Q2 2024 Shell PLC Earnings Call

August 1, 2024

Wael Sawan: We've also invested in backfills such as in Manatee in Trinidad and Tobago, and we've agreed to acquire Pavilion Energy in Singapore to increase our portfolio length. At the same time, we're working hard to achieve first production from our large LNG joint venture project in Canada by middle of next year. These investments add significant volumes and flexibility to our leading global LNG portfolio. We also saw operational performance improve across our integrated gas business. Prelude, for example, significantly increased its controllable availability since its turnaround last year, while Pearl GTL in Qatar continues to build on its impressive track record. Moving to upstream, where we want to ensure cash flow longevity. We said that by 2025 we would bring projects online with a total peak production of more than 500,000 barrels of oil equivalent a day, and we are making good progress.

Wael Sawan: Prelude, for example, significantly increased its controllable availability since its turnaround last year, while Pearl GTL in Qatar continues to build on its impressive track record. Moving to upstream, where we want to ensure cash flow longevity. We said that by 2025 we would bring projects online with a total peak production of more than 500,000 barrels of oil equivalent a day, and we are making good progress.

We also saw operational performance improve across our integrated gas business. Prelude, for example, significantly increased its controllable availability since its turnaround last year, while Pearl GTL in Qatar continues to build on its impressive track record.

Unknown Executive: Utter continues to build on its impressive track record.

Unknown Executive: Moving to upstream, where we want to ensure cashflow longevity, we said that by 2025 we would bring projects online with a total peak production of more than 500,000 barrels of oil equivalent a day, and we are making good progress. We have successfully started up several projects like Vito and Rydberg in the Gulf of Mexico, Merro 2 in Brazil, Rock 10 in Oman, Antime and Jaroon in Malaysia, and around the end of this year, we expect to see the start-up of Whale in the Gulf of Mexico, along with Brazil's Merro 3 and Penguins in the North Sea.

Moving to upstream, where we want to ensure cash flow longevity. We said that by 2025 we would bring projects online with a total peak production of more than 500,000 barrels of oil equivalent a day. And we are making good progress.

Wael Sawan: We have successfully started up several projects like Vito and Rydberg in the Gulf of Mexico, Mero-2 in Brazil, Block 10 in Oman, and Timi and Jerun in Malaysia. Around the end of this year, we expect to see the startup of Whale in the Gulf of Mexico, along with Brazil's Mero-3 and Penguins in the North Sea. Looking further ahead, we have taken final investment decisions on Atapu-2 in Brazil and Sparta in the Gulf of Mexico. These investments, along with others in the funnel, will help us maintain our liquids production at roughly 1.4 million barrels a day until the end of the decade as we communicated at Capital Markets Day, allowing us to continue to provide the energy security that the world needs.

Unknown Executive: Looking further ahead, we have taken final investment decisions on Atapu 2 in Brazil and Spartan in the Gulf of Mexico.

Looking further ahead, we have taken final investment decisions on Ataputu in Brazil and Sparta in the Gulf of Mexico.

Unknown Executive: These investments, along with others in the funnel, will help us maintain our liquids production at roughly 1.4 million barrels a day until the end of the decade, as we communicated at Capital Markets Day, allowing us to continue to provide the energy security that the world needs. And just like in our integrated gas business, upstream has also improved its operational performance, both in deporter and conventional oil and gas.

Wael Sawan: Just like in our Integrated Gas business, upstream has also improved its operational performance, both in Deepwater and conventional oil and gas. Now let's take a look at downstream in renewables and energy solutions, where we said we would high grade the portfolio to support a profitable energy transition. In chemicals and products, we have agreed to sell our energy and chemicals park in Singapore, and our shareholding in the PCK Refinery in Germany. In mobility with a focus on value, we continue to high grade our network and drive premium fuel growth, which is reflected in the improved V-Power margins. Lubricants also saw higher margins and improved performance, helping marketing adjusted earnings to grow.

And just like in our integrated gas business, Upstream has also improved its operational performance, both in deepwater and conventional oil and gas.

Unknown Executive: Now let's take a look at downstream and renewables and energy solutions, where we said we would high-grade the port for you to support a profitable energy transition.

Unknown Executive: In chemicals and products, we have agreed to sell our energy and chemical spark in Singapore and our shareholding in the TCK refinery in Germany. In mobility, with a focus on value, we continue to high-grade our network and drive premium fuel growth, which is reflected in the improved V Power margins. Lubricants also so hire margins and improved performance helping marketing adjusted earnings to grow.

Unknown Executive: We said that this management team is prepared to take some tough decisions, and with the backdrop of disappointing market conditions, we paused on-site construction at our buy fuels plant at Rotterdam, where we will now seek to address project delivery and ensure future competitiveness. We've also said that we will focus on areas where we have a competitive advantage. That's why, in renewables and energy solutions, we exited the home energy business in Europe last year and continued to employ a discipline and selective approach to power. But we are growing our downstream renewables and energy solutions port for you where we see attractive returns, demonstrated by our final investment decision on Polaris, CCS, in Canada.

Wael Sawan: We said that this management team is prepared to take some tough decisions, and with the backdrop of disappointing market conditions, we paused on-site construction at our biofuels plant in Rotterdam, where we will now seek to address project delivery and ensure future competitiveness. We've also said that we will focus on areas where we have a competitive advantage. That's why in renewables and energy solutions, we exited the home energy business in Europe last year and continue to employ a disciplined and selective approach to power. We are growing our downstream renewables and energy solutions portfolio where we see attractive returns demonstrated by our final investment decision on Polaris CCS in Canada. We are staying true to what we said at Capital Markets Day. We are maintaining capital discipline, improving operational performance across the board, and we are becoming more predictable, delivering on our targets.

We said that this management team is prepared to take some tough decisions, and with the backdrop of disappointing market conditions, we paused onsite construction at our biofuels plant in Rotterdam, where we will now seek to address project delivery and ensure future competitiveness.

Wael Sawan: We are growing our downstream renewables and energy solutions portfolio where we see attractive returns demonstrated by our final investment decision on Polaris CCS in Canada. We are staying true to what we said at Capital Markets Day. We are maintaining capital discipline, improving operational performance across the board, and we are becoming more predictable, delivering on our targets.

Unknown Executive: We are staying true to what we said at Capital Markets Day. We are maintaining capital discipline, improving operational performance across the board, and we are becoming more predictable, delivering on our targets. Take the Structure Law OPEX reduction target, where we have already delivered 1.7 billion dollars out of the 2-3 billion dollars that we committed to deliver by the end of 2025. I'm proud of the efforts of our staff across every part of the organization and the progress that we are making. Our strong overall performance has given us the ability to continue to deliver enhanced shareholder returns.

Unknown Executive: Take the Structural OPEX Reduction Target, where we have already delivered $1.7 billion out of the $2 to $3 billion that we committed to deliver by the end of 2025. The majority of the contributions this year have been realized through performance initiatives across the organization, such as focusing on operational excellence and lowering overhead. The remainder was achieved through portfolio choices, and this does not yet include the impact of announced divestments like Singapore.

Wael Sawan: Take the structural OpEx reduction target, where we have already delivered $1.7 billion out of the $2 to 3 billion that we committed to deliver by the end of 2025. I'm proud of the efforts of our staff across every part of the organization, and the progress that we are making. Our strong overall performance has given us the ability to continue to deliver enhanced shareholder returns. As a result, this quarter, we have again been able to exceed our distributions range of 30 to 40% of CFFO through the cycle. Now, let me tell you about our financial results in the quarter. We had a strong quarter driven by good operational performance. Our adjusted earnings were $6.3 billion, and we generated $13.5 billion of cash flow from operations.

Take the Structural OPEX Reduction Target, where we have already delivered $1.7 billion out of the $2-3 billion that we committed to deliver by the end of 2025.

Our strong overall performance has given us the ability to continue to deliver enhanced shareholder returns. As a result, this quarter, we have again been able to exceed our distributions range of 30-40% of CFFO through the cycle.

Unknown Executive: As a result, this quarter we have again been able to exceed our distributions range of 30-40% of CFO through the cycle.

Unknown Executive: Michael. Now let me tell you about our financial results in the quarter. We had a strong quarter driven by good operational performance; our adjusted earnings were $6.3 billion, and we generated $13.5 billion of cash flow from operations. In integrated gas, once again we achieved high controllable availability from QGC in Australia, an asset that has been performing exceptionally well. In our chemicals business, Shell Polymers Monata had significantly higher utilization, with all three polyethylene trains now fully operational. In the products business, we also had strong operational performance and delivered another set of robust trading and optimization results.

Now let me tell you about our financial results in the quarter.

We had a strong quarter, driven by good operational performance. Our adjusted earnings were $6.3 billion, and we generated $13.5 billion of cash flow from operations.

Wael Sawan: In Integrated Gas, once again, we achieved high controllable availability from QGC in Australia, an asset that has been performing exceptionally well. In our chemicals business, Shell Polymers Monaca had significantly higher utilization, with all three polyethylene trains now fully operational. In the products business, we also had strong operational performance and delivered another set of robust trading and optimization results. Before moving on to our financial framework, I'd like to come back to the structural OpEx reduction that I mentioned earlier. In the first half of this year, we've delivered an additional $700 million reduction on top of the $1 billion reduction from last year. The majority of the contributions this year have been realized through performance initiatives across the organization, such as focusing on operational excellence and lowering overheads.

In integrated gas, once again, we achieved high controllable availability from QGC in Australia, an asset that has been performing exceptionally well.

In our chemicals business, Shell Polymers Monata had significantly higher utilization with all three polyethylene trains now fully operational. And in the products business, we also had strong operational performance and delivered another set of robust trading and optimization results.

Unknown Executive: Before moving on to our financial framework, I'd like to come back to the structural OPEX reduction that I mentioned earlier. In the first half of this year, we've delivered an additional $700 million reduction, on top of the 1 billion reduction from last year. The majority of the contributions this year have been realized through performance initiatives across the organisation, such as focusing on operational excellence and lowering overheads. The remainder was achieved through portfolio choices, and this does not yet include the impact of enhanced investments like Singapore. We will continue to take cost out as we progress towards achieving the target that we have set at Capital Market today.

Before moving on to our financial framework, I'd like to come back to the Structural OPEX reduction that I mentioned earlier.

In the first half of this year, we've delivered an additional $700 million reduction, on top of the $1 billion reduction from last year.

The majority of the contributions this year have been realized through performance initiatives across the organization, such as focusing on operational excellence and lowering overheads.

Wael Sawan: The remainder was achieved through portfolio choices, and this does not yet include the impact of announced divestments like Singapore. We will continue to take cost out as we progress towards achieving the target that we have set at Capital Markets Day. Now, moving on to our financial framework. Our cash CapEx outlook for the full year of 2024 remains unchanged. We continue to invest only in those projects that exceed our hurdle rates and meet our strategic intent. Our balance sheet remains strong, and today we have announced yet another $3.5 billion share buyback program, which we expect to complete in time for our Q3 results in October. This makes it the 11th consecutive quarter in which we have announced $3 billion or more in buybacks, showing that the strong performance of the business results in compelling returns to our shareholders.

The remainder was achieved through portfolio choices, and this does not yet include the impact of announced divestments like Singapore.

We will continue to take costs out as we progress towards achieving the target that we have set at Capital Markets Day. Now, moving on to our financial framework.

Unknown Executive: Now, moving on to our financial framework. Our cash complex outlook for the full year of 2024 remains unchanged. We continue to invest only in those projects that exceed our hurdle rates and meet our strategic intent. Our balance sheet remains strong, and today we have announced yet another $3.5 billion share buy-back program, which we expect to complete in time for our Q3 results in October. This makes it the 11th consecutive quarter in which we have announced $3 billion or more in buybacks, showing that the strong performance of the business results in compelling returns to our shareholders.

Our CashCampx outlook for the full year of 2024 remains unchanged. We continue to invest only in those projects that exceed our hurdle rates and meet our strategic intent.

Wael Sawan: Our balance sheet remains strong, and today we have announced yet another $3.5 billion share buyback program, which we expect to complete in time for our Q3 results in October. This makes it the 11th consecutive quarter in which we have announced $3 billion or more in buybacks, showing that the strong performance of the business results in compelling returns to our shareholders.

Our balance sheet remains strong, and today we have announced yet another $3.5 billion share buyback program which we expect to complete in time for our Q3 results in October .

This makes it the 11th consecutive quarter in which we have announced $3 billion or more in buybacks, showing that the strong performance of the business results in compelling returns to our shareholders.

Unknown Executive: To summarize, with us now a little over a year since Capital Markets Day, I'm incredibly proud of the progress that we are making against all of our financial targets, the focus that we are bringing to our investment, and the improvements across the company. Today we announce another strong set of results, making the first half of this year one of our best. With so much on that potential and so much more to achieve, we will continue to move forward, take bold steps, and build a track-recorded delivery. Guided by our principles of performance, discipline, and simplification, we aim to be the investment case through the energy transition, delivering more value with less emissions.

Wael Sawan: To summarize, with us now a little over a year since Capital Markets Day, I'm incredibly proud of the progress that we are making against all of our financial targets. The focus that we are bringing to our investment and the improvement across the company. Today, we announce another strong set of results, making the first half of this year one of our best. With so much untapped potential and so much more to achieve, we will continue to move forward, take bold steps, and build a track record of delivery. Guided by our principles of performance, discipline, and simplification, we aim to be the investment case through the energy transition, delivering more value with less emissions. Thank you.

To summarise, with us now a little over a year since Capital Markets Day, I'm incredibly proud of the progress that we are making against all of our financial targets, the focus that we are bringing to our investments, and the improvement across the company.

Today we announce another strong set of results, making the first half of this year one of our best. And, with so much untapped potential, and so much more to achieve, we will continue to move forward, take bold steps and build a track record of delivery.

Unknown Executive: Guided by our principles of performance, discipline, and simplification, we aim to be the investment case through the energy transition, delivering more value with less emissions. Thank you. We will now begin the question and answer session. Thank you very much for joining us today. We hope that after watching the presentation, you've seen how we delivered strong results and how we continue to focus on operational performance. With that, could we have the first one, please, Luke?

Guided by our principles of performance, discipline and simplification, we aim to be the investment case through the energy transition, delivering more value with less emissions. Thank you.

Unknown Executive: Thank you.

Unknown Executive: We will now begin the question and answer session. People dialed in. If you have a question, please press star one. If you wish to be removed from the queue, please press star two. Phone callers are requested to mute the audio on their computer webcast and listen attentively to their telephone audio as we begin to progress through the telephone questions.

Operator: We will now begin the question and answer session. People dialed in, if you have a question, please press star one. If you wish to be removed from the queue, please press star two. Phone callers are requested to mute the audio on their computer webcast and listen attentively to their telephone audio as we begin to progress through the telephone questions.

Speaker Change: We will now begin the question and answer session.

Speaker Change: People dialed in. If you have a question, please press star 1.

Speaker Change: If you wish to be removed from the queue, please press star 2.

Speaker Change: Phone callers are requested to mute the audio on their computer webcast and listen attentively to their telephone audio as we begin to progress through the telephone questions.

Unknown Executive: Thank you very much for joining us today. We hope that after watching the presentation, you've seen how we delivered strong results and how we continue to focus on operational performance. Today, Chenet and I will be answering your questions, and now please could we have just one or two questions each so that everyone has the opportunity. With that, could we have the first one, please, Luke?

Wael Sawan: Thank you very much for joining us today. We hope that after watching the presentation, you've seen how we delivered strong results and how we continue to focus on operational performance. Today, Sinead and I will be answering your questions. Now, please, could we have just one or two questions each so that everyone has the opportunity. With that, could we have the first one, please, Luke?

Speaker Change: Thank you very much for joining us today. We hope that after watching the presentation, you've seen how we delivered strong results and how we continue to focus on operational performance.

Sinead: Today Sinead and I will be answering your questions. And now please could we have just one or two questions each so that everyone has the opportunity. With that could we have the first one please Luke.

Lydia Rainforth: Our first caller is Lydia Rainforth from Barclays. Thanks Erin, good afternoon to you both and, obviously, a very nice set of results as we're coming through this. We are, as you talked about in the presentation Wael, just over a year since the announcement of the first script, and it's rare that things go entirely according to plan, although I admit it looks like it might. So can you just talk about what's been better than you thought, what's worked out, where you want it to be, and areas you think need more focus than originally planned? I think just at the end there you talked about untapped performance. Is there any chance of you quantifying that for me?

Lydia Rainforth: Our first caller is Lydia Rainforth from Barclays. Thanks and good afternoon to you both, and of the very nice set of results, those were coming through it. We are, as you talked about in the presentation, while just for a year since the announcement of the first, and it's rare that things go entirely according to plan, although I admit it looks like it might be.

Operator: Our first caller is Lydia Rainforth from Barclays.

Lydia Rainforth: Thanks, and good afternoon to you both. Obviously, a very nice set of results, those of you coming through it. We are, as you talked about in the presentation, Wael, just over a year since the announcement of the first sprint, and it's rare that things go entirely according to plan. Although, I admit it looks like it might be. Can you just talk about what's been better than you thought, what's not worked out where you wanted to be, and areas you think need more focus than originally planned? I think just at the end there, you talked about untapped performance. Is there any chance of you quantifying that for me? Secondly, probably more for Sinead. Ex-leases, the gearing level is now, I think, just about over 5%. The free cash flow generation is impressive.

Luke: Thanks Erin, good afternoon to you both and obviously a very nice set of results as we're coming through it. We are, as you talked about in the presentation Wael, just over a year since the announcement of the first spirit and it's rare that things go entirely according to plan, although I admit it looks like it might be. So can you just talk about what's been best for you, what's worked out, where you want it to be and areas you think need more focus than originally planned? I think just at the end there you talked about untapped performance, is there any chance of you quantifying that for me? And then secondly probably more for Sinead, ex-leases, the gearing level is now I think just about over 5%, the free cash flow generation is impressive.

Lydia Rainforth: So can you just talk about what's been better than you thought, what's not worked out, where you want it to be, and areas you think need more photos than originally planned? I think just at the end I talked about and perhaps performance. Is that any chance you can find that for me?

Lydia Rainforth: And then secondly, probably more for Chenet, X-Lease is the giving level is now I think just about over 5%. The free cash flow generation is impressive. How do you think about the evolution of the balance sheet and how do you use that free cash flow? Do you save it for sprint two, or do you think about the additional shareholder returns at that point? Thanks.

Sinead Gorman: And then secondly, probably more for Sinead, the gearing level is now I think just about over 5%, and the free cash flow generation is impressive. What do you think about the evolution of the balance sheet and how you use that free cash flow? Do you save it for Sprint 2, or do you think about the additional shareholder returns at that point? Thanks. The biggest thing that I continue to focus on with my executive committee is the culture change because we want to make sure that this is not a one-off. This has to be a new way of life.

Lydia Rainforth: How do you think about the evolution of the balance sheet and how do you use that free cash flow? Do you save it for sprint two, or do you think about the additional shareholder returns at that point? Thanks.

Speaker Change: How do you think about the evolution of the balance sheet and how you use that free cash flow? Do you save it for Sprint 2 or do you think about the additional shareholder returns at that point? Thanks.

