Shell plc (SHEL): history, ownership, mission, how it works & makes money

A Brief History of Shell plc (SHEL)

Founding and Early Years

Shell Transport and Trading Company was founded in 1897 by Marcus Samuel, his brother Samuel Samuel, and a partner, Sir Henry Deterding. Initially, the company imported and sold oil from the Middle East in the form of kerosene. By 1907, Shell established its first oil refinery in Rheinfelden, Germany.

Merger with Royal Dutch

In 1907, Shell merged with the Dutch company Royal Dutch Petroleum, forming Royal Dutch Shell Group. This merger facilitated global expansion and established Shell as a significant player in the oil market.

20th Century Expansion

Shell expanded operations throughout the 20th century. By 1910, it had a significant presence in the United States, and by the 1930s, it had expanded into countries such as Nigeria and the UK. In 1965, the company launched its first offshore oil platform in the North Sea.

Financial Performance

Modern Developments

In 2015, Shell announced its acquisition of BG Group, valued at approximately 70 billion USD. This acquisition aimed to enhance Shell's position in the liquefied natural gas (LNG) market.

Global Operations

• Countries of Operation: 70
• Employees: Approximately 86,000 (2023)
• Refineries: 10 major refineries worldwide
• Retail Sites: Over 46,000 service stations

Commitment to Sustainability

Shell has committed to achieving net-zero emissions by 2050. In 2022, Shell invested approximately 1.5 billion USD in renewable energy sectors including wind, solar, and biofuels.

Recent Financial Highlights

Conclusion of Developments

Shell is adapting to the changing energy landscape while focusing on its core business of hydrocarbons and expanding its renewable energy portfolio.

A Who Owns Shell plc (SHEL)

Shareholder Composition

As of the latest report in 2023, Shell plc has a diverse shareholder base. The following table highlights the key shareholders and their respective ownership percentages:

Market Capitalization

As of October 2023, the market capitalization of Shell plc is approximately $190 billion. This figure fluctuates with market conditions and company performance, but it marks a significant value reflecting investor confidence.

Dividends and Financial Performance

In recent years, Shell plc has maintained a robust dividend policy. The following table shows the dividend per share paid over the last five years:

Top Executives

Shell plc is led by a strong executive team. Key members include:

• Wael Sawan - Chief Executive Officer
• Jessica Uhl - Chief Financial Officer
• Huibert Vigeveno - Downstream Director
• Dr. Andrew Brown - Director of Technology

Geographic Distribution of Ownership

Shell's shareholders are distributed globally. The following table outlines the geographical distribution of its shareholders:

Institutional vs. Retail Investors

The breakdown of ownership between institutional and retail investors is also noteworthy:

Recent Share Price Performance

As of October 13, 2023, the share price of Shell plc (SHEL) was approximately $63.75. The stock performance over the past year has shown fluctuations driven by various market conditions.

Future Outlook

Analysts predict that Shell's strong dividend yields, coupled with its focus on renewable energy investments, may attract further interest from both institutional and retail investors. Current dividend yield stands at approximately 3.12%.

Shell plc (SHEL) Mission Statement

Overview

Shell plc, a leading player in the global energy market, emphasizes its commitment to sustainable growth and innovation. The company's mission is to "power progress together by providing more and cleaner energy solutions." This reflects Shell’s dedication to meeting the world’s energy needs while transitioning to a lower-carbon future.

Core Values and Principles

Shell's mission is underpinned by strong corporate values:

• Safety
• Integrity
• Respect
• Excellence
• Collaboration

Financial Highlights

In 2022, Shell reported revenues of $381 billion, a significant increase from the previous year's $261 billion, reflecting rising oil and gas prices amid global demand fluctuations.

Investment in Renewables

As part of its mission, Shell is actively investing in renewable energy. In 2022, Shell allocated approximately $1.5 billion to solar and wind energy projects.

Environmental Commitment

Shell is committed to reducing its net carbon footprint. The company aims for net-zero emissions by 2050, with interim targets for 2025 to reduce the carbon intensity of its energy products by 20% to 25% from 2016 levels.

Performance Metrics

Global Presence

Shell operates in over 70 countries, employing approximately 86,000 people worldwide and serving millions of customers daily.

Innovation in Energy Solutions

In alignment with its mission, Shell invests heavily in technology and innovation. In 2022, the company spent around $1 billion on research and development for new energy solutions.

Strategic Partnerships

Shell has engaged in various strategic partnerships to enhance its mission. Collaborations with companies like Siemens and Microsoft aim at advancing digital transformation and sustainability initiatives.

