Shell plc (SHEL) CEO Ben van Beurden on Q1 2022 Results - Earnings Call Transcript

Shell plc (NYSE:SHEL) Q1 2022 Results Conference Call May 5, 2022 9:00 AM ET

Company Participants

Ben van Beurden - CEO

Sinead Gorman - CFO

Wael Sawan - Integrated Gas, Renewables and Energy Solutions Director

Conference Call Participants

Oswald Clint - Bernstein

Biraj Borkhataria - RBC

Irene Himona - Societe Generale

Lydia Rainforth - Barclays

Michele Della Vigna - Goldman Sachs

Henri Patricot - UBS

Lucas Herrmann - Exane

Paul Cheng - Scotiabank

Peter Low - Redburn

Christopher Kuplent - Bank of America

Martijn Rats - Morgan Stanley

Christyan Malek - JP Morgan

Jason Gabelman - Cowen

Henry Tarr - Berenberg

Sinead Gorman

Welcome to our first quarter 2022 results presentation.

Before I look at our performance, I would like to thank Jessica Uhl, who is leaving Shell after 17 years. Her distinguished Shell career culminated in five years as Chief Financial Officer, and she leaves an impressive legacy. She has been key in strengthening Shell’s financial position, whilst delivering some of the industry’s best cash flows year after year. And I am honored and excited to follow in her footsteps.

Today, I will talk about our key developments, strategy delivery and our Q1 performance. As the war continues in Ukraine Shell’s working hard to ensure the safety of our staff and contractors there and support relief efforts. We are doing our utmost to keep retail sites operating in the country and supplies moving. We are supporting our staff in Ukraine and taking care of our staff fleeing the war by offering assistance and means for relocation. We have announced our intention to withdraw from all Russian hydrocarbons in a phased manner. So, we have stopped buying Russian crude oil and liquefied natural gas or LNG on the spot market and we will not renew any long-term contracts.

We have also stopped spot purchases of cargoes of refined products directly exported from Russia.

For the first quarter of 2022, we have taken post-tax charges of around $3.9 billion in relation to Russian oil and gas activities. As well as causing human tragedy, the war has led to deep uncertainty about supplies and rising prices.

The disruption in global energy market shows a secure, reliable and affordable energy must be managed through engagement with government, customers and suppliers. We are continuing to deliver a secure supply of energy across the world. And as the world’s largest supplier of LNG, we continue shipping natural gas to where it is needed most. One example is the agreement we have just signed to ship LNG through the terminal that will be built in Germany.