Unknown Executive: Super, thank you, Lydia. Let me take the first one, and then I'll hand over to Chenet for the second one. Look, it's been in the 12 months since the announcement in Capital Markets Day, and what I would say is we're very, very pleased with the momentum that we have been building. I mean, at the time, just to sort of take us back, we set at the time that we wanted to really solidify the company to build a lean, very agile, very strong organization. And one that allows us to focus on a handful of things, deliver the operational performance improvement that you see starting to come through, continue to reduce costs, which you see including today's structural cost reduction of 1.7 billion dollars against the two to three billion dollar target.

Wael Sawan: Super. Thank you, Lydia. Let me take the first one, and then I'll hand over to Sinead for the second one. Look, it's been indeed 12 months since the announcement in Capital Markets Day. What I would say is we're very, very pleased with the momentum that we have been building.

Wael: Super, thank you Lydia. Let me take the first one and then I'll hand over to Sinead for the second one.

Speaker Change: Look, it's been, indeed, 12 months since the announcement in Capital Markets Day.

Wael Sawan: I mean, at the time, just to sort of take us back, we said at the time that we wanted to really solidify the company to build a lean, very agile, very strong organization, and one that allows us to focus on a handful of things, deliver the operational performance improvement that you see starting to come through, continue to reduce costs, which you see, including today's structural cost reduction of $1.7 billion against the $2 to 3 billion target, the capital discipline that we're talking through, as well as the focus on making sure that we continue to enhance the portfolio. All that is playing out. The biggest thing that I continue to focus on with my executive committee is the culture change, 'cause we want to make sure that this is not a one-off.

Speaker Change: And what I would say is we're very, very pleased with the momentum that we have been building. I mean at the time, just to sort of take us back…

Sinead: We said at the time that we wanted to really solidify the company, to build a lean, very agile, very strong organization, and one that allows us to focus on a handful of things. Deliver the operational performance improvement that you see starting to come through.

Unknown Executive: The capital discipline that we're talking through, as well as the focus on making sure that we continue to enhance the portfolio. So all that is playing out.

Unknown Executive: The biggest thing that I continue to focus on with my executive committee is the culture change because we want to make sure that this is not a one-off. This has to be a new way of life. And I'm particularly pleased to see that there are multiple green shoots that we are seeing in the organization. Prioritization is starting to kick in in a lot firmer way than maybe it was there in the past. So, for example, in our IT program, we've had to focus on a handful of key areas. And we've managed to release some 4,000 contractor staff on the back of that.

Sinead: The biggest thing that I continue to focus on with my executive committee is the culture change because we want to make sure that this is not a one-off. This has to be a new way of life, and I'm particularly pleased to see that there is multiple green shoots that we are seeing in the organization.

Sinead Gorman: And I'm particularly pleased to see that there is multiple green shoots that we are seeing in the organization. Sinead Gorman, Wael Sawan, Andrew Mackenzie, Cederic Cremers, Shell, with respect to those for me it's all about being consistent and predictable and as you know we tend to look through the quarter and you've seen us do that a few times you've seen us of course with q4 with our debt levels rising as well so you saw us go up 3 billion in q4 and of course now you see us come down and that will change over time there will be volatility to our debt levels and that will occur naturally as an example with LNG Canada as we move towards and that being commissioned we see the pipeline come in first of all and with the pipeline coming in that will occur and that will come on the balance sheet before the first LNG cargo, So indeed, it allows us to have a track record of consistent delivery and you'll see that continue.

Wael Sawan: This has to be a new way of life. I'm particularly pleased to see that there is multiple green shoots that we are seeing in the organization. Prioritization is starting to kick in in a lot firmer way than maybe was there in the past. For example, in our IT program, we've had to focus on a handful of key areas, and we've managed to release some 4,000 contractor staff on the back of that. That's one step forward in the right direction with more to go. In addition to that, I would say we are looking at how we can continue to de-bureaucratize the company in areas like the standards that we have that can be a bit challenging for the organization to implement.

Unknown Executive: So that's one step forward in the right direction with more to go. In addition to that, I would say we are looking at how we can continue to de-bureaucratize the company in areas like the standards that we have that can be a bit challenging for the organization to implement. So those are some of the things we're working, but I'd say there's a lot more to do, Lydia. And that is where the challenge is to keep that drum beat of focus with good results that are coming in to make sure that we do not take our foot off the pedal.

Sinead: So that's one step forward in the right direction with more to go.

Sinead: In addition to that, I would say we are looking at how we can continue to debureaucratize the company in areas like the standards that we have that can be a bit

Wael Sawan: Those are some of the things we're working, but I'd say there's a lot more to do, Lydia. That is where the challenge is, to keep that drumbeat of focus with good results that are coming in, to make sure that we do not take our foot off the pedal. It's about the stamina that we have as a company and our ability to be able to really institutionalize these changes. That is what I would say is the biggest thing that I'm focused on with my leadership team and over the coming months. Sinead?

Sinead: Challenging for the organization to implement. So those are some of the things we're working, but I'd say there's a lot more to do, Lydia. And that is where the challenge is to keep that drum beat of focus with good results that are coming in, to make sure that we do not take our foot off the pedal. It's about the stamina that we have as a company and our ability to be able to really institutionalize these changes.

Unknown Executive: It's about the stamina that we have as a company and our ability to be able to really institutionalize these changes. That is what I would say is the biggest thing that I'm focused on with my leadership team and over the coming months.

Unknown Executive: Yes, indeed.

Sinead Gorman: Yes, indeed. Thank you, Lydia. Indeed, our debt and our balance sheet, particularly the balance sheet, is incredibly strong at this moment in time. It's important to me in the sense that it enables both us to follow through on opportunities that come out for value, but also to provide resilience in case things change. It also allows us to be confident in terms of our shareholder distributions, as you allude to. With respect to those, for me, it's all about being consistent and predictable. As you know, we tend to look through the quarter, and you've seen us do that a few times. You've seen us, of course, with Q4, with our debt levels rising as well. You saw us go up $3 billion in Q4, and of course, now you see us come down. That will change over time.

Unknown Executive: And thank you, Lydia. Indeed, our debt and our balance sheet, particularly the balance sheet, is incredibly strong at this moment in time. And it's important to me, in the sense that it enables both us to follow through on opportunities that come out for value, but also to provide resilience in case things change. It also allows us to be confident in terms of our shareholder distributions as you loot. Andrew, with respect to those.

Speaker Change: Indeed, our debt and our balance sheet, particularly the balance sheet, is incredibly strong at this moment in time, and it's important to me in the sense that it enables both

Unknown Executive: For me, it's all about being consistent and predictable. And as you know, we tend to look through the quarter. You've seen us 2,000 a few times. You've seen us, of course, with Q4, with our debt levels rising as well. So you saw us go up 3 billion in Q4. And of course, now you see us come down. And that will change every time. And we'll be volatility to our debt level. And that will occur naturally, as an example, with LNG Canada, as we move towards. And that being commissions, we see the pipeline coming in, first of all.

Sinead Gorman: As you know, we tend to look through the quarter, and you've seen us do that a few times. You've seen us, of course, with Q4, with our debt levels rising as well. You saw us go up $3 billion in Q4, and of course, now you see us come down. That will change over time.

Sinead: for me it's all about being consistent and predictable and as you know we tend to look through the quarter and you've seen us do that a few times you've seen us of course with q4 with our debt levels rising as well

Sinead Gorman: There will be volatility to our debt levels, and that will occur naturally. As an example, with LNG Canada, as we move towards and that being commissioned, we see the pipeline coming in, first of all. With the pipeline coming in, that will occur, and that will come on the balance sheet before the first LNG cargo. Indeed, it allows us to have a track record of consistent delivery, and you'll see that continue, Lydia.

Sinead: So you saw us go up 3 billion in Q4 and of course now you see us come down and that will change over time. There will be volatility to our debt levels and that will occur naturally as an example with LNG Canada as we move towards.

Unknown Executive: And with the pipeline coming in, that will occur, and that will come on to balance you before the first LNG cargo. So indeed, it allows us to have a track record of consistent delivery, and you'll see that continue.

Sinead: and that being commissioned, we see the pipeline come in first of all, and with the pipeline coming in, that will occur, and that will come on the balance sheet before the first LNG cargo.

Unknown Executive: Thank you, Shanae. Thank you, Lydia.

Wael Sawan: Thank you, Sinead. Thank you, Lydia. Luke, can we have the next question, please?

Unknown Executive: Luke, can we have the next question, please?

Biraj Borkhataria: Our next caller is Barrage Borkitaria from RBC Capital Markets. Hi, absolutely, everyone. Thanks for taking my questions. The first was just on CapEx guidance. So first half of the year, it looks to be running well-light relative to the full-year guidance. And usually have some seasonality in there. But it does look like even with a ramp up in the second half of the year, you'd be probably closer to the bottom. And then the top end of the guidance. So could you just give a sense of where I'm wrong here?

Operator: Our next caller is Biraj Borkhataria from RBC Capital Markets.

Sinead: Our next caller is Biraj Borkhataria from RBC Capital Markets.

Biraj Borkhataria: Hi. Afternoon, everyone. Thanks for taking my questions. The first one's just on CapEx guidance. First half of the year looks to be running, you know, well light, relative to the full year guidance, and usually have some seasonality in there. It does look like even with a ramp-up in the second half of the year, you'd be probably closer to the bottom end than the top end of the guide. Could you just give a sense of where I'm wrong here? Is any specific inorganic bullets that you expect to pay in the second half of the year? Then the second question is on Nature Energy. You know, you acquired a business a couple of years ago for $2 billion.

Biraj Borkhataria: Hi, afternoon everyone. Thanks for taking my questions.

Biraj Borkhataria: The first was just on CAPEX guidance, so first half of the year looks to be running well light relative to the full year guidance, and usually have some seasonality in there, but it does look like even with a ramp up in the second half of the year you'd be

Speaker Change: Probably closer to the bottom end than the top end of the guy and so could you just give a sense of

Biraj Borkhataria: Is there any specific inorganic bullets that expect to pay in the second half of the year?

Speaker Change: Where I'm wrong here is any specific inorganic bullets that you expect to pay in the second half of the year?

Biraj Borkhataria: And then the second question is on Nature energy. So, you know, you acquired a business a couple of years ago for two billion dollars. At the time, you said that was going to be a creative to your earnings, and the latest reports say it's not. And I just want to understand, you know, as we think about CMD 2025 and you kind of rationalizing your portfolio and think about where you can be competitive, is biogas an area where you still think you can generate acceptable returns going forward. And what does that experience on that acquisition teach you, and what have you done going forward?

Biraj Borkhataria: At the time, you said that was gonna be accretive to your earnings, and the latest reports say it's not. I just wanna understand, you know, as we think about CMD 2025 and you kind of rationalizing your portfolio and thinking about where you can be competitive, is biogas an area where you still think you can generate acceptable returns going forward? What does that experience on that acquisition teach you, and what have you learned going forward? Thank you.

Unknown Executive: Thank you.

Unknown Executive: Super, thank you for that.

Wael Sawan: Super. Thank you for that, Biraj. Let me start with the second question and maybe hand over to Sinead for the first one. Start by saying, I'm a very firm believer in the future of biogas and biofuels, by the way, more generally. As a drop-in fuel without having to change out the capital stock, I do think something like biogas will have a massive role to play in the niche place where it will apply. In particular, biogas into BioLNG, which we see as the most expedient and the most affordable way to start to decarbonize, for example, the marine sector, as well as the trucking sector. Strong belief in that market. Having said that is looking sort of a decade or two out.

Unknown Executive: There are some me start with the second question and maybe hand over to you, Nate, for the first one. And start by saying I'm a very, very firm believer in the future of biogas and biofuels, by the way, more generally, as a drop-in fuel without having to change out the capital stock. I do think something like biogas will have a massive role to play in the niche plays where it will apply. And in particular, biogas into bio LNG, which we see as the most expedient and the most affordable way to start to decarbonize, for example, the marine sector as well as the trucking sector.

Speaker Change: Super, thank you for that, Biraj. Let me start with the second question and maybe hand over to Sinead for the first one.

Speaker Change: and start by saying I'm a very very firm believer in the future of biogas and biofuels by the way more generally.

Speaker Change: and in particular biogas into bio LNG, which we see as the most expedient and the most affordable way to start to decarbonize, for example, the marine sector, as well as the trucking sector. So strong, strong belief in that in that market.

Unknown Executive: So strong, strong belief in that in that market. Having said that, that is looking sort of a decade or two out. We see that is going to grow in a big way. And what we have done with nature energy is, in essence, taken a platform that allows us to win in that space. And the win is really the combination of being able to play on the production side, of course, our trading, and then ultimately our customer end. What's happened since we have acquired that platform? Now, of course, as you can see in the market, the prices aren't where they need to be.

Wael Sawan: We see that this is going to grow in a big way. What we have done with Nature Energy is, in essence, taken a platform that allows us to win in that space. The win is really the combination of being able to play on the production side, of course, our trading, and then ultimately our customer end. What's happened since we have acquired that platform, now of course, as you can see in the market, the prices aren't where they need to be. Natural gas prices have come down, and feedstock prices have actually gone up, so it's squeezed the margins in that business. We're also in a growth phase. We continue to invest to be able to bring more and more of these facilities online.

Speaker Change: That is looking sort of a decade or two out. We see that is going to grow in a big way. And what we have done with Nature Energy is, in essence, taken a platform that allows us to win in that space.

Speaker Change: And the win is really the combination of being able to play on the production side, of course our trading, and then ultimately our customer end.

Unknown Executive: And actual gas prices have come down. And feed stock prices have actually gone up. So it's squeezed the margins in that business. We're also in a growth phase. We continue to invest to be able to bring more and more of these facilities online. We're not looking at this barrage from a six to 12 to 18 months basis. I have to be looking at this in multiple years as we're building a platform really for the late 2020s into the 2030s. And that's what we continue to have conviction around: that this is a great investment for that window.

Wael Sawan: We're not looking at this, Biraj, from a 6 to 12 to 18 months basis. I have to be looking at this in multiple years as we're building a platform really for the late 2020s into the 2030s. That's what we continue to have conviction around, that this is a great investment for that window. I think when it comes to CMD 25, we will, as a minimum, look to continue to echo our belief in the bio market, but it's a question of where do we deploy the capital now to make sure that we can achieve the returns we expect out of that market in line with the hurdle rates that we shared in CMD 23, which was the 10 to 12%+ IRRs.

Speaker Change: We're not looking at this Biraj from a 6 to 12 to 18 month basis. I have to be looking at this in multiple years as we're building a platform really for the late 2020s into the 2030s. And that's what we continue to have conviction around, that this is a great investment for that window.

Unknown Executive: I think when it comes to CMD 25, we will, as a minimum, look to continue to echo our belief in the bio market. But it's a question of where do we deploy the capital now to make sure that we can achieve the returns we expect out of that market in line with the hurdle rates that we shared in CMD 2030, which was the 12% plus IRRs. So continued confidence, but we need to be able to make sure that now we set up that platform for success.

Wael Sawan: Continued confidence, but we need to be able to make sure that now we set up that platform for success. Sinead?

Speaker Change: So continued confidence, but we need to be able to make sure that now we set up that platform for success.

Unknown Executive: And thanks, barrage, fully understand the question. You are right. We are running low on our capex numbers as to the middle of the year. However, that's actually very similar to what we saw last year as well. So we've got a number of payments that have to come through towards the end of the year. And if you remember, actually last year, we were sitting at Q3 on roughly speaking around 17, 17 billion of capex, but we actually ended up at 24 as well within the range. And we expected this moment to be in that range. That still stands at 22 to 24, just given the number of payments that are still to come, both in terms of just the things that are ready out there.

Sinead Gorman: Thanks, Biraj. I fully understand the question. You are right. We are running low on our CapEx numbers as of the middle of the year. However, that's actually very similar to what we saw last year as well. We've got a number of payments that have to come through towards the end of the year. If you remember actually last year, we were sitting at Q3 on roughly speaking, around $77 billion of CapEx, but we actually ended up at $24 billion, so well within the range. We expect at this moment to be in that range. That still stands at $22 to 24 billion, just given the number of payments that are still to come, both in terms of just the things that are already out there and final payments on some of the projects that need to reach completion or have been commissioned at the moment.

Speaker Change: And thanks, Biraj. I fully understand the question. You are right, we are running low on our CAPEX numbers as to...

Speaker Change: the middle of the year. However, that's actually very similar to what we saw last year as well. So we've got a number of payments that have to come through towards the end of the year. And if you remember, actually, last year, we were sitting at Q3 on roughly speaking around 17 billion of capex, but we actually ended up at 24. So well within the range. And we expect at this moment to be in that range that still stands at 22 to 24, just given the number of payments that are still to come, both in terms of just the things that are already out there, and final payments on some of the projects that need to reach completion are being commissioned at the moment.

Sinead Gorman: We expect at this moment to be in that range. That still stands at $22 to 24 billion, just given the number of payments that are still to come, both in terms of just the things that are already out there and final payments on some of the projects that need to reach completion or have been commissioned at the moment. Thank you.

Unknown Executive: And final and payments on some of the projects that need to reach completion have been commissioned at the moment.

Unknown Executive: Thank you.

Sinead Gorman: Thank you.

Unknown Executive: Thank you, Chenet. Thank you, barrage.

Wael Sawan: Thank you, Sinead. Thank you, Biraj. Luke, can we have the next question, please?

Paul Cheng: Luke, can we have the next question?

Paul Cheng: Lee's. Our next caller is Paul Cheng from Scotiabank. Thank you. Good morning, or good afternoon, your time. So, if we look at the global oil demand, it seems like it's continuing rising at least through the remaining of the decade. So, from that standpoint, we've been always saying that you guys are going to be pragmatic.

Sinead Gorman: Our next caller is Paul Cheng from Scotiabank. What would be the impact of Singapore on your chemicals and refining earnings? Just trying to understand what sort of uplift we should expect once you complete the sale. And second question on the good progress you're showing towards your 2 to 3 billion OPEX reduction target. I suspect that upon completion of the Singapore divestment, we should see a good contribution towards this. And are you able to quantify this at this stage? Thank you. Thank you, Giacomo. Do you want to address this? I'm happy to take both of those. Giacomo, I apologise.

Operator: Our next caller is Paul Cheng from Scotiabank.

Speaker Change: Our next caller is Paul Cheng from Scotiabank.

Paul Cheng: Thank you. Good morning or good afternoon your time. Wael, if we look at the global oil demand, it seems like it's continued rising at least through the remaining of the decade. From that standpoint, you've been always saying that you guys are going to be thematic. Should the company revisit whether that you should be targeting your liquid production to be flat or that further shift investment so that you can grow the production in line with the global oil demand growth? That's the first question. The second question that you continue to make good progress in your chemical operation, so that we have seen net income, so that's great.

Speaker Change: If we look at the global...

Speaker Change: Oil demand seems like it's continued rising at least through the remaining of the decade.

Paul Cheng: Should the company be with the work that you should be targeting your liquid production to be frank, or that further ship investment so that you can grow the production in oil with the global oil demand growth, that's the first question. The same question that you continue to make good progress in your chemical operation, so that we have seen that income. So, that's great.