Customer Engagement

Shell maintains a robust customer engagement strategy, focusing on delivering reliable service. The company has over 46,000 retail locations worldwide, providing fuels, lubricants, and other services.

Long-term Goals

The long-term goals encapsulated in Shell’s mission statement focus on:

• Achieving a sustainable energy transition
• Investing in technology for clean energy
• Enhancing operational efficiency across business units

Shareholder Returns

Shell has consistently aimed to deliver attractive returns to its shareholders. In 2022, the company increased its dividend per share to $0.48, reflecting its strong financial performance.

How Shell plc (SHEL) Works

Corporate Structure

Shell plc operates as a global group of energy and petrochemical companies. The organization is structured into several major segments, including:

• Upstream: Exploration and production of oil and natural gas.
• Integrated Gas: Liquefied natural gas (LNG) and gas-to-liquids (GTL) operations.
• Downstream: Refining, distribution, and marketing of oil products.
• Renewables and Energy Solutions: Investments in renewable energy sources and technologies.

Financial Performance

As of Q3 2023, Shell reported:

• Revenue: $80.56 billion
• Net Income: $9.01 billion
• Total Assets: $524.57 billion
• Market Capitalization: Approximately $200 billion

Key Financial Metrics

Operational Highlights

In 2023, Shell notably produced:

• Oil production: 1.55 million barrels of oil equivalent per day (boe/d)
• Natural gas production: 10.5 billion cubic feet per day (Bcf/d)

Investment in Renewables

Shell has allocated significant resources toward renewable energy initiatives:

• Total Investment in Renewables (2022-2025): $25 billion
• Renewable Energy Capacity (as of 2023): 10 GW

Geographical Distribution

Environmental Commitment

Shell has set specific targets to reduce greenhouse gas emissions:

• Net Zero Emissions Target by: 2050
• Reduction of Upstream Emissions by: 20% by 2030

Stock Performance

As of October 2023, Shell’s stock performance is defined by:

• Current Stock Price: $55.62
• 52-Week High: $62.45
• 52-Week Low: $45.21

Dividend Information

Shell maintains a strong commitment to dividends, providing:

• Annual Dividend per Share: $1.92
• Dividend Yield (as of October 2023): 3.45%

Strategic Partnerships

Shell engages in various strategic partnerships, including:

• Joint Ventures in LNG with: TotalEnergies, QatarGas
• Partnerships in Renewable Energy with: Eneco, Lightsource BP

Research and Development

Investments in R&D focus on:

• Carbon Capture and Storage (CCS): $1.5 billion annual budget
• Alternative Energy Sources: $1 billion annual budget

How Shell plc (SHEL) Makes Money

Revenue Streams

Shell plc generates revenue through various operations, primarily divided into three segments: Integrated Gas, Upstream, and Downstream. Each segment contributes uniquely to the overall financial performance of the company.

Integrated Gas

The Integrated Gas segment includes liquefied natural gas (LNG), natural gas processing, and renewable energy solutions.

• 2022 Integrated Gas revenue: $96.3 billion
• 2022 LNG sales volume: 8.5 million tons
• Average realized LNG price in 2022: $19.3 per million British thermal units (MMBtu)

Upstream

The Upstream segment focuses on the exploration and extraction of crude oil and natural gas.

• 2022 Upstream revenue: $76.8 billion
• Average crude oil production: 2.3 million barrels per day (bpd)
• Average realized crude oil price in 2022: $93 per barrel

Downstream

The Downstream segment encompasses refining, distribution, and marketing of oil products.

• 2022 Downstream revenue: $185.3 billion
• Total refining capacity: 1.88 million barrels per day
• Number of retail service stations: 46,000 globally

Financial Performance

Shell's financial performance in recent years highlights its revenue generation capabilities.

• 2022 Total Revenue: $358.0 billion
• 2022 Net Income: $39.9 billion
• Return on average capital employed (ROACE): 13.1%

Cost Management

Effective cost management is pivotal for maintaining profitability.

• 2022 Operating Expenses: $66.2 billion
• Net Debt to EBITDA ratio: 1.0 as of Q4 2022
• Investment in R&D in 2022: $1.3 billion

Table of Financial Data

Future Outlook

Shell is investing in sustainable energy solutions to diversify its portfolio.

• Target renewable energy investment: $25 billion by 2025
• Target to achieve net-zero emissions by 2050
• Percentage of capital investment in renewables: 25% in 2022