Shell PLC (SHEL)

[Breelander]

Shell Plc Second Quarter 2022 Euro and GBP Equivalent Dividend Payments
https://www.investegate.co.uk/shell-plc ... 0240H3585/

[idpickering]

Shell CEO to step down.

According to a report from Reuters, Ben van Beurden, CEO of energy major Shell, will be stepping down soon after almost 10 years of leading the company and almost 4 decades working for the firm.

Reuter’s sources said that a succession committee led by Chairman Andrew Mackenzie had met multiple times to interview potential successors, with them currently having narrowed the candidates down to a shortlist of four people. These include upstream chief Zoe Yujnovich, director of downstream Huibert Vigeveno, the current CFO Sinead Gorman and gas and renewables head Wael Sawan. While no final decision has been made, Sawan is seen as the frontrunner due to his current role in low-carbon energies, which is set to be a major growth area for Shell.

During van Beurden’s time as CEO, the Dutchman guided the company’s acquisition of BG Group to become the biggest liquified natural gas (LNG) trader in the world. He also took the company through two economic downturns and set the course to become a net-zero emissions business by 2050. Prior to taking up the top job at Shell, van Beurden headed up Shell’s downstream business, which makes chemicals and refines crude oil into fuel and other products, such as the base oils for lubricants like the Shell Tonna slideway oil.

More recently, van Beurden has been supervising the company’s move from its historic headquarters in The Hague, Netherlands to London. He has not yet decided on a date to step down, but Reuter’s sources say it is expected to happen sometime next year.

https://www.oil-store.co.uk/blog/shell- ... 84976.html

From Shell;

Shell plc (“Shell”) today announced that Ben van Beurden will step down as Chief Executive Officer (CEO) at the end of 2022, and that his successor will be Wael Sawan. Wael’s appointment is effective January 1, 2023*, when he will also join Shell’s Board of Directors. Ben van Beurden will continue working as adviser to the Board until June 30, 2023, after which he will leave the group.

https://www.shell.com/media/news-and-me ... essor.html

Ian.

[idpickering]

Here's the RNS in relation to the above;

Shell Chief Executive Officer Ben van Beurden to step down, Wael Sawan appointed as his successor.

https://www.investegate.co.uk/shell-plc ... 0000H5538/

Ian.

[idpickering]

Shell withdrawal from Irish windshore projects leaves Kilkee floating wind farm in choppy water.

Pans for a 1.35GW floating wind farm off the coast of Clare have been plunged into jeopardy with the decision of one of the partners to leave the Irish market.

A u-turn by Shell has seen the multinational energy giant announce it is to pull out of the Irish renewables sector which is to impact on the Western Star Floating wind project which was to develop a 1.35GW floating wind farm that was due to be located 35km off the coast of Kilkee.

As first reported by The Business Post, the unexpected move by the multinational energy behemoth could damage Ireland’s ambition to achieve an 80 per cent cut in energy emissions.

nb. No RNS from Shell on this as yet.

Ian.

[idpickering]

Further to the above. here's the link to that item, I forgot to include it in my post.

https://www.clareecho.ie/shell-withdraw ... ppy-water/

Ian.

[idpickering]

Shell third quarter 2022 update note.

The following is an update to the third quarter 2022 outlook. Impacts presented may vary from the actual third quarter 2022 results and are subject to finalisation of those results, which will be published on October 27, 2022. Unless otherwise indicated, all outlook statements exclude identified items.

Integrated Gas

Adjusted EBITDA

Production is expected to be between 890 and 940 thousand barrels of oil equivalent per day.
LNG liquefaction volumes are expected to be between 6.9 and 7.5 million tonnes.
Trading and optimisation results for Integrated Gas are expected to be significantly lower compared to the second quarter 2022 as a result of seasonality and substantial differences between paper and physical realisation in a volatile and dislocated market.
Underlying Opex is expected to be between $1.1 and $1.3 billion.
Adjusted Earnings

Pre-tax depreciation is expected to be between $1.3 and $1.7 billion.
Taxation charge is expected to be between $1.3 and $1.6 billion.

https://www.investegate.co.uk/shell-plc ... 0000H9380/

Ian.