Speaker Change: So from that standpoint, you've been always saying that you guys are going to be pragmatic.

Paul Cheng: The second question is that you continue to make good progress in your chemical operation so that we have seen net income, so that's great.

Paul Cheng: So, when we look at Monica, the chemical compact in Philadelphia, in Pennsylvania, is that now that it's in a good operating state or that you actually see further improvement can be made from there? And if it is the latter case, where that further improvement is going to come up? Thank you.

Paul Cheng: When we look at Monaca, the chemical complex in Philadelphia, in Pennsylvania, is that now that is in a good operating state or that you actually see further improvement can be made from there? If it is the latter case, where that further improvement going to come from? Thank you.

Speaker Change: So when we look at MONACA, the chemical compact in Philadelphia,

Speaker Change: Is that now that you're in a good operating state or that you actually see further improvement can be made from there? And if it is the latter case, where is that further improvement going to come from? Thank you.

Unknown Executive: Paul, thank you for those three questions.

Wael Sawan: Paul, thank you for those two questions. Let me take both of those. I think on your first question around liquids, where we have deep conviction is that the energy system of the future will require liquids, oil or bio-based liquids, as well as gas, and potentially multiple other energy sources, electron-based, of course, nuclear, and so on and so forth. We also see that in order to be able to win, we need to be the players that have the highest margin and are at the lower end of the cost curve. When we established our value over volume strategy, which is now a few years old, what we look to do is to make sure we cut the tail of our portfolio and focus on high-grading the portfolio.

Unknown Executive: Let me take both of those. I think on your first question around liquids, what we have, where we have deep conviction, is that the energy system of the future will require liquids, oil, or bio-based liquids, as well as gas, and potentially multiple other energy sources, electron-based, of course, nuclear, and so on and so forth. We also see that in order to be able to wind, we need to be the players that have the highest margin at the lower end of the cost curve.

Speaker Change: Paul, thank you for those two questions. Let me take both of those. I think on your first question around liquids.

Speaker Change: What we have, where we have deep conviction is that the energy system of the future will require liquids.

Speaker Change: Oil or bio-based liquids, as well as gas.

Speaker Change: and potentially multiple other energy sources, electron-based of course, nuclear and so on and so forth.

Speaker Change: We also see that in order to be able to win, we need to be the players that have the highest margin and are at the lower end of the cost curve.

Unknown Executive: And so, when we established our value over volume strategy, which is now a few years old, what we look to do is to make sure we cut the tail of our portfolio and focus on hydrating the portfolio. So, we get off this treadmill of ever growing need to be able to go acquire someone to keep our production going up, but actually to be able to stabilize the production and continue to drive the competitiveness of that production and the margin of that production. So, there is no intent to move away from that balanced sort of keeping our liquids flat through 2030.

Speaker Change: And so when we established our value over volume strategy, which is now a few years old.

Speaker Change: What we look to do is to make sure we cut the tail of our portfolio.

Wael Sawan: We get off this treadmill of ever-growing need to be able to go acquire someone to keep our production going up, but actually to be able to stabilize the production and continue to drive the competitiveness of that production and the margin of that production. There is no intent to move away from that balanced, sort of keeping our liquids flat through 2030. We'll decide what we do beyond 2030, but no change in that philosophy for now. In addition to that, you asked the question around chemicals. Very pleased with where the team has progressed the chemicals, the Pennsylvania chemicals business over the last few months. I had the opportunity to be there at what we call our safety day, which is an opportunity to reflect on safety across the company.

Speaker Change: and focus on high-grading the portfolio. So we get off this treadmill of ever-growing need to be able to go acquire someone to keep our production going up, but actually to be able to stabilize the production and continue to drive the competitiveness of that production and the margin of that production.

Speaker Change: So there is no intent to move away from that balanced sort of keeping our liquids flat through 2030. We'll decide what we do beyond 2030, but no change in that philosophy for now.

Unknown Executive: We'll decide what we do beyond 2030, but no change in that philosophy for now.

Unknown Executive: In addition to that, you asked the question around chemicals. Very pleased with where the team has progressed the chemicals, the Pennsylvania chemicals business over the last few months. I had the opportunity to be there at what we call our Safety Day, which is an opportunity to reflect on safety across the company. And what I took away is this is an asset now that has achieved stable production. So, we are on all three polyethylene trains, where within a very good operating window. Is there more opportunity for improvement? No question. And the improvement is going to come predominantly from a value basis.

Speaker Change: In addition to that, you asked a question around chemicals. I'm very pleased with where the team has progressed the chemicals, the Pennsylvania chemicals business over the last few months. I had the opportunity to be there at what we call our safety day, which is an opportunity to reflect on safety across the company.

Wael Sawan: What I took away is this is an asset now that has achieved stable production, so we are on all three polyethylene trains. We're within a very good operating window. Is there more opportunity for improvement? No question. The improvement is going to come predominantly from a value basis. We continue to high grade the product slate that we have as we certify more and more of these chemical products that we are producing. We continue to challenge ourselves on our cost structure, not just within that facility, but the overhead cost structure that sits above it. There are multiple opportunities that we are pursuing, which we deem as being no regret and very much in line with the Capital Markets Day, a promise we have made.

Speaker Change: And what I took away is...

Speaker Change: This is an asset now that has achieved stable production, so we are on all three polyethylene trains, we're within a very good operating window. Is there more opportunity for improvement? No question. And the improvement is going to come predominantly from a value basis.

Unknown Executive: We continue to high grade the product slate that we have as we certify more and more of these chemical products that we are producing. We continue to challenge ourselves on our cost structure, not just within that facility, but the overhead cost structure that sits above it. So, there are multiple opportunities that we are pursuing, which we deem as being no regret, in very much in line with the capital markets day at promise we have made. I would say, and I take you back to Capital Markets Day, we still believe that the chemicals market is an attractive market for the future.

Speaker Change: We continue to high-grade the product slate that we have as we certify more and more of these chemical products that we are producing. We continue to challenge ourselves on our cost structure, not just within that facility, but the overhead cost structure that sits above it.

Speaker Change: So there are multiple opportunities that we are pursuing, which we deem as being no regret and very much in line with the Capital Markets Day promise we have made.

Wael Sawan: I would say, and I take you back to Capital Markets Day, we still believe that the chemicals market is an attractive market for the future. We believe that some of the facilities that we have, which are going to be in the portfolio, are very strong facilities. And at the same time, there are certain assets which we have chosen to pass on to a more natural owner, such as, for example, the energy and chemical park in Singapore, which we have now sold or in the process of sort of completing the transaction to Chandra Asri as well. So there's a lot happening in that space as we continue to improve the bottom line in our chemicals business in what continues to be a very difficult macro environment there. Thank you, Paul.

Speaker Change: I would say, and I take you back to Capital Markets Day.

Unknown Executive: We believe that some of the facilities that we have, which are going to be in the port for you, are very strong facilities.

Speaker Change: We still believe that the chemicals market is an attractive market for the future.

Unknown Executive: And at the same time, there are certain assets which we have chosen to pass on to a more natural owners, such as, for example, the energy and chemical park in Singapore, which we have now sold or in the process of sort of completing the transaction to Chandra as well. So, there is a lot happening in that space as we continue to improve the bottom line in our chemicals business, and what continues to be a very difficult macro environment.

Speaker Change: We believe that some of the facilities that we have, which are going to be in the portfolio, are very strong facilities. And at the same time, there are certain assets which we have chosen to pass on to a more natural owner, such as, for example, the energy and chemical park in Singapore, which we have now sold, or in the process of sort of completing the transaction to Chandra Asri as well.

Speaker Change: So there's a lot happening in that space as we continue to improve the bottom line in our chemicals business in what continues to be a very difficult macro environment there.

Unknown Executive: Yeah, thank you, Paul.

Wael Sawan: Luke, can we go to the next question, please?

Giacomo Romeo: Luke, can we go to the next question, please?

Giacomo Romeo: Our next caller is Giacomo Romeo from Jeffries. Yes, good afternoon, and thank you for taking my call.

Operator: Our next caller is Giacomo Romeo from Jefferies.

Speaker Change: Thank you, Paul. Luke, can we go to the next question, please?

Giacomo Romeo: Yes, good afternoon, and thank you for taking my call. If we can stay on chemicals. First of all, what's the impact of Singapore in your chemicals and refining earnings? Just trying to understand what sort of uplift we should expect once you complete the sale. Second question on your good progress you're showing towards your $2 to 3 billion OpEx reduction target. I suspect that upon completion of the Singapore divestment, we should see a good contribution towards this. Are you able to quantify this at this stage? Thank you.

Giacomo Romeo: If we can say on chemicals, first of all, what would have been the impact of Singapore in your chemicals and refining earnings, just trying to understand what's the impact of Singapore in your chemicals and refining earnings, just trying to understand what's sort of uplift we should expect once you complete the sale. And second question on your, the good progress you're showing towards your two to three billion OPEX reduction target. I suspect that upon completion of the Singapore investment, we should see a good contribute vision towards this. And are you able to quantify this at this stage?

Luke: Yes, good afternoon and thank you for taking my call. If we can stay on chemicals, first of all,

Speaker Change: What's the impact of Singapore in your chemicals and refining earnings? Just trying to understand what sort of uplift we should expect once you complete the sale. And second question on the good progress you're showing towards your 2 to 3 billion OPEX reduction target. I suspect that upon completion of the Singapore investment we should see a good contribution towards this. And are you able to quantify this at this stage? Thank you.

Unknown Executive: Thank you.

Unknown Executive: Thank you, Giacomo. Do you want to address the topic by the past? And Jacob, I apologize.

Wael Sawan: Thank you, Giacomo. Do you want to address those, Sinead?

Unknown Executive: I'm going to, unfortunately, be able to say very little. As you can imagine, we're going through a divestment at this moment in time. What I can say to you, of course, is that with respect to the Singapore divestment, it's one that doesn't fit our portfolio but, of course, fits the buyers very well, given the speciality and the focus in that area. It is not one that we are finding attractive to us at this moment in time.

Sinead Gorman: I'm happy to take both of those. Giacomo, I apologize. I'm going to unfortunately be able to say very little. As you can imagine, we're going through a divestment at this moment in time. What I can say to you, of course, is that with respect to the Singapore divestment, it's one that doesn't fit our portfolio, but of course fits the buyers very well, given the specialty and the focus in that area. It is not one that we are finding attractive to us at this moment in time. Remember, our chemicals portfolio overall is currently in a break-even state for this quarter, roughly speaking. You're correct that with the divestment, we will of course take OpEx out, and you will see that flow through in terms of that $2 to 3 billion. It's not in those numbers yet, of course.

Unknown Executive: I'm going to unfortunately be able to say very little, as you can imagine. We're going through a divestment at this moment in time. What I can say to you, of course, is that with respect to the Singapore divestment, it's one that doesn't fit our portfolio, but of course fits. And the buyer is very well given the specialty and the focus in that area. It is not one that we are finding attractive to us at this moment in time, and remember our chemicals portfolio overall is currently in a break even state for this quarter, roughly speaking.

Speaker Change: Thank you, Giacomo. Do you want to address those? I'm happy to take both of those. Giacomo, I apologise. I'm going to unfortunately be able to say very little, as you can imagine. We're going through a divestment at this moment in time. What I can say to you, of course, is that with respect to the Singapore divestment, it's one that doesn't fit our portfolio, but of course it fits.

Speaker Change: And the buyer is very well, given the speciality and the focus in that area. It is not one that we are finding attractive to us at this moment in time, and remember, our chemicals portfolio overall is currently in a break-even state for this quarter, roughly speaking. So, you're correct that with the divestment, we will of course take OPEC's side, and you will see that flow through in terms of that 2 to 3 billion. It's not in those numbers yet, of course.

Unknown Executive: And remember, our chemicals portfolio overall is currently in a break-even state for this quarter, roughly speaking. So you're correct that with the divestment, we will, of course, take the OPEX side, and you will see that flow through in terms of that 2 to 3 billion. It's not in those numbers yet, of course.

Sinead Gorman: Remember, our chemicals portfolio overall is currently in a break-even state for this quarter, roughly speaking. You're correct that with the divestment, we will of course take OpEx out, and you will see that flow through in terms of that $2 to 3 billion. It's not in those numbers yet, of course.

Unknown Executive: So you're correct that with the divestment, we will of course take off excites, and you will see that flow through in terms of that two to three billion. It's not in those numbers yet, of course. So what you've seen from us so far is hitting 1.7 billion in terms of that target towards two to three billion for OPEX. And of course, in that 1.7, what we're seeing at the moment is more of a move towards the non-portfolial elements. But we will have Singapore flowing through when that deal completes, and we're expecting that deal to complete more or less at the end of the year into Q1.

Sinead Gorman: So what you've seen from us so far is hitting 1.7 billion in terms of that target towards 2 to 3 billion for OPEX. And of course, in that 1.7, what we're seeing at the moment is more of a move towards the non-portfolio elements, but we will have Singapore flowing through when that deal completes.

Sinead Gorman: What you've seen from us so far is hitting $1.7 billion in terms of that target towards $2 to 3 billion for OpEx. Of course, in that $1.7, what we're seeing at the moment is more of a move towards the non-portfolio elements. We will have Singapore flowing through when that deal completes, and we're expecting that deal to complete more or less at the end of the year into Q1. You'll see that flow through then, and we'll be able to give you more details at that point. Thank you.

Speaker Change: So what you've seen from us so far is hitting 1.7 billion in terms of that target towards 2 to 3 billion for OPEX.

Speaker Change: and of course in that 1.7 what we're seeing at the moment is more of a move towards the non-portfolio elements.

Speaker Change: But we will have Singapore flowing through when that deal completes, and we're expecting that deal to complete more or less at the end of the year into Q1. So you'll see that flow through then, and we'll be able to give you more details at that point. Thank you. Thanks, Sinead. Thank you, Giacomo. And Luke, can we take the next question, please?

Unknown Executive: So you'll see that flow through that, and we'll be able to give you more details at that point.

Sinead Gorman: And we're expecting that deal to complete more or less at the end of the year into Q1. So you'll see that flow through then, and we'll be able to give you more details at that point. Thank you. Thanks, Sinead. Thank you, Giacomo. And Luke, can we take the next question, please?

Unknown Executive: Thank you.

Unknown Executive: Thanks, Sheney. Thank you, Jocomo.

Wael Sawan: Thanks, Sinead. Thank you, Giacomo. Luke, can we take the next question, please?

Roger Reed: And Luke, can we take the next question, please?

Roger Reed: Our next class is Roger Reed from Wells Fargo. Yeah, thank you. Good morning or good afternoon, as a case may be.

Operator: Our next caller is Roger Read from Wells Fargo.

Luke: Our next caller is Roger Read from Wells Fargo.

Roger Read: Yeah, thank you. Good morning or good afternoon, as the case may be. I guess kinda one big question I have balance sheet-wise, given the performance here, the cash balance, the net debt, and I know you like to keep a healthy cash balance, but seems like improvement's probably a little ahead of schedule. Just curious how you're thinking and what the right cash balance is as you look at the overall cash returns. The other question I had was on slide eight, where you lay out, you know, the growth projects here. Is there anything we should think about, given performance to date and what's left to come online, as you know, an overall impact on any changes in the way you're thinking about volume performance, volume growth, or you know, lack of volume shrinkage maybe?

Roger Reed: I guess kind of one big question I have balance sheet wise given the performance here, the cash balance, the net debt. And I know you like to keep a healthy cash balance, but seems like improvements, probably a little ahead of schedule. Just curious how you're thinking and what the right cash balances as you look at the overall cash returns.

Roger Read: Yeah, thank you. Good morning or good afternoon, as the case may be.

Roger Read: I guess kind of one big question I have balance sheet wise, given the performance here, the cash balance, the net debt, and I know you like to keep a healthy cash balance, but

Unknown Executive: Seems like improvements are probably a little ahead of schedule. Just curious how you're thinking and what the right cash balance is as you look at the overall cash returns. And then the other question I had was on slide eight, where you lay out, you know, the growth projects here. Is there anything we should think about given performance to date and what's left to come online as, you know, an overall impact on any changes in the way you're thinking about volume performance, volume growth, or, you know, lack of volume shrinkage, maybe? Thank you for those two questions. Let me start with the second one and then hand it over to you, Sinead.

Speaker Change: Seems like improvements probably a little ahead of schedule. Just curious how you're thinking and what the right cash balance is as you look at the overall cash returns.

Roger Reed: And then the other question I had was on slide 8 where you lay out the growth projects here. Is there anything we should think about given performance to date and what's left to come online as an overall impact on any changes in the way you're thinking about volume performance, volume growth or lack of volume shrinkage, maybe.

Speaker Change: And then the other question I had was on slide 8, where you lay out, you know, the growth projects here.

Speaker Change: Is there anything we should think about, given performance to date and what's left to come online, as, you know, an overall impact on any changes in the way you're thinking about volume performance, volume growth, or, you know, lack of volume shrinkage, maybe?

Unknown Executive: Thank you for those two questions.

Wael Sawan: Thank you for those two questions. Let me start with the second one and then hand over to you, Sinead. Very little that has changed, Roger, from what we described in Capital Markets Day. At the time, what we said was we expected to bring online at peak around 500,000 barrels of oil equivalent per day. Today we update to the fact that indeed that is 250,000 barrels of oil equivalent per day has already been brought online, and the rest to come through between now and 2025. No major changes there.

Unknown Executive: Let me start with the second one and then hand over to you, Sheney. Very little that has changed, Roger, from what we described in Capital Markets Day at the time. What we said was we expected to bring online at peak around 500,000 bars of order equivalent per day. Today we update to the fact that indeed that is 250,000 bars of order equivalent per day has already been brought online. And the rest to come through between now and 2025. So no, no major changes there. And that and those are, by the way, good high margin barrels in particular in our deep water space that you see those coming through in the Gulf of Mexico as well as in Brazil and beyond, by the way, in places like Oman and the like.

Unknown Executive: Very little that has changed, Roger, from what we described on Capital Markets Day. At the time, what we said was that we expected to bring online at peak around 500,000 barrels of oil equivalent per day. Today, we update on the fact that indeed 250,000 barrels of oil equivalent per day have already been brought online, and the rest will come through between now and 2025. So no major changes there. And those are, by the way, good, high-margin barrels, in particular in our deep water space that you see those coming through in the Gulf of Mexico, as well as in Brazil and beyond, by the way, in places like Oman and the like. And so, very little to add to that.

Speaker Change: Thank you for those two questions. Let me start with the second one and then hand over to you, Sinead.

Speaker Change: Very little that has changed, Roger, from what we described in Capital Markets Day. At the time, what we said was...

Speaker Change: We expect it to bring online at peak around 500,000 barrels of oil equivalent per day.

Speaker Change: Today we update to the fact that indeed that is 250,000 barrels of oil equipment per day has already been brought online.

Wael Sawan: Those are, by the way, good high-margin barrels, in particular in our Deepwater space, that you see those coming through, in the Gulf of Mexico as well as in Brazil, and beyond, by the way, in places like Oman and the like. Very little to add to that. We continue to focus very much on the opportunities, in particular in the basins where we see we have competitive advantage. To look at opportunities for tiebacks, backfills, two recent, for example announcements, Jerun, which is the Malaysian gas field which was brought on stream just a couple weeks ago. We've just recently taken a final investment decision on Atapu-2 and another FPSO in that block in Brazil.

