v3.25.2
Segment information
12 Months Ended
Dec. 31, 2023
Operating Segments [Abstract]  
Segment Information Segment information
General information
Shell is an international energy company engaged in the principal aspects of the energy and petrochemicals industries and reports its business through segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate.
The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. The segment also includes the marketing, trading and optimisation of LNG, including LNG as a fuel for heavy-duty vehicles.
The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.
The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonisation businesses. The Mobility business operates Shell's retail network, including electric vehicle charging services. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors & Decarbonisation business sells fuels, speciality products and services, including low-carbon energy solutions, to a broad range of commercial customers, including the aviation, marine, and agricultural sectors.
The Chemicals and Products segment includes chemicals manufacturing plants, with their own marketing network, and refineries, which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and oil sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).
The Renewables and Energy Solutions segment includes renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. The segment also includes production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.
The Corporate segment covers the non-operating activities supporting Shell, comprising Shell's holdings and treasury organisation, its self-insurance activities and its headquarters and central functions. All finance expense and income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.
7. Segment information continued
Basis of segmental reporting
Sales between segments are based on prices generally equivalent to commercially available prices. Third-party revenue and non-current assets information by geographical area are based on the country of operation of the Group subsidiaries that report this information. Separate disclosure is provided for the UK as this is the Company's country of domicile.
Segment earnings are presented on a current cost of supplies basis (CCS earnings). On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. CCS earnings attributable to Shell plc shareholders is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.
Finance expense and income related to core financing activities, as well as related taxes, are included in the Corporate segment earnings rather than in the earnings of the business segments.
Information by segment on a current cost of supplies basis is as follows:
2023
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party37,6456,475108,858118,78144,81942316,620[A]
Inter-segment11,56041,2306242,2524,70760,373
Share of profit/(loss) of joint ventures and associates (CCS basis)1,951768548590(96)(3)3,758
Interest and other income, of which:1376717661751,8182,838
Interest income627957122,2022,313
Net gains/(losses) on sale and revaluation of non-current assets and businesses
(22)20916(61)1105257
Other1534355165(47)(389)268
Third-party and inter-segment purchases (CCS basis)27,3567,89094,614102,39640,17015272,441
Operating expenses, of which:
4,8239,8459,33611,4833,83164239,960
Production and manufacturing expenses4,5299,1869497,9082,6105825,240
Selling, distribution and administrative expenses1681638,1373,3231,05858413,433
Research and development expenses1264962502521631,287
Exploration expenses2161,5341,750
Depreciation, depletion and amortisation charge, of which:
8,90312,4632,3356,4111,1591931,290
Impairment losses3,4721,3604202,7879088,947[B]
Impairment reversals(324)(206)(1)(90)(141)(762)[C]
Interest expense146507526243,9024,673
Taxation charge/(credit) (CCS basis)2,8038,377819(198)1,3039013,194
CCS earnings7,0468,5282,9501,5303,038(2,811)20,281
[A]Includes $15,607 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior gains of $4,689 million related to sales contracts and prior losses of $2,074 million related to purchase contracts that were previously recognised and where physical settlement has taken place during 2023.
[B]Impairment losses comprise Property, plant and equipment ($8,182 million), Goodwill ($635 million) and Other intangible assets ($130 million). (See Note 12).
[C]Impairment reversals comprise Property, plant and equipment ($627 million) and Other intangible assets ($135 million). (See Note 12).
7. Segment information continued

2022
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party54,7518,352120,638144,34253,19041381,314[A]
Inter-segment18,41252,2856062,6846,79180,778
Share of profit/(loss) of joint ventures and associates (CCS basis)
1,2192,111237374(7)(4)3,930
Interest and other income, of which:(714)726(104)24457706915
Interest income432224(2)9591,046
Net gains on sale and revaluation of non-current assets and businesses101437(186)2828642
Other(858)[B]26782(62)51(253)(773)
Third-party and inter-segment purchases (CCS basis)37,78510,666108,012127,52157,024(28)340,980
Operating expenses, of which:
5,23710,3658,38311,3623,59053939,476
Production and manufacturing expenses4,9079,6768107,5832,5202225,518
Selling, distribution and administrative expenses2182337,3513,59297251712,883
Research and development expenses112456222187981,075
Exploration expenses2401,4721,712
Depreciation, depletion and amortisation charge, of which:2,21110,3341,9003,2897771818,529
Impairment losses1159504803564122,313[C]
Impairment reversals(3,449)(2,504)(151)(73)(6,177)[D]
Interest expense84345462222,6823,181
Taxation charge/(credit) (CCS basis)5,89914,070903935(303)(7)21,497
CCS earnings22,21216,2222,1334,515(1,059)(2,461)41,562
[A]Includes $11,708 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior losses of $9,815 million related to sales contracts and prior gains of $7,201 million related to purchase contracts that were previously recognised and where physical settlement had taken place during 2022.
[B]Includes the full write-down of the Nord Stream 2 loan amounting to $1,126 million as a result of the withdrawal from Russian oil and gas activities.
[C]Impairment losses comprise Property, plant and equipment ($1,799 million), Goodwill ($361 million) and Other intangible assets ($153 million). (See Note 12).
[D]Impairment reversals fully comprise Property, plant and equipment. (See Note 12).
7. Segment information continued

