expenditure
C2,6813,469
68 76 66 -11
External power sales (terawatt hours)3
279243+15
175 170 241 +3
Sales of pipeline gas to end-use customers (terawatt hours)4
738843-12
1.Q4 on Q3 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 activities such as 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 third quarter 2023, reflected higher margins (increase of $118 million) mainly due to trading and optimisation primarily in Europe and the Americas as a result of market volatility and seasonality, and favourable tax movements ($110 million), partly offset by higher operating expenses (increase of $38 million).
Fourth quarter 2023 segment earnings also included impairment charges of $551 million, partly offset by favourable movements of $125 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 charges and favourable movements are part of identified items and compare with the third quarter 2023 which included favourable movements of $506 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. Most Renewables and Energy Solutions activities were loss-making in the fourth quarter 2023, more than offset by positive adjusted earnings from trading and optimisation.
Cash flow from operating activities for the quarter was primarily driven by working capital outflows of $970 million, tax payments of $413 million, and net cash outflows related to derivatives of $268 million, partly offset by Adjusted EBITDA.
Full Year Analysis1
Segment earnings, compared with the full year 2022, reflected lower margins (decrease of $684 million) mainly from trading and optimisation due to lower gas and power prices in 2023, unfavourable tax movements ($218 million), and higher operating expenses (increase of $186 million).
Full year 2023 segment earnings also included favourable movements of $2,756 million due to the fair value accounting of commodity derivatives, partly offset by net impairment charges and reversals of $669 million. These favourable movements and charges are part of identified items and compare with the full year 2022 which included unfavourable movements of $2,444 million due to the fair value accounting of commodity derivatives, and impairment charges of $361 million.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Most Renewables and Energy Solutions activities were loss-making for the full year 2023, more than offset by positive adjusted earnings from trading and optimisation.
Cash flow from operating activities for the full year 2023 was primarily driven by working capital inflows of $3,723 million, and Adjusted EBITDA, partly offset by net cash outflows related to derivatives of $1,988 million, and tax payments of $762 million.
Shell plc            Unaudited Condensed Financial Report            12


1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
Additional Growth Measures
QuartersFull year
Q4 2023Q3 2023Q4 202220232022%
Renewable power generation capacity (gigawatt):
2.5 2.5 2.2 +2
– In operation2
2.5 2.2 +13
4.1 4.9 4.2 -17
– Under construction and/or committed for sale3
4.1 4.2 -3
1.Q4 on Q3 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.
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.

CORPORATE
Quarters$ millionFull year
Q4 2023Q3 2023Q4 2022Reference20232022
(586)(460)(654)
Segment earnings1
(2,811)(2,461)
(19)22 (28)Of which: Identified itemsA(69)(90)
(567)(482)(626)
Adjusted Earnings1
A(2,742)(2,371)
(488)(136)(164)
Adjusted EBITDA1
A(987)(725)
1,540 (238)1,916 Cash flow from operating activitiesA(832)2,192 
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 third quarter 2023, reflected unfavourable movements in currency exchange rate effects and net interest expense, partly offset by a favourable movement in tax credits.
Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects.
Full Year Analysis1
Segment earnings, compared with the full year 2022, were primarily driven by unfavourable movements in currency exchange rate effects and tax credits.
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.
PRELIMINARY RESERVES UPDATE
When final volumes are reported in the 2023 Annual Report and Accounts and 2023 Form 20-F, Shell expects that SEC proved oil and gas reserves additions before taking into account production will be approximately 1.3 billion boe, and that 2023 production will be approximately 1.1 billion boe. As a result, total proved reserves on an SEC basis are expected to be approximately 9.8 billion boe. Acquisitions and divestments of 2023 reserves are expected to account for a net increase of approximately 0.2 billion boe.
The proved Reserves Replacement Ratio on an SEC basis is expected to be 120% for the year and 120% for the 3-year average. Excluding the impact of acquisitions and divestments, the proved Reserves Replacement Ratio is expected to be 99% for the year and 90% for the 3-year average.
Further information will be provided in the 2023 Annual Report and Accounts and 2023 Form 20-F.
Shell plc            Unaudited Condensed Financial Report            13


