Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ROYAL DUTCH SHELL PLC |
Entity Central Index Key | 0001306965 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 4,101,239,499 |
B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,706,183,836 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Revenue | $ 180,543 | $ 344,877 | $ 388,379 |
Share of profit of joint ventures and associates | 1,783 | 3,604 | 4,106 |
Interest and other income | 869 | 3,625 | 4,071 |
Total revenue and other income | 183,195 | 352,106 | 396,556 |
Purchases | 117,093 | 252,983 | 294,399 |
Production and manufacturing expenses | 24,001 | 26,438 | 26,970 |
Selling, distribution and administrative expenses | 9,881 | 10,493 | 11,360 |
Research and development | 907 | 962 | 986 |
Exploration | 1,747 | 2,354 | 1,340 |
Depreciation, depletion and amortisation | 52,444 | 28,701 | 22,135 |
Interest expense | 4,089 | 4,690 | 3,745 |
Total expenditure | 210,162 | 326,621 | 360,935 |
(Loss)/income before taxation | (26,967) | 25,485 | 35,621 |
Taxation (credit)/charge | (5,433) | 9,053 | 11,715 |
(Loss)/income for the period | (21,534) | 16,432 | 23,906 |
Income attributable to non-controlling interest | 146 | 590 | 554 |
(Loss)/income attributable to Royal Dutch Shell plc shareholders | $ (21,680) | $ 15,842 | $ 23,352 |
Basic earnings per share ($ per share) | $ (2.78) | $ 1.97 | $ 2.82 |
Diluted earnings per share ($ per share) | $ (2.78) | $ 1.95 | $ 2.80 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of comprehensive income [abstract] | ||||
(Loss)/income for the period | $ (21,534) | $ 16,432 | $ 23,906 | |
Items that may be reclassified to income in later periods: | ||||
Currency translation differences | 1,179 | 344 | (3,171) | |
Debt instruments remeasurements | 23 | 29 | (15) | |
Cash flow hedging (losses)/gains | [1] | (160) | (276) | 730 |
Net investment hedging (losses)/gains | [1] | (423) | 9 | (1) |
Deferred cost of hedging | 100 | 66 | (209) | |
Share of other comprehensive loss of joint ventures and associates | (42) | (76) | (10) | |
Total | 677 | 96 | (2,676) | |
Items that are not reclassified to income in later periods: | ||||
Retirement benefits remeasurements | (2,702) | (2,102) | 3,588 | |
Equity instruments remeasurements | 64 | (30) | (153) | |
Share of other comprehensive income of joint ventures and associates | 119 | 2 | 193 | |
Total | (2,519) | (2,130) | 3,628 | |
Other comprehensive (loss)/income for the period | (1,842) | (2,034) | 952 | |
Comprehensive (loss)/income for the period | (23,376) | 14,398 | 24,858 | |
Comprehensive income attributable to non-controlling interest | 136 | 625 | 383 | |
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | $ (23,512) | $ 13,773 | $ 24,475 | |
[1] | [A] As from 2020, 'Cash flow hedging (losses)/gains' and 'Net investment hedging (losses)/gains' have been separately disclosed. Prior period comparatives for these items have been revised to conform with current year presentation (see Note 22). |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | ||
Intangible assets | $ 22,822 | $ 23,486 |
Property, plant and equipment | 210,847 | 238,349 |
Joint ventures and associates | 22,451 | 22,808 |
Investments in securities | 3,222 | 2,989 |
Deferred tax | 16,311 | 10,524 |
Non-current assets | 2,474 | 4,717 |
Trade and other receivables | 7,641 | 8,085 |
Derivative financial instruments | 2,805 | 689 |
Non-current assets | 288,573 | 311,647 |
Current assets | ||
Inventories | 19,457 | 24,071 |
Trade and other receivables | 33,625 | 43,414 |
Derivative financial instruments | 5,783 | 7,149 |
Cash and cash equivalents | 31,830 | 18,055 |
Current assets | 90,695 | 92,689 |
Total assets | 379,268 | 404,336 |
Non-current liabilities | ||
Debt | 91,115 | 81,360 |
Trade and other payables | 2,304 | 2,342 |
Derivative financial instruments | 420 | 1,209 |
Deferred tax | 10,463 | 14,522 |
Non-current liabilities | 15,168 | 13,017 |
Decommissioning and other provisions | 27,310 | 21,799 |
Non-current liabilities | 146,780 | 134,249 |
Current liabilities | ||
Debt | 16,899 | 15,064 |
Trade and other payables | 41,677 | 49,208 |
Derivative financial instruments | 5,308 | 5,429 |
Taxes payable | 6,006 | 6,693 |
Current net defined benefit liability | 437 | 419 |
Decommissioning and other provisions | 3,624 | 2,811 |
Current liabilities | 73,951 | 79,624 |
Total liabilities | 220,731 | 213,873 |
Equity | ||
Share capital | 651 | 657 |
Shares held in trust | (709) | (1,063) |
Other reserves | 12,752 | 14,451 |
Retained earnings | 142,616 | 172,431 |