2021
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party29,9229,18283,494116,44822,41543261,504[A]
Inter-segment8,07235,7892541,8904,67550,680
Share of profit/(loss) of joint ventures and associates (CCS basis)
1,933632385989(27)13,913
Interest and other income, of which:1,5964,592278372003537,056
Interest income373364431511
Net gains on sale and revaluation of non-current assets and businesses1,6104,130285(24)(6)5,995
Other(14)425(10)25202(78)550
Third-party and inter-segment purchases (CCS basis)20,1889,09470,745103,29426,048(5)229,364
Operating expenses, of which:
4,52610,3227,50110,3472,74552435,965
Production and manufacturing expenses4,1949,7979506,8152,098(32)23,822
Selling, distribution and administrative expenses2311866,3843,37559655611,328
Research and development expenses10133916715751815
Exploration expenses1221,3011,423
Depreciation, depletion and amortisation charge, of which:5,90813,4851,7005,4853261726,921
Impairment losses7239201292,248454,065[B]
Impairment reversals(204)(9)(1)(214)[C]
Interest expense7133327443,1323,607
Taxation charge/(credit) (CCS basis)
2,6486,057903(210)(342)(665)8,391
CCS earnings8,0609,6033,535404(1,514)(2,606)17,482
[A]Includes $126 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior losses of $4,824 million related to sales contracts and prior gains of $4,892 million related to purchase contracts that were previously recognised and where physical settlement had taken place during 2021.
[B]Impairment losses comprise Property, plant and equipment ($3,894 million), Goodwill ($167 million) and Other intangible assets ($4 million). (See Note 12).
[C]Impairment reversals fully comprise Property, plant and equipment. (See Note 12).
Reconciliation of CCS earnings to income for the period
$ million
 202320222021
Income attributable to Shell plc shareholders19,35942,30920,101
Income attributable to non-controlling interest277565529
Income for the period
19,63642,87420,630
Current cost of supplies adjustment:
Purchases815(1,714)(3,772)
Taxation(203)444808
Share of profit of joint ventures and associates33(42)(184)
Current cost of supplies adjustment645(1,312)(3,148)
Of which:
Attributable to Shell plc shareholders650(1,196)(3,029)
Attributable to non-controlling interest(5)(116)(119)
CCS earnings20,28141,56217,482
Of which:
CCS earnings attributable to Shell plc shareholders20,00841,11317,072
CCS earnings attributable to non-controlling interest273449410
7. Segment information continued
Information by geographical area is as follows:
2023
$ million
EuropeAsia,
Oceania,
Africa
USAOther
Americas
Total
Third-party revenue, by origin118,135[A]99,96770,29128,227316,620
Goodwill, other intangible assets, property, plant and equipment, joint ventures and associates at December 3148,008[B]91,37457,26149,562246,205
[A]Includes $44,815 million that originated from the UK.
[B]Includes $21,478 million located in the UK.
2022
$ million
EuropeAsia,
Oceania,
Africa
USAOther
Americas
Total
Third-party revenue, by origin135,975[A]126,64387,08531,611381,314
Goodwill, other intangible assets, property, plant and equipment, joint ventures and associates at December 3140,161[B]97,01959,23351,794248,207
[A]Includes $50,236 million that originated from the UK.
[B]Includes $20,772 million located in the UK.
2021
$ million
EuropeAsia,
Oceania,
Africa
USAOther
Americas
Total
Third-party revenue, by origin78,549[A]87,07073,64722,238261,504
Goodwill, other intangible assets, property, plant and equipment, joint ventures and associates at December 3138,881[B]97,27858,28648,595243,040
[A]Includes $21,846 million that originated from the UK.
[B]Includes $21,974 million located in the UK.
Cash capital expenditure
Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.
2023
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Capital expenditure
3,4918,2495,5633,1062,31427022,993
[A]
Investments in joint ventures and associates
70594498426191,202
[A]
Investments in equity securities
210689197
[A]
Cash capital expenditure*
4,1968,3435,6123,1922,68136824,392
[A]See Consolidated Statements of Cash Flows.
* Non-GAAP measure (see page 329).
7. Segment information continued

2022
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Capital expenditure
3,4338,0204,5273,8352,61017522,600
[A]
Investments in joint ventures and associates
832123304270391,973
[A]
Investments in equity securities
1156103260
[A]
Cash capital expenditure*
4,2658,1434,8313,8383,46928724,833
[A]See Consolidated Statements of Cash Flows.

2021
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Capital expenditure
3,3066,2772,1225,0912,06913519,000
[A]
Investments in joint ventures and associates
196(109)1488015410479
[A]
Investments in equity securities
3413675218
[A]
Cash capital expenditure*
3,5026,1682,2735,1752,35922019,697
[A]See Consolidated Statements of Cash Flows.