Additional segmental information and capital data

-1 Additional segmental information and capital data Shell Investors’ Handbook 2014-2018
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Additional segmental information

$ million

 

2018

2017

2016

2015

2014

[A]

Prior period comparatives have been revised to conform with current year presentation.

[B]

With effect from Q3 2018, tax paid on divestments has been reclassified from Cash flow from operating activities to Cash flow from investing activities. 2018 comparatives have been revised to conform with this presentation change, with a cash outflow of $45 million reclassified from “tax paid” to “other” (all related to first quarter 2018). No revision was made for prior years.

Integrated Gas

 

 

 

 

 

Segment earnings

11,444

5,078

2,529

3,170

10,610

Including:

 

 

 

 

 

Exploration

208

141

494

1,290

1,439

Depreciation, depletion and amortisation

4,850

4,965

4,509

2,596

2,661

Of which: impairment losses and reversals

200

292

72

210

94

Share of profit/(loss) of joint ventures and associates

2,273

1,714

1,116

1,469

4,324

Production and manufacturing expenses

5,370

5,120

5,786

3,102

3,538

Selling, distribution and administrative expenses

458

237

584

546

607

Research and development

186

114

108

440

465

Cash flow from operating activities

14,617

6,467

9,132

7,728

12,689

(Increase)/decrease in working capital [A]

(1,664)

(2,192)

1,159

152

(1,232)

Cash flow from operating activities excluding working capital [A]

16,281

8,659

7,973

7,576

13,921

Cash flow from investing activities

(1,513)

(1,357)

(8,256)

(4,486)

(1,998)

Free Cash Flow

13,104

5,110

876

3,242

10,691

Capital employed

86,850

87,462

86,631

62,481

62,127

Upstream

 

 

 

 

 

Segment earnings

6,798

1,551

(3,674)

(8,833)

5,231

Including:

 

 

 

 

 

Exploration

1,132

1,804

1,614

4,429

2,785

Depreciation, depletion and amortisation

13,006

17,303

16,779

20,405

15,207

Of which: impairment losses and reversals

(200)

3,513

1,274

8,536

3,394

Share of profit/(loss) of joint ventures and associates

285

623

222

493

1,178

Production and manufacturing expenses

11,463

12,119

13,396

14,914

16,555

Selling, distribution and administrative expenses

201

5

556

464

448

Research and development

493

532

549

361

390

Cash flow from operating activities [B]

22,661

16,337

7,662

5,453

19,150

(Increase)/decrease in working capital [A]

744

(2)

(2,109)

1,146

2,043

Cash flow from operating activities excluding working capital [A]

21,917

16,339

9,771

4,307

17,107

Cash flow from investing activities [B]

(9,261)

(289)

(18,876)

(15,165)

(14,727)

Free Cash Flow

13,400

16,048

(11,214)

(9,712)

4,423

Capital employed

115,312

119,253

128,782

84,727

88,692

Downstream

 

 

 

 

 

Segment

7,601

8,258

6,588

10,243

3,411

Including:

 

 

 

 

 

Depreciation, depletion and amortisation

4,064

3,877

3,681

3,667

6,619

Of which: impairment losses and reversals

424

385

550

553

3,141

Share of profit/(loss) of joint ventures and associates

1,785

1,956

2,244

2,215

1,693

Production and manufacturing expenses

10,294

9,519

9,208

9,994

9,845

Selling, distribution and administrative expenses

10,142

9,789

10,117

10,531

12,489

Research and development

307

275

357

292

367

Cash flow from operating activities

13,928

12,429

3,556

14,076

11,292

(Increase)/decrease in working capital [A]

3,164

(148)

(6,866)

3,188

8,103

Cash flow from operating activities excluding working capital [A]

10,764

12,577

10,422

10,888

3,189

Cash flow from investing activities

(6,714)

(3,585)

(3,967)

(3,304)

(2,841)

Free Cash Flow

7,214

8,844

(411)

10,772

8,451

Capital employed

56,633

56,431

52,672

46,280

48,925

Corporate

 

 

 

 

 