Equity attributable to Royal Dutch Shell plc shareholders | 155,310 | 186,476 |
Non-controlling interest | 3,227 | 3,987 |
Total equity | 158,537 | 190,463 |
Total liabilities and equity | $ 379,268 | $ 404,336 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Total | TotalCumulative Effect, Period of Adoption, Adjustment | TotalCumulative Effect, Period of Adoption, Adjusted Balance | Share capital | Share capitalCumulative Effect, Period of Adoption, Adjusted Balance | Shares held in trust | Shares held in trustCumulative Effect, Period of Adoption, Adjusted Balance | Other reserves | Other reservesCumulative Effect, Period of Adoption, Adjusted Balance | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Retained earningsCumulative Effect, Period of Adoption, Adjusted Balance | Non-controlling interest | Non-controlling interestCumulative Effect, Period of Adoption, Adjusted Balance | |||
Beginning balance at Dec. 31, 2017 | $ 197,762 | $ 194,306 | $ 696 | $ (917) | $ 16,794 | $ 177,733 | $ 3,456 | |||||||||||||
Comprehensive income/(loss) for the period | 24,858 | 24,475 | 1,123 | 23,352 | 383 | |||||||||||||||
Transfer from other comprehensive income | 0 | (971) | 971 | |||||||||||||||||
Dividends (see Note 23) | (16,261) | (15,675) | (15,675) | (586) | ||||||||||||||||
Repurchases of shares | [1] | (4,519) | (4,519) | (11) | 11 | (4,519) | ||||||||||||||
Share-based compensation | 8 | 8 | (343) | (342) | 693 | |||||||||||||||
Other changes in non-controlling interest | 686 | 51 | 51 | 635 | ||||||||||||||||
Ending balance at Dec. 31, 2018 | 202,534 | $ 4 | $ 202,538 | 198,646 | $ 4 | $ 198,650 | 685 | $ 685 | (1,260) | $ (1,260) | 16,615 | $ 16,615 | 182,606 | $ 4 | $ 182,610 | 3,888 | $ 3,888 | |||
Comprehensive income/(loss) for the period | 14,398 | 13,773 | (2,069) | 15,842 | 625 | |||||||||||||||
Transfer from other comprehensive income | 0 | (74) | 74 | |||||||||||||||||
Dividends (see Note 23) | (15,735) | (15,198) | (15,198) | (537) | ||||||||||||||||
Repurchases of shares | [1] | (10,286) | (10,286) | (28) | 28 | (10,286) | ||||||||||||||
Share-based compensation | (465) | (465) | 197 | (49) | (613) | |||||||||||||||
Other changes in non-controlling interest | 13 | 2 | 2 | 11 | ||||||||||||||||
Ending balance at Dec. 31, 2019 | 190,463 | 186,476 | 657 | (1,063) | 14,451 | 172,431 | 3,987 | |||||||||||||
Comprehensive (loss)/income for the period | (23,093) | (23,229) | (1,832) | (21,397) | [2] | 136 | ||||||||||||||
Comprehensive income/(loss) for the period | (23,376) | |||||||||||||||||||
Transfer from other comprehensive income | 0 | 270 | (270) | |||||||||||||||||
Dividends (see Note 23) | (7,581) | (7,270) | (7,270) | (311) | ||||||||||||||||
Repurchases of shares | (1,214) | (1,214) | (6) | 6 | (1,214) | |||||||||||||||
Share-based compensation | (19) | (19) | 354 | (143) | (230) | |||||||||||||||
Other changes in non-controlling interest | (19) | 566 | 566 | (585) | [3] | |||||||||||||||
Ending balance at Dec. 31, 2020 | $ 158,537 | $ 155,310 | $ 651 | $ (709) | $ 12,752 | $ 142,616 | $ 3,227 | |||||||||||||
[1] | [C] The repurchase of shares recognised through retained earnings includes the aggregate maximum consideration to which Shell was contractually bound to under the tranches of the buyback programme, plus associated stamp duty (see Note 20) . | |||||||||||||||||||
[2] | [A] Comprehensive loss for the period of $21,397 million recognised in retained earnings includes a gain of $283 million, recognised in equity, that relates to remeasurement of a share of interest in a joint venture in respect of prior years. | |||||||||||||||||||
[3] | [B] The change is mainly related to the non-controlling interest in Shell Midstream Partners, L.P. (SHLX) following the completion of the sale of Shell's 79% interest in the Mattox Pipeline Company LLC and certain logistics assets at the Shell Norco Manufacturing Complex to SHLX. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Statement of cash flows [abstract] | |||||
(Loss)/income before taxation for the period | $ (26,967) | $ 25,485 | $ 35,621 | ||
Adjustment for: | |||||
Interest expense (net) | 3,316 | 3,705 | 2,878 | ||
Depreciation, depletion and amortisation | 52,444 | 28,701 | 22,135 | ||
Exploration well write-offs | 815 | 1,218 | 449 | ||
Net gains on sale and revaluation of non-current assets and businesses | (286) | (2,519) | (3,265) | ||
Share of profit of joint ventures and associates | (1,783) | (3,604) | (4,106) | ||
Dividends received from joint ventures and associates | 2,591 | 4,139 | 4,903 | ||
