Financial instruments (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Financial Instruments [Abstract] |
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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 | | 2023 | 2022 | | 2023 | 2022 | 10% appreciation against the dollar of: | | | | | | Sterling | (270) | (168) | | 1,022 | 894 | Euro | (46) | 124 | | 2,434 | 1,486 | Malaysian ringgit | 49 | 65 | | 279 | 313 | Australian dollar | (129) | (65) | | 780 | 837 | Canadian dollar | 9 | (44) | | 1,392 | 1,575 |
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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. | | | | | | | | | | | | | | | | | | | | | | | $ million | | | 2023 | | | 2022 | | Average | Year-end | | Average | Year-end | Global oil | 43 | 25 | | 72 | 56 | North America gas and power | 13 | 10 | | 18 | 23 | Europe gas and power | 31 | 12 | | 54 | 40 | Australia gas and power | 4 | 2 | | 12 | 12 | Environmental certificates | 9 | 4 | | 10 | 13 |
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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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ million | | | Amounts offset | | | Amounts not offset | | | Gross amounts before offset | Amounts offset | Net amounts as presented | | Cash collateral received/pledged | Other offsetting instruments | Net amounts | Assets: | | | | | | | | Within trade receivables | 20,810 | 12,350 | 8,460 | | 18 | 356 | 8,086 | Within derivative financial instruments | 26,166 | 13,140 | 13,026 | | 1,688 | 2,616 | 8,722 | Liabilities: | | | | | | | | Within trade payables | 18,423 | 12,351 | 6,072 | | 69 | 356 | 5,647 | Within derivative financial instruments | 23,037 | 13,163 | 9,874 | | 2,040 | 2,636 | 5,198 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ million | | | | Amounts offset | | | Amounts not offset | | | Gross amounts before offset | Amounts offset | Net amounts as presented | | Cash collateral received/pledged | Other offsetting instruments | Net amounts | Assets: | | | | | | | | Within trade receivables | 28,259 | 17,200 | 11,059 | | 292 | 495 | 10,272 | Within derivative financial instruments | 56,154 | 34,685 | 21,469 | | 1,904 | 4,563 | 15,002 | Liabilities: | | | | | | | | Within trade payables | 29,981 | 17,200 | 12,781 | | 608 | 495 | 11,678 | Within derivative financial instruments | 58,991 | 34,710 | 24,281 | | 4,788 | 3,364 | 16,129 |
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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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ million | | Assets | | Liabilities | | | Designated | Not designated | Total | | Designated | Not designated | Total | Net | Interest rate swaps | 14 | 2 | 16 | | 98 | — | 98 | (82) | Forward foreign exchange contracts | — | 697 | 697 | | — | 592 | 592 | 105 | Currency swaps and options | 177 | — | 177 | | 1,959 | 13 | 1,972 | (1,795) | Commodity derivatives | — | 14,783 | 14,783 | | — | 9,161 | 9,161 | 5,622 | Other contracts | — | 226 | 226 | | — | 7 | 7 | 219 | Total | 191 | 15,708 | 15,899 | | 2,057 | 9,773 | 11,830 | 4,069 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ million | | Assets | | Liabilities | | | Designated | Not designated | Total | | Designated | Not designated | Total | Net | Interest rate swaps | — | 1 | 1 | | 169 | — | 169 | (168) | Forward foreign exchange contracts | — | 907 | 907 | | — | 996 | 996 | (89) | Currency swaps and options | 31 | 24 | 55 | | 2,925 | 5 | 2,930 | (2,875) | Commodity derivatives | — | 23,676 | 23,676 | | — | 22,858 | 22,858 | 818 | Other contracts | — | 380 | 380 | | — | 389 | 389 | (9) | Total | 31 | 24,988 | 25,019 | | 3,094 | 24,248 | 27,342 | (2,323) |
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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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ 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 | Total | Difference from carrying amount [A] | Carrying amount | Interest rate swaps | 78 | 9 | 3 | 3 | 5 | — | 98 | — | 98 | Forward foreign exchange contracts | 465 | 77 | 25 | 1 | — | (3) | 565 | 27 | 592 | Currency swaps and options | 551 | 609 | 521 | 392 | 186 | 859 | 3,118 | (1,146) | 1,972 | Commodity derivatives | 5,767 | 1,902 | 799 | 381 | 225 | 597 | 9,671 | (510) | 9,161 | Other contracts | 2 | 4 | 2 | — | — | — | 8 | (1) | 7 | Total | 6,863 | 2,601 | 1,350 | 777 | 416 | 1,453 | 13,460 | (1,630) | 11,830 |
[A]Mainly related to the effect of discounting. 25. Financial instruments continued
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ 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 | Total | Difference from carrying amount [A] | Carrying amount | Interest rate swaps | 120 | 50 | 2 | 1 | 1 | 1 | 175 | (6) | 169 | Forward foreign exchange contracts | 629 | 294 | 18 | (1) | (2) | (3) | 935 | 61 | 996 | Currency swaps and options | 582 | 554 | 750 | 588 | 507 | 1,353 | 4,334 | (1,404) | 2,930 | Commodity derivatives | 17,273 | 3,678 | 1,203 | 515 | 270 | 793 | 23,732 | (874) | 22,858 | Other contracts | 212 | 148 | 22 | 1 | 1 | — | 384 | 5 | 389 | Total | 18,816 | 4,724 | 1,995 | 1,104 | 777 | 2,144 | 29,560 | (2,218) | 27,342 |
[A]Mainly related to the effect of discounting.
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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: | | | | | | | | | | | | | | | | | | | $ million | | Prices in active markets for identical assets/liabilities | Other observable inputs | Unobservable inputs | Total | Interest rate swaps | — | (82) | — | (82) | Forward foreign exchange contracts | — | 105 | — | 105 | Currency swaps and options | — | (1,795) | — | (1,795) | Commodity derivatives | (39) | 3,191 | 2,470 | 5,622 | Other contracts | — | 223 | (4) | 219 | Total | (39) | 1,642 | 2,466 | 4,069 |
| | | | | | | | | | | | | | | | | | | $ 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 derivatives | 68 | (1,161) | 1,911 | 818 | Other contracts | — | (7) | (2) | (9) | Total | 68 | (4,300) | 1,909 | (2,323) |
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Summary of Net Carrying Amounts of Derivative Contracts Measured Using Predominantly Unobservable Inputs |
| | | | | | | | | | | $ million | | 2023 | 2022 | At January 1 | 1,909 | 389 | Net gains recognised in revenue | 576 | 1,190 | Purchases | 271 | 886 | Sales | (185) | (623) | Settlements | (125) | 46 | Recategorisations (net) | 25 | 17 | Currency translation differences | (5) | 4 | At December 31 | 2,466 | 1,909 |
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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 | | 2023 | 2022 | At January 1 | 1,620 | 1,024 | Movements | (13) | 596 | At December 31 | 1,607 | 1,620 |
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