OUTLOOK FOR THE FIRST QUARTER 2024
Cash capital expenditure for full year 2024 is expected to be within $22 - $25 billion.
Integrated Gas production is expected to be approximately 930 - 990 thousand boe/d. LNG liquefaction volumes are expected to be approximately 7.0 - 7.6 million tonnes. Outlook reflects Prelude back in operation after a major turnaround.
Upstream production is expected to be approximately 1,730 - 1,930 thousand boe/d. Production outlook reflects the planned maintenance in deep-water assets.
Marketing sales volumes are expected to be approximately 2,150 - 2,650 thousand b/d.
Refinery utilisation is expected to be approximately 83% - 91%, higher due to completion of planned maintenance activities in North America. Chemicals manufacturing plant utilisation is expected to be approximately 68% - 76%.
Corporate Adjusted Earnings are expected to be a net expense of approximately $400 - $600 million in the first quarter and a net expense of approximately $1,500 - $2,100 million for the full year 2024. This excludes the impact of currency exchange rate and fair value accounting effects.
Energy Transition Strategy Update: As Shell progresses towards its goal of achieving net-zero emissions by 2050 in an evolving energy marketplace serving a dynamic world, Shell continuously evaluates and updates its energy transition strategy, including its interim targets to reduce the carbon intensity of the energy products it sells. Shell expects to publish its 2024 Energy Transition Strategy on March 14, 2024. This publication will update shareholders and wider society on Shell’s energy transition strategy in line with its Capital Markets Day 2023 communications and set out Shell’s climate targets and ambitions for the future.
FORTHCOMING EVENTS
DateEvent
February 14, 2024Shell LNG Outlook 2024
March 14, 2024Publication of Annual Report and Accounts and filing of Form 20-F for the year ended December 31, 2023
March 14, 2024Publication of Energy Transition Strategy 2024
March 27, 2024Annual ESG Update
May 2, 2024First quarter 2024 results and dividends
May 21, 2024Annual General Meeting
August 1, 2024Second quarter 2024 results and dividends
October 31, 2024Third quarter 2024 results and dividends
Shell plc            Unaudited Condensed Financial Report            14


UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
78,732 76,350 101,303 
Revenue1
316,620 381,314 
768 747 (268)Share of profit/(loss) of joint ventures and associates3,725 3,972 
631 913 160 
Interest and other income/(expenses)2
2,838 915 
80,131 78,011 101,195 Total revenue and other income/(expenses)323,183 386,201 
54,745 49,144 65,489 Purchases212,883 258,488 
6,807 6,384 7,220 Production and manufacturing expenses25,240 25,518 
3,621 3,447 3,491 Selling, distribution and administrative expenses13,433 12,883 
469 267 403 Research and development1,287 1,075 
467 436 649 Exploration1,750 1,712 
11,221 5,911 6,459 
Depreciation, depletion and amortisation2
31,290 18,529 
1,166 1,131 1,040 Interest expense4,673 3,181 
78,496 66,720 84,752 Total expenditure290,555 321,386 
1,635 11,291 16,443 Income/(loss) before taxation32,628 64,815 
1,099 4,115 5,975 Taxation charge/(credit)12,991 21,941 
536 7,176 10,469 
Income/(loss) for the period¹
19,638 42,874 
62 132 59 Income/(loss) attributable to non-controlling interest277 565 
474 7,044 10,409 Income/(loss) attributable to Shell plc shareholders19,360 42,309 
0.071.06 1.47 
Basic earnings per share ($)3
2.885.76 
0.071.05 1.46 
Diluted earnings per share ($)3
2.855.71 
1.    See Note 2 “Segment information”.
2.    See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.
3.    See Note 4 “Earnings per share”.
Shell plc            Unaudited Condensed Financial Report            15


