Shell 2Q 2024 Performance Highlights
- Shell’s adjusted profit for Q2 2024 is $6.29 billion, surpassing the estimate of $5.98 billion.
- Adjusted integrated gas profit stands at $2.68 billion, slightly above the estimated $2.65 billion.
- Adjusted upstream profit is at $2.34 billion, beating the estimate of $2.09 billion.
- Marketing profit for Q2 reached $1.08 billion, compared to the estimate of $825.3 million.
- Adjusted chemicals and products profit is $1.09 billion, just below the estimate of $1.13 billion.
- The company’s renewables and energy solutions segment posted a loss of $187 million, against an expected profit of $136.3 million.
- Adjusted corporate loss came in at $576 million, slightly higher than the estimated $554 million loss.
- Adjusted earnings per share (EPS) are 99c, exceeding the 93c estimate.
- Adjusted EBITDA is $16.81 billion, outperforming the estimate of $15.82 billion.
- Revenue for the quarter is $74.46 billion, higher than the estimated $69.43 billion.
- Oil and gas production is 2.82 million barrels of oil equivalent per day (boe/d), above the estimate of 2.77 million boe/d.
- Chemical sales volumes are 3.05 million tons, below the estimated 3.22 million tons.
- Cash flow from operations is $13.51 billion, exceeding the estimate of $12.17 billion.
- Net debt is reported at $38.31 billion, better than the estimated $40.19 billion.
- Debt gearing is 17%, slightly better than the 17.9% estimate.
- Shell expects full-year 2024 cash capital expenditure to be in the range of $22 – $25 billion.
- Corporate adjusted earnings are projected to be a net expense of approximately $500 – $700 million for Q3 and approximately $1,900 – $2,300 million for the full year 2024.
- Analyst recommendations include 17 buys, 7 holds, and 0 sells.
Shell PLC on Smartkarma
Analysts on Smartkarma, such as Suhas Reddy, are closely monitoring Shell PLC‘s financial performance. In a recent report titled “Earnings Preview: Bleeding Refining Margins & Lower Gas Prices to Eat into Shell’s Earnings,” Reddy points out the challenges Shell faces, including lower refining margins, production levels, and gas prices. Despite these hurdles, Shell expects some relief from higher chemical margins and increased marketing sales volumes. The company forecasts a decline in upstream production, gas price realizations, and refining margins. In the second quarter, Shell is expected to experience a 4.3% drop in revenue and a significant 21.7% decrease in earnings per share. However, there is optimism as Shell anticipates improvements in various areas such as chemical margins, marketing sales volume, and refinery utilization rates.
A look at Shell PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shell PLC, a company that explores and refines petroleum products, has received a promising outlook based on the Smartkarma Smart Scores. With a strong score of 5 in Growth, Shell is positioned for long-term expansion and development within the industry. This indicates that the company is well-equipped to adapt and evolve to meet the changing demands of the market, potentially leading to future success.
Additionally, Shell PLC has balanced scores across other key factors, such as Value, Dividend, Resilience, and Momentum, all rated at 3. This suggests that while Shell may not be leading in these areas, it maintains a stable and competitive position, ensuring steady performance and reliability for investors. Overall, with a focus on growth and solid fundamentals, Shell PLC appears to have a positive long-term outlook in the petroleum industry.
### Summary: Shell PLC explores and refines petroleum products, producing fuels, chemicals, and lubricants, serving clients globally. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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