Shell plc (NYSE:SHEL) Q3 2023 Earnings Conference Call November 2, 2023 3:00 AM ET
Company Participants
Sinead Gorman - Chief Financial Officer & Director
Wael Sawan - Chief Executive Officer
Conference Call Participants
Oswald Clint - Bernstein
Roger Read - Wells Fargo
Biraj Borkhataria - RBC Capital Markets
Michele Della Vigna - Goldman Sachs
Giacomo Romeo - Jefferies
Peter Low - Redburn Atlantic
Lydia Rainforth - Barclays
Irene Himona - Societe Generale
Martijn Rats - Morgan Stanley
Christopher Kuplent - Bank of America
Alastair Syme - Citi
Kim Fustier - HSBC
Henry Tarr - Berenberg
Sinead Gorman
Welcome to Shell's third quarter results presentation. During Capital Markets Day in June, we outlined how we will deliver more value with less emissions guided by our principles of performance, discipline and simplification. These principles are driving our everyday decisions and actions with the ultimate aim of enhancing shareholder value.
Nearly five months on and we're capturing opportunities that are delivering robust results and furthering our strategy. And there have been some great examples of performance this quarter.
Take Pearl GTL in Qatar, which has one of its best operational performances with a controllable availability of 97%. Or Timi, in Malaysia, where gas production has started. This unmanned platform is more cost efficient than the conventional platform because it is around 60% lighter in weight. Timi is also powered by solar and wind energy, overall a great example of how we can reduce both costs and emissions from our operations.
In our Downstream business, we are seeing that our EV strategy is progressing in China. In Shenzhen, together with BYD, we have opened Shell's largest global charging site for electric vehicles. With 258 public fast-charging points, it is already serving more than 3,300 EV customers today. China is the world's largest EV market and our Shell recharge network of charge points in the country has grown to 25,000 and is already CFFO-positive. This demonstrates the pathway to the profitable decarbonization of our global mobility network.
Another performance highlight comes from our joint venture Raizen, in Brazil, which started producing biofuel made from sugarcane waste at its new second-generation ethanol plant, the world's largest. Raizen is helping customers to reduce their emissions and is already turning cash to Shell while continuing to invest in the energy transition.
We continue to maintain discipline and have taken the decision to further lower our 2023 cash CapEx outlook to $23 billion to $25 billion. This already puts us ahead of schedule in terms of delivering the range targeted for 2024 and 2025. We are able to do this as we have kept the bar high for all opportunities, reflecting our strong commitment to capital discipline and value generation. And our journey of Simplification continues to progress.