Roger Read: and the rest to come through between now and 2025, so no major changes there.

Roger Read: And those are, by the way, good, high-margin barrels, in particular in our deep-water space that you see those coming through in the Gulf of Mexico, as well as in Brazil, and beyond, by the way, in places like Oman and the like. And so very little to add to that. And we continue to focus very much on the opportunities, in particular in the basins, where we see we have competitive advantage.

Sinead Gorman: And we continue to focus very much on the opportunities, in particular in the basins where we see we have a competitive advantage to look at opportunities for tiebacks, backfills, two recent announcements, Jeroen, which is the Malaysian gas field which was brought on stream just a couple of weeks ago. All of that is giving us that next wave of growth that we very much look forward to that takes us to the end of the decade and continues that healthy balance on our liquids while looking to grow our LNG volumes by 20 to 30% by that date.

Unknown Executive: And so very little to add to that. We've just recently taken a final investment decision on a tapu too and another FPSO in that block in Brazil, not to mention all the LNG opportunities that we've mapped out there from the Pavilion volumes we're bringing in the US LNG and Abu Dhabi, the FID on the Manatee project in Trinidad and Tobago. So all of that is giving us that next wave of growth that we very much look forward to that takes us to the end of the decade and continues that healthy, healthy balance on our liquids while looking to grow our LNG volumes by 20 to 30% by that day.

Roger Read: to look at opportunities for tiebacks, backfills.

Roger Read: Two recent, for example, announcements, Jeroen, which is the Malaysian gas field which was brought on stream just a couple of weeks ago. We've just recently taken a final investment decision on Atapu 2 and another FPSO in that block in Brazil.

Wael Sawan: Not to mention all the LNG opportunities that we've mapped out there from the Pavilion volumes we're bringing in, the Ruwais LNG in Abu Dhabi, the FID on the Manatee project in Trinidad and Tobago. All of that is giving us that next wave of growth that we very much look forward to that takes us to the end of the decade and continues that healthy balance on our liquids while looking to grow our LNG volumes by 20 to 30 percent by that date. Do you wanna talk about cash?

Roger Read: Not to mention all the LNG opportunities that we've mapped out there, from the pavilion volumes we're bringing in, the Ruwes LNG in Abu Dhabi, the FID on the Manatee project in Trinidad and Tobago,

Roger Read: All of that is giving us that next wave of growth that we very much look forward to that takes us to the end of the decade and continues that healthy balance on our liquids while looking to grow our LNG volumes by 20-30% by that date.

Unknown Executive: David, do you want to talk about cash? Sure.

Sinead Gorman: Sure. No, thanks, Roger, and I think there's two elements to this. There's both the cash element to it and the overall balance sheet strength. On the second part on the balance sheet strength, as you know, we have an incredibly strong balance sheet. We're very comfortable with the levels of debt that we have at the moment, and that varies. A little bit like I was saying to Lydia, it goes up and down from quarter to quarter, but given the levels, it's a very natural place to be. What we will see, of course, is that leases will go up as Pavilion comes on and LNG Canada comes on. That allows us, given the strength of the balance sheet, to be able to look through it as we think about distributions.

Unknown Executive: No, thanks, Roger, and I think there's two elements to this: there's both the cash element to it and the overall balance sheet strength. So, on the second part of the balance sheet strength, as you know, we have an incredibly strong balance sheet. We're very comfortable with the levels of depth that we have at the moment, and that varies a little bit, like I was saying to Lydia. It goes up and down from quarter to quarter, but given the levels, it's a very natural place to be. What we will see, of course, is that Lisa's will go up, as Pavillion comes on and LNG Camus comes on, but that allows us to give them strength for the balance sheet to be able to look through it as we think about distributions.

Speaker Change: Do you want to talk about cash? Sure. No, thanks, Roger. And I think there's two elements to this. There's both the cash element to it and the overall balance sheet strength.

Speaker Change: So on the second part, on the balance sheet strength, as you know, we have an incredibly strong balance sheet. We're very comfortable with the levels of debt that we have at the moment. And that varies a little bit, like I was saying to Lydia, it goes up and down from quarter to quarter.

Speaker Change: but given the levels it's a very natural place to be. What we will see of course is that leases will go up as Pavilion comes on and LNG Canada comes on but that allows us given the strength of the balance sheet to be able to look through it as we think about distributions.

Unknown Executive: One of the points she breathes was Ryan Cash specifically, and of course, indeed, we sit on a significant amount of cash, but the net that flows into the net debt number, reasons for sitting on that cash is pure and simple that the debt levels that we have at the moment are very attractive rates, many of them hedge, et cetera, and it would make sense to buy that at this point in time. So therefore, the net debt position sits with a gearing level of Ryan 17%. So I'm quite comfortable with where we are at the moment, recognizing that we're going to go up and down a few billion quarter to quarter, Roger.

Sinead Gorman: One of the points you raised was around cash specifically. And of course, indeed, we sit on a significant amount of cash, but that flows into the net debt number. The reason for sitting on that cash is pure and simple: the debt levels that we have at the moment are very attractive rates, many of them hedged, etc., and it wouldn't make sense to buy that at this point in time.

Sinead Gorman: One of the points you raised was around cash specifically, and of course, indeed we sit on a significant amount of cash, but the net that flows into the net debt number. Reason for sitting on that cash is pure and simple, that the debt levels that we have at the moment are very attractive rates, many of them hedged, et cetera, and it wouldn't make sense to buy that out at this point in time. Therefore, the net debt position sits with a gearing level of around 17%. I'm quite comfortable with where we are at the moment, recognizing that we'll go up and down $a few billion quarter to quarter, Roger Read. Thank you for the question.

Speaker Change: One of the points you raised was around cash specifically and of course indeed we sit on a significant amount of cash but that flows into the net debt number.

Speaker Change: The reason for sitting on that cash is pure and simple, that the debt levels that we have at the moment, they're very attractive rates, many of them hedged, et cetera, and it wouldn't make sense to buy that out at this point in time, so therefore the net debt position sits with a gearing level of around 17%. So I'm quite comfortable with where we are at the moment, recognizing that we'll go up and down a few billion quarter to quarter, Roger. Thank you for the question. Thanks, Sinead. Thank you, Roger. Luke, let's go to the next question, please.

Unknown Executive: Thank you for the question.

Sinead Gorman: So therefore, the net debt position sits with a gearing level of around 17%. So I'm quite comfortable with where we are at the moment, recognizing that we'll go Thanks, Sinead. Thank you, Roger. Luke, let's go to the next question, please. Thank you very much.

Unknown Executive: Thanks, Shanae.

Wael Sawan: Thanks, Sinead. Thank you, Roger. Luke, let's go to the next question, please.

Michele Televina: Thank you, Roger. Luke, let's go to the next question, please.

Michele Televina: Our next caller is Michele Televina from Goldman Sachs. Thank you very much. And again, congratulations on the strong results. Two questions, if I may.

Operator: Our next caller is Michele Della Vigna from Goldman Sachs.

Speaker Change: Our next caller is Michele De La Vigna from Goldman Sachs.

Unknown Executive: And again, congratulations on the strong results. Two questions, if I may. The first one is about your buybacks. You are clearly highly free cash flow positive at the moment, and even after cash distribution, you've lowered net debt by $5 billion in the first half. And when we speak to our owners, to our investors, but specifically around this topic, what we see is they're very happy with those levels of distribution because they see that drumbeat coming through. Now, five quarters into a ten-quarter sprint, and of course, there's a lot more running room.

Michele Della Vigna: Thank you very much. Again, congratulations on the strong results. Two questions if I may. The first one is about your buybacks. You are clearly highly free cash flow positive at the moment after even after cash distribution. You've lowered net debt by $5 billion in the first half. I was wondering what would give you the confidence to potentially increase the buyback rate up from the $3.5 billion you're doing at the moment. Secondly, I was wondering, given the success you've had in exploration in Namibia, what are your next moves there? When you know, and what you would need in order to move to an FID of a development there in the coming years. Thank you very much.

Speaker Change: Thank you very much. And again, congratulations on the strong results. Two questions, if I may. The first one is about your buybacks. You are clearly highly free cash flow positive at the moment, even after cash distribution, you've lowered net debt by $5 billion in the first half. I was wondering what would give you the confidence to potentially increase the buyback rate up from the $3.5 billion you're doing at the moment? And then secondly, I was wondering, given the success you've had in exploration in Namibia, what are your next moves there? And what you would need in order to move to an FID of a development there in the coming years? Thank you very much. Thank you.

Michele Televina: The first one is about your buybacks. You are clearly highly free cash or positive at the moment after even after cash distribution. You blow a net debt by five billion in the first half. I was wondering what would give you the confidence to potentially increase the buyback rate up from the three and a half billion dollars you're doing at the moment.

Michele Televina: And then secondly, I was wondering, given the success you've had in exploration in the media, what are your next moves there and what you would need in order to move to an FID of a development there in the coming years. Thank you very much.

Unknown Executive: Thank you. You want to take the buyback question. Happy to.

Wael Sawan: Thank you. Do you wanna take the buyback question?

Sinead Gorman: Happy to. No, thanks, Michele, for the question. Indeed, we have said, you know, time and time again that we will look through the quarter, and I think that's very, very key for us. When I'm looking through the quarter, I'm looking at, of course, the cash generation in the quarter, but also, of course, beyond that. It's very much about ensuring that we have the discipline to be able to execute quarter after quarter. We're continuing to build that track record, as you know. We're seeing that predictability 11 quarters above $3 billion, of course, at this moment in time. When we speak to our owners, to our investors, but specifically around this topic, what we see is they're very happy with those levels of distribution because they see that drumbeat coming through.

Unknown Executive: And now, thanks, Nicholas, the question. Indeed, we have said time and time again that we will look through the caution. I think that's very, very key for us. When I'm looking through the caution, I'm looking at, of course, the cash generation in the quarter, but also, of course, beyond that. It's very much about ensuring that we had the discipline to be able to execute quarter after quarter. And we're continuing to build that track record. As you know, we're seeing that predictability 11 quarters above three billion, of course, at this moment in time. And when we speak to our owners, to our investors, but specifically a rhyme, this topic, what we see is they're very happy with those levels of distribution because they see that drum beat coming through.

Speaker Change: We have said time and time again that we will look through the quarter and I think that is very key for us. When I am looking through the quarter I am looking at the cash generation in the quarter but also beyond that.

Speaker Change: It's very much about ensuring that we have the discipline to be able to execute quarter after quarter. And we're continuing to build that track record, as you know. We're seeing that predictability 11 quarters above 3 billion, of course, at this moment in time. And when we speak to our owners, to our investors, but specifically around this topic, what we see is they're very happy with those levels of distributions because they see that drumbeat coming through.

Unknown Executive: Now five quarters into a 10-quarter sprint. And of course, there's a lot more running room.

Sinead Gorman: Now, 5 quarters into a 10-quarter sprint, and of course, there's a lot more running room. What you will see, of course, is complete transparency and making sure that when we move our share buyback number, it will be clear what has changed. The fundamentals will be there. Thank you.

Unknown Executive: So, what you will see, of course, is complete transparency and making sure that when we move our share buyback number, it will be clear what has changed. The fundamentals will be there. So this is a high-level story that I'm sharing with you, but at the heart of it is the culture change that we are driving. And there are multiple examples, from the very, very basic one around travel, where today we are still at 60% of the 2019 travel spend. That's small in the bigger scheme of things, but that's a couple hundred million dollars, and that's an important part, an important indicator of discipline.

Unknown Executive: So what you will see, of course, is complete transparency and making sure that when we move our share buyback number, it will be clear what has changed. The fundamental will be there. Thank you.

Speaker Change: Now, five quarters into a ten quarter sprint and of course there's a lot more running room. So what you will see of course is complete transparency and making sure that when we move our share buyback number, it will be clear what has changed. The fundamentals will be there.

Unknown Executive: Thank you, Shanaid.

Wael Sawan: Thank you, Sinead. Michele, to your question around Namibia, indeed, we have progressed well on both the exploration wells as well as the appraisal wells. We are at the moment evaluating. It's a complex subsurface, as I've said in the past. There is no shortage of volume. The question is going to be the commercial producibility and the mobility of those molecules. What's very helpful is that there are a number of players in the region, all of whom are active in the spot, so we are all learning as we go to be able to really better understand the reservoir and the contours of the reservoir. What would be required, what we would need is line of sight towards the sorts of returns that we would expect.

Unknown Executive: Michael, it's your question around the media. Indeed, we have progressed well on both the exploration wells, as well as the appraisal wells. We are at the moment evaluating. It's a complex subsurface, as I've said in the past. There is no shortage of volume. The question is going to be the commercial produced ability and the mobility of those of those molecules. What's very helpful is that there are a number of players in the region, all of whom are active in the spot. So we are all learning as we go to be able to really better understand the reservoir and the contours of the reservoir.

Speaker Change: Thank you.

Speaker Change: Thank you Sinead. Michele, your question around Namibia. Indeed we have

Speaker Change: Well on both the expiration wells as well as the appraisal wells.

Speaker Change: We are at the moment evaluating, it's a complex subsurface as I've said in the past.

Speaker Change: There is no shortage of volume. The question is going to be the commercial producibility and the mobility of those molecules.

Speaker Change: What's very helpful is that there are a number of players in the region.

Speaker Change: All of whom are active in the spot, so we are all learning as we go to be able to really better understand the reservoir and the contours of the reservoir. What would be required, what we would need is line of sight towards the sorts of returns that we would expect.

Unknown Executive: What would be required, what we would need, is line of sight towards the sorts of returns that we would expect. This is, of course, a relatively new area to invest in. And so you would need quite a bit of infrastructure to be able to make it work. And we need to be able to assure ourselves that we have investable projects in the sorts of returns ranges that we indicated in Capital Market State 23. And so that's why we're taking our time, thinking through it, making sure that we have a good enough picture before we commit our shareholders' capital to that development.

Wael Sawan: This is, of course, relatively, new area to invest in, and so you would need quite a bit of infrastructure to be able to make it work. We need to be able to assure ourselves that we have investable projects in the sorts of returns ranges that we indicated in Capital Markets Day 2023. That's why we're taking our time, thinking through it, making sure that we have a good enough picture before we commit our shareholders' capital to that development. Time is our friend here as we learn from both our own analysis, the analysis of others, and the activities of others as well. Thank you, Michele. Luke, let's go to the next question, please.

Speaker Change: This is, of course, a relatively new area to invest in, and so you would need quite a bit of infrastructure to be able to make it work.

Speaker Change: And we need to be able to assure ourselves that we have investable projects in the sorts of returns ranges that we indicated in Capital Markets Day 23.

Speaker Change: And so that's why we're taking our time, thinking through it, making sure that we have a good enough picture before we commit our shareholders' capital to that development. And time is our friend here, as we learn from both our own analysis and the analysis of others and the activities of others as well.

Unknown Executive: And time is our friend here as we learn from both our own analysis and the analysis of others and the activities of others as well. Thank you, Mikaeli.

Christopher Kuplent: Luke, let's go to the next question, please. Our next caller is Christopher Kuplent from Bank of America. Hi, thank you. Just two quick questions, please. I'm building on your growing cash balance, Sinead, but I think it's a question to you as well. How is can you give us an update? How the mood is like internally.

Operator: Our next caller is Christopher Kuplent from Bank of America.

Speaker Change: Thank you, Michele. Luke, let's go to the next question, please.

Speaker Change: Our next caller is Christopher Kuplent from Bank of America.

Christopher Kuplent: Hi. Thank you. Just two quick questions, please. Building on your growing cash balance, Sinead, but I think it's a question to you as well to Wael. Can you give us an update how the mood is like internally? You know, you said it halfway through your 10-quarter sprint. Inertia initially in the company, has that turned into excitement? How difficult is it to continue to tell your staff that they should tighten their belts when the cash balance keeps growing and growing? Maybe another way of tackling that question. Ultimately, I'd like to explore a little bit more where you see most potential still to come in your OpEx, particularly the non-portfolio driven OpEx savings.

Christopher Kuplent: Hi, thank you. Just two quick questions, please. Building on your growing cash balance, Sinead, but I think it's a question to you as well, Wael.

Christopher Kuplent: You know, you said it halfway through your 10-quarter sprint, inertia initially in the company has that turned into excitement, and how difficult is it to continue to tell your staff that they should tighten their belts when the cash balance keeps growing and growing. So maybe another way of tackling that question, but ultimately I'd like to explore a little bit more where you see most potential still to come in your OPEX, particularly the non-portfolio-driven OPEX savings. And will there come a point, to be precise, when you can actually break down where the savings that you are calling out here on the slide come from, whether it's by project or at least by segment.

Christopher Kuplent: How is can you give us an update how the mood is like internally, you know, you said it's halfway through your 10 quarter sprint

Speaker Change: Inertia initially in the company, has that turned into excitement and how difficult is it to continue to tell your staff that they should tighten their belts when the cash balance keeps growing and growing?

Speaker Change: So maybe another way of tackling that question, but ultimately, I'd like to explore a little bit more where you see

Wael Sawan: Wael Sawan, Wael Sawan

Christopher Kuplent: Will there come a point, to be precise, when you can actually break down where these savings that you are calling out here on the slide come from, whether it's by project or at least by segment. Is that something you think is realistic, as we look into the CMD next year? Thank you.

Christopher Kuplent: Is that something you think is realistic as we look into the CMD next year. Thank you.

Unknown Executive: Let me kick off, and then, Sinead, if there are areas you'd like to add to. Thank you for the question, Christopher. I mean, let me start with the mood firstly. I think it's great to be on a winning team. And I do think that, you know, post capital market state, 2030 post energy transition strategy, 2024, we've now been able to build a holistic picture of where we want to go as a company. And staff see the momentum; our board sees the momentum that we are on. But no one is complacent because we also recognize that we have a lot more to do to be able to achieve the full potential of the company.

Wael Sawan: Let me kick off, and then Sinead, if there's areas you'd like to add too. Thank you for the question, Christopher. I mean, it's. Let me start with the mood firstly. I think it's great to be on a winning team, and I do think that, you know, post-Capital Markets Day 2023, post, Energy Transition Strategy 2024, we've now been able to build a holistic picture of where we want to go as a company. And staff see the momentum. Our board sees the momentum that we are on. No one is complacent because we also recognize that we have a lot more to do to be able to achieve the full potential of the company. Cost is an outcome in my mind, right?

Wael Sawan: Let me kick off and then, Sinead, if there's areas you'd like to add to. Thank you for the question, Christopher.

Wael Sawan: Let me start with the mood, firstly. I think it's...

Speaker Change: It's great to be on a winning team.

Speaker Change: And I do think that, you know, post-capital markets day 23, post-energy transition strategy 2024, we've now been able to build a holistic picture of where we want to go as a company. And staff see the momentum, our board sees the momentum that we are on.

Speaker Change: But no one is complacent because we also recognize that we have a lot more to do to be able to achieve the full potential of the company.

