Image source: The Motley Fool. Royal Dutch Shell (A Shares) ( RDS.A ) Q1 2022 Earnings Call Contents:
Questions and Answers
Welcome to Shell plc first quarter 2022 results announcement. Today’s session will be recorded. [Operator instructions] We will now start with the presentation.
Sinead Gorman — Chief Financial Officer
Welcome to our first quarter 2022 results presentation. Before I look at our performance, I would like to thank Jessica Uhl, who is leaving Shell after 17 years. Her distinguished Shell career culminated in five years as chief financial officer, and she leaves an impressive legacy. She has been key in strengthening Shell’s financial position while delivering some of the industry’s best cash flows year after year, and I am honored and excited to follow in her footsteps.
Today, I will talk about our key developments, strategy delivery and our Q1 performance. As the war continues in Ukraine, Shell is working hard to ensure the safety of our staff and contractors there and to support relief efforts. We are doing our utmost to keep retail sites operating in the country and supplies moving. We are supporting our staff in Ukraine and taking care of our staff fleeing the war by offering assistance and means for relocation.
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We have announced our intention to withdraw from all Russian hydrocarbons in a phased manner. So we have stopped buying Russian crude oil and liquefied natural gas, or LNG, on the spot market. And we will not renew any long-term contracts. We have also stopped spot purchases of cargoes of refined products directly exported from Russia.
For the first quarter 2022, we have taken post-tax charges of around $3.9 billion in relation to Russian oil and gas activities. As well as causing human tragedy, the war has led to deep uncertainty about supplies and rising prices. The disruption in global energy market shows that secure, reliable and affordable energy must be managed through engagement with government, customers and suppliers. We are continuing to deliver a secure supply of energy across the world.
And as the world’s largest supplier of LNG, we continue shipping natural gas to where it is needed most. One example is the agreement we have just signed to ship LNG through the terminal that will be built in Germany. In Q1 2022, we have safely, on time and on budget completed the largest turnaround in Shell’s history at Pearl in Qatar. Additionally, we have successfully started up the PowerNap, Colibri and Mero-1 oil and gas projects.
Prelude floating LNG is also back online and supplying additional volumes since mid-April. At the same time, we are accelerating our transition to low-carbon energy. This includes our successful bids together with our partners to develop large-scale offshore wind farms in the U.S.A. and U.K.
Together, they represent 6.5 gigawatts of total generation capacity. And just last week, we announced the acquisition of Sprng Energy group, one of India’s leading renewable power platforms. This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India. While we deliver a secure supply of energy, we are also meeting the climate targets that form part of our Powering Progress strategy, to be a net-zero emissions energy business by 2050.
So by the end of 2021, we achieved our short-term target to reduce the net carbon intensity of the energy products we sell by 2.5% compared with 2016. As an energy user and producer, Shell has set a bold target to reduce net absolute emissions from its operations, including the energy it buys and uses, by 50% by 2030 compared to 2016 levels. We are making good progress toward this target with an 18% reduction at the end of 2021 compared with 2016. The recently published Shell Energy Transition Progress Report outlines our strong progress against our strategy and will be put to an advisory vote at our Annual General Meeting this month.Turning to our Q1 2022 performance. This […]
source RDS.A earnings call for the period ending March 31, 2022.