Shell Q1 Report 2022

STRONG RESULTS IN VOLATILE TIMES

• Strong Q1 2022 Adjusted Earnings of $9.1 billion in a volatile geopolitical and macroeconomic environment. Adjusted EBITDA of $19.0 billion in Q1 2022 versus $16.3 billion in Q4 2021.
• Dividend increased by ~4% to $0.25 per share for Q1 2022. Of the $8.5 billion share buyback programme announced for the first half of 2022, $4 billion has been completed to date. The remaining $4.5 billion share buybacks are expected to be completed before the Q2 2022 results announcement. With the current macro outlook and subject to Board approval, shareholder distributions for the second half of 2022 are expected to be in excess of 30% of CFFO.
• Following decisive action on Russia, taken $3.9 billion of post-tax charges in Q1 2022 as part of Identified items.
• Share simplification completed and new reporting segments launched – additional Renewables & Energy Solutions and Marketing disclosures.

Q1 2022 FINANCIAL PERFORMANCE DRIVERS

INTEGRATED GAS

• Adjusted Earnings benefited from higher realised prices offset by lower production due to maintenance activities, including the planned turnaround of one of the trains at Pearl GTL and maintenance at Prelude FLNG.
• Trading and optimisation results for Integrated Gas were similar to Q4 2021, continuing to benefit from favourable trading conditions.

UPSTREAM

• Production 4% below Q4 2021, mainly driven by Permian divestment and lower demand due to a milder winter, partly offset by comparative help from Hurricane Ida recovery and lower maintenance.
• Adjusted Earnings benefited from higher prices, partly offset by impacts from the Permian divestment.
• The Q2 2022 production outlook reflects lower seasonal gas demand and higher scheduled maintenance, mainly in the US Gulf of Mexico.