Unknown Executive: Cost is an outcome in my mind. What we are trying to do is to prepare ourselves to transform the culture of the company to one that is able to outcompete in the coming years. And the competition is changing, right? This is not just in the oil and gas space. But within oil and gas, we are having to add digital capabilities, AI capabilities. We're looking to leverage knowledge in a different way than we have in the past. For example, today, some 40 percent of our staff globally, 30 to 40 percent, are staff in what we call Kuala Lumpur.

Wael Sawan: What we are trying to do is to prepare ourselves to transform the culture of the company to one that is able to out-compete in the coming years. The competition is changing, right? This is not just in the oil and gas space, but within oil and gas we are having to add digital capabilities, AI capabilities. We're looking to leverage knowledge in a different way than we have in the past. For example, today, some 40% of our staff globally, 30 to 40%, are staff in what we call Shell Business Operations in places like Kraków, in India, in Kuala Lumpur. We're learning how to be able to actually use some of the emerging technology in ways that we wouldn't have imagined before, and that's allowing us to be much more productive, enhance reliability, and of course, also reduce costs.

Wael Sawan: Cost is an outcome in my mind.

Wael Sawan: What we are trying to do is to prepare ourselves to transform the culture of the company to one that is able to out-compete in the coming years.

Wael Sawan: And the competition is changing, right? This is not just in the oil and gas space.

Wael Sawan: We're learning how to be able to actually use some of the emerging technology in ways that we wouldn't have imagined before, and that's allowing us to be much more productive, enhance reliability, and of course, also reduce costs.

Unknown Executive: We're learning how to be able to actually use some of the emerging technology in ways that we wouldn't have imagined before. And that's allowing us to be much more productive, enhanced reliability, and of course, also reduce costs. Beyond that, where are the areas that we're seeing sort of playing up? And that also plays to the staff mood. This is about competitiveness, right? First and foremost, this is about competitiveness. And we want to be able to be a competitive company. It's not good enough to just generate cash and be a third quartile player. We want to win.

Wael Sawan: Beyond that, what are the areas that we're seeing sort of playing up? That also plays to the staff mood. This is about competitiveness, right? First and foremost, this is about competitiveness, and we want to be able to be a competitive company. It's not good enough to just generate cash and be a third quartile player. We want to win, and this is what this company is, it can do and has line of sight towards. What does competitiveness look like? It means that we cannot simply get everything that we want as a company, so we're being much more conscious of the pots we can spend. For example, in IT, you have to make choices.

Wael Sawan: Beyond that, what are the areas that we're seeing sort of playing up? And that also plays to the staff mood. This is about competitiveness.

Wael Sawan: Gipson, We want to be able to be a competitive company. It's not good enough to just generate cash and be a third quartile player. We want to win.

Unknown Executive: And this is what this company can do and has line of sight towards. What does competitiveness look like? It means that we cannot simply get everything that we want as a company. So we're being much more conscious of the pots we can spend. For example, in IT, you have to make choices. In some of the standards that we have, we've had to simplify. There are sometimes cutting 60 to 70 percent of the standards, which liberates parts of the organization to be able to really flourish. We're trying to simplify the way the organization works. So one of the things we are looking to do is to be able to consolidate roles at management level, expand next line roles so that people cover more than one market, sometimes two to three markets.

Gipson: And this is what this company can do and has line of sight towards.

Wael Sawan: In some of the standards that we have, we've had to simplify those, sometimes cutting 60 to 70% of the standards, which liberates parts of the organization to be able to really sort of flourish. We're trying to simplify the way the organization works. One of the things we are looking to do is to be able to consolidate roles at management level, expand next line roles so that people cover more than one market, sometimes 2 to 3 markets. For frontline staff, allowing multi-skilling rather than going through the individual silos that create interfaces that sometimes slow down the work and actually don't reward people in their jobs. This is a high-level story that I'm sharing with you, but at the heart of it is the culture change that we are driving.

Wael Sawan: So one of the things we are looking to do is to be able to consolidate roles at management level.

Wael Sawan: expand next line role so that people cover more than one market sometimes two to three markets and for frontline staff allowing multi-skilling rather than going through the individual silos and create interfaces that sometimes slow down the work and actually don't reward people in their jobs.

Unknown Executive: And for frontline staff, allowing multi-skilling rather than going through the individual silos that create interfaces that sometimes slow down the work and actually don't reward people in their. So this is a high-level story that I'm sharing with you, but at the heart of it is the culture change that we are driving, and there are multiple examples from the very, very basic one around travel where today we are still at 60% of the 2019 travel spend. That's small in the bigger scheme of things, but that's a couple hundred million dollars, and that's an important part and important indicator of discipline all the way through to the way we're thinking about capital projects and how we think about spending the feasibility expenses on it. Really being clear, we need to get projects through the funnel quicker if we believe in them and stop them earlier if we don't, and not put entire teams on them if we don't see the fundamentals work.

Wael Sawan: There are multiple examples from, you know, the very, very basic one around travel, where today we are still at 60% of the 2019 travel spend. That's small in the bigger scheme of things, but that's $200 million, and that's an important part, an important indicator of discipline. All the way through to the way we're thinking about capital projects and how we think about spending the feasibility expenses on it. Really being clear, we need to get projects through the funnel quicker if we believe in them and stop them earlier if we don't. Not put entire teams on them if we don't see the fundamentals work. Hopefully that gives you a flavor of some of the things. I think the mood continues to be a robust one.

Unknown Executive: All the way through to the way we're thinking about capital projects and how we think about spending the feasibility expenses on them, really being clear. We need to get projects through the funnel quicker if we believe in them and stop them earlier if we don't, and not put entire teams on them if we don't see the fundamentals work. So hopefully, that gives you a flavor of some of the things.

Wael Sawan: All the way through to the way we're thinking about capital projects and how we think about spending the feasibility expenses on it.

Unknown Executive: I think the mood continues to be a robust one, but at the same time, there's a lot of organizational change. So I'm also conscious of the load that that puts on people because change is never easy. And so we're trying to move as quickly as we can on that front, while at the same time giving the clarity that our people need as we move into the next phase of this journey. What did you want to add, Sinead?

Unknown Executive: So hopefully that gives you a flavor of some of the things I think. The mood continues to be a robust one, but at the same time, there's a lot of organizational change. I'm also conscious of the load that that puts on people because change is never great, and so we're trying to move as quickly as we can on that front while at the same time give the clarity that our people need as we move into the next phase of this journey.

Wael Sawan: So hopefully that gives you a flavor of some of the things. I think.

Wael Sawan: At the same time there's a lot of organizational change, so I'm also conscious of the load that puts on people because change is never great. We're trying to move as quickly as we can on that front, while at the same time give the clarity that our people need as we move into the next phase of this journey. What did you want to add, Sinead?

Wael Sawan: The mood continues to be a robust one, but at the same time, there's a lot of organizational change. So I'm also conscious of the load that that puts on people because change is never great, and so we're trying to move as quickly as we can on that front.

Unknown Executive: What do you want to add to it? I think you said it very comprehensively.

Sinead Gorman: I think you said it very comprehensively. The only one-line sentence I would say it's exciting, and there's so much more. I'll happily take the second one.

Christopher Kuplent: I think you said it very comprehensive. The only one-line sentence I would say, it's exciting, and there's so much more to go.

Sinead Gorman: I think you said it very comprehensive. The only one-line sentence I would say, it's exciting, and there's so much more to go.

Unknown Executive: The only one line sentence I would say it's exciting, and there's so much more to go. Thank you, Shenate.

Wael Sawan: Thank you, Sinead. Christopher, thank you for the question. Luke, can we go to the next question, please?

Unknown Executive: Christopher, thank you for the question. Luke, can we go to the next question, please. Our next caller is Matt Lofting from JP Morgan. Hi, thanks for taking the question. There's two quick ones, please. First, it struck me looking at the numbers this morning that if we combine the key integrated gas and upstream businesses in aggregate, they've beaten consensus now for four straight quarters, averaging about 10% over that period. I wondered if you could talk about the sources of that and the extent to which you think that that reflects that the enhanced delivery and operational performance that you've talked about driving through the company.

Wael Sawan: Thank you, Sinead. Christopher, thank you for the question. Luke, can we go to the next question, please?

Operator: Our next caller is Matt Lofting from JPMorgan.

Speaker Change: Our next caller is Matt Lofting from J.P. Morgan.

Matt Lofting: Hi. Thanks for taking the questions. Two quick ones, please. First, it struck me looking at the numbers this morning that if we combine the key Integrated Gas and Upstream businesses in aggregate, that they've beaten consensus now for four straight quarters at average about 10% over that period. I wondered if you could talk about the sources of that and the extent to which you think that reflects the enhanced delivery and operational performance that you've talked about driving through the company. Secondly, specifically on LNG, I think you showed in the slide deck that Shell's now filled the prior gap that existed into 2025, 2026 on purchases versus sales. Part of that's the Pavilion transaction.

Unknown Executive: Secondly, specifically on LNG, I think you showed in the slide deck that Shell's now filled the prior gap that existed into 25, 26 on purchases versus sales part of that. That's the Pavilion transaction. Could you talk about what made that an attractive asset for Shell and particularly perhaps linking into the flexibility point that, while you mentioned during your opening comments.

Matt Lofting: Could you talk about what made that an attractive asset for Shell and particularly perhaps linking into the flexibility point that Wael, you mentioned during your opening comments? Thank you.

Unknown Executive: Thank you, Matt. Thank you for that.

Wael Sawan: Matt, thank you for that. Which one do you want to take, Sinead?

Unknown Executive: Which one do you want to take? Let me start with the first one around IGU integrated gas and upstream and the strong delivery over the last four quarters. First and foremost, down to a lot of hard work, a lot of focus, and this performance culture that we have spoken about, Matt starts with a fundamentally different cadence. Different performance cadence that Zoe has the head of the integrated gas upstream division is really driving with her team. Really just getting back to what they call the brilliant basics. Getting back to what we need to be able to do to drive the fundamentals right.

Unknown Executive: All right. Let me start then with the first one around IGU, integrated gas and upstream, and the strong delivery over the last four quarters. I'll put that first and foremost down to a lot of hard work and a lot of focus.

Christopher Kuplent: I'll happily take the second one.

Sinead Gorman: I'll happily take the second one.

Wael Sawan: All right. Let me start then with the first one around IG, Integrated Gas and Upstream, and the strong delivery over the last four quarters. I put first and foremost down to a lot of hard work, a lot of focus, and this performance culture that we have spoken about, Matt, starts with a fundamentally different cadence, a different performance cadence that Zoe, as the head of the Integrated Gas Upstream division, is really driving with her team. Really just getting back to what they call the brilliant basics. Getting back to what we need to be able to do to drive the fundamentals right. How do we maintain our assets? Are we doing the right walks around the facilities to be able to make sure that we pick up any issues before they happen?

Unknown Executive: And this performance culture that we have spoken about, Matt, starts with a fundamentally different cadence, a different performance cadence that Zoe, as the head of the integrated gas upstream division, is really driving with her team, really just getting back to what they call the brilliant basics. Thank you. Sinead, Lucas, to your second question on mobility in general, as you know, what we have said in this first sprint is, first and foremost, we want to change the culture of the company, reduce costs, get tighter on capital, and we want to rebuild confidence in some of the underperforming parts of our business, one of which, at the time, we felt was marketing, including mobility.

Unknown Executive: How do we maintain our assets? Are we doing the right walks around the facilities to be able to make sure that we pick up any issues before they happen? How do we leverage proactive technical monitoring and so on and so forth? A really good work in that space.

Speaker Change: Getting back to what we need to be able to do to drive the fundamentals right. How do we maintain our assets? Are we doing the right walks around the facilities to be able to make sure that we pick up any issues before they happen? How do we leverage proactive technical monitoring? And so on and so forth, so really good work in that space.

Wael Sawan: How do we leverage proactive technical monitoring and so on and so forth. Really good work in that space. In addition to that, what I would say is really focusing on the big assets that were potentially weakening us in the past. Prelude, you've seen from the charts we provided to you, is now running at the IG average utilization and availability levels, which is great news. Queensland Gas Company, outstanding performance there. Pearl GTL continues very strong performance. Deepwater is running well. Conventional oil and gas is running well. Across the patch, what you are seeing is more and more consistent delivery, something we talked about 12 months ago and something that I think is coming through in the results quarter after quarter.

Unknown Executive: In addition to that. What I would say is really focusing on the big assets that were potentially weakening us in the past. Prelude, you've seen from the charts we provided to you, is now running at the IG average utilization and availability levels, which is great news.

Wael Sawan: The only other thing I'd add is continued focus on the costs that we talked about earlier. As we drive competitiveness, that team is really looking at how do we hone in on the costs that actually add value and really sharpening their focus on that. You're again seeing the results of that come through.

Unknown Executive: Indeed, and thank you, Matt.

Sinead Gorman: Indeed. Thank you, Matt. Indeed, the Pavilion, what you're seeing on that slide really is us showing. There was a number of things in there. There was first and foremost that, gap basically to 2025. The Pavilion acquisition basically adds 6.4 MTPA of additional supply that helped deliver against the 15 to 25% growth we talk about in there by purchase volumes. We've got that aspect of it, but we also of course have the Ruwais LNG project, which also our share is 1 MTPA, which will help to deliver against future growth that will come as well. You'll see, roughly speaking, between now and 2025, about 2 MTPA coming in.

Unknown Executive: Indeed, the pavilion. What you're seeing on that slide really is us showing the number of things in there. There was first and foremost that gap basically to 2025, and the pavilion acquisition is beyond 6.4 mtpa of additional supply that helped deliver against the 15 to 25% growth we talked about in there about purchased volumes. We've got that aspect of it, but we also have, of course, the WHOA's LNG projects, which also our share is one mtpa, which will help to deliver against future growth that will come as well. You see, roughly speaking, between not in 2025, about two mtpa coming in, and that's helpful, of course, because we have reduced length, as you're aware, coming into the end of this year and into next year, which helps us build longer term.

Sinead Gorman: That's helpful, of course, because we have reduced length, as you're aware, coming into sort of the end of this year and into next year, which helps us just build as we go longer term. Of course, that's always helpful as those opportunities are given more and more to us. Attractive acquisition to us as we come through, particularly as we see price normalizing in terms of really back towards pre-war levels, so back to 2022 levels. Of course, we're also seeing with that a little bit of the seasonality less pronounced. We're seeing less volatility as a result and therefore less trading and optimization opportunities. That combined with reduced length means that the portfolio has been a little bit more balanced over the next couple of quarters.

Unknown Executive: But of course, that's always helpful, as those opportunities are given more and more to us.

Unknown Executive: So attractive acquisition to us, as we can through, particularly as we see price normalizing in terms of really back towards pre-war levels or back to 2022 levels. And of course, we're also seeing with that a little bit of the seasonality less pronounced. So we're seeing less volatility as a result, and therefore less trading optimization opportunities. That combined with reduced length means that the portfolio has been a little bit more balanced over the next couple of courses before we would expect the potential to see. But it depends on the opportunities that come through and how quickly we get Pavilion in.

Speaker Change: As we come through, particularly as we see price normalizing in terms of really back towards pre-war levels, so back to the 2022 levels. And of course, we're also seeing with that a little bit of the seasonality less pronounced.

Sinead Gorman: That's what we would expect potentially to see, but it depends on the opportunities that come through and how quickly we get Pavilion in. Clearly from our perspective, we look through the quarters. That's how we manage the company. It's a longer term look, and you can see that as well in how we actually deliver on the distributions as well. Thank you.

Unknown Executive: But clearly, for our perspective, we look through the courses. That's how we manage the company. It's a long-term look, and you can see that as well, and how we actually deliver on the distributions as well.

Unknown Executive: Thank you. Thank you very much.

Wael Sawan: Thank you very much, Sinead. Thank you for those questions. Can we go to the next question, please, Luke?

Unknown Executive: Thank you for those questions, and can we go to the next question, please look.

Lucas Herrmann: Our next caller is Lucas Herman from BNP. Thanks very much and congratulations on, you know, consistent delivery. I want to touch on the raised business because I guess personally I've probably tended to ignore it. It's been very steady where it had been very steady. This is the first quarter where we've actually seen a relatively sizable loss. And you know, sitting at this desk, it's incredibly difficult to get a sense of, you know, what the number would look like. So I wonder whether you could give us any help in terms of how we should think about, you know, numbers, profit loss, whatever, going forward.

Operator: Our next caller is Lucas Herrmann from BNP.

Speaker Change: Our next caller is Lucas Herrmann from BNP.

Lucas Herrmann: Yeah, thanks very much and, congratulations on, you know, consistent delivery. I want to touch on the RES business, 'cause I guess personally I've probably tended to ignore it. It's been very steady, or it had been very steady. This is the first quarter where we've actually seen a relatively sizable loss. You know, sitting at this desk, it's incredibly difficult to get a sense of, you know, what the number would look like. I wonder whether you could give us any help in terms of how we should think about, you know, numbers, profit loss, whatever, going forward. Also help us or help me better understand, you know, what comprises the $17 to 18 billion or so, you know, capital that's tied in that business.

Lucas Herrmann: Yeah, thanks very much and congratulations on, you know, consistent delivery. I want to touch on the res business because I guess personally I've probably tended to ignore it. It's been very steady.

Lucas Herrmann: And also help us to help me better understand, you know, what comprises the 1718 billion, also, you know, capital that's tied in in that business.

Lucas Herrmann: And another slightly abstract question. But I'm sure you're conscious or you've seen E and I looked at divester part of its mobility business over the course of the last several weeks. And I'd say a pretty attractive multiple. It obviously highlights, you know, the inherent value in your business, not least the marketing business, which I know you're aware. What's it lead you in terms of thinking of ways of perhaps more rapidly or more aggressively realizing the potential of the marketing assets, which obviously old stock markets trade are substantially higher multiples than the parent does. Thanks very much.

Lucas Herrmann: Another slightly abstract question, but I'm sure you're conscious or you've seen Eni look to divest a part of its mobility business over the course of the last several weeks, as I say, a pretty attractive multiple. It obviously highlights, you know, the inherent value in your business, not least the marketing business, of which I know you're aware. Where does it lead you in terms of thinking of ways of perhaps more rapidly or more aggressively realizing the potential of, you know, the marketing assets, which obviously on stock markets trade at substantially higher multiples than the parent does? Thanks very much.

Lucas Herrmann: Lucas, thank you for those two questions.

Wael Sawan: Lucas, thank you for those two questions. Did you want to take the RES question first?

Lucas Herrmann: Did you want to take the res question for us? Very happy to. So, with respect to the res portfolio, there's two elements to your questions. First of all, on the result, Lucas there as well. So you're right in the sense that this quarter, which you saw was numbers which were much more around this medium term expected range per previous guidance, but actually these last couple of quarters, we've just seen exceptional volatility. And we've seen, as a result, quite high results coming through this quarter. We saw basically, you know, from a range of things, you're having plenty of long, some of the gas, not much volatility, playing I'd lower generation, etc.