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
536 7,176 10,469 Income/(loss) for the period19,638 42,874 
Other comprehensive income/(loss) net of tax:
Items that may be reclassified to income in later periods:
2,571 (1,460)2,855 – Currency translation differences1,397 (2,986)
29 12 – Debt instruments remeasurements41 (78)
11 141 (345)
– Cash flow hedging gains/(losses)
71 (232)
— — (264)
– Net investment hedging gains/(losses)
(44)180 
(53)(39)(32)– Deferred cost of hedging(148)200 
135 (72)77 – Share of other comprehensive income/(loss) of joint ventures and associates18 274 
2,692 (1,429)2,303 Total1,335 (2,642)
Items that are not reclassified to income in later periods:
(1,207)180 (2,090)– Retirement benefits remeasurements(1,083)5,466 
(84)(38)(37)– Equity instruments remeasurements(99)(491)
(186)17 (227)– Share of other comprehensive income/(loss) of joint ventures and associates(201)(253)
(1,477)159 (2,354)Total(1,383)4,722 
1,215 (1,270)(51)Other comprehensive income/(loss) for the period(47)2,080 
1,750 5,906 10,417 Comprehensive income/(loss) for the period19,590 44,954 
96 149 114 Comprehensive income/(loss) attributable to non-controlling interest314 621 
1,654 5,757 10,303 Comprehensive income/(loss) attributable to Shell plc shareholders19,277 44,333 

Shell plc            Unaudited Condensed Financial Report            16


CONDENSED CONSOLIDATED BALANCE SHEET
$ million
December 31, 2023December 31, 2022
Assets
Non-current assets
Goodwill16,660 16,039 
Other intangible assets10,253 9,662 
Property, plant and equipment
194,835 198,642 
Joint ventures and associates24,457 23,864 
Investments in securities3,246 3,362 
Deferred tax1
6,454 7,815 
Retirement benefits
9,151 10,200 
Trade and other receivables6,298 6,920 
Derivative financial instruments²
801 582 
272,154 277,086 
Current assets
Inventories26,019 31,894 
Trade and other receivables53,273 66,510 
Derivative financial instruments²
15,098 24,437 
Cash and cash equivalents38,774 40,246 
133,164 163,087 
Assets classified as held for sale1
951 2,851 
134,115 165,938 
Total assets406,269 443,024 
Liabilities
Non-current liabilities
Debt71,610 74,794 
Trade and other payables3,103 3,432 
Derivative financial instruments²
2,301 3,563 
Deferred tax1
15,347 16,186 
Retirement benefits1
7,549 7,296 
Decommissioning and other provisions1
22,531 23,845 
122,440 129,116 
Current liabilities
Debt9,931 9,001 
Trade and other payables68,237 79,357 
Derivative financial instruments²
9,529 23,779 
Income taxes payable3,422 4,869 
Decommissioning and other provisions4,041 2,910 
95,161 119,916 
Liabilities directly associated with assets classified as held for sale1
307 1,395 
95,468 121,311 
Total liabilities217,908 250,427 
Equity attributable to Shell plc shareholders186,606 190,472 
Non-controlling interest1
1,755 2,125 
Total equity188,361 192,597 
Total liabilities and equity406,269 443,024 
1.    See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.
2.    See Note 7 “Derivative financial instruments and debt excluding lease liabilities”.

Shell plc            Unaudited Condensed Financial Report            17


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, 2023584 (726)21,132 169,482 190,472 2,125 192,597 
Comprehensive income/(loss) for the period— — (83)19,359 19,277 314 19,590 
Transfer from other comprehensive income— — (112)112 — — — 
Dividends³— — — (8,389)(8,389)(764)(9,153)
Repurchases of shares4
(40)— 40 (14,571)(14,571)— (14,571)
Share-based compensation— (271)168 (85)(188)— (188)
Other changes— — — 


80 86 
At December 31, 2023544 (998)21,145 165,915 186,606 1,755 188,361 
At January 1, 2022641 (610)18,909 153,026 171,966 3,360 175,326 
Comprehensive income/(loss) for the period— — 2,024 42,309 44,333 621 44,954 
Transfer from other comprehensive income— — (34)34 — — — 
Dividends3
— — — (7,283)(7,283)(206)(7,489)
Repurchases of shares4
(57)— 57 (18,547)(18,547)— (18,547)
Share-based compensation— (116)176 131 191 — 191 
Other changes— — — (188)(188)(1,650)(1,838)
At December 31, 2022584 (726)21,132 169,482 190,472 2,125 192,597 
1.    See Note 5 “Share capital”.
2.    See Note 6 “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 Financial Report            18


CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
1,635 11,291 16,443 
Income before taxation for the period
32,628 64,815 
Adjustment for:
571 513 596 – Interest expense (net)2,360 2,135 
11,221 5,911 6,459 
– Depreciation, depletion and amortisation1
31,290 18,529 
243 186 395 – Exploration well write-offs868 881 
(222)74 (21)– Net (gains)/losses on sale and revaluation of non-current assets and businesses (246)(642)
(768)(747)268 – Share of (profit)/loss of joint ventures and associates(3,725)(3,972)
1,145 749 1,413 – Dividends received from joint ventures and associates3,674 4,398 
4,088 (3,151)2,902 – (Increase)/decrease in inventories6,325 (8,360)
(704)(1,126)5,179 – (Increase)/decrease in current receivables12,401 (8,989)
(47)4,711 2,308 – Increase/(decrease) in current payables(10,888)11,915 
328 (2,807)(7,669)– Derivative financial instruments(5,723)(2,619)
(68)135 
– Retirement benefits
(37)417 
(223)70 218 
– Decommissioning and other provisions
(473)35 
(1,021)(150)(1,850)
– Other1
(548)2,991 
(3,604)(3,191)(4,372)Tax paid(13,712)(13,120)
12,575 12,332 22,404 Cash flow from operating activities54,196 68,414 
(6,960)(5,259)(6,417)Capital expenditure(22,993)(22,600)
(109)(350)(860)Investments in joint ventures and associates(1,202)(1,973)
(44)(40)(42)
Investments in equity securities
(197)(260)
540 184 52 Proceeds from sale of property, plant and equipment and businesses2,565 1,431 
49 68 119 Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans474 511 
24 65 
Proceeds from sale of equity securities
51 117 
568 586 401 Interest received2,124 906 
960 701 518 
Other investing cash inflows
4,269 2,060 
(685)(724)(754)
Other investing cash outflows
(2,825)(2,640)
(5,657)(4,827)(6,918)Cash flow from investing activities(17,737)(22,448)
(27)88 (248)
Net increase/(decrease) in debt with maturity period within three months
(211)318 
Other debt:
64 187 31 
– New borrowings
1,029 269 
(4,054)(3,368)(2,217)– Repayments(10,650)(8,459)
(1,366)(1,049)(1,183)Interest paid(4,441)(3,677)
702 (26)356 
Derivative financial instruments
723 (1,799)
(1)

(1,974)Change in non-controlling interest(22)(1,965)
Cash dividends paid to:
(2,201)(2,179)(1,785)– Shell plc shareholders(8,393)(7,405)
(128)(51)(42)– Non-controlling interest(764)(206)
(3,977)(2,725)(4,474)Repurchases of shares(14,617)(18,437)
(714)(30)(542)Shares held in trust: net sales/(purchases) and dividends received(889)(593)
(11,703)(9,147)(12,078)Cash flow from financing activities(38,238)(41,954)
529 (421)860 Effects of exchange rate changes on cash and cash equivalents307 (736)
(4,256)(2,063)4,268 Increase/(decrease) in cash and cash equivalents(1,471)3,276 
43,031 45,094 35,978 Cash and cash equivalents at beginning of period40,246 36,970 
38,774 43,031 40,246 Cash and cash equivalents at end of period38,774 40,246 
1. See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.

Shell plc            Unaudited Condensed Financial Report            19


NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.    Basis of preparation
These unaudited Condensed Consolidated Financial Statements of Shell plc (“the Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared 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 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. The statutory accounts for the year ended December 31, 2023 will be delivered to the Registrar of Companies for England and Wales in due course.
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. The adoption of the Pillar Two Model Rules by the jurisdictions in which Shell operates is not expected to have a significant impact on Shell. 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.
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. These assumptions continued to apply for impairment testing purposes in the fourth quarter 2023.
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.
The discount rate applied to provisions is reviewed on a regular basis. The discount rate was reviewed and adjusted in the fourth quarter 2023. See Note 8.
2.    Segment information
REVENUE AND CCS EARNINGS BY SEGMENT
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 Financial Report            20


Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
Third-party revenue
10,437 8,338 13,802 Integrated Gas37,645 54,751 
1,263 1,617 2,945 Upstream6,475 8,352 
26,429 29,577 28,417 Marketing108,858 120,638 
30,290 27,779 33,480 Chemicals and Products118,780 144,342 
10,302 9,032 22,656 Renewables and Energy Solutions44,819 53,190 
11 Corporate42 41 
78,732 76,350 101,303 
Total third-party revenue1
316,620381,314
Inter-segment revenue
2,614 2,472 5,038 Integrated Gas11,560 18,412 
10,948 10,277 13,229 Upstream41,231 52,285 
185 154 183 Marketing624 606 
610 569 602 Chemicals and Products2,252 2,684 
1,567 894 2,035 Renewables and Energy Solutions4,707 6,791 
— — — Corporate— — 
CCS earnings
1,728 2,154 5,293 Integrated Gas7,046 22,212 
2,179 1,983 1,380 Upstream8,528 16,222 
143 702 375 Marketing2,951 2,133 
(1,792)1,173 332 Chemicals and Products1,530 4,515 
(291)600 4,673 Renewables and Energy Solutions3,038 (1,059)
(586)(460)(654)Corporate(2,811)(2,461)
1,381 6,152 11,399 
Total CCS earnings2
20,283 41,562 
1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Fourth quarter 2023 included income of $3,021 million (third quarter 2023: $3,530 million income; fourth quarter 2022: $10,371 million income). This amount includes both the reversal of prior gains of $711 million (third quarter 2023: $2,583 million gains; fourth quarter 2022: $621 million losses) related to sales contracts and prior losses of $248 million (third quarter 2023: $965 million losses; fourth quarter 2022: $1,032 million losses) related to purchase contracts that were previously recognised and where physical settlement took place in the fourth quarter 2023.
2.See Note 3 "Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt".

CASH CAPITAL EXPENDITURE BY SEGMENT
Cash capital expenditure represents cash spent on maintaining and developing assets as well as on investments in the period. Management regularly monitors this measure as a key lever to delivering sustainable cash flows. Cash capital expenditure is the sum of the following lines from the Consolidated Statement of Cash Flows: Capital expenditure, Investments in joint ventures and associates and Investments in equity securities.
Shell plc            Unaudited Condensed Financial Report            21


Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
Capital expenditure
1,034 958 818 Integrated Gas3,491 3,432 
2,547 2,013 1,951 Upstream8,249 8,020 
1,337 893 1,825 Marketing5,563 4,527 
1,029 803 786 
Chemicals and Products
3,106 3,835 
932 523 955 Renewables and Energy Solutions2,314 2,609 
81 68 82 Corporate271 175 
6,960 5,259 6,417 Total capital expenditure22,993 22,600 
Add: Investments in joint ventures and associates
162 141 709 Integrated Gas705 833 
(111)(6)(106)Upstream94 123 
24 168 Marketing49 304 
76 
Chemicals and Products
84 
56 114 86 Renewables and Energy Solutions261 703 
(2)Corporate
109 350 860 Total investments in joint ventures and associates1,202 1,973 
Add: Investments in equity securities
– – – Integrated Gas– – 
– – – Upstream– – 
– – – Marketing– – 
– – – 
Chemicals and Products
38 21 35 Renewables and Energy Solutions106 157 
19 Corporate90 103 
44 40 42 Total investments in equity securities197 260 
Cash capital expenditure
1,196 1,099 1,527 Integrated Gas4,196 4,265 
2,436 2,007 1,845 Upstream8,343 8,143 
1,339 917 1,993 Marketing5,612 4,831 
1,031 879 786 
Chemicals and Products
3,192 3,838 
1,026 659 1,076 Renewables and Energy Solutions2,681 3,469 
85 87 91 Corporate370 287 
7,113 5,649 7,319 Total Cash capital expenditure24,393 24,833 
Shell plc            Unaudited Condensed Financial Report            22


