Shell (SHEL) 28 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Ben Van Beurden	CEO & Director
Sinead Gorman	EVP, Finance Upstream, CFO & Director
Lydia Rainforth	Barclays Bank
Biraj Borkhataria	RBC Capital Markets
Christyan Malek	JPMorgan Chase & Co.
Jason Kenney	Banco Santander
Christopher Kuplent	Bank of America Merrill Lynch
Irene Himona	Societe Generale
Henri Patricot	UBS
Amy Wong	Crédit Suisse
Lucas Herrmann	BNP Paribas Exane
Martijn Rats	Morgan Stanley
Peter Low	Redburn
Roger Read	Wells Fargo Securities
Giacomo Romeo	Jefferies
Paul Cheng	Scotiabank

Call transcript

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Operator

Welcome to Shell's Second Quarter 2022 Financial Results Announcement. Shell's CEO, Ben van Beurden; and CFO, Sinead Gorman, will present the results, then host a Q&A session. [Operator Instructions].

We will now begin the presentation.

Ben Van Beurden

Hello. you second welcome results I and to quarter our presentation. Sinead the a the turbulent was world quarter It for and global economy. The lives and crisis. energy, Ukraine prices and continued, of high of more the life and living cost many the and war food aggravating energy so through the disrupting in supplies of destroying the reinforces the all of It balance right. getting importance We low carbon and that is need a reliable system that affordable. provides secure supply of energy and our because long-term crucial a in this that part policies least affect planning. And governments play investment balance, achieving not And and the a products of we that supply stable ensure need reliable significant policies of energy tomorrow. energy today in investments system

role gas the example, gas storage medium the in play. been have North has in But an to PS taking our Field action significant reviews we're time, adding Prelude, as we accelerated investment the at Crux value for short For taken in term, field from company. But production term, longer gas from delivering gas decision which the has our expected today. come And the the energy action Australia, more the And floating investment for in Qatar. vessel floating oilfield. allowing autumn. a which of same Door taken to And expansion LNG deliver Jack production of the see this QX taken for North depreciation needs are years as soon decision we a the will It's final U.K.'s in projects significant renewable completing to world assets. East and production the also up in vital the the the for accelerate transition than energy to investment on speeding and field, the we've potential produce natural And of tax X% final start In provide we to the to we ahead. gas also Shell the as by offshore by also facility. supply to offloading know to wind a we Sea, refit have

Netherlands, renewable so for So in we once largest Hydrogen wind one Europe's hydrogen the in building makes an operational X plants that will power. of XXXX. it's hydrogen are be Holland electrolyzer

XX% Shell owns plan electrolyzer through the and global fact, hydrogen In strong operates projects. to around And funnel of further we capacity. of a capacity add

So transforming for company the And changing. our transformation. in for up success truly It's setting are we that future. is ourselves the

foundations at the built that Just decade. have look over past we the

And have profitable We have become resilient. we more more business. become a more disciplined. become We

operating barrel Now today similarity has XXXX Shell the how the the operationally. then, of XXXX of it the between and and But half is in was price. almost of what our for XXXX. half first key $XXX since both price average a is environment financially oil first transformed looked The in

flow the period, Over shareholder of XX% are free up have organic compared adjusted cash with our same X the comparatively, we half months first of distributions. first And earnings In this XXXX. tripled, our our doubled the and year,

the and were have And highest cash safely ever. done this fact, In distributions all quarter, that responsibly. our we

run process fewer that XX% and safety emissions operations and our That's achieved and XX% teams use carbon the X Our lower emissions. Scope we X from to incidents energy that.

per XX%. upstream period. barrel more while And fivefold increased over CFFO LNG, our integrated So Integrated our assets value the in of portfolio, per business, Xx what to doubled And same we we more more upstream our increased over sell by concentrated, billion leading changed? and Well, result, worth much production, a is barrel XX% portfolio our $XX high-graded our around Gas as divested than while have now lower delivery. on down CFFO

that, supported so have firmly at performing confident framework our Meeting May. today, been because So we an similar our today, we difference is much the in And but strong about and in high better before. the are very we that energy transition prices Annual have are shareholders plan a General there capital future are price real yes, a And environment. energy

increasing share distributions shareholder with next So we a our buyback are for program billion $X the quarter.

can tell Sinead results and these you about our Now more distributions.

Sinead Gorman

second strong the in performance Our amid quarter prices. volatile energy was

adjusted Our RES. Upstream, Renewables earnings performance Solutions, stronger billion. and Energy or We were $XX.X in saw Products, and

$XX.X Our of adjusted billion, we operations. and than from $XX more flow billion delivered EBITDA was cash

by we especially program our billion Gas That $X businesses buyback business. to the is Power across expect with and current XX% share trading our our remain outlook. QX me we framework. and in distributions sector Our to shareholder were of brings to the overall, results RES of our time CFFO The energy of in in today be optimization completed announced financial expected announcement. And results strong our excess

$XX.X to Our continue our where cycle. will net decreased debt this strengthen further we to the sheet And we billion quarter. in are balance given

investment the be expect and our to to we cash the billion decisions expenditure capital We for $XX billion $XX range in will disciplined make with XXXX. be

Ben Van Beurden

so, disciplined even doubt, resilient transformation our a without it environment. and the reflects quarter So of more delivery company. Shell the more reflects into macroeconomic this But a more

our to the energy. to Thank of We are supplies benefit energy strength financial the you. society distributions using and benefit for position our secure to and shareholders to increase future through company

Operator

[Operator Instructions]

Ben Van Beurden

this of for today, sense you strong after that and is have Shell hope watching how you a transforming. us joining presentation, Well, we thank

and energy in the the today, that We continue also needs to invest but provide energy the future. world in transition the energy to security

will Elaine? I Instructions]. And questions one, So and [Operator Sinead with today. have I answering your could please, that, first be the

