Shell plc (NYSE:SHEL) Q1 2024 Earnings Conference Call May 2, 2024 10:00 AM ET
Company Participants
Wael Sawan - CEO
Sinead Gorman - Director & CFO
Conference Call Participants
Michele Della Vigna - Goldman Sachs
Biraj Borkhataria - RBC Capital Markets
Lydia Rainforth - Barclays
Alastair Syme - Citi
Paul Cheng - Scotiabank
Joshua Stone - UBS
Irene Himona - Societe Generale
Ryan Todd - Piper Sandler
Alejandro Vigil - Santander
Christyan Malek - JPMorgan
Lucas Herrmann - BNP
Christopher Kuplent - Bank of America
Sinead Gorman
Welcome to Shell's 2024 First Quarter Results. It's been nearly a year since Capital Markets Day when we showed you our plans to deliver more value. And in March, our energy transition update shows how we will do that with less emissions, demonstrating our commitment to being a net zero emissions energy business by 2050, whilst delivering enhanced shareholder returns. As we continue to turn our plans into action, I'm pleased that 2024 is off to a good start. We delivered yet another set of strong operational and financial results in the first quarter.
In Upstream, our conventional oil and gas business performed very well with many of our core assets delivering high controllable availability. We also started production at oil Rydberg field, which is connected to our Appomattox production hub, reinforcing our leading deepwater position in the Gulf of Mexico, where our oil production has some of the lowest greenhouse gas intensity in the world. This is another project that supports the energy security the world needs and underpins longevity of our cash flows.
At Shell Polymers Monaca, our petrochemicals plant near Pittsburgh, we have successfully ramped up to full operation in Q1 and are on a pathway to longer-term stability. In our Renewables and Energy Solutions business, we have strategically diluted part of our stake in the Texan Brazos Wind Farm, whilst keeping access to 100% of the offtake as part of our integrated power strategy. This allows us to build on our strengths and leverage our world-class trading and optimization capabilities. We continue to focus on maximizing the value of every electron and molecule to help us deliver on all our targets.
Moving on to our financial results. We continued to deliver strong results in the first quarter of 2024 despite above average well write-offs, our adjusted earnings were $7.7 billion. And we generated $13.3 billion of cash flow from operations, driven by our consistent focus on performance. In the first quarter, we had high liquefaction volumes, coupled with strong seasonal trading and optimization in our Integrated Gas business, even though market conditions were less favorable than in Q4.