Shell 3Q23 Results | Climate Transition Analysis

Quarterly results
Written By Rohan Bowater

3Q23 was a softer quarter for Shell's Renewables and Energy Solutions segment.

At a group level, it reinforced the company’s focus on short-term returns, trading off higher distributions for lower capex.

We see a widening strategic gap between its day-to-day operations and the -45% FY35 net carbon intensity target.

Key findings

  • Renewables & Energy Solutions 3Q23 adjusted earnings lagged peers delivering a $67m loss (-117% from 3Q22). In contrast to TotalEnergies Integrated Power segment with earnings of $506m (up 114% from 3Q22).

  • FY23 capex guidance is now ~$23-25bn, downgrading the upper range $2bn compared to previous guidance (~$23-27bn).

  • Buybacks were increased from prior guidance of $2.5bn to $3.5bn

  • Shell has committed to transition capex of ~26% of group by FY25, less than the ~33% spent FY23 YTD, and materially below peers’ commitments (TotalEnergies ~33%, BP ~44%).

Rohan Bowater
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