Operator

from question Barclays. We will take from first Lydia Rainforth our

Lydia Rainforth

Two -- the One and And buybacks that, and that significant X And not business. why is, stay that -- the a a know environment and So a and this interested transformation. level just I'm wondering as financial it the I terms questions, on but in now how the is of that buyback, questions notable reflects flow And could. cash frame, financial there's here. a still low just is that if be of the bit carbon year? And within I not a lot just in then do billion just about been have with we increase should been additional And dividend? chains $X the I'm that's the just quarter increase on for there's value one, detail to on if $X second little those it frame. more lots next defined. done, about billion be of and has thinking clearly, that

effectively. more seeing how -- just rates, you're opportunities seeing in this wondering obviously, environment? that. we space So in opportunities interest now are I'm you businesses seeing changing higher are Just as some that

Ben Van Beurden

I you're Good well. you. hear hope doing Yes. to Thanks and very much, Lydia,

of Let and a On Sinead indeed, financial the take first, the the question think business will second framework, I and me RES the talk is carbon, we about well. sort then little question, doing low anticipated. dividend bit

your also You just just But let do opportunities But opportunities. building see we not We see that see in more commodity-producing very explain me indeed assets. investments new with pleased more then the strong to question, that. necessarily in more results. We're again, are opportunities businesses.

decarbonize is more our of to need customer-backed companies reduce and the indeed, pledge travel, or hydrogen have and So opportunities, to us is, opportunities well. is, a businesses this. sort us really or quarter, we our ways help aviation for instance, us help decarbonizing do or the companies at that basically We through And for there can aviation whether see for How lot through want and these our strategy helping transport companies road find heavy-duty X be us for the But opportunities our trucking a carbon of overall say, sustainable of to come their of business new strategy aviation coming see who we who more see we to emissions. that up. to means you the fuels customers' identify business again, to coming or us? as this we of net energy customers whether come by use through every

many of still out. to immature, proven the with Now are be business course, need of models it

going of in needs That built course, model Hydrogen be So Holland be for still video ultimate heavy-duty to One. about we business The transport. the model, business talked road is out. to

a make these and with while customers But let's accelerate. the than the with of also also there, opportunities go more we that see I our are particularly opportunities learning will crystallize. But we the to sort with and have on bit a that environment joint to am environment are So governments sure trend little we ever, that geopolitical macro talk about confident that this today, framework. seeing financial curve

Sinead Gorman

from you. very Lydia, good Thanks to And hear much.

because cash executed that out question that so did very of chosen with value. the price done. at speaking, we cash dividend billion remind in we've I terms QX. in it excess And and specifically internally an ever QX, is it that that the at it from happened $X was debate, of added QX your whether the to mind buybacks. And together quarter. should buyback. by quarter dividend. we the buyback to be important $X buybacks on the I by it And is results, $X.X as to frankly just of to to in distributed between And And indeed, us. the to point the of for guess share just And is moment, billion the the of it $X at looked you, sense in you that's other share believe allocate share buyback one the effectively for actually according same terms is want And we is or be billion, we've course, highest what made be we of therefore in that's come expect the way there, billion with go moment, we that course, point it then. view, So the we time And the the should this where

So Lydia. hope the that you thought gives of process, perspective some I

Operator

We Biraj our will from question from RBC. take Borkhataria next

Biraj Borkhataria

please. Two,

is one on first the CapEx. So

for there for timing and costs of the talk recently I be to could on you give before on you into the project guess, what capacity? spending next inflation more question baking sanctioned, And specifically up. specific can forward start-up for sort to relative starting, about is project second you XXXX, Jack can you cracker, timing Is what you're you're maybe the difference Pennsylvania and As full of then say to And Door, the your also will to sense any in a the after? which level XXXX are in then plan put project like to year? that get that both you which budget, start due the

Ben Van Beurden

Yes. Thanks, Biraj.

Let the me and will by Sinead. first questions take Pennsylvania with dealt then be

So Pennsylvania, building it. we're done

on would production understands summer, to the then phase bringing have support possible. But start-up I would way of to feedstock a we been we by very imagine in cost, will a start important I its you . x demand Northeast And date. product to which and And make because will middle this somewhere think Everybody plastics up quarter, But for the Now the And to pressures good will the location not with in. already fourth mode. should of because you but we capacity. when I to course, that where and But reliably. the in is starting We are that and progress. our teams safely project the you. it of lot gradual we therefore, completing to to pound as in try be is, we on And of the many Sinead, do full welcome, do utilities large environment in quarters. start producing over third design very do always America. construction less contribute have over gradually. next somewhere It's a North results, a it go there's running at of this indeed because a as is into year, more course, very also put in environment advantaged today's say, imagine will that or be that have systems it quarter, of good

Sinead Gorman

Biraj. Thanks, that parts X question. And particularly first to in a way so the

into go looking course, are So to, of we XXXX, through of going our planning all, start as cycle. first we

year. next for CapEx our setting start will We

the said we've range. $XX much to billion very XXXX, for $XX As within billion

able to seeing things That steel through. pressurized in much size already. moment, inflation. able coming that through. has company of pressures which the We're to course, of volume the or with run have on terms sort size inflationary happening comes be agreements us over course, certain XX% volumes. being seeing the of so at in But benefits allow being prices we a of of like framework period a But of and to time are, our We is of very lock the of

as some through It chain, those don't which inflationary amount full mitigate very resilient means well. we of see we that coming So pressures. us a supply allows have to

FID to, has you Jack about would for. Door, we have say, We're on talked Door longer You hoped very It take Jack as than you specifically. taken correct. are pleased

our very Thank said size. Of with before, course, beyond pressures you. do locked respect that those was some Jack Door, control. see that, to economics outside remain of some coming we And already. have But we the in as of I through contracts

