Proditability analysis
Shell plc’ s total revenues and other income were $323.2 billion , $386.2 billion and $272.7 billion in 2023, 2022 and 2021, respectively.
The total revenues and other income in 2023 were down 16.3% year-on-year.
The total revenues and other income in 2022 were up 41.6% year-on-year.
Net income attributable Shell plc shareholders was $19.36 billion, $42.31 billion and $20.1 billion in 2023, 2022 and 2021, respectively.
Shell plc’ s net profit margin was 6%, 11% and 7.4% in 2023, 2022 and 2021, respectively.
The company’s performance always has fluctuated with the price of oil.
Balance sheet analysis
Shell plc’ s total assets hit $406.3 billion and $443 billion in 2023 and 2022, respectively.
Property, plant and equipment were $194.8 billion as of December 31, 2023, accounting for 48% of total assets.
Current assets were $134.1 billion at December 31, 2023, consisting of 33% of total assets.
Current liabilities were $95.5 billion as of December 31, 2023.
The current ratio was 1.4 times.
Total liabilities were $218 billion in 2023.
The debt ratio was 53.7% for 2023.
The balance sheet was very healthy.
Cash flow analysis
Cash flow from operating activities was $54.2 billion, $68.4 billion and $45.1 billion in 2023, 2022 and 2021, respectively.
Capital expenditure was $23 billion, $22.6 billion and $19 billion in 2023, 2022 and 2021, respectively.
Free cash flow was $31.2 billion, $45.8 billion and $26.1 billion in 2023, 2022 and 2021, respectively.
Cash paid to Shell plc shareholders was $8.4 billion, $7.4 billion and $6.25 billion in 2023, 2022 and 2021, respectively.
Repurchases of shares were $14.6 billion, $18.4 billion and $2.9 billion in 2023, 2022 and 2021, respectively.
We should see the amount of cash paid to Shell plc shareholders and repurchasing shares as real return.
The average return per year was $19.3 billion in the past three years.
Conclusion
Shell plc ADR ‘s price is $71.05 an ADR, which is equivalent to 228.77 billion in market cap.
We reckon that the reasonable market price is about $193 billion.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Shell is a global group of energy and petrochemical companies, employing around 103,000 people and with operations in more than 70 countries.
Integrated Gas and Upstream
Downstream, Renewables and Energy Solutions
Integrated Gas and Upstream (IGU) explores for and extracts crude oil, natural gas and natural gas liquids. It delivers hydrocarbon products from conventional oil and gas operations, deep-water exploration and production, liquefied natural gas (LNG) activities, and converts natural gas into gas-to-liquids (GTL) fuels and other products. The marketing, trading and optimisation of LNG are included in IGU. IGU provides the secure energy customers need and we aim to do this with lower emissions.
Downstream, Renewables and Energy Solutions (R&ES) provides products and services to more than 1 million business customers. It includes Chemicals and Products, and Marketing, which includes Mobility — a business that serves around 33 million retail customers a day at more than 47,000 service stations. Marketing also includes Lubricants, and Sectors and Decarbonisation activities. Downstream and R&ES, underpinned by Trading and Supply, aims to meet the evolving energy needs of our customers.
