Shell Reports 2023 First Quarter Operations Update

  • Q1 2023 Adjusted Earnings of $9.6 billion, with Adjusted EBITDA of $21.4 billion, with improved operational performance, lower underlying opex and better results in Chemicals & Products driven by trading & optimisation offsetting the impact of lower oil and gas prices, and higher tax compared with Q4 2022.
  • $4 billion share buybacks announced, expected to be completed by Q2 2023 results announcement, which would bring total shareholder distributions to ~$12 billion for the first half of 2023. The 2023 cash capex outlook is unchanged: $23-27 billion.
  • Strengthened the portfolio with the completion of the acquisition of Nature Energy (a renewable natural gas producer, Denmark), the investment decision for the Dover tie-back to the Appomattox production platform (USA) and the commencement of production at Vito (USA) and restart of Pierce (UK) facilities. Further simplified the portfolio through the divestment of non-core Upstream positions in onshore California and offshore Malaysia.
  • CFFO of $14.2 billion for Q1 2023, with tax paid of $3.1 billion, and a working capital outflow of $0.8 billion. Working capital outflows due to the reversal of temporary deposits from joint ventures received in Q4 2022 and other accounts receivable / payable movements were offset by inflows resulting from initial margins, lower prices and inventories.

Shell plc Chief Executive Officer, Wael Sawan:
“In Q1 Shell delivered strong results and robust operational performance, against a backdrop of ongoing volatility, while continuing to provide vital supplies of secure energy. We will commence a $4 billion share buyback programme for the next three months as part of our commitment to deliver attractive shareholder returns.” 

Integrated Gas

  • Production and liquefaction volumes were higher than in Q4 2022 mainly due to higher uptime at Prelude in Australia.
  • Adjusted Earnings were lower than in Q4 2022 mainly due to lower prices and a tax help in Q4 2022, which were partly offset by higher volumes.
  • Trading and optimisation results were at a similar level to Q4 2022.


  • Production was higher than in Q4 2022, mainly driven by lower scheduled maintenance and unscheduled deferment.
  • Adjusted Earnings were lower compared with Q4 2022 due to lower prices, timing of liftings, and tax help in Q4 2022, which were partly offset by lower opex.
  • Q2 2023 production outlook reflects higher scheduled maintenance and completed divestments. 

Portfolio developments

  • February 2023: completed the previously announced sale of our 100% interest in Shell Onshore Ventures LLC which holds a 51.8% membership interest in Aera Energy LLC, based in the USA, to IKAV.
  • February 2023: announced the commencement of production at the Shell-operated Vito floating production facility in the US Gulf of Mexico, owned by Shell Offshore Inc. (63.1%) and Equinor (36.9%).
  • March 2023: announced the completion of the withdrawal from our 50% interest in the Salym project in Russia, which had been jointly developed with Gazprom Neft, a subsidiary of Gazprom.
  • March 2023: completed the previously announced sale of our stake in two offshore production-sharing contracts in Malaysia’s Baram Delta to Petroleum Sarawak Exploration & Production Sdn. Bhd.
  • April 2023: 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%). 

Renewables and Energy Solutions

  • Q1 2023 Adjusted Earnings, on a stand-alone basis, were driven by strong trading and optimisation margins for gas and power due to continued price volatility primarily in European and American markets.  Compared with Q4 2022, Adjusted Earnings reflect lower operating expenses, partly offset by lower trading and optimisation results.
  • Shell Energy Australia has entered into a partnership to deliver a utility-scale battery energy storage system in Cranbourne, Victoria. Shell has access to 100% of the battery’s offtake over a 20-year period.

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.

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