v3.25.2
Impairment of property, plant and equipment, goodwill, and other intangible assets (Tables)
12 Months Ended
Dec. 31, 2024
Disclosure of impairment loss and reversal of impairment loss [abstract]  
Summary of Impairments
$ million
202420232022
Impairment losses
Goodwill
510635361
Intangible assets other than goodwill
319130153
Property, plant and equipment, of which [A]
3,6738,1821,799
Exploration and production7834,820868
Manufacturing, supply and distribution1,2782,785474
Other1,612577457
Total [B]4,5028,9472,313
Impairment reversals
Intangible assets other than goodwill
135
Property, plant and equipment, of which [A]
3336276,177
Exploration and production745285,954
Manufacturing, supply and distribution1149172
Other1458151
Total [B]
3337626,177
[A]Includes right-of-use assets under leases. (See Note 22).
[B]See Note 7.
Summary of weighted average cost of capital assumptions
WACC assumptions
Risk-free rate
Derived from a range of benchmark US Treasury yields of varying maturities, to reflect the range of useful economic lives of Shell's assets and to appropriately adjust, where relevant, for pricing anomalies and short-term volatility of specific tenors.
Cost of debt [A]
Derived from observable risk premiums on corporate debt issued by a group of comparable energy companies, adjusted for a blended statutory tax rate.
Cost of equity [A]
Calculated per the capital asset pricing model. Equity risk premiums are derived from a range of published sources, adjusted to reflect a beta derived from a peer group of comparable energy companies, and subsequently calibrated to ensure that total cost of equity is consistent with market practice.
[A]The peer group of comparable energy companies is tailored to reflect relevant integrated power companies (for power activities in the Renewables and Energy Solutions segment) and integrated oil and gas companies (for the rate applied to all other assets). The proportion of debt and equity in the WACC calculation reflects a target gearing ratio, tailored for power activities and oil and gas activities as appropriate.
Summary of commodity price assumptions applied in impairment testing
The near-term commodity price assumptions applied in impairment testing were as follows:
Commodity price assumptions [A]
20242025202620272028
Brent crude oil ($/b)70707074
Henry Hub natural gas ($/MMBtu)3.304.004.004.24
20232024202520262027
Brent crude oil ($/b)70707074
Henry Hub natural gas ($/MMBtu)4.004.004.004.00
[A]Money of the day.