3.Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
474 7,044 10,409 Income/(loss) attributable to Shell plc shareholders19,360 42,309 
62 132 59 Income/(loss) attributable to non-controlling interest277 565 
536 7,176 10,469 Income/(loss) for the period19,638 42,874 
Current cost of supplies adjustment:
1,089 (1,304)1,210 Purchases815 (1,714)
(263)327 (301)Taxation(203)444 
19 (47)22 Share of profit/(loss) of joint ventures and associates33 (42)
846 (1,024)930 
Current cost of supplies adjustment
645 (1,312)
Of which:
811 (969)904 Attributable to Shell plc shareholders649 (1,196)
34 (55)27 Attributable to non-controlling interest(5)(116)
1,381 6,152 11,399 CCS earnings20,283 41,562 
Of which:
1,285 6,075 11,313 CCS earnings attributable to Shell plc shareholders20,010 41,113 
97 77 86 CCS earnings attributable to non-controlling interest273 449 
RECONCILIATION OF OPERATING EXPENSES
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
6,807 6,384 7,220 Production and manufacturing expenses25,240 25,518 
3,621 3,447 3,491 Selling, distribution and administrative expenses13,433 12,883 
469 267 403 Research and development1,287 1,075 
10,897 10,097 11,114 Operating expenses39,959 39,477 
RECONCILIATION OF TOTAL DEBT
Quarters$ million
Q4 2023Q3 2023Q4 2022
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
9,931 10,119 9,001 Current debt9,931 9,001 
71,610 72,028 74,794 Non-current debt71,610 74,794 
81,541 82,147 83,795 Total debt81,541 83,795 
4.    Earnings per share
EARNINGS PER SHARE
QuartersFull year
Q4 2023Q3 2023Q4 202220232022
474 7,044 10,409 Income/(loss) attributable to Shell plc shareholders ($ million)19,360 42,309 
Weighted average number of shares used as the basis for determining:
6,558.3 6,668.1 7,063.9 Basic earnings per share (million)6,733.5 7,347.5 
6,631.1 6,736.7 7,127.2 Diluted earnings per share (million)6,799.8 7,410.5 
Shell plc            Unaudited Condensed Financial Report            23


5.    Share capital
ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH1
Number of sharesNominal value ($ million)
ABOrdinary sharesABOrdinary sharesTotal
At January 1, 20237,003,503,393 584 584 
Repurchases of shares(479,394,344)(40)(40)
At December 31, 20236,524,109,049 544 544 
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(646,014,770)(54)(54)
At December 31, 20227,003,503,393 584 584 
1. Share capital at December 31, 2022, also included 50,000 issued and fully paid sterling deferred shares of £1 each, which were redeemed on March 27, 2023. Upon redemption, the sterling deferred shares were treated as cancelled and the Company's issued share capital was reduced by the nominal value of the shares redeemed in accordance with section 688 of the UK Companies Act 2006.
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 23, 2023, 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 approximately €161 million (representing approximately 2,307 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 22, 2024, or the end of the Annual General Meeting to be held in 2024, unless previously renewed, revoked or varied by Shell plc in a general meeting.
6.    Other reserves
OTHER RESERVES
$ millionMerger reserveShare premium reserveCapital redemption reserveShare plan reserveAccumulated other comprehensive incomeTotal
At January 1, 202337,298 154 196 1,140 (17,656)21,132 
Other comprehensive income/(loss) attributable to Shell plc shareholders— — — — (83)(83)
Transfer from other comprehensive income— — — — (112)(112)
Repurchases of shares— — 40 — — 40 
Share-based compensation— — — 168 — 168 
At December 31, 202337,298 154 236 1,308 (17,851)21,145 
At January 1, 202237,298 154 139 964 (19,646)18,909 
Other comprehensive income/(loss) attributable to Shell plc shareholders— — — — 2,024 2,024 
Transfer from other comprehensive income— — — — (34)(34)
Repurchases of shares— — 57 — — 57 
Share-based compensation— — — 176 — 176 
At December 31, 202237,298 154 196 1,140 (17,656)21,132 
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
Shell plc            Unaudited Condensed Financial Report            24


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.
7.    Derivative financial instruments and debt excluding lease liabilities
As disclosed in the Consolidated Financial Statements for the year ended December 31, 2022, 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 December 31, 2023, are consistent with those used in the year ended December 31, 2022, though the carrying amounts of derivative financial instruments have changed since that date. The movement of the derivative financial instruments between December 31, 2022 and December 31, 2023 is a decrease of $9,339 million for the current assets and a decrease of $14,250 million for the current liabilities.
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
December 31, 2023December 31, 2022
Carrying amount53,83256,152
Fair value¹50,86651,959
1.    Mainly determined from the prices quoted for these securities.
8. Other notes to the unaudited Condensed Consolidated Financial Statements
Consolidated Statement of Income