Operator

We'll our Malek from from JPMorgan. take next question Christyan

Christyan Malek

Congratulations on results. the

questions. two So

forward. of First sort of in all, just now that of explicit to you line sort sort a how range, be in sort provide going about you outlook It does proactive at the sight clearer through a and broken that of financial moment dividend of feel of terms and XX% of to of of used think of given you've threshold. in terms somewhat aligning about And of to back providing macro how a sort you think the your that seems mix frame, the context macro buyback more heading to reactive XX-XX. opposed frame, now of more in as the we'd terms outlook

successfully. of you within high-grading done feel Are that portfolio within you so you piece, of the sort in anchoring of that. about context missing or and any second question the visibility you your financial the portfolio frame sort you around of prescriptive outlook of particularly and the like you assets, assets see out in is about point can provide the And sort as sort think are if of the now -- the as rethinking. macro others So feel macro more your be upstream to know the that how context then And how some any being region? that where would end, of in which sale you, you of opportunity may will you different that maybe don't it, the Nigeria, help context for is now And demographic very -- example, it different? and of reconsider that then, around in the we very you you the looks there

Ben Van Beurden

Christyan. Thanks,

stab cover the a the is one. first on sort both Christyan, I'm Let at a Sinead I then want have the on may bit between of that add macro me the first and sure one, to little you that referenced. will link

So -- are quite at outlook, particularly the you we if actually look bullish. energy we are

capacity the capacity. hardly lot a we where tight. market today very are there's around. supply-demand And at OPEC look spare has with you is balances, not If of an spare

helped, tool, could SBR enough, think of price a that's more You bit hardly course. coming of management out little shales. Strangely the release but of has a actually

steam running we type full side, to out of bit little demand haven't And we on solutions. seen in So the XXXX supply-side recovery a are of a coming even with demand.

will my have lot we very situation, a So is volatility. tight of that a concern

when taken the has in minimal. thousands a may other say, is other impact originally only quite million fact million on sorts I in a benefit diminished, to of and can from That crude of change mind, has think been Russia few the is in year we barrels a starting volatility. coming sometimes bear continue might real out self-sanctioning of been that the hundreds a Russia it actions But thing day, a The new have all of to that but which But were are X Now persist. been volume the actually that not lot will with of to popular foreseen. sort terms a sanctions of or X bite. but not to actually thing of very be that

it to has in So yet the the a on haven't gas about for I I Europe, tight that come. we're LNG and then to see impact And market. global time spoken situation think going some

I downside upside all is think there together, So risk risk. than more

why financial and is Now the distribute. continue. it thing want quarter will the what the we where then it, changed Sinead then and will framework. in philosophy mean much and that have does from average, on maybe next quarters maybe saying, our cash will last how payout on X all, that's we of depends on for our in that the see first I say we the earn And payout to we one one are made to, we add

sort do quite with that our more the of to mechanism have than BG, going is too. as On to trend we payout we And we probably because a you will group forecasting we here. large assets, one, significantly to being a that deal you it been is But to of comprehensively, invested supportive course, get the will seen. assets We the moment. So course, used high-grading as mechanism portfolio, at more have have than high-grading not change the our lean peer of see have sold deal I quite very to well. with portfolio think economics tail a combined.

Christyan. Nigeria of there, oil Nigeria, is the the no and onshore. for And dealing very challenges in for risk might We that management be intent clear. referenced us, those change is out You the onshore macro to the assets. for appetite want case outlook perhaps a matter how with of

So change, add is the would portfolio be And like will result and no, of yes, a on our a financial tail portfolio, course, there then performing anything whole on don't a big to think -- as Sinead, the you but better. lot I it of stands frame? assets.

Sinead Gorman

more this to effectively add And I cycle. think Christyan, the than is happening very XX% But we Ben, floor When is a moment effect, about. of that's distribution talked we've through seeing. CFFO awful just what to distribute that. about which that, what a there, small And lot what that's is, of XX% appropriate the much soft saying is, hard in we what is ceiling. you're here, we're have have an a and we

it is, what with to last of the of now, seeing quarter distributions. $X.X $X.X And share as course, billion $X well. buybacks, of suggesting course, dividend it we're billion which and of saw billion you're usual of $X.X You billion

So quarter All of. to of be proud these are in all,a money. significant sums

Operator

Our next Societe question is from from Generale. Irene Himona

Irene Himona

result. these questions, Two on Congratulations please.

could quite expect then seeking Note do you actually secondly, as to returns is Firstly, what the to the perhaps you tax chains, markets Do actually you your an C to of complete give it that decarbonize windfall to get customers these immaturity energy. a indication expect due And sense value reasonable you be of your of exist, that to the yet fact whether not their cost Shell? you mentioned, significant? us approach due can

Ben Van Beurden

is a take Thanks, second and believe, than a markets Sinead That's windfall that can question. short Well, what serve we Irene. to really next good ultimately, being the if problem is the with attributes make will put on will more really commodity tax. yes, ask bit by person. customers a first I that you version than stated the just answer will value product that do. there talk we I the about them help Because you better little of

-- the for are have product to a we it customers because appeal superior V very before. V making of prepared the we and product as a Power this take grade quality But has better is on I business, And So because I've really and an because make good It that simply and think, refineries particular used of margins good that very is Power our profits for fuel. for. example is, pay that premium not of customers. the it's

supply, need in be analog with which Customers a transition exist vanilla the the if will product energy we product as could be And clean like challenges continuity where cetera, like, et attributes energy risk the the emissions, you or it help electricity, to cetera. indeed a that's for is products, Now negative a transition equipped that who will just have deal pay with management, instance, or other value. plain does see that et there, attributes like could premium a of them provide for a well. which

we and to there the best after. we attributes that like believe bigger us buy We needed a are And of because believe for like to we superior customers, for go have we brand be the is harvesting a there the uniquely we that in value. indeed lot are And have formulations. are out placed much industry. going with And management risk experience business

hand, So it's on of have works. other But hand, prove faith, the the Sinead? of it on a an bit plenty to one of analogs that Irene. article we