Decrease/(increase) in inventories | 4,477 | (2,635) | 2,823 | ||
Decrease/(increase) in current receivables | 9,625 | (921) | 1,955 | ||
Decrease in current payables | (9,494) | (1,223) | (1,336) | ||
Derivative financial instruments | 977 | (1,484) | 799 | ||
Retirement benefits | 568 | (365) | 390 | ||
Decommissioning and other provisions | 1,104 | (686) | (1,754) | ||
Other | 8 | (28) | 1,264 | ||
Tax paid | (3,290) | (7,605) | (9,671) | ||
Cash flow from operating activities | 34,105 | 42,178 | 53,085 | ||
Capital expenditure | (16,585) | (22,971) | (23,011) | ||
Investments in joint ventures and associates | (1,024) | (743) | (880) | ||
Investment in equity securities | (218) | (205) | (187) | ||
Proceeds from sale of property, plant and equipment and businesses | 2,489 | 4,803 | 4,366 | ||
Proceeds from sale of joint ventures and associates | 1,240 | 2,599 | 1,594 | ||
Proceeds from sale of equity securities | 281 | 469 | 4,505 | ||
Interest received | 532 | 911 | 823 | ||
Other investing cash inflows | 3,239 | 2,921 | 1,373 | ||
Other investing cash outflows | (3,232) | (3,563) | (2,242) | ||
Cash flow from investing activities | (13,278) | (15,779) | (13,659) | ||
Net decrease in debt with maturity period within three months | (63) | (308) | (396) | ||
Other debt: | |||||
New borrowings | 23,033 | 11,185 | 3,977 | ||
Repayments | (17,385) | (14,292) | (11,912) | ||
Interest paid | (4,105) | (4,649) | (3,574) | ||
Derivative financial instruments | [1] | 1,157 | (48) | ||
Change in non-controlling interest | (42) | 0 | 678 | ||
Cash dividends paid to: | |||||
Royal Dutch Shell plc shareholders | (7,424) | [2] | (15,198) | (15,675) | |
Non-controlling interest | (311) | (537) | (584) | ||
Repurchases of shares | (1,702) | (10,188) | (3,947) | ||
Shares held in trust: net purchases and dividends received | (382) | (1,174) | (1,115) | ||
Cash flow from financing activities | (7,224) | (35,209) | (32,548) | ||
Currency translation differences relating to cash and cash equivalents | 172 | 124 | (449) | ||
Increase/(decrease) in cash and cash equivalents | 13,775 | (8,686) | 6,429 | ||
Cash and cash equivalents at beginning of year | 18,055 | 26,741 | 20,312 | ||
Cash and cash equivalents at end of year | $ 31,830 | $ 18,055 | $ 26,741 | ||
[1] | [A] As from 2019, a new line item 'Derivative financial instruments' has been introduced for derivatives related to debt. | ||||
[2] | [B] Cash dividends paid represents the payment of net dividends (after deduction of withholding taxes where applicable) and payment of withholding taxes on dividends paid in the previous quarter. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Comprehensive loss | $ 23,093 | |
Gain recognised in equity that relates to remeasurement of a share of interest in joint venture in respect of prior years | 283 | |
Retained earnings | ||
Comprehensive loss | $ 21,397 | [1] |
Disposal group, disposed of by sale, not discontinued operations | Mattox Pipeline Company LLC | ||
Proportion of ownership interest in subsidiary sold | 79.00% | |
[1] | [A] Comprehensive loss for the period of $21,397 million recognised in retained earnings includes a gain of $283 million, recognised in equity, that relates to remeasurement of a share of interest in a joint venture in respect of prior years. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Basis Of Preparation Of Financial Statements [Abstract] | |
Basis of Preparation | 1 – BASIS OF PREPARATION The Consolidated Financial Statements of Royal Dutch Shell plc (the “Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared in accordance with international accounting standards in conformity with the requirements of the UK Companies Act 2006 (the “Act”), and therefore in accordance with International Financial Reporting Standards (IFRS) adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. As applied to Shell, there are no material differences from IFRS as issued by the International Accounting Standards Board (IASB); therefore, the Consolidated Financial Statements have been prepared in accordance with IFRS as issued by the IASB. As described in the accounting policies in Note 2, the Consolidated Financial Statements have been prepared under the historical cost convention except for certain items measured at fair value. Those accounting policies have been applied consistently in all periods, except for the accounting for lease contracts following the prospective adoption of IFRS 16 Leases from January 1, 2019. The Consolidated Financial Statements were approved and authorised for issue by the Board of Directors on March 10, 2021 |
