v3.25.2
Financial instruments (Tables)
12 Months Ended
Dec. 31, 2023
Financial Instruments [Abstract]  
Summary of 10% Appreciation Against the Dollar of Main Currencies
Assuming other factors (principally interest rates and commodity prices) remained constant and that no further foreign exchange risk management actions were taken, a 10% appreciation against the dollar at December 31 of the main currencies to which Shell is exposed would have the following effects:
$ million
Increase/(decrease)
in income before taxation
Increase in net assets
2023202220232022
10% appreciation against the dollar of:
Sterling(270)(168)1,022894
Euro(46)1242,4341,486
Malaysian ringgit4965279313
Australian dollar(129)(65)780837
Canadian dollar9(44)1,3921,575
Schedule of Value at Risk Pre-tax The VAR average and year-end positions in respect of commodities traded in active markets, which are presented in the table below, are calculated on a diversified basis in order to reflect the effect of offsetting risk within combined portfolios.
Value-at-risk (pre-tax)
$ million
20232022
AverageYear-endAverageYear-end
Global oil43257256
North America gas and power13101823
Europe gas and power31125440
Australia gas and power421212
Environmental certificates941013
Schedule of Trade and Other Receivables, Other Payables and Derivative Financial Instruments These amounts, as presented net and gross within trade and other receivables, trade and other payables and derivative financial instruments in the Consolidated Balance Sheet at December 31, were as follows:
2023
$ million
Amounts offsetAmounts not offset
Gross amounts
before offset
Amounts
offset
Net amounts
as presented
Cash collateral
received/pledged
Other offsetting
instruments
Net amounts
Assets:
Within trade receivables20,81012,3508,460183568,086
Within derivative financial instruments26,16613,14013,0261,6882,6168,722
Liabilities:
Within trade payables18,42312,3516,072693565,647
Within derivative financial instruments23,03713,1639,8742,0402,6365,198
2022
$ million
Amounts offsetAmounts not offset
Gross amounts
before offset
Amounts
offset
Net amounts
as presented
Cash collateral
received/pledged
Other offsetting instrumentsNet amounts
Assets:
Within trade receivables28,25917,20011,05929249510,272
Within derivative financial instruments56,15434,68521,4691,9044,56315,002
Liabilities:
Within trade payables29,98117,20012,78160849511,678
Within derivative financial instruments58,99134,71024,2814,7883,36416,129
Disclosure of detailed information about hedging instruments
The carrying amounts of derivative contracts at December 31, designated and not designated as hedging instruments for hedge accounting purposes, were as follows:
2023
$ million
AssetsLiabilities
DesignatedNot
designated
TotalDesignatedNot
designated
TotalNet
Interest rate swaps142169898(82)
Forward foreign exchange contracts697697592592105
Currency swaps and options1771771,959131,972(1,795)
Commodity derivatives14,78314,7839,1619,1615,622
Other contracts22622677219
Total19115,70815,8992,0579,77311,8304,069
2022
$ million
AssetsLiabilities
DesignatedNot
designated
TotalDesignatedNot
designated
TotalNet
Interest rate swaps11169169(168)
Forward foreign exchange contracts907907996996(89)
Currency swaps and options3124552,92552,930(2,875)
Commodity derivatives23,67623,67622,85822,858818
Other contracts380380389389(9)
Total3124,98825,0193,09424,24827,342(2,323)
Contractual Maturities of Derivative Liabilities
The contractual maturities of derivative liabilities at December 31 compare with their carrying amounts in the Consolidated Balance Sheet as follows:
2023
$ million
Contractual maturities
Less than
1 year
Between
1 and 2
years
Between
2 and 3
years
Between
3 and 4
years
Between
4 and 5
years
5 years
and later
TotalDifference
from carrying
amount [A]
Carrying
amount
Interest rate swaps7893359898
Forward foreign exchange contracts46577251(3)56527592
Currency swaps and options5516095213921868593,118(1,146)1,972
Commodity derivatives5,7671,9027993812255979,671(510)9,161
Other contracts2428(1)7
Total6,8632,6011,3507774161,45313,460(1,630)11,830
[A]Mainly related to the effect of discounting.
25. Financial instruments continued

2022
$ million
Contractual maturities
Less than
1 year
Between
1 and 2
years
Between
2 and 3
years
Between
3 and 4
years
Between
4 and 5
years
5 years
and later
TotalDifference
from carrying
amount [A]
Carrying
amount
Interest rate swaps120502111175(6)169
Forward foreign exchange contracts62929418(1)(2)(3)93561996
Currency swaps and options5825547505885071,3534,334(1,404)2,930
Commodity derivatives17,2733,6781,20351527079323,732(874)22,858
Other contracts21214822113845389
Total18,8164,7241,9951,1047772,14429,560(2,218)27,342
[A]Mainly related to the effect of discounting.
Summary of Net Carrying Amounts of Derivative Contracts Held
The net carrying amounts of derivative contracts held at December 31 categorised according to the predominant source and nature of inputs used in determining the fair value of each contract were as follows:
2023
$ million
Prices in active markets for identical
assets/liabilities
Other
observable
inputs
Unobservable
inputs
Total
Interest rate swaps(82)(82)
Forward foreign exchange contracts105105
Currency swaps and options(1,795)(1,795)
Commodity derivatives(39)3,1912,4705,622
Other contracts223(4)219
Total(39)1,6422,4664,069
2022
$ million
Prices in active markets for identical
assets/liabilities
Other
observable
inputs
Unobservable
inputs
Total
Interest rate swaps(168)(168)
Forward foreign exchange contracts(89)(89)
Currency swaps and options(2,875)(2,875)
Commodity derivatives68(1,161)1,911818
Other contracts(7)(2)(9)
Total68(4,300)1,909(2,323)
Summary of Net Carrying Amounts of Derivative Contracts Measured Using Predominantly Unobservable Inputs
$ million
20232022
At January 11,909389
Net gains recognised in revenue
5761,190
Purchases271886
Sales(185)(623)
Settlements(125)46
Recategorisations (net)2517
Currency translation differences(5)4
At December 312,4661,909
Reconciliation of Derivative Contracts with Unrecognized Day One Gains or Losses The unrecognised gains on these derivative contracts at December 31, 2023, were as follows:
$ million
20232022
At January 11,6201,024
Movements(13)596
At December 311,6071,620