Sinead Gorman

Thanks, Ben. Thanks, Irene.

tax was on On enacted the the the July. of of energy it XXth or topic windfall levy, of profit course,

hitting is in what we're see So seeing expect million QX. what we it's tax. about QX $XXX But impact an to is of deferred not around on

that to continue well. in windfall know going hit a see our come very the on as U.K. how you'll that beyond to We the we've QX But We results tax. So that, know this. sense as the relaxed to before. it's invest in of through we've got ability as discussed

to deductions Jack get through So on very we Thank that well. see asset being to associated that are much focused as on Door, with with ability able you. the

Operator

America. is question next from Kuplent from Our of Christopher Bank

Christopher Kuplent

and you an involved, about terminals are the fresh of on me. support. gas you some in there ones Shell hopefully an on owner may a Two will today. there interesting I possible in debate FIDs act be as potential without of do balance you as not actually not offtaker quick. operators an for a Ben, see political not to list quick offtake growing LNG crisis? number Hopefully, maybe equity Qatar, considering of views have but asking these to your U.S. in next sheet you're it's of coming doing us but are proposing opportunities I'm to for of gas build out And that what as whether to the long the are these stands so believe those think because kind view your where Europe's to what's secondly, solution And becoming bit giving door, you, because the wanted a the update is

Ben Van Beurden

indeed, basically, sure case of perceptions very very it of also [indiscernible], haven't or last sort aware. want for schools use of sure safety can on then of Germany, On and government up getting and death, of next door, whether the Very is now it next only in the of it. a good to resort. very to with it gas, door is questions, staffed And is. overseas you public I'm really the next or public it like we're on is are And Germany, the say. the difficult because, out you in we Christopher. sort question to come no -- of almost sentiment trade-off a the -- to security When well, maybe But just cetera clear. to I'm if refer picked have hospitals making government safety if between be you as say sort dialogue that are supply. good as We the to et matter it very of the that. very, have a decide in of do Netherlands, life and you and door course, we of and of And consider want not want I nor say, we well, this say quick lot

course, on that good the which that, rather how can I'd JKM with Christopher, this our Hub follow U.S. they by so to of in invest, sources. many, us others of On But to as advantageous. think a in are far that help to we Europe indeed, U.S. Europe. time. at used much understand as hope be FIDs we debate bet won't LNG, it LNG so on in can this yes, than have. There's year. point supply I be position that to yes, I to X as Henry Delta the many we way, not keen the offtaker, versus ACO book participate terms to an is suggest, And you come take. to as we, as honest. perfectly interest much But in the

For in run, American to invest that an for us long Thanks, participate that Christopher. I as believe But we projects. is North wouldn't it a doesn't bet offtake better the mean in.

Operator

from Martijn Stanley. We take next our will question Morgan Rats from

Martijn Rats

two. got I've

why the do First so asked dividend you perhaps of there I was -- all, And is be financial that lot appreciate have cheap the recognize reason had is too shares your and therefore, the a preference the dividend framework. cheap, for and might share that consideration the buybacks. a questions already if is of I about observation of are it that I that part But wondering shares been if low. the the been

I'm As then that excess It's growth. in used next end fill The shares of for cheap. cash round buybacks. -- where bit a dividend shares not sort up will we cycle translated worried time is are cheap, the And observation in a stay -- DG. the in the

So of the And particularly question I logic. a was the I in LNG the is And IEA's year. and observations to ask better do from story projects document trade recently would there around? willingness some of you Is for of trade. of fast last really because for is much the revisited that I scenario. oil, wanted LNG we the after stronger shares it And look although LNG X net liquefaction entering new gas me it in long run was considerations? say that XXXX, starts sort to do what any that time wondering your I or scenario. deteriorate the sort wondering to how Basically, impact appetite so second struck in buybacks to cheap. relates declines IEA LNG, very this to actually fast if type on say, than, on that in very, your

Ben Van Beurden

Martijn. Thanks,

the question but you're in and a of right. bit did I let it. about this me, a role Yes, the it. time, version But different IEA LNG think more of one all, first little of talk you particular

to course, IEA we a have normative scenario, the Of that in mind is bear Martijn.

a then So preordained there. outcome sort you basically get it's, drawing in to of other words, linear back from and would how a line working

bit are with that at look of then now X.X you into that you old, if already. So are it, years one and we more than which year sort track in doing scenario, against how the over progress a a behind is year that we --

words, in are we So the opposite other traveling in direction.

will So hopes wishes that shows better. it's get that ship course, sort we it And is now, turn a the it may, big how challenging of and and of to have for not. little around. But bit expectations

don't we rather So And put And just think this demand supply on being water to I really it's that want disappearing either. cold reality But something without decarbonizing if mindful enough. not fact the grow do not said cannot But maybe of would that have well, therefore, report. is is IEA continue say, pie though, happening? very to be? fast having too has it much I check not and important the to this the happening, why I'm LNG to that decarbonized that a than with

are have whatever a are very the a that in we to value is of LNG carbon it be reduction portion the course, is there, projects top LNG therefore, get is, in project so the is be And to to LNG have because even reality to the having a at needs anymore, build philosophy of and be competitive. as sudden, net could that risk, of Canada. credentials we clear carbon well. budget on if the pursuing risk intensity going pursuing whatever or the X, a chain, have when carbon it of we And better there all it therefore, for we build undertake, carbon we no to So itself be need there risk we -- indeed which we projects that asset, we like indeed

indeed portfolio. a a you also Now LNG large part see that traded portfolio our of will is

comes that fast world a where add flexibility the to strategy. therefore, X in So assets net we of what depending get on XXXX. it else's to it value That's to detours to flex stated will it us. energy And will have how we somebody lot from and will go our go, to take take and

be it think the right on dividend. the to I far, so strategy. And proves But

Sinead Gorman

popular Indeed, a it's topic.

