v3.26.1
Other notes to the unaudited Condensed Consolidated Interim Financial Statements
 6 Months Ended
Jun. 30, 2026
Other notes to the unaudited Condensed Consolidated Interim Financial Statements [Abstract]  
Other notes to the unaudited Condensed Consolidated Interim Financial Statements Other notes to the unaudited Condensed Consolidated Interim Financial Statements
Consolidated Statement of Income
Interest and other income
Quarters$ millionHalf year
Q2 2026Q1 2026Q2 202520262025
1,048 535 326 Interest and other income/(expenses)1,583 628 
Of which:
315 372 559 Interest income686 1,040 
25 — 44 Dividend income (from investments in equity securities)25 45 
642 64 128 Net gains/(losses) on sales and revaluation of non-current assets and businesses706 1 
(54)30 (447)Net foreign exchange gains/(losses) on financing activities(24)(584)
120 70 42 Other189 127 

Depreciation, depletion and amortisation
Quarters$ millionHalf year
Q2 2026Q1 2026Q2 202520262025
6,183 5,743 6,670 Depreciation, depletion and amortisation11,926 12,111 
Of which:
5,559 5,738 5,463 Depreciation11,297 10,593 
629 84 1,238 Impairments713 1,549 
(6)(79)(31)Impairment reversals(85)(32)

Impairment
Impairments recognised in the second quarter 2026 of $629 million pre-tax ($545 million post-tax) principally relate to
Renewables and Energy Solutions ($581 million). The impairments in Renewables and Energy Solutions were principally triggered by portfolio choices regarding renewable generation assets in Asia and Europe.

Impairments recognised in the second quarter 2025 of $1,238 million pre-tax ($877 million post-tax) principally relate to
Integrated Gas ($666 million) and Marketing ($399 million). Impairments recognised in Integrated Gas were triggered
by lower commodity prices applied in impairment testing.
Taxation charge/credit
Quarters$ millionHalf year
Q2 2026Q1 2026Q2 202520262025
4,949 3,570 2,332 Taxation charge/(credit)8,519 6,415 
Of which:
4,774 3,407 2,277 Income tax excluding Pillar Two income tax8,180 6,301 
175 163 55 Income tax related to Pillar Two income tax338 113 
As required by IAS 12 Income Taxes, Shell has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
On July 13, 2026, the UK Government published draft tax legislation that would exempt foreign permanent establishments from UK taxation, potentially limiting the use of foreign tax attributes against UK profits. Shell is monitoring the development of the draft legislation.
Consolidated Statement of Comprehensive Income
Currency translation differences
Quarters$ millionHalf year
Q2 2026Q1 2026Q2 202520262025
(314)(820)4,127Currency translation differences(1,134)5,837 
Of which:
(375)(767)4,117Recognised in Other comprehensive income(1,142)5,736 
61(53)9(Gain)/loss reclassified to profit or loss8 101 
Condensed Consolidated Balance Sheet
Joint ventures and associates
$ millionJune 30, 2026December 31, 2025
Joint ventures and associates27,997 27,775 
In June 2026, Shell's 44% joint venture Raizen filed its restructuring plan which remains subject to court approval. The restructuring plan contemplates a conversion of debt into equity, which would dilute Shell's ownership interest in Raizen, and a capital injection by Shell of BRL3.5 billion ($685 million). The capital injection would only take place after all conditions precedent have been satisfied. If all conditions precedent are not satisfied or waived by March 31, 2027, subject to a one-time extension of up to six months, the restructuring plan will automatically terminate.
Assets classified as held for sale
$ millionJune 30, 2026December 31, 2025
Assets classified as held for sale2,395 1,030 
Liabilities directly associated with assets classified as held for sale821 820 
Assets classified as held for sale and associated liabilities at June 30, 2026, principally relate to Sprng Energy in Renewables and Energy Solutions and a working interest in Brazil in Upstream.
The major classes of assets and liabilities classified as held for sale at June 30, 2026, are Property, plant and equipment ($2,133 million; December 31, 2025: $662 million) and Decommissioning and other provisions ($466 million; December 31, 2025: $515 million).
Consolidated Statement of Cash Flows
Other investing cash outflows
Quarters$ millionHalf year
Q2 2026Q1 2026Q2 202520262025
(689)(343)(420)Other investing cash outflows(1,032)(1,814)
Cash flow from investing activities - Other investing cash outflows for the second quarter 2026 includes settlement of investment related FX swaps and a tax payment related to a disposal gain.
Cash flow from operating activities - Other
Quarters$ millionHalf year
Q2 2026Q1 2026Q2 202520262025
546 1,433 684 Cash flow from operating activities - Other1,979 1,254 
Cash flow from operating activities - Other for the second quarter 2026 includes $1,288 million of net inflows (first quarter 2026: $1,289 million net inflows; second quarter 2025: $979 million net inflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America, partly offset by the utilisation of recognised incentives of $470 million.