Sinead Gorman: Sure. Very happy to. With respect to the RES portfolio, there's two elements to your question. First of all, on the result, Lucas, there as well. You're right in the sense that this quarter, what you saw was numbers which were much more around the sort of medium-term expected range per previous guidance. Actually, these last couple of quarters, we've just seen exceptional volatility, and we've seen, as a result, quite high results coming through. This quarter, we saw basically, you know, from a range of different things, Europe having plenty of, you know, being long some of the gas, not much volatility playing out, lower generation, et cetera. All of it played into very little T&O or trading and optimization opportunities, and that's where it occurred.

Speaker Change: This quarter we saw basically, you know, from a range of different things, Europe having plenty of, you know, being long on some of the gas, not much volatility playing out, lower generation, etc. All of it played into very little T&O, or trading and optimization opportunities, and that's where it occurred. The second part of your question was...

Lucas Herrmann: All of it played into very little TNO or trading optimization opportunities. And that's where it occurred.

Lucas Herrmann: The second part of your question was off; your first part was the run, the capital employees, and how much is sitting there. Of course, there's a culmination of things in there that is both the the assets that we've invested in, whether those are the wind farms or the solar aspects in there, but there's also a healthy amount of working capital that tends to sit in there. That's what causes the volatility as you go through. Lucas, because the volatility is of course linked, or sorry, the working capital is linked to the volatility around the TNO business that we have in there, so you'll see that very and that's why you see the numbers come in and I quarter on quarter.

Sinead Gorman: The second part of your question was, or your first part was around, the capital employed and how much is sitting there. Of course, there's a combination of, things in there. There's both the assets that we've invested in, whether those are the wind farms or the solar aspects in there, but there's also a healthy amount of working capital that tends to sit in there. That's what causes the volatility as you go through, Lucas, because the volatility is of course linked, or sorry, the working capital is linked to the volatility around the T&O business that we have there. You'll see that vary, and that's why you see the numbers come in and out quarter on quarter.

Lucas Herrmann: The assets that we've invested in, whether those are the wind farms or the solar aspects in there, but there's also a healthy amount of working capital that tends to sit in there. That's what causes the volatility as you go through, Lucas, because the volatility is, of course, linked.

Lucas Herrmann: Thank you, Shaneid. So Shaneid, I don't, I don't know if you can hear. Just to get a sense of, look, how do I think about the base level of profitability in that business then going forward? Is Q3's level something I should be thinking, okay, probably three or four times that is what you're going to be doing for the time being. So what I would say. What you've seen in the last couple of quarters have been high, so I've going for Q2 is basically close to zero or slightly negative. That's what we would expect to see on average with high volatility into the market.

Wael Sawan: Thank you, Sinead. To your second-

Lucas Herrmann: Sinead, I don't know if you can hear. Just to get a sense of, look, how do I think about the base level of profitability in that business then going forward? Is Q3's level something I should be thinking, okay, broadly 3, 4 times that is what you're going to be doing for the time being?

Speaker Change: I don't know if you can hear, just to get a sense of, look, how do I think about the base level of profitability in that business then going forward. Is Q3's level something I should be thinking, okay, broadly three, four times that is what you're going to be doing for the time being?

Sinead Gorman: What I would say is.

Lucas Herrmann: Give me a steer, please.

Sinead Gorman: Yeah. Lucas, what you've seen in the last couple of quarters have been high. I would go for, you know, Q2 is basically close to zero or slightly negative. That's what we would expect to see on average without volatility in the market.

Speaker Change: So what I would say is, yeah, so Lucas, what you've seen in the last couple of quarters have been highs, so I'd go for, you know, Q2 is basically close to zero or slightly negative. That's what we would expect to see on average without volatility into the market.

Lucas Herrmann: Thank you for that, Shaneid.

Unknown Executive: And that's something for another day to discuss. But at this stage, it's all about how we turn that business's full potential around. Thank you very much, Lucas. Luke, can we go to the next question, please? Thank you very much.

Wael Sawan: Thank you for that, Sinead. Lucas, to your second question on mobility in general. As you know, what we have said in this first sprint is first and foremost, we want to change the culture of the company, reduce costs, get tighter on capital, and we want to rebuild the confidence in some of the underperforming parts of our business. One of which at the time we felt was marketing, including mobility, and that's why we have spent a lot of time, and we've talked about this as well, on how we can enhance that. We're doing a few things in the mobility business, which in my mind are no regret.

Lucas Herrmann: Lucas, to your second question on mobility in general, as you know, what we have said in this first sprint is, first and foremost, we want to change the culture of the company, reduce costs, and get tighter on capital. And we want to rebuild the confidence in some of the underperforming parts of our business, one of which at the time we felt was marketing, including mobility. And that's why we have spent a lot of time, and we've talked about this as well on how we can enhance that. So we're doing a few things in the mobility business, which in my mind are no regret.

Speaker Change: Thank you for that. Sinead, Lucas, to your second question on mobility in general. As you know, what we have said in this first Sprint

Speaker Change: is first and foremost we want to change the culture of the company, reduce costs, get tighter on capital.

Lucas Herrmann: That's a business that today is a Rwachi that's under 10% and is a business that should be looking at the Rwachi that's closer to double digit mid teens. And so what we're trying to do there, and you, by the way, start to see some of that coming through in the second quarter results, is really focused on a value over volume strategy. And you've seen that with enhanced margins, we're looking at premiumization, so setting more of the premium products that we can. We've taken costs out of that business of late, and that's helping us start to really improve the bottom line.

Wael Sawan: That's a business that today is a ROACE that's under 10% and is a business that should be looking at a ROACE that's closer to double digit, mid-teens. What we're trying to do there, and you by the way start to see some of that coming through in the Q2 results, is really focus on a value over volume strategy. You've seen that with enhanced margins. We're looking at premiumization, so selling more of the premium products that we can. We've taken costs out of that business as of late, and that's helping us start to really improve the bottom line. We are indeed also divesting tail assets that no longer have a place in our portfolio. We've announced Pakistan as an example, South Africa, Mexico, and others.

Lucas Herrmann: And we are indeed also divesting tail assets that no longer have a place in our portfolio. We've announced Pakistan as an example, South Africa, Mexico, and others. So what we're doing in this sprint is really getting these businesses to their full potential; that, of course, does not exclude, which we will always be looking at. How do we continue to create maximum value and unlock the full value for our shareholders from holding some of these assets or not. And that's something for a future date to discuss, but at this stage, it's all about how do we turn around that business that it will put in.

Wael Sawan: So what we're doing in this sprint is really getting these businesses to their full potential. That, of course, does not exclude, which we will always be looking at, how do we continue to create maximum value and unlock the full value for our shareholders from holding some of these assets or not? That's something for a future day to discuss. At this stage, it's all about how do we turn around that business to its full potential. Thank you very much, Lucas. Luke, can we go to the next question, please?

Lucas Herrmann: Thank you very much, Lucas.

Unknown Executive: Luke, can we go to the next question, please?

Irene Himona: Our next caller is Irene Himona from Societia General. Thank you very much, Jonathan, and both. My first question is on the German biofuels plant Consolation, clearly one of those capital projects that did not offer you the returns required.

Operator: Our next caller is Irene Himona from Société Générale.

Unknown Executive: Good afternoon, both. My first question is on the German biofuels plant cancellation. Clearly, one of those capital projects that did not offer you the returns required. I just wanted to understand what was the role behind that decision, the role of the technology chosen initially as being a problem versus the parent oversupplied European biofuels market, and also how you see that market evolving in the next few years.

Irene Himona: Thank you very much. Good afternoon, both. My first question is on the German biofuels plant cancellation. Clearly one of those capital projects that did not offer you the returns required. I just wanted to understand what was the role behind that decision, the role of the technology chosen initially as being a problem versus the current oversupplied European biofuels market, and also how you see that market evolving in the next few years. My second question, clearly you're very successfully moving to deliver the 20 to 30% LNG growth, which you targeted last year. Of course, globally, the LNG markets will have something like 45% of new capacity in the next two or three years.

Irene Himona: I just wanted to understand what was the role behind that decision, the role of the technology chosen initially has been a problem versus the parent of a supplied European biofuels market and also how you see that market evolving in the next few years. My second question, clearly you're very successfully moving to deliver the 23% LNG growth which you targeted last year. Of course, globally the LNG markets will have something like 45% of new capacity in the next two or three years.

Unknown Executive: My second question is, clearly, you're very successfully moving to deliver the 20-30% LNG growth which you targeted last year. Of course, globally, the LNG markets will have something like 45% of new capacity in the next two or three years. Can you share your thoughts on that? And this is already today, by the way, a very profitable business for us. Last year alone, we sold some 9.7 billion liters of it, or we blended it with many of the products that we sell to our customers in our worldwide networks, a third of which, by the way, came from Haizen, which is our joint venture with Kosan.

Speaker Change: Such percent LNG growth, which you've targeted last year of course globally. The LNG markets will have something like 45% of new capacity in the next two or three years can you share your thoughts around.

Irene Himona: Can you share your thoughts around the impact you see on Integrated Gas from what may well be material weakness in spot gas prices for a couple of years? Thank you.

Irene Himona: Can you share your thoughts around the impact you see on integrated gas from what may well be material weakness in start gas prices for a couple of years?

Speaker Change: But do you see on integrated gas from what may well be material weakness seen in spot gas prices for a couple of years. Thank you. Thank you Ryan let me take both of those I think starting with the Biofuels one I'd I'd start off by once again sort of just emphasizing the funding.

Unknown Executive: Thank you. Let me take both of those.

Wael Sawan: Thank you, Irene. Let me take both of those. I think starting with the biofuels one. I'd start off by once again, sort of just emphasizing the fundamental conviction we have in this biofuels business overall. This is already today, by the way, a very profitable business for us. Last year alone, we sold some 9.7 billion liters, or we blended it with many of the products that we are selling to our customers in our worldwide networks. A third of which, by the way, came from Raízen, which is our joint venture with Cosan. We still very much like the business. I don't think we could separate the complexity of the plant, the engineering and the like from where the market conditions are.

Unknown Executive: I think starting with the biofuels one, I'd start off by once again sort of just emphasizing the fundamental conviction we have in this biofuels business overall. And this is already today, by the way, a very profitable business for us. Last year alone we sold some 9.7 billion liters of, or we blended it with many of the products that we are selling our customers in our worldwide networks. A third of which, by the way, came from Hyzen, which is our joint venture with Kosoa. So we still very much like the business. I don't think we could separate the complexity of the plant, the engineering, and the like from where the market conditions are.

Speaker Change: Mental conviction, we have in this biofuels business overall.

Speaker Change: And this is already today by the way a very profitable business for US last year alone. We sold some $9 7 billion liters of or we blended it with many of the products that we are selling our customers and our worldwide networks are a third of which by the way came from highs and which is our joint venture with close on that so we still very much like the business.

Unknown Executive: So we still very much like the business. I don't think we can separate the complexity of the plant, the engineering, and the like from where the market conditions are. We have a value tracking system as part of this sort of cultural evolution that we've referred to as we aim to be superior allocators of capital. We have implemented this system. And what that has shown us is, given market conditions and given some of the challenges we were seeing in the facility itself, including engineering and execution, that it was time to pause, not to stop, but to pause, to really just reflect on that incremental dollar of capital that we want to spend. Is this the best place to spend it?

Speaker Change: I don't think we can separate the complexity of the plant the engineering and the like from where the market conditions are we have a value tracking system as part of this sort of cultural evolution that we've referred to as we aim to be superior allocators of capital. We have implemented this the system and what that has shown us.

Unknown Executive: We have a value tracking system as part of this sort of cultural evolution that we've referred to as we aim to be superior allocators of capital. We have implemented this system, and what that has shown us is given market conditions and given some of the challenges we were seeing in the facility itself, including engineering and execution. That it was time to pause, not to stop, to pause, to really just reflect on for that incremental dollar of capital that we want to spend. Is this the best place to spend it, or in a market where many of these asset prices have come down?

Wael Sawan: We have a value tracking system as part of this sort of cultural evolution that we've referred to as we aim to be superior allocators of capital. We have implemented this system. What that has shown us is, given market conditions and given some of the challenges we were seeing in the facility itself, including engineering and execution, that it was time to pause. Not to stop, but to pause. To really just reflect on, for that incremental dollar of capital that we want to spend, is this the best place to spend it? Or in a market where many of these asset prices have come down, we could look at other options and be able to source the molecules we need in different ways. Remember, today we are somewhere around 10 times, selling 10 times what we actually produce.

Speaker Change: Is given market conditions and given some of the challenges we were seeing in the facility itself, including engineering and execution.

Speaker Change: That it was time to pause not to stop at the polls to really just reflect on for that incremental dollar of capital that we want to spend is this the best place to spend it or in a market where many of these asset prices have come down we could look at other options and be able to source the molecules we need in different ways remember today we.

Unknown Executive: Or, in a market where many of these asset prices have come down, we could look at other options and be able to source the molecules we need in different ways. Remember, today we are somewhere around 10 times, selling 10 times what we actually produce. And so I wouldn't separate it, Irena, between the two as clearly as that.

Unknown Executive: We could look at other options and be able to source the molecules we need in different ways. Remember, today we are somewhere around 10 times selling 10 times what we actually produce. And so I wouldn't, I wouldn't separate it. I ran in between between the two as clearly as that. It wasn't this or that. It was the sum total of the value proposition that we saw to your question around where the market goes.

Speaker Change: Are somewhere around 10 times, our selling 10 times, what we actually produce and so I wouldn't I wouldn't separate irina between between the two as as clearly as that it wasn't this or that it was the sum total of the value proposition that we so to your to your question around where the market goes a big question Mark in my mind at the heart of this market.

Wael Sawan: I wouldn't separate it, Irene, between the two as clearly as that. It wasn't this or that. It was the sum total of the value proposition that we saw. To your question around where the market goes, big question mark in my mind. At the heart of this market is mandates. With the softening mandates that we have seen, or the retrenchment in certain mandates, plus the oversupply, it's clear that steel or biorefining is not where you're going to make a lot of money right now. But you can still create value through the entire value chain.

Unknown Executive: It wasn't this or that; it was the sum total of the value proposition that we saw. To your question about where the market goes, a big question mark in my mind. At the heart of this market is the mandate. And so with the softening mandates that we have seen, or the retrenchment in certain mandates, plus the oversupply, it's clear that steel or biorefining is not where you're going to make a lot of money right now.

Unknown Executive: Big question mark in my mind at the heart of this market is mandates. And so with the softening mandates that we have seen, or the retrenchment in certain mandates, plus the oversupply. It's clear that steel or bio refining is not where you're going to make a lot of money right now. But you can still create value through the entire value chain, and we are looking to strategically position ourselves in parts of the value chain where we think we can create longer term value. And to make sure that that capital is deployed in the best way possible.

Speaker Change: As mandates and so with the softening mandates that we have seen a or the retrenchment in certain mandates plus the oversupply, it's clear that steel or by refining is not where you're going to make a lot of money right now but.

Unknown Executive: But you can still create value through the entire value chain, and we are looking to strategically position ourselves in parts of the value chain where we think we can create longer-term value and to make sure that that capital is deployed in the best way possible. Our next caller is Peter Low from Redmond Atlantic. Hi, thanks.

Speaker Change: But you can still create value through the entire value chain and we are looking to strategically position ourselves in parts of the value chain, where we think we can create longer term value and to make sure that that capital is deployed in the best way possible on.

Wael Sawan: We are looking to strategically position ourselves in parts of the value chain where we think we can create longer term value and to make sure that that capital is deployed in the best way possible. On the LNG side, I don't have the luxury in my role, Irene, to look at sort of just the next 3, 4 years. In all honesty, I start from the perspective of, is this energy vector a very interesting one for us to play in? With a 50% growth trajectory between now and 2040, with this being really the only serious, credible solution that gives you both energy security as well as decarbonizing the energy system in the particular sectors in which it works, I continue to be very bullish about the role of LNG. We will go through cycles, right?

Unknown Executive: Cable.

Unknown Executive: On the LNG side, I don't have the luxury in my role; I really need to look at sort of just the next three, four years. In all honesty, I start from the perspective of, is this energy vector a very interesting one for us to play in, and with a 50% growth trajectory between now and 2040, with this being really the only serious credible solution that gives you both energy security, as well as decarbonizing the energy system in the particular sectors in which it works, I continue to be very bullish about the role of LNG. We will go through cycles; we will undoubtedly go through cycles, and cycles are a good thing for us, because we are both on the length and on the short. We have a number of supply points, we have a number of demand points, and this allows us to be able to, in the blows of the cycle, pick up well-priced supply, and in the highs of the cycle, sell to our customers and be able to build the port for you that you have seen create so much value for us and make this the leading LNG player in the world. And so I do think when I look through individual periods of time, this is a very, very strong business, and we continue to make sure that we are well balanced in the way we do this. We have, for example, Henry Hub links off-takes into Brent markets; we look at locking in long-term agreements so that we do not have the volatility of the market in the short term while still having some exposure to spot, and so on and so forth. And so I do think this is one for us where we can create opportunities where many others can't, and that plays, I think, to one of the reasons why we were successful with the pavilion energy deal as well.

Speaker Change: On the on the LNG side.

Speaker Change: I don't have the luxury and in my role I ran out to look at sort of just the next three four years in all honesty I I start from the perspective of is this energy vector a very interesting one for us to play in and with a 50% growth trajectory between now and 2040 with this being really the only serious credible solution.

Speaker Change: That gives you both energy security as well as Decarbonising the energy system in the particular sectors in which it works I continue to be very bullish about the role of LNG and we will go through cycles like we will undoubtedly go through cycles and cycles are a good thing for us because we are both on the length and on the short we have a number of <unk>.

Wael Sawan: We will undoubtedly go through cycles. Cycles are a good thing for us because we are both on the long and on the short. We have a number of supply points, we have a number of demand points. This allows us to be able to, in the lows of the cycle, pick up well-priced supply, and in the highs of the cycle, sell to our customers and be able to build the portfolio that you have seen create so much value for us and makes us the leading LNG player in the world. I do think when I look through you know, individual periods of time, this is a very, very strong business. We continue to make sure that we are well-balanced in the way we do this. We have, for example, Henry Hub linked offtakes into Brent markets.

Speaker Change: Supply points, we have a number of the main points and this allows us to be able to end the lows of the cycle pick up a well priced supply and then the highs of the cycle sell to our customers and be able to build the port for you that you have seen creates so much value for us and makes us the leading LNG player in the world and so yeah I.

Speaker Change: I do think when.

Speaker Change: When I when I look through it.

Speaker Change: Individual periods of time. This is a very very strong business and we continue to make sure that we are well balanced in the way. We do this we have for example, Henry hub linked offtake into Brent markets. We look at them at locking in long term agreements. So that we do not have the volatility of the market in the short term.

Wael Sawan: We look at locking in long-term agreements so that we do not have the volatility of the market in the short term, while still having some exposure to spot, and so on and so forth. I do think this is one for us where we can create opportunities where many others can't, and that plays, I think, to one of the reasons why we were successful with the Pavilion Energy deal as well. Thank you very much for the question, Irena. Luke, can we go to the next question, please?

Speaker Change: While still having some exposure to spot and so on and so forth and so I do think this is one for us where we can create opportunities where many others can't and that plays I think to one of the reasons why we were successful with the pavilion energy deal as well.