dividend I'm this creates is we and of No, worried your first is The we're part am in have choice doing what buybacks, we've to I which I'm make. conversation question, circle? a future. very regularly. vicious This about choice that we in by that, is it the conscious it's of by clear, very, course, a capacity is a have very quarter, aware very What that making done in quarter. the the not. of And

flexibility at in time meaningful per right. you. the us the gives future the is look have a this and and dividend share Thank sustainable to when dividend So to

Operator

will our Giacomo question We from Romeo next from take Jefferies.

Giacomo Romeo

And two questions.

price, you particular, second wondering dividend. looking think view that if again, longer-term sustainability broader how dividend. can, just your LNG. then at a fits decision the within on oil to utilization? at on And is, you in And And wondering a in of volumes lie the one a we view the oil your normalized quarter. lot just in the about back end of But has year price, do second that normalized since last think on just of increase particularly end Where on cackling is of level of a question perhaps particular. Energia respect, view the your I return your Obviously, long-term LNG, First talked liquefaction be you'll and to able sort LNG. -- changed line where to then, by regarding of stand you get time what Atlantic to back

Ben Van Beurden

And And already then let Sinead the to. LNG Giocomo. I talk the you, and Very and referring you will good. to me I partly that utilization normalization the Thank of it question take about think in response outages answered the were question. Okay. previous first

indeed, our in already hey, a gas persisting, we if particularly, flow of confident And a generally, that we of of witnessing in course, to today we paying also why Europe. is is XX% quite on the are are also yes, cash yes, bullish more areas greater cash out to And prices we course, significantly stress conditions then and we be and is higher. are expect outlook flow. -- than that of this do that, say that of So then, course, like oil have

see, a cash going So flow. on higher has higher to And percentage it a which the quarter. effect that numbers indeed, you record will of $X.X QX, this payout it in the we're in beat is like billion

if for confidence level It's a going you very therefore, indeed, at growth. be come roughly think that and to that sort to in dividend, And the in confidence the is. to sustainable macro So it pay. a of X% is dividend I translate in year back the where payouts want you the we to do are $X.X should able billion

now. therefore, is to declining. are like just With the the add actually actual made that to I quantum dividend buybacks Sinead point And would that the doing, we

significant -- increase. building per every are time for we significant a dividend a So share do we capacity are buyback, building we

crystallize the value intend That we is that that prosecute increase. So is launched is the eventually the buybacks we will it. And terms of to model over that that And we in in have. DPS the financial framework year how a ago.

on the portion? Now LNG

Sinead Gorman

that. for you thank Giacomo, And Indeed.

the plants. referring the in volumes, our we to production LNG terms equity own of strength volumes I of are back our across where think you're

back performance So in operated we has business pretty proud saw, QX. QX, course, Integrated how of have Gas and strong we really was very What the there. of in up running

some afterwards. will the some all LNG But particularly, we added been We and there. the well and see is okay, able we do going of course, coming you'll of the see the see, not we again, What volumes our has of Tobago equity Peru being back out action terms that that by QX, Seclin they from where in Colibri well. going taken is be. saw through. should And of a Nigeria, noise forward, forward predictions What impacted deal surprise what that's produce there. being Trinidad you security and still do known have as and That of to to of is for issues. That's course, with course,

Operator

from We Henri from UBS. next will take our question Patricot

Henri Patricot

questions, two have I please.

long-term opportunities. up following and LNG on of topic The first the one,

you've that added mentioned You Qatar.

Renewables pre-FID You've looking LNG a you comment a Canada and options expansion. pause are or Can some and portfolio taken the locked then come accelerate, to actually to in in quite where quite FID. a whether point already maybe still And particular, other kind get the to to secondly, a not volatility? see exceptional continue given of which about first And maybe price significant level had this quarter. ask I the can I to we but maintain, you an quite wanted something performance, result to wanted the to to close continue half extent about of on the what then you have segment, here, of you sense

Ben Van Beurden

much, questions. I the the to Good you take one like first second would Henri. Thanks very one? then. take Sinead, will

Sinead Gorman

Yes.

So RES segment, adjusted half course, saw to performance. earnings exactly of you at sector, of you you're first $XXX We've spot Henri. what was Renewable million with our in actually very respect good QX. And the had saw on,

volatility, what seeing within you're from particularly Europe. is significant that's course, Now there coming of

going of room is spread So with much is many results. we're a what course, to seeing will over some to prediction in underlying do be change of we course, as have in that is, quarter-by-quarter. beginning But remember, volatility. not is That make playing solar, an out through what that businesses gas and output wind there there are our that to giving is That of to occur, to come input some the really money time. will power, very many That spark with well. others an around as in, us do

to this large of start more you'll see and So a part results coming as our well. more

