Shell plc Third Quarter 2023 Update Note

Integrated Gas

$ billionsQ3’23 OutlookComment
Adjusted EBITDA:
Production (kboe/d)880 – 920Production and LNG liquefaction outlook reflects scheduled maintenance (including Prelude and Trinidad and Tobago).
LNG liquefaction volumes (MT)6.6 – 7.0
Underlying opex1.1 – 1.3 
Adjusted Earnings:
Pre-tax depreciation1.2 – 1.6 
Taxation charge0.7 – 1.0 
Other Considerations:
Trading & Optimisation: expected to be higher compared to Q2’23.

Upstream

$ billionsQ3’23 OutlookComment
Adjusted EBITDA:
Production (kboe/d)1,700 – 1,800 
Underlying opex2.1 – 2.6 
Adjusted Earnings:
Pre-tax depreciation2.7 – 3.1 
Taxation charge2.1 – 2.9 
Other Considerations:
The share of profit / (loss) of joint ventures and associates in Q3’23 is expected to be around zero. Q3’23 exploration well-write offs are expected to be ~$0.2 billion.

Marketing

$ billionsQ3’23 OutlookComment
Adjusted EBITDA:
Sales volumes (kb/d)2,450 – 2,850 
Underlying opex2.1 – 2.5 
Adjusted Earnings:
Pre-tax depreciation0.3 – 0.7 
Taxation charge0.2 – 0.4 
Other Considerations:
Marketing results: expected to be similar to Q3’22.

Chemicals & Products

$ billionsQ3’23 OutlookComment
Adjusted EBITDA:
Indicative refining margin$16/bbl 
Indicative chemicals margin$116/tonneThe chemicals sub-segment adjusted earnings are expected to be in line with Q2’23.
Refinery utilisation82% – 86% 
Chemicals utilisation68% – 72% 
Underlying opex2.8 – 3.2 
Adjusted Earnings:
Pre-tax depreciation0.8 – 1.0 
Taxation charge0.0 – 0.5 
Other Considerations:
Trading & Optimisation: expected to be higher than Q2’23.

 Renewables and Energy Solutions

$ billionsQ3’23 OutlookComment
Adjusted Earnings(0.3) – 0.3 

Corporate

$ billionsQ3’23 OutlookComment
Adjusted Earnings(0.6) – (0.4) 

Shell Group

$ billionsQ3’23 OutlookComment
CFFO:
Tax Paid2.7 – 3.5 
Working Capital(4) – 0Working capital estimations inherently have a broad range of uncertainty.
Other Shell Group Considerations:
–  

Guidance

The ‘Quarterly Databook’ contains guidance on Indicative Refining Margin, Indicative Chemicals Margin and full-year price and margin sensitivities (Link).

Consensus

The consensus collection for quarterly Adjusted Earnings, Adjusted EBITDA is per the reporting segments and CFFO at a Shell group level, managed by Vara Research, is expected to be published on October 26, 2023.

Enquiries 

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Media Americas: +1 832 337 4355

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