Unknown Executive: Thank you very much for the question, Irene.

Speaker Change: Thank you very much for the question Irina.

Peter Low: Luke, can we go to the next question, please? Our next caller is Peter Lowe from Redbonn Atlantic. Hi, thanks. The first one on marketing, at the time of the 2Q Update note, you expected earnings to be in line with Wong2, what ended up coming in better than you had expected, which led to the strong result? And then perhaps as quickly on the dividend, you can commit it to the 4% per annum growth, but the share counted and your rising 6% lower, thanks to the buyback. Will that be a consideration when the board considers the next increase, and is it too simplistic to simply think of it as one of those numbers across the other?

Speaker Change: Can we go to the next question please.

Operator: Our next caller is Peter Low from Redburn Atlantic.

Speaker Change: Our next caller is Peter low from Redburn Atlantic.

Unknown Executive: The first was on marketing. At the time of the 2Q update note, you expected earnings to be in line with 1Q. What ended up coming in better than you had expected, which led to the strong result? And then, perhaps as quickly as on the dividend, you committed to the 4% per annum growth, but the share counted annualizing 6% lower thanks to the buyback. Will that be a consideration when the board considers the next increase? And is it too simplistic to simply think of it as one of those numbers plus the other?

Peter Low: Hi. Thanks. The first one on marketing. At the time of the Q2 update note, you expected earnings to be in line with Q1. What ended up coming in better than you had expected, which led to the strong result? Perhaps just quickly on the dividend, you have committed to the 4% per annum growth, but the share count is annualizing 6% lower, thanks to the buyback. Will that be a consideration when the board considers the next increase, and is it too simplistic to simply think of it as one of those numbers plus the other? Thanks.

Peter Low: Hi, Thanks. This is with no marketing at the time of the QQ update Nate you expected earnings to be in line with walking what ended up coming in better than you had expected, which led to a strong result.

Speaker Change: And then perhaps just quickly on the dividend.

Speaker Change: I'm committed to the 4% goes but the share count is annualizing, 6% lower thanks to the buyback will that be a consideration when the board considers the next increase is it too simplistic to simply think of it as one of those numbers plus the other thanks.

Sinead Gorman: Thanks. Thank you for that. Peter, do you want to take this too, Sinead?

Peter Low: Thanks.

Unknown Executive: Thank you for that, Peter. Do you want to take the institution in? Yes, absolutely.

Wael Sawan: Thank you for that, Peter. Do you wanna take those two, Sinead?

Speaker Change: Thank you for that Peter do you want to take those two yes, absolutely and I may have to ask the second one again.

Sinead Gorman: Yes. Absolutely. I may have to ask for the second one again, if the team could just type up what the question was there for me. In terms of the marketing side of things, Peter, yeah, really pleased with how the results showed up. As you saw, just premium volumes coming through really strongly towards at the end of the quarter. Difference between what we said in the quarterly update note and what actually you saw coming through, it was higher. Definitely the right way to go, and it's just in the same way as with other segments, you often have moves as you close the books. For example, in our chemicals and products business, of course, you saw that some of the trading managing the flows between those segments moves between them.

Unknown Executive: And I may have to ask the second one again if the team could just type up what the question was there for me. In terms of the marketing side of things, Peter, really peace with either results showed up as you saw just premium volumes coming through and coming through really strongly towards the end of the quarter. Difference between what we said in the quarter, the update note, and what actually you saw coming through; it was higher, definitely the right way to go. And in the same way as with other segments, you often have moves as you close books. For example, in our chemicals and products business.

Speaker Change: It's the team could just hype up what the question was that for me and in terms of the marketing side of things Peter and Yeah really piece of either results showed up as you saw just premium volumes coming through and coming through really strongly towards at the end of the the quarter difference between what we said and of course, the update and I wish him well actually you saw coming through was higher definitely the right way.

Speaker Change: Got it and then just in the same way as with other segments you often have moves as you kind of specs for example in our.

Speaker Change: Chemicals and products business of course, you saw some of the trading managing the flows between the segments moves between them and that's really what our cars and we see it between Ras our renewables business, our CMP business on marketing so when legal I T of course, we gave our expectations of where it's going to be but we haven't closed the books and we haven't all the catheter Cross says what you typically see at the top level.

Unknown Executive: Of course, you saw that some of the trading managing the flows between those segments moves between them. That's really what it occurs, and we see it between res or renewables business or CNP business on marketing. So when we go out to you, of course, we give our expectations of where it's going to be, but we haven't closed the books, and we haven't allocated across those. But we typically see at the top level at the shell, it's at the right number, and it's just high trading gets allocated across it. So yes, marketing was a bit higher, but overall, really, really pleased with those results.

Sinead Gorman: That's really what occurs, and we see it between RES, our renewables business, our CMP business, and marketing. When we go out to you, of course, we give our expectations of where it's going to be, but we haven't closed the books, and we haven't allocated across those. What you typically see at the top level, at the Shell, it's at the right number, and it's just how trading gets allocated across it. Yes, marketing was a bit higher, but overall, really, really pleased with those results. Not only the premium volumes, but as Wael was talking to you earlier, but just the moves that business are making in terms of high-grading the portfolio, but also ensuring they go after OpEx really, really firmly.

Speaker Change: The shell is that the right number and then it's just high it's high trading gets all of the cases across it. So yes marketing was a bit higher but overall really really pleased with those results.

Sinead Gorman: Yes, absolutely. And I may have to ask the second one again, if the team could just type up what the question was for me. In terms of the marketing side of things, Peter, yeah, really pleased with how the results showed up, as you saw just premium volumes coming through and coming through really strongly towards the end of the quarter. The difference between what we said in the quarterly update note and what you actually saw coming through was higher, definitely the right way to go. And it's just in the same way as with other segments; you often have moves as you close the books.

Sinead Gorman: For example, in our chemicals and products business, of course, you saw that some of the trading managing the flows between those segments moves between them. That's really what happens, and we see it between RES or renewables business, our C&P business, and marketing. So when we go out to you, of course, we give our expectations of where it's going to be, but we haven't closed the books, and we haven't allocated across those. But what you typically see at the top level, at the shell, it's at the right number, and it's just how trading gets allocated across it.

Unknown Executive: Not only premium volumes, but as well as talking to you earlier, but just the moves that that business are making in terms of high grading the portfolio, but also ensuring they go after all banks really, really firmly.

Speaker Change: These premium volumes, but as wild as talking to are there, but just the moves that that business I'm, making in terms of high grading the portfolio, but also ensuring they go after opex really really firmly the second question I'm just being that notion here is you talked about the share buybacks, leading to an increase every time et cetera announcing can you link the two no you can't.

Sinead Gorman: So yeah, marketing was a bit higher, but overall, really, really pleased with those results. Not only the premium volumes, but, as Wael was talking about earlier, but just the moves that that business is making in terms of high-grading the portfolio, but also ensuring they go after OPEX really, really firmly. The second question I'm just being noted here is, you talk about share buybacks leading to an increase over time and etc. on that. And can you link the two? No, you can't.

Unknown Executive: The second question I'm just being noted here is you talk about the share buybacks leading to an increase every time, et cetera on that. And can you link the two? No, you can't. Here's the answer. So what you see with us, of course, is we've been very open and honest about the fact that we have a 4% dividend, aggressive dividend that comes through on that. And with the share buybacks, what we're looking at is basically about allocation of value. This is where do we put capital to the most value-acquietive area? So what you see us doing, of course, is really trying to do that drum beat, that consistency.

Sinead Gorman: The second question I'm just noting here is you talk about the share buybacks leading to an increase over time and et cetera on that, and can you link the two? No, you can't. Here's the answer. What you see with us, of course, is we've been very open and honest about the fact that we have a 4% dividend, a progressive dividend that comes through on that. With the share buybacks, what we're looking at is basically about allocation of value. This is where do we put capital to the most value-accretive area. What you see us doing, of course, is really trying to do that drum beat, that consistency. You're seeing, of course, that this is the 11th quarter of over $3 billion of share buybacks.

Speaker Change: His answer so what did you see with US of course is we've been very open and honest about the fact that we have a 4% dividend.

Speaker Change: Rest of dividend that comes through on that with the share buybacks. What we're looking at is basically by its allocation of value.

Speaker Change: This is where do we put capital to the most value accretive.

Speaker Change: So what you see us doing of course is really trying to do that drumbeat that consistency youre, saying of course. This is the 11th quarter of over 3 billion of share buybacks and actually since Q3 of last year with a three and a half billion of buybacks as well. So we continue to do that and allocate accordingly and of course, what you also see is that there's nothing.

Unknown Executive: You're seeing, of course, what this is: the 11th quarter of over 3 billion of share buybacks. So actually, since Q3 of last year, we're doing 3.5 billion of buybacks as well. So we continue to do that and allocate accordingly. And, of course, what you also see is there's nothing particularly unusual about it. If we have to borrow and we see through a quarter, which we did in Q4, you see that coming through as well. So, whilst the share price is where it is, you'll see us continue to go after the share buybacks.

Sinead Gorman: Actually since Q3 of last year, we're doing $3.5 billion of buybacks as well. We continue to do that and allocate accordingly. Of course, what you also see is there's nothing particularly unusual about it. If we have to borrow and we see through a quarter, which we did in Q4, you see that coming through as well. While the share price is where it is, you'll see us continue to go after those share buybacks. Thank you.

Speaker Change: Particularly unusual about it if we have to borrow and we see three a quarter, which we did in Q4 and you see that coming through as well so lots of share prices, where it is you'll see us continue to go after the share buybacks. Thank you. Thank you. She Nate look let's go to the next question. Please.

Unknown Executive: Thank you.

Unknown Executive: Thank you so much.

Sinead Gorman: Here's the answer. So what you see with us, of course, is that we've been very open and honest about the fact that we have a 4% dividend, a progressive dividend that comes through on that. With share buybacks, what we're looking at is basically about the allocation of value. This is where do we put capital into the most value acquisitive area. So what you see us doing, of course, is Thank you, Sinead. Luke, let's go to the next question. Our next caller is Josh Stone from UBS. Thanks, Ian. Good afternoon,

Wael Sawan: Thank you, Sinead. Luke, let's go to the next question, please.

Unknown Executive: Bruce, let's go to the next question. Please.

Kim Fustier: Our next caller is Josh Stone, from UBS.

Operator: Our next caller is Josh Stone from UBS.

Speaker Change: Our next caller is Josh stone from UBS.

Kim Fustier: Yes, thanks. I'm Josh Nune. Two questions, please. If I just wanted to ask about a liquid trading in the product version, it was another good call to the Shell and liquid trading. I'm curious to talk about what some of the drivers for that were, the appearance of outforms, some of the appears at least, and this is more like products or crude, and anything to think about for the outlook on that part of the business.

Unknown Executive: Two questions, please. First, I just wanted to ask about liquids trading and the products version. It was another good quarter for Shell in liquids trading. Can you talk about what some of the drivers for that were?

Josh Stone: Yeah, thanks. Hi, and good afternoon. Two questions, please. First, I just wanted to ask about liquids trading in the products division. It was another good quarter for Shell in liquids trading. Can you just talk about what some of the drivers for that were? You appear to have outperformed some of your peers at least. Is this driven more by products or crude, and anything to think about for the outlook on that part of the business? Secondly, I did want to follow up on CapEx. Clearly, you have been reducing some investment inside the organization, and I appreciate there's some seasonality as well, but how comfortable would you say Shell is at this rate of spending? Do you think, you know, this level of activity is enough to sustain cash flow? Thanks.

Josh Stone: Yeah, Thanks, Sean and good afternoon two questions. Please first of all does it.

Speaker Change: Ask about liquids trading in the products Division. It was another good quarter of a shut in of course trading.

Unknown Executive: Your peers have outperformed some of your peers, at least. Is this driven more by products or crude and anything to think about for the outlook on that part of the business? Secondly, I did want to follow up on Capex. Clearly, you have been reducing some investment inside the organization, and I appreciate the seasonality as well. But how comfortable would you say Shell is at this rate of spending?

Speaker Change: You took out some of the drivers for that will you pitch about from some of your peers at least it's a strip more products or crude and think about the outlook on that part of the business.

Kim Fustier: Secondly, I did want to follow up on CapEx. Actually, you have been reducing some investments by the organization, and I appreciate the sense of seasonality as well, but how comfortable would you say, Shell, is at this rate of spending? Do you think this level of activity is enough to sustain cash flow? Thanks. Thank you very much.

Speaker Change: Secondly, I took one follow up on Capex clearly you have been reducing some investments like the organization and I appreciate the seasonality as well, but how comfortable would you say shell is that the spreads spending do you think this level of activity is enough to sustain cash flow. Thanks.

Unknown Executive: Do you think this level of activity is enough to sustain cash flow? Thanks. Thank you very much.

Sinead Gorman: Do you want to take this? I'd be happy to. I'll start with the second one with respect to CapEx and actually just link to that. So in terms of the spend level, it is not a linear spend level. So that was the discussion that we had earlier. So I wouldn't take the first half of the year as being indicative as to just doubling it and where we will end up. That is not the case,

Speaker Change: Yeah.

Wael Sawan: Thank you very much. Do you wanna take this?

Unknown Executive: Do you want to dig this? Happy to. I'll start with the second one with respect to CapEx, and I actually just linked to that. So, in terms of the spend level, it is not a linear spend level. So, that was the discussion that we had earlier, so I wouldn't take the first half of the year as being indicative as to just doubling it and where we will end up; that is not the case. So, as you say, we will have, and you rightly point out that we will have different payments as we come through. Are we comfortable with where we are?

Speaker Change: Thank you very much do you want to take this happy to I'll start with the second one with respect to Capex and actually just linked to that.

Sinead Gorman: Yep. Happy to. I'll start with the second one with respect to CapEx. Actually just link to that. In terms of the spend level, it is not a linear spend level. That was the discussion that we had earlier. I wouldn't take the first half of the year as being indicative as to just doubling it from where we will end up. That is not the case. As you say, we will have. You rightly point out that we'll have different payments as we come through. Are we comfortable with where we are? Absolutely. You know, we have a very healthy range of $22 to 25 billion. As you can see, this isn't about underinvesting.

Speaker Change: Okay.

Speaker Change: In terms of the spend level. It is not a linear spend levels. So that was the discussion that we had hired here. So I wouldn't take the first half of the year as being indicative has changed just doubling it from where we will end up that is not the case. So as you say, we will have and you rightly pointed out that we will have different payments as they come through.

Sinead Gorman: So, as you say, and you rightly point out, we will have different payments as we go through. Are we comfortable with where we are? Absolutely. You know, we have a very healthy range of 22 to 25 billion.

Speaker Change: Are we comfortable with where we are absolutely and you know we have a very healthy range of 20 to 25 billion and as you can see this isn't about under investing we're making very significantly as we go through whether that's the waste, which you've just saw coming through on the LNG side, whether it's pavilion as the transaction whether its the F ideas that we've taken numerous ones of them such as.

Unknown Executive: Absolutely. We have a very healthy range of 22 to 25 billion, and as you can see, this isn't about under-investing. We're making very significant moves as we go through, whether that's Who Waste, which you've just saw coming through on the LNG side, whether it's Pervillion as a transaction, whether it's the FIDs that we've taken numerous ones of them, such as Refine 2, which of course is the hydrogen plant in Germany, whether you also see it come through as Polaris in terms of CCUS in Canada as well. So, the considerable investment going into this company, and I'll be comfortable with the cash flow, absolutely.

Sinead Gorman: And as you can see, this isn't about under investing; we're making very significant moves as we go through, whether that's waste, which you've just seen coming through on the LNG side, whether it's pavilion as a transaction, whether it's the FIDs that we've taken numerous ones of them, such as refined to, which, of course, is the hydrogen plant in Germany, whether you also see it come through as Polar So there is a considerable investment going into this company. And are we comfortable with the cashless? Absolutely not. You saw us, of course, through CMD giving you a number of targets.

Sinead Gorman: We're making very significant moves as we go through, whether that's waste, which you've just saw coming through on the LNG side, whether it's Pavilion Energy as a transaction, whether it's the FIDs that we've taken numerous ones of them, such as REFHYNE II, which of course is the hydrogen plant in Germany, whether you also see it come through as Polaris in terms of CCUS in Canada as well. There's considerable investment going into this company. Are we comfortable with the cash flows? Absolutely. You saw us, of course, through CMD give you a number of targets. Actually, we only gave you four financial targets at the end of the day, but two of those were linked to free cash flow. Of course, that's what we're managing overall. That's the second one.

Speaker Change: Refine to which of course is the hydrogen plant and in Germany, whether you also see it come through as Polaris in terms of C. C U S and Canada as well so there's considerable investment going into this company and I will be comfortable with the cashless absolutely you source of course through CMT and give you a number of targets actually we only gave you four financial targets at the end of the.

Unknown Executive: You saw us, of course, through CMD, give you a number of targets. Actually, we only give you four financial targets at the end of the day, but two of those were linked to free cash flow. Of course, that's what we're managing overall.

Sinead Gorman: Actually, we only give you four financial targets at the end of the day, but two of those are linked to free cash flow. And, of course, that's what we're managing overall. So that's the second one.

Speaker Change: But she is willing to free cash flow and of course, that's what we're managing over I'll say so that's the second one and then of course, we will continue to give you updates as we go through sorry on that first one in terms of how we're making those targets, but great progress so far.

Unknown Executive: So, that's the second one, and of course, we will continue to give you up to as we go through. Sorry, on that first one in terms of how we're meeting those targets, but great progress so far.

Sinead Gorman: And of course, we will continue to give you updates as we go through, sorry, on that first one in terms of how we're meeting those targets, but great progress so far. Your second question was around liquids trading and overall, and that flowed through really in our chemicals and products segment. In Q2, it was very strong. It was driven by a combination of both crude oil and products there. What I would say, of course, is that products were slightly less than crude, and that's just due to less volatility because we're seeing those tensions from both the Middle East and the Red Sea in the last quarter were a little bit more dampened than they had been the quarter before. We'll see how it plays out in the future. I certainly won't predict around that one.

Sinead Gorman: Of course, we will continue to give you updates as we go through. Sorry on that first one in terms of how we're meeting those targets, but great progress so far. Your second question was around liquids trading and, overall, and that flows through really in our chemical and products segment. In Q2, it was very strong. It was driven by a combination of both crude and products there. What I would say, of course, is that products were slightly less than crude, and that's just due to less volatility because we're seeing those tensions from both the Middle East and Red Sea. In last quarter, we're a little bit more dampened than they have been the quarter before. We'll see how it plays out in future. I certainly won't predict around that one.

Unknown Executive: Your second question was around liquid trading, and overall, and that flowed through really in our chemical-from-product segments. In Q2, it was very strong. It was driven by a combination of both crude and products there. What I would say, of course, is that products are slightly less and crude, and that's just due to less volatility, because we're seeing those tensions from both the Middle East and Red Sea in last quarter, were a little bit more dampened than they had been the quarter before. We'll see how it plays in future.

Speaker Change: Question was around the liquids trading and an overall and and that flow through really in our chemical product segment. You can see it was it was very strong and it's driven by a combination of both crude and products. There what I would say of course is that products are slightly less in crude and that's just due to less volatility because we're seeing those tensions from both the middle East and wed see in last call.

