v3.25.2
Leases
 12 Months Ended
Dec. 31, 2024
Presentation of leases for lessee [abstract]  
Leases Leases
Shell has lease contracts in Integrated Gas and Upstream, principally for floating production storage and offloading units, pipeline assets, subsea equipment, drilling and ancillary equipment, service vessels, LNG vessels and land and buildings; in Marketing, principally for land and retail sites; in Chemicals and Products, principally for plant pipeline and machinery, tankers and storage capacity; in Renewables and Energy Solutions, principally for power generation assets, storage capacity and land; and in Corporate, principally for land and buildings. Shell's obligations under its leases are secured on the leased assets.
Right-of-use assets
Right-of-use assets are included in property, plant and equipment for the following amounts:
2024
$ million
Manufacturing,
supply and
distribution
Production
Other [C]
Total
Cost
At January 112,59719,48512,15144,233
Additions1,6694,9126607,241
Sales, retirements and other movements [A](554)(565)(2,463)(3,582)
Currency translation differences(147)(94)(421)(662)
At December 3113,56523,7389,92747,230
Depreciation, depletion and amortisation, including impairments
At January 17,1468,0494,95920,154
Charge for the year [B]
1,5252,8371,0665,428
Sales, retirements and other movements [A](891)(1,552)(2,130)(4,573)
Currency translation differences(26)(29)(177)(232)
At December 317,7549,3053,71820,777
Carrying amount at December 315,81114,4336,20926,453
[A]Includes the reclassification of right-of-use assets to assets held for sale.
[B]Includes impairment losses ($438 million) and reversals ($11 million).
[C]Other mainly includes lease contracts for retail sites, land, and buildings in Marketing, Renewables and Energy Solutions and Corporate.
2023
$ million
Manufacturing,
supply and
distribution
Production
Other [D]
Total
Cost
At January 114,67516,4639,89941,037
Additions7902,4421,3084,540
Sales, retirements and other movements [A](116)29(1,040)(1,127)
Reclassifications [B](2,779)5272,252—
Currency translation differences2724(268)(217)
At December 3112,59719,48512,15144,233
Depreciation, depletion and amortisation, including impairments
At January 18,2756,6952,95017,920
Charge for the year [C]
1,3822,4289984,808
Sales, retirements and other movements [A](303)(1,149)(1,042)(2,494)
Reclassifications [B]
(2,217)632,154—
Currency translation differences912(101)(80)
At December 317,1468,0494,95920,154
Carrying amount at December 315,45111,4367,19224,079
[A]Includes the reclassification of right-of-use assets to assets held for sale.
[B]Reclassification from Production to Manufacturing, supply and distribution and Other.
[C]Includes impairment losses ($72 million) and reversals ($2 million).
[D]Other mainly includes lease contracts for retail sites, land, and buildings in Marketing, Renewables and Energy Solutions and Corporate.
22. Leases continued
Lease arrangements
Shell also has certain lease contracts of items with lease terms of 12 months or less. For these lease contracts, Shell applies the short-term lease recognition exemption. Lease expenses not included in the measurement of lease liability are:
Lease expenses not included in the measurement of lease liability
$ million
20242023
Expense relating to short-term leases360495
Expense relating to variable lease payments1,4481,415
The total cash outflow in respect of leases representing repayments of principal and payment of interest in 2024 was $6,891 million (2023: $7,512 million), recognised in Repayment and interest paid in the Consolidated Statement of Cash Flows.
The future lease payments under lease contracts and the carrying amounts at December 31, by payment date are as follows:
2024
$ million
Contractual
lease payments		InterestLease
liabilities
Less than 1 year6,3671,6574,710
Between 1 and 5 years15,7724,66211,110
5 years and later19,8146,93212,882
Total41,953[A]13,25128,702
[A]Future cash outflows in respect of leases may differ from lease liabilities recognised due to future decisions that may be taken by Shell in respect of the use of leased assets. These decisions may result in variable lease payments being made. In addition, Shell may reconsider whether it will exercise extension options or termination options, which are not reflected in the lease liabilities. There is no exposure to these potential additional payments in excess of the recognised lease liabilities until these decisions have been taken by Shell.
2023
$ million
Contractual lease paymentsInterestLease
liabilities
Less than 1 year6,1821,5394,643
Between 1 and 5 years16,1054,44311,662
5 years and later16,7945,39011,404
Total39,08111,37227,709