Shell recorded strong performances across integrated gas, upstream gas production and natural gas in the fourth quarter of 2023, posting adjusted earnings of $7.3bn.
LNG liquefaction and sales volumes both rose 2MT to 7.1MT and 18.1MT respectively in the final quarter while gas production (mscf/d) was up from 2,564 to 2,952. Natural gas sales to end customers increased from 170TWh to 175TWh.
Integrated gas’ earnings rose from $2.5bn in the third quarter to $4bn in the fourth, leading to an adjusted final quarter EBITDA of $6.6bn, although across the year, EBITDA was down from $26.6bn to $23.8bn. Overall yearly earnings were down considerably on the $39.9bn recorded in 2022.
CFO Sinead Gorman highlighted the strong performance of its QGC business in Australia, which recorded its highest LNG production in the quarter.
First quarter 2024 outlook for LNG liquefaction volumes is 7-7.6MT. Across LNG, gas and power marketing and trading, Shell is investing $4bn, around a quarter of that for oil and oil-related products.
However, renewables power generation capacity dropped from 7.4GW to 6.6GW and GW in operation held steady at 2.5GW. Renewables power under construction and/or committed to sale dropped from 4.9GW to 4.1GW.
Wael Sawan, CEO, said, “As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions.”
Last year Shell invested $5.6bn in low-carbon energy. It acquired Nature Energy and launched the Crosswind JV, which will supply renewable power to Holland Hydrogen 1, Europe’s largest electrolyser.
New projects on stream last year added over 200 kboe/d peak production. Projects under construction in the next two years are tabled below.