Ben Van Beurden

on Thanks, of on actually we going program And the big have Sinead. quite LNG, moment. course, a at

course, We to of a also building And is to, a all, have and are you. not familiar are phase Qatar, large do right see another We you're finish project. we X X. speak hope we imminent construction and more we or of project, can it that spending want behind very less. come set the first then will potential in we the in an fourth But FID. course, middle -- we third as and be which Henri, opportunities train. Canada of LNG of have they to on And I But of trains that. right,

for Tanzania, instance. like things So

We the we developments. by this some opportunities back market at time, it on is Train that way, the in Nigeria in are in X point also further important other really are working, and at a But also funnel. bit look that

in Europe. focusing on are we So new LNG capacity import

for developing It's in we the Ames what taken but also European the us the in we're also already well. on Corning, more about port course, Germany. close we've But on capacity Germany in important as to infrastructure. to opportunities other is Northern And and not at of the MOU in sign Brunsbuttel new actually developing close that Thanks is capacity time in Henri. which too. points, an and an So only Netherlands, we've Europe. have gas of that border are demand But in seen the Haven, terminal this large much, that's we very point part, side. optionality looking supply addition at to the

Operator

Our next Peter comes Low Redburn. from from question

Peter Low

that Can of that around? to turn the strong secondly, And then you is? kind But quarter. struggling. is of still chemicals weakness has It was through Yes. perhaps to happen one kind a is CapEx. area on of go driver just what And which what primary

towards there billion last give color call, to you'd of case? Is the be on $XX any range. think billion on is the intimated middle I can $XX today? you you other still Or that the that

Ben Van Beurden

Yes.

Okay.

If the chemicals you will CapEx do one, the I take one.

Sinead Gorman

we is remain range clear. to within It's billion our intend $XX indeed, disciplined CapEx, to on So very to $XX And remain range. very billion. that

will Difficult point time, at the terms be this will at it the of Peter. to In end? in be tell it at middle,

projects So acquisition. Atapu, renewables India Brazil the is Spring, in that the terms bonus the that of quarter, the saying Project for of some the which payment is acquisition that are signature what in range. in is are whether -- What coming see new is we this you'll of in was the in, whether

come will range well. in those as of that All within

further $XX $XX go than remaining won't and to billion I So apart billion that disciplined. from

Ben Van Beurden

is on we chemical the end, Chemicals, Chemicals of low indeed, at not the sector the because this are exposed not actually And to results the still strong cycle. that are That quarter. bottom is the if

Pennsylvania of on once that, of at this in not we Now compare of large because not in North a now chemicals have course, we are time course, we moneymaker stream. fix that that's, polyolefins, Basically if significant exposed product particularly between it's partake package. with but always in. type are America, a difficult to you to in chemicals, we very competitors, But we will the don't look point chemical different

companies of we, see exposed follow it, of base the way, well. more We're again of if were to segments by course, And and our matter top best-performing with as atypical, for European parts how On do of are behaves course, we differently business chemicals portfolio they exposed cycle, contrasts, of double-digit higher look across it margin margins returns. business, in rather you economy. costs main energy cracker one to derivative rather, chemicals more to the cyclical on still But strong chemicals our you compares and a where the is with the that. chemicals, a to we fact, depending the is that a good. exposed from is to are performance different As the products is that therefore, chemicals different than cyclical derivative and not that are of the it if

Operator

question next our take from Lucas will We BNP. Herrmann from

Lucas Herrmann

A if I couple, might.

at back margin maintain come to apologies, lower that and than terms count, just The increase the aggressively. would see have evident kind absolute to Clearly, most as can in I try look, modest first us can and marker from you make But moving of the the be there and if understand pretty And and level, you're parts. volumes dividend is aware the we were that it's I first so assumed secondly, more so the entirely somewhat agree rebate of clearly with particular share the I think on trading the up is forth. just have capture quarter. that than the of of going taking led the into moved again. better statement. refining should And anything want should And direction quarter. the I dividend to to or

XXX in would the ago. allowing obviously, you guidance you'll end at like so and for By be. XXX where price, increased absolute I about about depends looks below year, the be were, a down it guess, is reduction a year but million think, the of the on now which or level, down, on X% You're XX% present, shares the I million given

low is view anyway, prices is time, bullish the into the and given gas oil and all breakeven more So your the on your term. not improving breakeven medium least

you dividend? may you how of indications Can actually when any us prosecute give rebase So a Thinking. do you on be? potential in

a Sorry, bit it was ended. long

Ben Van Beurden

No. I are take good That's I It's I them think think they Lucas. both. very okay, And X -- questions. will

numbers, And And are more dividend, Lucas. less a illustrated bit numbers, well I or as correct very indeed summarized the I then think it you well. we said you which everything. On think also the

shares. We significantly retiring will be

to therefore, also said we we'll I as back significant way as the dividends very share increase. of building said, the company. we So share for and and Sinead buy significant buybacks before, have other. with are And dividend want per up capacity that's a interacting And a each part

timing it say, way framework dividend and than financial it much we buy when the rather And today. the do the of -- that reasonably can when back no that, launched other way decided rather that let's So it some the on is But around. Board is has it would XXXX. the I to raise do articulated will think in back I news the about I only I so. shares, the say we thing there And is

So the and trying is the has I'm what marker we and capture heard log afraid see achieve, to hope moment Yes, when. I I margin. impeccable. lower marker you On can that completely significantly. we say is But guidance the this are formulaic gone of do you not so your margin refining, that it some of sort is up have

the as QUN that seen You will have note in well.

what range, there are But just variables you of are anymore. single such to work It over have but largely of and to short that thumb, too rule is mathematically you work the because and can't large small or to, out, out. is It products. rule results in that really because happening in works If short thumb the we don't booked? but that is, Lucas, the how refining very that well, really a referring And is quarter a refining we range. with the wide in are is you come I in working a Russia. course, in of simply with business, of what's There basically for many extrapolations a range not work

very everything go Europe, -- same also because country. And very get be of stream a basically refining locked system going refining sanctioning while the course, out. working of of because part it's particularly tight That to Of the cannot diesel, going like the chemical But to And field It's of place, lot come. products very a because capacity are in it's because is the the tight. well. for be out constipated instance, they every is difficult to for kind they self-sanctioning therefore, is with of tended feedstocks. to to to that Russian

we driven think all on of segment by I it, there limited top is a of actually But availability long elasticity. refining jet which fuel, the very diesel, going time middle price not of sorts for exporting to the also be for reasons. see China so for distillates, is

is to some persist tightness for think this time, not I So forever. going

it in age, not golden Or short-lived will refining. golden relatively of a it the one. So we're age is be if

in point a will that So Thanks, because But to benefiting refer to in that we also dislocation take team this everything it system, again. opportunities capable Lucas. only are refining really have yes, most but time, indeed our are from, seeing ultimately, back the not of advantage we mean at brings. we trading the

Operator

Our next question will come from Cheng Paul from Scotiabank.