Interest and other income
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
631913160Interest and other income/(expenses)2,838 915 
Of which:
595 618 445 Interest income2,313 1,046 
14 15 Dividend income (from investments in equity securities)50 216 
222 (75)21 Net gains/(losses) on sales and revaluation of non-current assets and businesses257 642 
(398)168 (510)Net foreign exchange gains/(losses) on financing activities(458)(340)
199 195 189 Other677 (649)
Depreciation, depletion and amortisation
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
11,221 5,911 6,459 Depreciation, depletion and amortisation31,290 18,529 
Of which:
5,986 5,716 5,731 Depreciation23,106 22,393 
5,508 359 788 Impairments8,946 2,313 
(273)(163)(60)Impairment reversals(762)(6,177)
Impairments recognised in the fourth quarter 2023 of $5,508 million pre-tax ($4,044 million post-tax) relate to various assets in Chemicals and Products ($2,490 million), Upstream ($1,161 million), Integrated Gas ($873 million), Renewables and Energy Solutions ($614 million) and Marketing ($370 million). Impairments in Chemicals and Products principally relate to the impairment of chemicals assets in Singapore triggered by lower expected chemicals margins and linked to portfolio choices. Impairments recognised in Upstream principally relate to projects in North America, Nigeria and the UK triggered by factors including revised reserves estimates and portfolio choices. Impairments recognised in Integrated Gas principally relate to a project in Australia triggered by factors including revised production estimates and regulatory changes. Impairments recognised in Renewables and Energy Solutions mainly relate to an asset in North America triggered by annual goodwill impairment testing reflecting factors including the impact of the deteriorated macro environment.
Shell plc            Unaudited Condensed Financial Report            25


Impairments recognised in the third quarter 2023 of $359 million pre-tax ($299 million post-tax) mainly related to various assets in Renewables and Energy Solutions and Chemicals and Products. Impairments in the fourth quarter 2022 mainly related to Renewables and Energy Solutions, Chemicals and Products and Upstream.
Condensed Consolidated Balance Sheet
Deferred tax
$ million
December 31, 2023December 31, 2022
Non-current assets
Deferred tax
6,4547,815
Non-current liabilities
Deferred tax
15,34716,186
Net deferred liability(8,893)(8,371)
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 $8,893 million at December 31, 2023 (December 31, 2022: $8,371 million). The net increase in the net deferred tax liability is mainly driven by a reduction of the deferred tax asset due to the utilisation of tax losses partly offset by an increase of the deferred tax asset due to impairments.
Assets classified as held for sale
$ million
December 31, 2023December 31, 2022
Assets classified as held for sale951 2,851 
Liabilities directly associated with assets classified as held for sale3071,395
Assets classified as held for sale and associated liabilities at December 31, 2023, principally relate to an asset in Chemicals and Products in Europe, a Renewables and Energy Solutions project in North America and an asset in Marketing in Asia. The major classes of assets and liabilities classified as held for sale at December 31, 2023, are Inventories ($463 million; December 31, 2022: $8 million) and Property, plant and equipment ($250 million; December 31, 2022: $2,526 million).

Retirement benefits
$ million
December 31, 2023December 31, 2022
Non-current assets
Retirement benefits
9,151 10,200 
Non-current liabilities
Retirement benefits
7,549 7,296 
Surplus/(deficit)1,602 2,904 
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 is mainly driven by a decrease of the market yield on high-quality corporate bonds, a decrease in long-term inflation rate expectations, experience losses due to high short-term inflation and returns on plan assets.

Decommissioning and other provisions

$ million
Non-current liabilitiesDecember 31, 2023December 31, 2022
Decommissioning and other provisions22,531 23,845 

Shell plc            Unaudited Condensed Financial Report            26


The discount rate applied at December 31, 2023 was 4.5% (September 30, 2023: 3.25%, December 31, 2022: 3.25%). Besides movements such as additions, utilisation, accretion and the effect of currency translation, the change in non-current decommissioning and other provisions includes a decrease of $2,916 million as a result of the change in the discount rate, partly offset by an increase of $1,340 million resulting from changes in cost estimates for decommissioning & restoration provisions.
Non-controlling interest
$ million
December 31, 2023December 31, 2022
Non-controlling interest1,7552,125
The change in non-controlling interest is mainly driven by dividend payments to non-controlling shareholders during the second quarter 2023.
Consolidated Statement of Cash Flows
Cash flow from operating activities - Other
Quarters$ millionFull year
Q4 2023Q3 2023Q4 202220232022
(1,021)(150)(1,850)