Speaker Change: We're a little bit more dampened than they had been the quarter before we'll see how it plays nicely in future I I certainly won't protect around that one.

Unknown Executive: I certainly won't protect Orion; that one. Thank you, Shane.

Sinead Gorman: Thank you, Sinead. And Josh, thank you for the questions. Luke, let's go to the next question, please. Our final caller is Kim Fosthier from HSBC. Hi, good afternoon, and thanks for taking my questions. I've got two, please, on low-carbon businesses. Firstly, on hydrogen, you've FID'd a hydrogen electrolyzer in Germany. Is this investment purely driven or mostly driven by the RFNBO legislation, i.e., essentially, it's about avoiding cost rather than generating revenue?

Wael Sawan: Thank you, Sinead, and Josh, thank you for the questions. Luke, let's go to the next question, please.

Unknown Executive: And Josh, thank you for the questions. Look, let's go to the next question, please.

Speaker Change: And kitchenaid and Josh. Thank you for the questions look let's go to the next question. Please.

Unknown Executive: Our final caller is Kim Fustier from HSBC. Hi, good afternoon, and thanks for taking my questions. I've got two pleas on low-carbon businesses. Firstly, on hydrogen, use FID to hydrogen electrolyzer in Germany.

Operator: Our final caller is Kim Fustier from HSBC.

Speaker Change: Our final caller is Kansas Jain from HSBC.

Kim Fustier: Hi, good afternoon, and thanks for taking my questions. I've got two, please, on low carbon businesses. Firstly, on hydrogen. You've FID-ed a hydrogen electrolyzer in Germany. Is this investment purely driven or mostly driven by the RFNBO legislation, i.e., essentially it's about avoiding cost rather than generating revenue? And also curious, why you're producing your own green hydrogen rather than procuring it via tender as one of your peers is doing. Secondly, you've sanctioned the Polaris CCS project in Canada. Could you talk about the business model and the rationale for this investment? And just from a, I guess, a bigger picture perspective, where does CCS fit in the context of you scaling back in renewable power and pausing in biofuels? Thanks.

Kansas Jain: Hi, good afternoon, and thanks for taking my questions I've got two please one on low carbon businesses, especially our hydrogen U S D to hydrogen electrolyze, there in Germany, especially.

Unknown Executive: And also curious, why you're producing your own green hydrogen rather than procuring it by tender, as one of your peers is doing? Secondly, you've sanctioned the Polaris CCS project in Canada. Could you talk about the business model and the rationale for this investment? And just from, I guess, a bigger-picture perspective, where does CCS fit in the context of your scaling back on renewable power and policy in biofuels? Thanks

Unknown Executive: If this is not purely driven, or mostly driven by the RFNBO legislation, essentially it's about avoiding cost rather than generating revenue, and also curious what while you're producing your green hydrogen rather than procuring it by a tender as one of your peers is doing. Secondly, you've sanctioned the Polaris CCS project in Canada. Could you talk about the business model in the rationale for this investment?

Speaker Change: She doesn't Shirley.

Speaker Change: Mostly driven by the RMB the legislation I E.

Speaker Change: Essentially it's about it's about avoiding cost rather than generating about a year now.

Speaker Change: So curious why you're producing your own green hydrogen rather than procuring it by attending one of your peers is doing.

Speaker Change: Secondly, you sanction the Pelorus Ccs project in Canada could you talk about the business model and the rationale for this investment.

Unknown Executive: I guess a bigger picture of perspective. Where does CCS sit in the context of you scaling back in your equal power and policy and involved fuel?

Speaker Change: I guess, a bigger picture perspective, where does Ccs fit in the context of you are scaling back and you get the power and pausing and inviting them. Thanks.

Unknown Executive: Thanks. Thank you very much, Kim.

Unknown Executive: Thank you very much, Kim. Let me take the second question and then come to you for the final word, Sinead, on Refine2. Where does CCS fit into our broader strategy? And maybe just to unpack a bit your broader question around the different low carbon strands.

Wael Sawan: Thank you very much, Kim. Let me take the second question and then come to you for the final word, Sinead, on REFHYNE II. Where can CCS fit into our broader strategy? Maybe just to unpack a bit your broader question around the different low carbon strands. Firstly to say, we have talked about $10 to 15 billion of investment between 2023 and 2025 in the low carbon space. We have also said that these are nascent businesses. Spending that amount of money, we have to really be conscious of the business cases that we are driving. Critically, I would say, we are doing this for shareholder value creation.

Speaker Change: Thank you very much Kim let me take the second question and then come to you for the final word chin naved on the on refine to.

Unknown Executive: Let me take the second question, and then come to you for the final word, Sinead, on the, on Refine 2. Where does CCS can fit into our broader strategy, and maybe just unpack a bit your broader question around the different low carbon strands? First of all, we have talked about 10 to 15 billion dollars of investment between 2023 and 2025 in the low carbon space. We have also said that these are nascent businesses, suspending that amount of money. We have to really be conscious of the business cases that we are driving. And critically, I would say we are doing this for shareholder value creation.

Speaker Change: Where does Ccs can fit into our broader strategy and maybe just unpack a bit to your broader question around the.

Speaker Change: The different low carbon strands.

Unknown Executive: Firstly, to say we have talked about 10 to $15 billion of investment between 2023 and 2025. In the low carbon space, we have also said that these are nascent businesses. I will admit to you that, you know, there are certain things which we have gotten into where we said, look, let's pause, come out of, such as, for example, our power, our power home business. At one point, we got out of it, hydrogen into mobility. We've gotten out of it. So we're really trying to make sure that we lean in, we learn, and then we focus. What do we see that creates the most opportunities right now?

Speaker Change: First of all to say, we have talked about $10 billion to $15 billion of investment between 2023, and 2025 and the low carbon space. We have also said that these are nascent businesses suspending that amount of money, we have to really be conscious of the business cases that we are driving and critically I would say we are doing this.

Speaker Change: As for shareholder value creation. So we have to really be clear that we have line of sight to be able to actually get accretive value as a result of this.

Unknown Executive: So we have to really be clear that we have line of sight to be able to actually get a creative value as a result of this. What do we see that creates the most opportunities right now by fuels, as I've talked about earlier, my convictions, including, by the way, renewable natural gas, such as our nature energy platform. Green hydrogen has to come in within the right context of regulatory support.

Wael Sawan: We have to really be clear that we have line of sight to be able to actually get accretive value as a result of this. Now we are learning through the process. I will admit to you that there are certain things which we have gotten into where we said, "No, let's pause, come out of," such as, for example, our power home business. At one point, we got out of it, hydrogen into mobility. We've gotten out of it. We're really trying to make sure that we lean in, we learn, and then we focus. What do we see that creates the most opportunities right now? Biofuels, as I've talked about earlier, my convictions, including, by the way, renewable natural gas, such as our Nature Energy platform.

Speaker Change: And now we are learning through the process I will admit to you that you know there are certain things, which we have gotten into where we said, let's pause come out of such as for example, our our power our power home business at one point, we got out of it hydrogen into mobility, we've gotten out of it. So we're really trying to make sure that we we we.

Speaker Change: And we learn and then we focus what do we see that creates the most opportunities right now biofuels as I've talked about earlier my convictions, including by the way renewable natural gas such as our nature energy platform that green hydrogen has to come in within the right context of regulatory support I'll leave chine too to unpack that.

Unknown Executive: Biofuels, as I've talked about earlier, my convictions, including, by the way, renewable natural gas, such as our natural energy platform. Green hydrogen has to come in within the right context of regulatory support. I'll leave Sinead to unpack that a bit more.

Wael Sawan: Green hydrogen has to come in within the right context of regulatory support. I'll leave Sinead to unpack that a bit more. We do like the nexus of power trading, including with flex generation, so battery storage, combined cycle gas turbines, et cetera. Those are areas where we are continuing to lean in because we are now seeing that we can create value out of them. Where does CCS fit into that? CCS, we think, for the coming years, is a critical part of our own decarbonization journey to get to the 50% reduction in Scope 1 and 2. The Polaris 1, which was in Canada, is linked to our Scotford asset, where we expect to capture some 650,000 tons per year from that facility.

Unknown Executive: We do like the nexus of power trading, including with flex generation. So battery storage, combined cycle gas, turbines, et cetera. Those are areas where we are continuing to lean in because we are now seeing that we can create value out of them. Where does CCS fit into that?

Unknown Executive: I'll leave a shane to, to unpack that a bit more. We do like the nexus of power trading, including with flex generations of battery storage, combined cycle gas turbines, et cetera. Those are areas where we are continuing to lean in because we are now seeing that we can create value out of them.

Speaker Change: A bit more but we do like the nexus of power trading, including with flex generations of battery storage combined cycle gas turbines et cetera. Those are areas, where we are continuing to lean in because we are now saying that we can create value out of them, where does ccs fit into that CCM.

Unknown Executive: Where does CCS fit into that? CCS, we think in the, for the coming years, is a critical part of our own decarbonization journey to get to the 50% reduction in scope one and two. The Polaris one, which was in Canada, is linked to our Scott Ferd asset, where we expect to capture some 650,000 tons per year from that facility. And the reason we like that is we've done it in Canada before; we've done it with Quest; we've done it for that facility. So it's de-risk; we know what we're doing in that space. And the business model is one where the credits in Canada allow us to be able to create value from that, from that investment.

Unknown Executive: We think the coming years are a critical part of our own decarbonization journey to get to the 50% reduction in scope. One and two, the Polaris one, which was in Canada, is linked to our Scotford asset, where we expect to capture some 650,000 tons per year from that facility. And the reason we like that is we've done it in Canada before. We did it with Quest.

Speaker Change: Ccs, we think in the for the coming years is a critical part of our own decarbonization journey to get to the 50% reduction in scope, one and two the Polaris one which was in Canada is linked to our Scotts <unk> asset where you expect to capture some 650000 tons per year from that facility and the reason we.

Unknown Executive: We've done it for that facility, so it's de-risked. We know what we're doing in that space, and the business model is one where the credits in Canada allow us to be able to create value from that investment. So it's very much the ability to monetize some of those opportunities and to sell the products, the low carbon products, to our customers at a premium is what we go after. Did you want to touch on hydrogen? Absolutely. I think it's a great one to end on, Kim.

Wael Sawan: The reason we like that is we've done it in Canada before. We've done it with Quest. We've done it for that facility, so it's de-risked. We know what we're doing in that space. The business model is one where the credits in Canada allow us to be able to create value from that, from that investment. It's very much the ability to be able to monetize some of those opportunities and to sell the products, the low carbon products to our customers at a premium is what we go after. Did you want to touch on the hydrogen?

Speaker Change: Like that is we've done it in Canada before we've done it with quest we've done it for that facility. So it's derisked, we know what we're doing in that space and the business model is one where the credits in Canada that allow us to be able to create value from that oh from that investment.

Unknown Executive: So it's very much the ability to be able to monetize some of those opportunities and to sell the products, the low carbon products to our customers at a premium is what we go after.

Speaker Change: So it's very much the ability to be able to monetize some of those opportunities and to sell the products the low carbon products to our customers at a premium is what we go after did you want to touch on the absolutely I think it's a great one to handle Kim so refined to it's actually and that the two is important we've redone refine one in Germany. So this is this is back to you as well said.

Unknown Executive: Did you want to touch on the hub? Absolutely, I think it's a great one to hand on, Kim. So refine too, it's actually the two is important. We've already done refine one in Germany. So we've got two options here, as you say: one to sell directly towards revenue to customers, and that would be something longer term that we hope to get to. But at the moment, what we're doing is actually generating the green hydrogen for our own facilities for our own petrochemical production. And this is roughly speaking about 10% of actually our own need for hydrogen.

Sinead Gorman: So Refine 2, it's actually, and Refine 2 is important. We've already done Refine 1 in Germany. So this is back to, as Wael said, playing where we have differentiated capabilities, where we understand the technology, where we know what we need to do. And in Germany, of course, you've got the best of both worlds; you have a country which has set itself up with respect to green hydrogen in terms of incentivizing people to do so.

Sinead Gorman: Absolutely. I think it's a great one to end on, Kim. REFHYNE II, it's actually the 2 is important. We've already done REFHYNE I in Germany. This is back to, as Wael said, playing where we have differentiated capabilities, where we understand this technology, where we know what we need to do. In Germany, of course, you've got the best of all worlds. You have a country which has set itself up with respect to green hydrogen in terms of incentivizing people to do so. We've got 2 options here, as you say, 1, to sell directly towards revenue to customers, and that will be something longer term that we hope to get to. At the moment, what we're doing is actually generating the green hydrogen for our own facilities, for our own petrochemical production.

Speaker Change: Playing where we have differentiated capabilities, where we understand this technology, where we know what we need to do in Germany of course, you've got the basketball what else you have.

Speaker Change: Country, which has set itself up with respect to green hydrogen in times of incentivizing and people could you say somebody got two options here as you say one to sell directly towards revenue to customers and that'll be something longer term and that we hope to get to but at the moment. What we're doing is actually generating the green hydrogen pouring facilities for our own petrochemical production and this is roughly speaking about <unk>.

Sinead Gorman: So we've got two options here, as you say, one to sell directly to customers, and that'll be something longer term, and that we hope to get to. But at the moment, what we're doing is actually generating green hydrogen for our own facilities for our own petrochemical production. And this is roughly speaking about 10% of our own need for hydrogen. Of course, by putting green hydrogen, you're correct, we managed to avoid some costs there.

Sinead Gorman: This is roughly speaking about 10% of our own need for hydrogen. Of course, by putting green hydrogen, you're correct, we manage to avoid some cost there, but we also lower the carbon footprint of the products that we produce, which makes them more attractive to customers and allows us to sell them for higher numbers. It fits from the perspective of government incentives, a country that is very much stable and has regulations that allow you to do that. We have a capability that we already have with proven technology because we've done it before as well. This is bigger than we have done before, but at least it's something we've done. It links to our own needs and our own capabilities, allowing us to ensure that we're creating value and delivering above the hurdle rates that we want.

Speaker Change: 10% of actually our own need for hydrogen of course, my putting green hydrogen you're correct, we manage to avoid some costs there, but we also lower the carbon footprint of the products that we actually purchase which makes them more attractive to customers allows us to sell them for higher numbers. So it fits from a and the perspective of government incentives a country that is very much stable.

Unknown Executive: Of course, by putting green hydrogen, you're correct. We managed to avoid some costs there, but we also lower the carbon footprint of the products that we actually produce, which makes them more attractive to customers and lies us to sell them for higher numbers. So it fits from the perspective of government incentives, a country that is very much stable and has regulations to allow you to do that. A capability that we already have with proven technology because we've actually done it before as well. This is bigger than we have done before, but at least it's something we've done.

Sinead Gorman: But we also lower the carbon footprint of the products that we actually produce, which makes them more attractive to customers and allows us to sell them in higher numbers. So it fits from the perspective of government incentives, a country that is very stable and has regulations that allow you to do that.

Speaker Change: As regulations allow you to do that capability that we already have with proven technology, because they've actually done it before as well. This is bigger than we have done before but at least it's something we've done and then it links to our own needs and their own capabilities, allowing us to ensure that we're actually creating value and delivering above the hurdle rates that we want to thank you. Thank you and then to the point.

Unknown Executive: And then it links to our own needs and our own capabilities, allowing us to ensure that we're actually creating value and delivering above the hurdle rates that we want.

Unknown Executive: Thank you. And then to the point around why don't we buy it? I mean, I think the opportunity to continue to develop. I mean, we are the biggest player in FNG. One day these low carbon gases will actually back sell the needs of our customers there. And so what a fantastic opportunity to use our own demand to be able to develop that capability in a way that actually is accreted from a return perspective. So, Kim, thank you for that question.

Sinead Gorman: Thank you.

Wael Sawan: Thank you. To the point around why don't we buy it? I mean, I think the opportunity to continue to develop. I mean, we are the biggest player in LNG. One day, these low carbon gases will actually backfill the needs of our customers there. What a fantastic opportunity to use our own demand to be able to develop that capability in a way that actually is accretive from a returns perspective. Kim, thank you for that question. Let me thank you all for your questions and for joining the call. In conclusion, we have delivered yet another strong quarter. We announced another $3.5 billion of share buybacks, which makes this 11 quarters in a row with announced buybacks at least $3 billion.

Speaker Change: Around why don't we buy it I mean, I think the opportunity to continue to develop.

Speaker Change: Develop I mean, we we we are the biggest player in LNG. One day. These low carbon gasses will actually backfill the needs of our customers there and so what a fantastic opportunity to use our own demand to be able to develop that capability in a way that actually is accretive.

Speaker Change: From a returns perspective, so Ken.

Speaker Change: Tim. Thank you for that question and let me. Thank you all for your questions and for joining the call in conclusion, we have delivered yet another strong quarter, we announced another three and to have $1 billion of share buybacks, which makes this 11 quarters in a row with announced buybacks at least $3 billion. We're building a track record of delivery and.

Unknown Executive: And let me thank you all for your questions and for joining the call. In conclusion, we have delivered yet another strong quarter. We announced another three and a half billion dollars of share buybacks, which makes this 11 quarters in a row with announced buybacks of at least three billion dollars. We're building a track record of delivery and are progressing well in our first sprint to deliver more value with less emissions. And we are aiming to be the investment case through the energy transition. We have a lot more to do and look forward to engaging with you in future sessions like this. Wishing you all a happy end of the week.

Sinead Gorman: A capability that we already have with proven technology because we've actually done it before as well. This is bigger than we have done before, but at least it's something we've done. And then it links to our own needs and our own capabilities, allowing us to ensure that we're actually creating value and delivering above the hurdle rates that we want. We have delivered yet another strong quarter. We announced another three and a half billion dollars of share buybacks, which makes this 11 quarters in a row with announced buybacks of at least three billion dollars. We're building a track record of delivery and are progressing well in our first sprint to deliver more value with less emissions. And we are aiming to be the investment case through the energy transition.

Wael Sawan: We're building a track record of delivery and are progressing well in our first sprint to deliver more value with less emissions, and we are aiming to be the investment case through the energy transition. We have a lot more to do and look forward to engaging with you in future sessions like this. Wishing you all a happy end of the week, and for those taking summer break, be safe, be well, and hopefully we'll see you after the summer. Thank you, everyone.

Speaker Change: We're progressing well in our first sprint to deliver more value with less emissions and we are aiming to be the investment case through the energy transition we have a lot more to do and look forward to engaging with you in future sessions like this wishing you all a happy end of the week and for those taking summer break be safe be well and hopefully we'll see you after the summer.

Unknown Executive: We have a lot more to do and look forward to engaging with you in future sessions like this. Wishing you all a happy end of the week. And for those taking a summer break, be safe, be well, and hopefully, we'll see you after the summer. Thank you, everyone.

Unknown Executive: And for those taking summer break, be safe, be well, and hopefully we'll see you after the summer. Thank you, everyone. I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I

Speaker Change: Thank you everyone.

Speaker Change: Yeah.

Speaker Change: [music].

Q2 2024 Shell PLC Earnings Call

Request a DemoDemo

SHEL

Shell

Earnings