Shell second quarter 2021 update note - Seite 2

• Pre-tax depreciation is expected to be between $3.2 and $3.5 billion.
• Taxation charge is expected to be between $500 and $900 million, which includes a one-off release of non-cash tax provision of approximately $600 million.

Cash flow from operations

• Tax paid is expected to be between $750 and $1,100 million.

Oil Products

Adjusted EBITDA

• Marketing margins are expected to be higher than the first quarter 2021, reflecting strong retail unit margins, partly offset by lower lubricant margins due to base oils and additives shortages.
• Refining indicative margin is around $4.17/bbl. Definition and formula are provided at the end of this release.
• Sales volumes are expected to be between 4,000 and 5,000 thousand barrels per day.
• Refinery utilisation is expected to be between 75% and 79%.
• Trading and optimisation results are expected to be average, similar to the first quarter 2021.
• Underlying opex is expected to be between $200 and $400 million higher than the first quarter 2021, mainly due to an increase in marketing volumes.

Adjusted Earnings

• Pre-tax depreciation is expected to be between $800 and $1,000 million.
• Taxation charge is expected to be between $100 and $600 million.

Cash flow from operations

• Tax paid is expected to be between $150 and $350 million.
• CFFO excluding working capital is expected to be positively impacted by the lower cash cost of sales.
• Working capital outflows are expected due to the higher commodity price environment.

Chemicals

Adjusted EBITDA

• Chemicals margins are expected to be in line with the first quarter 2021.
• Chemicals sales volumes are expected to be between 3,500 and 3,800 thousand tonnes.
• Chemicals manufacturing plant utilisation is expected to be between 81% and 85%.
• Underlying opex is expected to be between $100 and $150 million higher than the first quarter 2021.

Adjusted Earnings

• Pre-tax depreciation is expected to be between $250 and $300 million.
• Taxation charge is expected to be between $50 and $200 million.

Cash flow from operations

• Tax paid is expected to be up to $100 million.
• CFFO is expected to be positively impacted by $200 to $300 million due to the timing effect of dividends received from Joint Ventures & Associates.

Corporate

• Corporate segment Adjusted Earnings are expected to be a net expense of $300 to $450 million for the second quarter, impacted by favourable movements in deferred tax positions. This excludes the impact of currency exchange effects.

Full-year price and margin sensitivities