Shell first quarter 2020 update note - Seite 2

• Chemicals manufacturing plant utilisation is expected to be between 82% and 87% and availability is expected to be between 94% and 97%
• Chemicals sales volumes are expected to be between 3,700 and 4,000 thousand tonnes
• Chemicals cracker and intermediate margins are expected to improve compared to the fourth quarter 2019

Corporate

• Corporate segment earnings excluding identified items are expected to be a net expense at the lower end of the $800 to 875 million range for the first quarter. This excludes the impact of currency exchange rate effects

Other

• Based on changes to our oil price outlook for 2020, post-tax impairment charges in the range of $400-800 million are expected for the first quarter. Impairment charges are reported as identified items
• As per previous disclosures, CFFO price sensitivity at Shell Group level is still estimated to be $6 billion per annum for each $10 per barrel Brent price movement
  • Note that this price sensitivity is indicative and is most applicable to smaller price changes than we currently witness as well as in relation to the full-year results
• We will replace Oil Products and Chemicals plant availability with utilisation metrics going forward to improve transparency on refinery and chemicals production volumes. Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity
• As a result of COVID-19, we have seen and expect significant uncertainty with macro-economic conditions with regards to prices and demand for oil, gas and related products. Furthermore, recent global developments and uncertainty in oil supply have caused further volatility in commodity markets. The impact of the dynamically evolving business environment on first quarter results is being primarily reflected in March with a relatively minor impact in the first two months. We expect to provide further updates about the impact on our outlook in the first quarter results announcement
• Shell’s liquidity remains strong. Reflecting the Shell Group’s prudent balance sheet policy and to enhance financial flexibility, Shell has a new $12 billion revolving credit facility commitment. This is in addition to the $10 billion credit facility signed in December 2019. Together with cash and cash equivalents of circa $20 billion, available liquidity will rise from $30 billion to more than $40 billion. In addition, the Shell Group has access to extensive commercial paper programmes

Consensus