Paul Cheng

to a type thinking? first I very you is between guys the into is seems And of balance sheet That's the return, recession you crosscurrent, world how war I question. the factor the mean, shareholder next guys risk result? will of when the positioning, differently do that the level, recession as how supply positioning fear strong. recession any the Under year fear this mean Ben, you be and do budget or there activity price and that concern, in at internally, looking are the commodity

way shape decide how not at change you form that the Or in it situation how gas the for in Europe, with look the you decision that that's process? Will change question, over pace? guys there? Second investment or you natural does the hydrogen will any

Ben Van Beurden

I'll recessions. we as are it. people about Paul. it recession -- gas, let to I you, well, say not say when about On that thing about fear. Thank X it is have are natural comes only it's things a of and as Sinead The lot Europe talk bearish me will

are so with the take that do we bit think natural gas COX, prices I idea blue in difficult, CCS also words, hydrogen a other seeing. and with of can we course, First little of gas, whole of that sort all, in Europe, that reformat is

Europe for while, focus So making green will very much I on hydrogen. some think

we also driven out it time, the electricity, transportation And gas-rich hydrogen, comes hydrogen will maybe which at countries. blue are value But of comes renewable hydrogen in by the long So indeed, run can then of if electricity. hydrogen, it to over the in instance, be importing of for out when look also hydrogen, system.

course, That system. is transportation at has be built. there the to moment, no Of hydrogen-based

or more there, and things might which in large Rotterdam feed transportation from the driver or Europe we with transportation tremendous the hydrogen of pays we less by building make refinery the distillates. get hydrogen and And companies the transportation compete going for middle to of potential that determinant think how building gas. plant is there That out natural against course, a to is this CapEx. will for hydrogen are in That a how really greener, customers a develop the much not come actually business premium, little to infrastructure be want going our to value the regulatory hydrogen uplift much that I then from is be gas. to than of needs more how So driven you driven then happen. also happen they be it's more again, through And the ultimately, can Europe. which make for a depend companies make using tremendous natural And in to or a products believe will fast these refinery we on. Sinead. the governments bit course, by logistics that what decarbonize But

Sinead Gorman

what it about of through terms off. moment. going happen plan whether in be you asked at process And for we're kicking not. going or Paul, just would And We're do there's we the really the recession planning a to how

a we our And great the what run if, with ask what look timing the in plan So happen it's at scenarios. question. to plan accordingly. We scenarios. We could different

base vary our at investors with scenario to comfortable equally make, So happen, through. and for means run we each balance were sheet ensure we compelling remains to returns and We get? scenario. of that it, fundamentally, what But investment for is hits it that to prepared. And to we're looking we what test to that look our And we're going it what our us. CapEx and we allows know we're We don't will would high be we if make. investments that at we by and the And happen. investments it what creaming strong. to if us to our when curve for and wait investment is, that And strong the what the that we level our be will scenario, scenario going be We is. look return that do know hits remain stress us low

Operator

Santander. We Kenney have from Jason

Jason Kenney

some Looking guidance a at for it And the business then billion Renewable low XXXX, actually. rolling 'XX. quite Solutions Energy $X.X contributor was step on relatively is key a to EBITDA XQ your & because EBITDA up

know of the don't middle to kind renewables XXXX. sales, EBITDA? and by business few hours the of that the split in be I portion an the double you uplift the of so be to very magnitude portion by terawatt over aiming from business of or next you get What could a from are kind pipeline do the would change revenues external years and think direction I what Any of EBITDA be gas interesting. sales? what your got of But mind that travel power decade. you've of And going in know could you're if

Ben Van Beurden

give And can add I'm something to Great whether to Sinead then I it see to and Jason. in question, going it. first

Sinead Gorman

one, a Jason well. difficult It's Yes. also as

year, being to the customers. you're I of spark them. gas And I said it, that and created So last pointing you're amount difference as the as and what, input you're And seeing And that incredibly the the between we've we that spread, and before, to have, power, that the huge deliver out this power parts course, well. around able that able that a what is output, perfectly the the volatility at There business. trade that on. of so moment to around fact as X over between been think there's is what end seeing trading has the to that's gas

subject of have which will significant go sorry, year in a that, market market. approximately is of terms would I that, and think on EBITDA. you the $X.X what it the I to number fourth -- four the Alongside depends happens businesses of well. is in that's I say What in the there quarter billion, course, we used as other

carbon got power storage. and in We've Hydrogen alluded Holland We've capture to have that We the hydrogen Ben homes in and -- the got of to U.K. earlier. gas delivery

All at we're of and those, start of of course, are building up, well. the those really as

right heavily our also more you those and you're as developing XXXX, those of by that much suggest portfolio. well. So will that are markets, developing see to are price as part But lines

returns them. So great take But that for to us will time as focusing on we're in that build from can we sure making well. get out