[idpickering]

I'm guessing that the above hasn't been well received by the market, with the SHEL SP being down 2.8% as I type. BP. are down only half a percent for comparison. I hold bot shares, and imho, the current SHEL SP weakness is overdone. This market noise will not budge me from holding both shares for the long term.

Ian.

[idpickering]

Shell takes second stake in Qatar’s mega LNG project.

Shell is investing in the second phase of a mega liquefied natural gas (LNG) project in Qatar, just three months after buying into the initial stages of the development.

The energy giant has been selected to participate in the next wave of Qatar’s LNG expansions – the North Field South project (NFS).

Shell will acquire a 9.375 per cent participating interest in the NFS project, worth around $1.5bn.

This follows French rival TotalEnergies joining the project in September with an identical stake.

Energy Minister Saad Al-Kaabi has allocated 25 per cent for international partners.

Qatar Energy will hold the remaining 75 per cent.

https://www.msn.com/en-us/money/markets ... r-AA13hGjS

Ian.

[idpickering]

3rd QUARTER 2022 UNAUDITED RESULTS.

Quarter Analysis.
Income attributable to Shell plc shareholders, compared with the second quarter 2022, mainly reflected lower LNG
trading and optimisation results, lower chemicals and refining margins, as well as higher underlying operating expenses,
partly offset by increased volumes from higher-value barrels in Deep Water.
Third quarter 2022 income attributable to Shell plc shareholders also included net losses of $1.0 billion due to the fair
value accounting of commodity derivatives, and impairment charges of $0.4 billion. These net losses are included in
identified items amounting to a charge of $1.4 billion in the quarter. This compares with identified items in the second
quarter 2022 which amounted to a net gain of $5.2 billion.
Adjusted Earnings and Adjusted EBITDA were driven by the same factors as income attributable to Shell plc
shareholders and adjusted for the above identified items and the cost of supplies adjustment of $1.4 billion.
Cash flow from operating activities for the third quarter 2022 was $12.5 billion, and included working capital
outflows of $4.2 billion, and tax payments of $3.4 billion. The working capital outflows are mainly driven by the increase
in European gas inventories, and initial margin outflows, partly offset by lower prices on crude inventories.
Cash flow from investing activities for the quarter was an outflow of $5.0 billion.
Net debt and Gearing: At the end of the third quarter 2022, net debt was $48.3 billion, compared with $46.4 billion
at the end of the second quarter 2022, mainly reflecting lower cash flow from operating activities and the absorption of
debt from the acquisition of Sprng Energy. Gearing was 20.3% at the end of the third quarter 2022, compared with
19.3% at the end of the second quarter 2022, mainly driven by the increase in net debt.
Shareholder distributions
Total shareholder distributions in the quarter amounted to $6.8 billion. Dividends declared to Shell plc shareholders for the
third quarter 2022 amount to $0.25 per share. Shell has now completed $6 billion of share buybacks announced in the second quarter 2022 results announcement. Today, Shell announces a share buyback programme of $4 billion which is
expected to be completed by the fourth quarter 2022 results announcement. Shareholder distributions are in excess of
30% of cash flow from operating activities for the last four quarters. Subject to Board approval, Shell intends to increase
the dividend per share by an expected 15% for the fourth quarter 2022, which will be paid in March 2023.

https://www.shell.com/investors/results ... cument.pdf

Ian.

[Dod101]

Thanks Ian. Good news for shareholders I would have thought. Pretty much awash with cash even after the windfall tax.

Dod

[idpickering]

Thanks Ian. Good news for shareholders I would have thought. Pretty much awash with cash even after the windfall tax.

Dod

You're welcome Dod. I'm very glad I doubled my holdings of Shell when COVID19 hit us, and have no intention of selling my holdings any time soon.

Ian.

[idpickering]

Shell plc Third Quarter 2022 Interim Dividend.

London, October 27, 2022 − The Board of Shell plc (“Shell” or the “Company”) today announced an interim dividend in respect of the third quarter of 2022 of US$ 0.25 per ordinary share.

The pound sterling and euro equivalent dividend payments will be announced on December 5, 2022.