Segment earnings

(1,479)

(2,416)

(1,751)

(425)

(156)

Comprising:

 

 

 

 

 

Net interest and investment income/(expense)

(2,192)

(2,413)

(1,824)

(995)

(913)

Foreign exchange (losses)/gains

(67)

(292)

3

(731)

(263)

Taxation and other

780

289

70

1,301

1,020

Cash flow from operating activities

1,879

417

265

2,553

1,913

(Increase)/decrease in working capital [A]

1,198

92

(610)

249

(132)

Cash flow from operating activities excluding working capital [A]

681

325

875

2,304

2,045

Cash flow from investing activities

3,829

(2,798)

136

549

(90)

Free Cash Flow

5,708

(2,381)

401

3,102

1,823

Capital employed

20,563

20,331

12,903

29,012

18,582

Royal Dutch Shell

 

 

 

 

 

CCS earnings

24,364

12,471

3,692

4,155

19,096

Less: Non-controlling interest

(531)

(390)

(159)

(313)

(55)

CCS earnings attributable to shareholders

23,833

12,081

3,533

3,842

19,041

Cash flow from operating activities

53,085

35,650

20,615

29,810

45,044

(Increase)/decrease in working capital [A]

3,442

(2,250)

(8,426)

4,735

8,782

Cash flow from operating activities excluding working capital [A]

49,643

37,900

29,041

25,075

36,262

Cash flow from investing activities

(13,659)

(8,029)

(30,963)

(22,406)

(19,656)

Free Cash Flow

39,426

27,621

(10,348)

7,404

25,388

Capital employed

279,358

283,477

280,988

222,500

218,326
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Operating expenses

$ million

 

2018

2017

2016

2015

2014

Production and manufacturing expenses

26,970

26,652

28,434

28,095

30,038

Selling, distribution and administrative expenses

11,360

10,509

12,101

11,956

13,965

Research and development

986

922

1,014

1,093

1,222

Operating expenses

39,316

38,083

41,549

41,144

45,225

Less identified items:

 

 

 

 

 

Redundancy and restructuring charges

(187)

(565)

(1,870)

(430)

(606)

Provisions

(104)

38

(915)

(1,150)

(460)

BG acquisition costs

–

–

(422)

–

–

Pension plan amendment

–

–

–

–

1,033

 

(291)

(527)

(3,207)

(1,580)

(33)

Underlying operating expenses

39,025

37,556

38,342

39,564

45,192

Operating expenses is a measure of Shell's total operating expenses performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses. Underlying operating expenses measures Shell's total operating expenses performance excluding identified items. Underlying operating expenses is a non- measure (see definition of identified items in the "Quarterly data per segment" section).

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Divestments

$ million

 

2018

2017

2016

2015

2014

[A]

Included within cash flow from investing activities in the “Consolidated Statement of Cash Flows”.

[B]

With effect from 2017, this is valued at the date of the related divestment, instead of when these shares are disposed of or the contingent consideration is realised. There is also no impact on divestments as a result of any revaluation. Comparative information, which only affects the Upstream segment in 2016, has been adjusted. In 2017, it mainly comprises $2,829 million for shares in Canadian Natural Resources Limited received as partial consideration in the oil sands divestment. In 2018, these shares were sold for $3,307 million.

[C]

Included within “Change in non-controlling interest” in Cash flow from financing activities in the “Consolidated Statement of Cash Flows”.

[D]

Includes proceeds of $2,635 million from the sale of shares in Woodside Petroleum Limited.