Ben Van Beurden

an be really will off. business target, important a year. so but indeed not will XXXX taking We're where this year a And with Absolutely. much point we great to see the inflection

very Okay. you much. Thank

Operator

Wells Read question from from We Fargo. our will next Roger take

Roger Read

right, energy last the about months, overall a standpoint, curious, if on anything to lot from a have in, request in of a on transition, hit. it any more do as it, But to changed this of, was demand with just terms probably the The little that's that more good you question we are the cost than others? discussions, the investments, countries and curious any, competing mean in roughly been policy brought I earlier work of I call what of think governments hydrogen, on security changing since of are aspect that I was questions faster more so really the or of some the floor? standpoint the market a you conflict structure. has Ukraine with to a you of host having mentioned X kind Paul's the with the some pushing the energy

Ben Van Beurden

Yes. is well. Thanks, asked question Roger. good a one as of really this And questions you Well, said already. lots being good

before. good security. A I on to then intensity Deeper do? them, discussions the well, X that, so with also then energy how security, difficult since lot lot transition we with I've the had comes can this stepping conflict of the never in that a of it And should be? of work? think better conventional depths the to definitely quality energy does the depth challenge started, if in how is And to well, the it when them What many energy you discussion, up. as appreciation a with are takes last compared say, indeed, since what the energy, this governments really months, realization I is think of deal sadly, of I and the can yes, the

course, we of they for harder demand, as I see policies governments effect a also think work you would what on well. are into that is, have been to realizing time. And which coming saying the need long

think still discussions. side to that for make aviation investments, will on sustainable is to also at demand we other hand this good in model question. across of much But transition, also us discussions not energy the It's hand. when looking in I of security a that just I that stage, effective is discussions, enough, And across Thanks in say ways for. just in new risks it not fair comes It's which, in the It's probably and I fuels to take risks, both go that think bringing energy policies. enabling course, Now the the think world. also more way, in to leading Europe hydrogen. for more soon it's But and business board. that go And power. are different

Operator

Credit We will take from Suisse. from our next Amy question Wong

Amy Wong

quick from Two ones me, please.

in exercise financial Firstly, the results do remarks, XXXX your to and interesting you a contrast prepared comparing very period. your today

your to it's there. the gone cost has So reflection and through business the do clearly, hard of organization streamline work savings some a

by then my that an on improve what's your field your in the And is, mentioned is, So scope you the second profitability? to first the offset was decline question fields. Upstream from that question -- basis, growth and business, underlying new

way your around decline inflation, CapEx And And the your the you at some what the appropriate? is, set your to when strategy? fields given in out you managing of moment? allocation rates? them question is my those fields Upstream are the the Are business So comments the expected Upstream to behaving you is rates decline how

Ben Van Beurden

from the of XXXX what a look Interesting. very question narrative questions doing me important indeed, first to with have that the of would do this lot a also Elaine, because actually war But we really portfolio. forward is we price, a course, There's pricing reason if seeing, effect. say, really there is time back a and explain there, away the on of have we by of it improved you significantly reference of And today some or them. that going this price take you for let a it just lot And in the last a I to first a comparing happens company. I seeing And And is are much go back are windfall driver are XXXX? strengthened on well, there to we because accidental really the there's you was it can your you about a it war how cannot the all, indeed, XXXX. at saw just have just continent while, the of out here. results be

number a have improved on back a picked of grab more therefore just a company, the higher-quality We significantly that, yes, show picked organization. that dozen company of the another we I And of strength that company. become also better indicators. out the I have just to would could the say has can opportunities. We

We demonstrated, have discipline, just discipline, have more not only better we but a discipline.

words, in the possible. are all make we wrong. basically just into we decisions right, understand high-grading take other the able that better now, can what when to best decisions are we is decisions we So And what right is

I is it the when going room forward. to more So there yes, comes performance running would say,

got entirely sure I whether not I'm decline, field the the On spirit. right your question

So to therefore, I will also add. ask Sinead

very a acquisition into the portfolio. side, There's Upstream not But on course. it's also XXXX XX%. of back field taking we to look decline, by reduced significant actually compared account production That's you BG. If with also

see have words, that portfolio of again, other with that significantly upgraded in in per production because XX% terms coincides we CFFO we have So increase. you barrel the XX%

top there. see don't I declines, the I field Sinead? general, we have don't But surprises in number off head. of the my think think I

Sinead Gorman

you moment of we earnings that and the Amy. the I near, way, is at Upstream the when And say just X% decline shows which what about -- to quarter, you XXXX and post see adjusted think look Permian, this actually by expect got you between -- that, was billion indeed. our is is, significant that we and I last now coming XXXX. time would around through, look in to $X.X But No, X% at what at business

even it's the at So beyond now looking dates similar we're that prices. at

volume through, So and the really coming what value significantly we really over it's working. are is but production, lower seeing

a quite it well about as the asked well. as you CapEx sorry, that perspective from bit coming So relaxed little through. on the And --

So in. the spending is to our intent $X What an billion lot there we're billion. things we're That's $X new seeing business. awful for coming Upstream of

saw You Atapu.

will saw, FID, online, well. as up You of near course, of Jack starting course, quarter this come Door back one

of So a we're business that proud business. there's a And very in clearly, our well. as happening it's Upstream lot

Ben Van Beurden

that Thank questions of we question. to And those that make well. you is will speak. haven't being very as care few that actually much. for the I'm in sure the taken your But quite time get you there's queue, to had that was mindful question and very final apologies and a still

questions. we will October our of a doing stay London some stay I challenging will But it one Thank are by marketing and which so your to see hope will of our the enjoyed For periods faced. hope also which much all X, thank And this for host now, wish your strategy, very and in have I safe But would will the to team. on you well. to of our delivery supplies in with say the week. call ensure energy marketing you together we how you you here given that it be you and pleasant much. be also hope has And I has of you at end and person families enjoyed very insights I striving the world you and We you. secure really most that during

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