Ex dividend 10 Nov 22, Sterling rate announced on 5 Dec 22, paid on 19 Dec 22.

https://www.investegate.co.uk/shell-plc ... 0200H3225/

Ian.

[idpickering]

Shell announces commencement of a share buyback programme.

Shell plc (the ‘company’) today announces the commencement of a $4 billion share buyback programme covering an aggregate contract term of approximately three months (the ‘programme’). The purpose of the programme is to reduce the issued share capital of the company. All shares repurchased as part of the programme will be cancelled. It is intended that, subject to market conditions, the programme will be completed prior to the company’s Q4 results announcement, scheduled for February 2, 2023.

The company has entered into an arrangement with a single broker consisting of three irrevocable, non-discretionary contracts, to enable the purchase of ordinary shares on both London market exchanges (the London Stock Exchange and/or on BATS and/or on Chi-X) (pursuant to two ‘London contracts’) and Netherlands exchanges (Euronext Amsterdam and/or on CBOE Europe DXE and/or on Turquoise Europe) (pursuant to one ‘Netherlands contract’) for a period up to and including January 27, 2023. The aggregate maximum consideration for the purchase of ordinary shares under the London contracts is $2 billion and the maximum consideration for the purchase of ordinary shares under the Netherlands contract is $2 billion. Purchases under the London contracts will be carried out in accordance with the company’s authority1 to repurchase shares on-market and will be effected within certain contractually agreed parameters. Purchases under the Netherlands contract will be carried out in accordance with the company’s authority1 to repurchase shares off-market pursuant to the off-market share buyback contract approved by its shareholders and the parameters set out therein.

The maximum number of ordinary shares which may be purchased or committed to be purchased by the company under the programme (across all three contracts) is 528,919,217, which is the maximum number remaining as of the date of this announcement pursuant to the relevant authorities granted by shareholders at the company's 2022 Annual General Meeting.

https://www.investegate.co.uk/shell-plc ... 0300H3224/

Ian.

[Hallucigenia]

Thanks Ian. Good news for shareholders I would have thought. Pretty much awash with cash even after the windfall tax.

Everyone bangs on about the windfall tax but UK taxes are more or less irrelevant for both BP and Shell. They maintain a small amount of production within the UK (~5% of total) to fund their headquarters, but the net profit of their UK operations is negligible, so corporation tax becomes irrelevant.

And as here - in the good times they put down the investment which then pays for their headquarters in the bad times, the windfall tax is structured so that effectively they get back 91% of investment in new projects in the UK.

And to be honest, the Shell numbers weren't so great compared to Total also out today (although Total prefer to compare yoy which is more flattering than qoq) :
https://www.investegate.co.uk/totalener ... 4000Z2802/

[Dod101]

Thanks Ian. Good news for shareholders I would have thought. Pretty much awash with cash even after the windfall tax.

Everyone bangs on about the windfall tax but UK taxes are more or less irrelevant for both BP and Shell. They maintain a small amount of production within the UK (~5% of total) to fund their headquarters, but the net profit of their UK operations is negligible, so corporation tax becomes irrelevant.

And as here - in the good times they put down the investment which then pays for their headquarters in the bad times, the windfall tax is structured so that effectively they get back 91% of investment in new projects in the UK.

And to be honest, the Shell numbers weren't so great compared to Total also out today (although Total prefer to compare yoy which is more flattering than qoq) :
https://www.investegate.co.uk/totalener ... 4000Z2802/

I am sure you are right about the windfall tax. I feel slightly conflicted because our Exchequer needs the money!

Dod

[Hallucigenia]

I am sure you are right about the windfall tax. I feel slightly conflicted because our Exchequer needs the money!

Dod

But the money isn't in the UK, so why should the Exchequer get their grubby hands on it? For instance, in 2021 BP paid $10.6bn in taxes and other payments to the government of Azerbaijan (these days such payments get RNSd) - are you suggesting that they should pay zero to Azerbaijan and $10bn to the UK?

Which in turn would mean that all the foreign-owned electricity companies, railway companies, car companies etc should pay zero tax in the UK and instead pay tax in their home country on profits earned in the UK?

