Summary of results
|
|
$ million, except where indicated |
|||||||
|---|---|---|---|---|---|---|---|---|---|
|
2021 |
2020 |
2019 |
||||||
Income/(loss) attributable to Shell plc shareholders |
20,101 |
(21,680) |
15,842 |
||||||
Income attributable to non-controlling interest |
529 |
146 |
590 |
||||||
Income/(loss) for the period |
20,630 |
(21,534) |
16,432 |
||||||
Current cost of supplies adjustment |
(3,148) |
1,833 |
(605) |
||||||
Total segment earnings [A][B], of which: |
17,482 |
(19,701) |
15,827 |
||||||
Integrated Gas |
6,340 |
(6,278) |
8,628 |
||||||
Upstream |
9,694 |
(10,785) |
3,855 |
||||||
Oil Products |
2,664 |
(494) |
6,139 |
||||||
Chemicals |
1,390 |
808 |
478 |
||||||
Corporate |
(2,606) |
(2,952) |
(3,273) |
||||||
Identified Items [B] |
(2,216) |
(24,767) |
(1,192) |
||||||
Adjusted Earnings [B] |
19,289 |
4,846 |
16,462 |
||||||
Adjusted EBITDA (CCS basis) [B] |
55,004 |
36,533 |
56,644 |
||||||
Capital expenditure |
19,000 |
16,585 |
22,971 |
||||||
Cash capital expenditure [B] |
19,698 |
17,827 |
23,919 |
||||||
Operating expenses [B] |
35,964 |
34,789 |
37,893 |
||||||
Underlying operating expenses [B] |
35,309 |
32,502 |
37,000 |
||||||
Return on average capital employed [B] |
8.8% |
(6.8)% |
6.7% |
||||||
Net Debt at December 31 [C] |
52,556 |
75,386 |
79,093 |
||||||
Gearing at December 31 [C] |
23.1% |
32.2% |
29.3% |
||||||
Oil and gas production (thousand boe/d) |
3,237 |
3,386 |
3,665 |
||||||
Proved oil and gas reserves at December 31 (million boe) |
9,365 |
9,124 |
11,096 |
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|
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Earnings 2021-2020
Income attributable to Shell plc shareholders in 2021 was $20,101 million, compared with a loss of $21,680 million in 2020. With non-controlling interest included, income/(loss) for the period in 2021 was $20,630 million, compared with a loss of $21,534 million in 2020. After current cost of supplies adjustment, total segment earnings in 2021 were $17,482 million, compared with a loss of $19,701 million in 2020.
Earnings on a current cost of supplies basis (CCS earnings) exclude the effect of changes in the oil price on inventory carrying amounts, after making allowance for the tax effect. The purchase price of volumes sold in the period is based on the current cost of supplies during the same period, rather than on the historic cost calculated on a first-in, first-out (FIFO) basis. When oil prices are decreasing, CCS earnings are likely to be higher than earnings calculated on a FIFO basis and, when prices are increasing, CCS earnings are likely to be lower than earnings calculated on a FIFO basis.
Integrated Gas earnings in 2021 were $6,340 million, compared with a loss of $6,278 million in 2020. The increase was mainly driven by lower impairment charges, higher realised prices for oil, LNG and gas, higher gains on sale of assets and favourable tax movements. This was partly offset by higher losses due to the fair value accounting of commodity derivatives and higher operating expenditure. See “Integrated Gas”.
Upstream earnings in 2021 were $9,694 million, compared with a loss of $10,785 million in 2020. The increase was mainly driven by higher realised oil and gas prices, lower impairment charges and favourable tax movements. This was partly offset by higher losses related to fair value accounting of commodity derivatives. See “Upstream”.
Oil Products earnings in 2021 were $2,664 million, compared with a loss of $494 million in 2020. The increase was mainly driven by lower impairment charges and higher marketing volumes and oil sands margins. This was partly offset by lower contributions from trading and optimisation, higher operating expenditure and unfavourable tax movements. See “Oil Products”.
Chemicals earnings in 2021 were $1,390 million, compared with $808 million in 2020. The increase was mainly driven by higher margins in base chemicals and intermediates as well as favourable tax movements. This was partly offset by higher impairment charges and operating expenditure. See “Chemicals”.
Corporate segment earnings in 2021 were an expense of $2,606 million, compared with $2,952 million in 2020. The lower expense was mainly driven by lower net interest expenses and favourable foreign exchange movements. See “Corporate”.
Prior year earnings summary
Our earnings summary for the financial year ended December 31, 2020, compared with the financial year ended December 31, 2019, can be found in the Annual Report and Accounts (page 41) and Form 20-F (page 26) for the year ended December 31, 2020, as filed with the Registrar of Companies for England and Wales and the US Securities and Exchange Commission, respectively.
Production available for sale
Oil and gas production available for sale in 2021 was 3,237 thousand boe per day (boe/d), compared with 3,386 thousand boe/d in 2020. This net reduction was mainly driven by divestments, higher maintenance activities, net field declines and production-sharing contract effects.
|
|
|
Thousand boe/d |
||||
|---|---|---|---|---|---|---|---|
|
2021 |
2020 |
2019 |
||||
Crude oil and natural gas liquids |
1,685 |
1,752 |
1,823 |
||||
Synthetic crude oil |
54 |
51 |
52 |
||||
Natural gas [B] |
1,498 |
1,583 |
1,790 |
||||
Total |
3,237 |
3,386 |
3,665 |
||||
Of which: |
|
|
|
||||
Integrated Gas |
942 |
911 |
922 |
||||
Upstream |
2,240 |
2,424 |
2,691 |
||||
Oil sands (part of Oil Products) |
54 |
51 |
52 |
||||
|
|||||||
Proved reserves
The proved oil and gas reserves of Shell subsidiaries and the Shell share of the proved oil and gas reserves of joint ventures and associates are summarised in “Oil and gas information” and set out in more detail in “Supplementary information – oil and gas (unaudited)”.
Before taking production into account, our proved reserves increased by 1,470 million boe in 2021. Total oil and gas production was 1,229 million boe. Accordingly, after taking production into account, our proved reserves increased by 241 million boe in 2021, to 9,365 million boe at December 31, 2021.
Cash capital expenditure and other information
Cash capital expenditure was $19,698 million in 2021, compared with $17,827 million in 2020.
Operating expenses were $35,964 million in 2021, compared with $34,789 million in 2020. Underlying operating expenses were $35,309 million compared with $32,502 million in 2020.
Our return on average capital employed (ROACE) increased to 8.8%, compared with (6.8)% in 2020, mainly driven by higher earnings.
Net debt was $52,556 million at the end of 2021, compared with $75,386 million at the end of 2020, mainly driven by cash flow generation.
Gearing was 23.1% at the end of 2021, compared with 32.2% at the end of 2020, mainly driven by net debt reduction and higher earnings.
Significant accounting estimates and judgements
See Note 2 to the “Consolidated Financial Statements”.
Legal proceedings
See Note 26 to the “Consolidated Financial Statements”.