Proceeds from sale of property, plant and equipment and businesses [A]

4,366

8,808

2,072

4,720

9,873

Proceeds from sale of joint ventures and associates [A]

1,594

2,177

1,565

276

4,163

Share and contingent consideration [B]

194

3,046

275

–

–

Proceeds from sale of interests in entities while retaining control [C]

673

278

1,108

595

1,012

Other

275

3,031[D]

(36)

(51)

(29)

Total

7,102

17,340

4,984

5,540

15,019

Integrated Gas

3,124

3,077

352

269

4,819

Upstream

2,198

11,542

1,726

2,478

5,770

Downstream

1,718

2,703

2,889

2,282

4,410

Oil Products

1,717

1,892

2,880

2,279

4,360

Chemicals

1

811

9

3

50

Corporate

62

18

17

511

20

Divestments is a non-GAAP measure used to monitor the progress of Shell’s divestment programme. This measure comprises proceeds from sale of property, plant and equipment and businesses, joint ventures and associates, and other Integrated Gas, Upstream and Downstream investments, adjusted on an accruals basis and for any share consideration received or contingent consideration initially recognised upon the related divestment, as well as proceeds from the sale of interests in entities while retaining control (for example, proceeds from sale of interests in Shell Midstream Partners, L.P.).

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Capital employed [A] (at December 31)

$ million

 

2018

2017

2016

2015

2014

[A]

Consists of total equity, current debt and non-current debt.

Integrated Gas

86,850

87,462

86,631

62,481

62,127

Upstream

115,312

119,253

128,782

84,727

88,692

Downstream

56,633

56,431

52,672

46,280

48,925

Oil Products

39,748

41,186

38,926

34,444

38,512

Chemicals

16,885

15,245

13,746

11,836

10,413

Corporate

20,563

20,331

12,903

29,012

18,582

Total

279,358

283,477

280,988

222,500

218,326
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Capital investment

$ million

 

2018

2017

2016

2015

2014

Capital expenditure

 

 

 

 

 

Integrated Gas

3,262

3,515

3,994

4,580

6,054

Upstream

 

 

 

 

 

Europe

1,326

1,376

2,198

2,729

3,420

Asia

528

773

1,624

2,272

2,733

Oceania

–

–

–

–

–

Africa

1,634

625

1,142

2,441

2,452

North America

6,602

6,951

5,682

8,507

10,512

South America

2,357

1,664

2,064

457

847

Total Upstream

12,447

11,389

12,710

16,406

19,964

Downstream

 

 

 

 

 

Oil Products

3,943

3,472

3,322

3,231

3,718

Chemicals

3,140

2,354

1,987

1,757

1,802

Total Downstream

7,083

5,826

5,309

4,988

5,520

Corporate

219

115

103

157

138

Total capital expenditure

23,011

20,845

22,116

26,131

31,676

Capital investment related to the acquisition of BG Group plc

–

–

52,904

–

–

Investments in joint ventures and associates

880

595

1,330

896

1,426

Exploration expense

889

1,048

1,274

2,948

2,244

Finance leases

452

1,074

2,343

91

2,124

Other

(453)

444

(90)

(1,205)

(131)

Capital investment

24,779

24,006

79,877

28,861

37,339

Comprising:

 

 

 

 

 

Integrated Gas

4,460

3,827

26,214

5,178

9,124

Upstream

12,525

13,648

47,507

18,349

22,169

Downstream

7,564

6,416

6,057

5,119

5,910

Oil Products

4,351

3,952

3,595

3,352

4,091

Chemicals

3,213

2,464

2,462

1,767

1,819

Corporate

230

115

99

215

136

Total

24,779

24,006

79,877

28,861

37,339

Of which

 

 

 

 

 

Organic capital investment

24,295

22,177

26,913

28,403

34,082

Inorganic capital investment

484

1,829

52,964

458

3,257

Capital investment is a non-GAAP measure used to make decisions about allocating resources and assessing performance. It comprises capital expenditure, exploration expense excluding well write-offs, new investments in joint ventures and associates, new finance leases and investments in Integrated Gas, Upstream and Downstream securities, all of which are on an accruals basis. In 2016, it also included the capital investment related to the acquisition of BG Group plc. The reconciliation of capital investment to capital expenditure is provided above.

Organic capital investment includes capital expenditure and new finance leases of existing subsidiaries, investments in existing joint ventures and associates, and exploration expense (excluding well write-offs). Inorganic capital investment includes investments related to the acquisition of businesses, investments in new joint ventures and associates, and new acreage.

CCS Earnings
earnings on a current cost of supplies basis
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GAAP
generally accepted accounting principles
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