[yep, I know it's a bit easier to shift profits around in other sectors compared to extracting hydrocarbons under licence directly from a government, but the principle stands]

[Dod101]

I am sure you are right about the windfall tax. I feel slightly conflicted because our Exchequer needs the money!

Dod

But the money isn't in the UK, so why should the Exchequer get their grubby hands on it? For instance, in 2021 BP paid $10.6bn in taxes and other payments to the government of Azerbaijan (these days such payments get RNSd) - are you suggesting that they should pay zero to Azerbaijan and $10bn to the UK?

Which in turn would mean that all the foreign-owned electricity companies, railway companies, car companies etc should pay zero tax in the UK and instead pay tax in their home country on profits earned in the UK?

[yep, I know it's a bit easier to shift profits around in other sectors compared to extracting hydrocarbons under licence directly from a government, but the principle stands]

I am not getting involved in this because I do not know enough about it, but I do not think it is a good idea to use the adjective 'grubby' about our Government trying to raise some taxes. It gives the wrong impression and we need as much as we can legitimately get at the moment.

Dod

[idpickering]

Correction - Outgoing Chief Executive Officer, Ben Van Beurden: Remuneration Disclosure.

This is a restatement of the announcement published at 11am on 28 October 2022. A typographical error was identified within the first paragraph of the earlier announcement, which has now been corrected. The earlier announcement advised that Mr. van Beurden would continue working as adviser to the Board until 30 June 2022, this should have read 30 June 2023.

All other details remain unchanged. The full corrected announcement is set out below.

Further to the announcement made by the Company on 15 September 2022, Ben van Beurden will step down as Chief Executive Officer and as a Director of Shell plc (“Shell”) on 31 December 2022. Mr. van Beurden will continue working as adviser to the Board until 30 June 2023, after which he will leave the Group.

The following information is provided in accordance with section 430(2B) of the Companies Act 2006. The arrangements set out below are in accordance with the Directors’ Remuneration Policy (“Policy”) approved by Shell’s shareholders at the 2020 Annual General Meeting (“AGM”).

Payment for loss of office: a gross payment of GBP 1,420,000, equivalent to one year’s base salary. The payment for loss of office will be phased in six equal monthly instalments between 1 July 2023 and 31 December 2023, and outstanding payments will be reduced by 50% if Mr. van Beurden secures a paid position (excluding non-executive directorships) in that period.

2. Remuneration Payments
(i) 2023 Salary: Mr. van Beurden will continue to receive his base salary until 30 June 2023.

(ii) 2023 Annual Bonus: A pro-rated annual bonus in relation to performance year 2023 will be determined by Shell’s Remuneration Committee after 30 June 2023. 50% of any bonus awarded will be delivered in shares which are subject to a three-year holding period that remains in force after Mr. van Beurden leaves Shell Group service.

https://www.investegate.co.uk/shell-plc ... 1659H3584/

For ease of reference, the corrected one is here;

https://www.investegate.co.uk/shell-plc ... 0000H3552/


Ian.

[idpickering]

Publication of Prospectus Supplement.

The following documents (the “Documents”) are available for viewing:

Prospectus Supplement dated 11 November 2022

Shell plc unaudited consolidated interim financial report as at and for the nine month period ended 30 September 2022

The Documents must be read in conjunction with the Information Memorandum dated 26 September 2022 relating to the Programme. The Information Memorandum constitutes a base prospectus for the purposes of Regulation (EU) 2017/1129as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018. Full information on Shell International Finance B.V. and Shell plc is only available on the basis of the Information Memorandum and the Documents.

To view the Documents, please paste the following URLs into the address bar of your browser.

https://www.shell.com/investors/results ... cument.pdf

https://www.investegate.co.uk/shell-plc ... 2156H6404/

Ian.

[idpickering]

Shell to buy Danish firm Nature Energy for nearly $2 billion.

Shell said on Monday it would acquire Danish biogas producer Nature Energy for nearly $2 billion, as it looks to boost its low-carbon business amid growing interest in biogas.

Nature Energy, which operates 12 biogas plants in Denmark and one in France and has others in the pipeline, confirmed the deal in a separate statement.

https://www.msn.com/en-gb/money/other/s ... r-AA14EH4M

Ian.