Significant Accounting Policies
Significant Accounting Policies, Judgements and Estimates | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Significant Accounting Policies, Judgements and Estimates | 2 – SIGNIFICANT ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATES This Note describes Shell’s significant accounting policies, which are those relevant to an understanding of the Consolidated Financial Statements. It includes the measurement bases used in preparing the Consolidated Financial Statements. It allows an understanding as to how transactions, other events and conditions are reported. It also describes: (a) judgements, apart from those involving estimations, that management makes in applying the policies that have the most significant effect on the amounts recognised in the Consolidated Financial Statements; and (b) estimations, including assumptions about the future, that management makes in applying the policies. The sources of estimation uncertainty that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are specifically identified as a significant estimate. The accounting policies applied are consistent with those of the previous financial year except for the adoption as from January 1, 2020 of amendments to IFRS 9 Financial Instruments (IFRS 9) and IFRS 7 Financial Instruments: Disclosures (IFRS 7), and IFRS 3 Business Combinations (IFRS 3). The transition to the accounting pronouncements as listed below has no or no material impact. IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Inter-Bank Offered Rate (IBOR) Reform - Phase 1 IFRS 9 and IFRS 7 contain a temporary targeted exception from applying specific hedge accounting requirements pre-IBOR reform. By applying the exception, Shell anticipates that the interest rate benchmark on which the hedged risk is based is not altered as a result of the IBOR reform. However, any hedge ineffectiveness continues to be recorded in the income statement. The exception ceases to apply when the uncertainty arising from interest rate benchmark reform is no longer present. IFRS 3 Business Combinations The amendment to IFRS 3 resolves the difficulties that arose when an entity determined whether it acquired a business or a group of assets. Under the amended definition of a business, an acquisition qualifies as a business combination when the assets and liabilities acquired include an input and a substantive process that together significantly contribute to the ability to create outputs. The amended definition of a business is applied prospectively. Nature of the Consolidated Financial Statements The Consolidated Financial Statements are presented in US dollars (dollars) and comprise the financial statements of the Company and its subsidiaries, being those entities over which the Company has control, either directly or indirectly, through exposure or rights to their variable returns and the ability to affect those returns through its power over the entities. Information about subsidiaries at December 31, 2020, can be found in Exhibit 8. Subsidiaries are consolidated from the date on which control is obtained until the date that such control ceases, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from such transactions, are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Non-controlling interest represents the proportion of income, other comprehensive income and net assets in subsidiaries that is not attributable to the Company’s shareholders. Climate change and energy transition Meeting the goals of the Paris Agreement is a global and Shell target. Shell’s pathway to Paris alignment is reflected in the Group’s strategy and in 2020 we announced a long-term target to become a net-zero emissions energy business by 2050, in step with society. It is important to note that the world needs to transform in a number of complex and interconnected ways. While the world has made some movement towards the goals of Paris, unfortunately, society is not yet on a path to meet Paris. Getting the energy system on a path to net-zero emissions will require coordinated action between energy providers, energy users and governments. One of the key aspects that underpin Shell's financial statements are the oil and gas price and refining margin assumptions. These price assumptions are developed with input from our scenarios and other factors. The mid-price is our reasonable best estimate and the basis for our operating plans, outlooks and impairment testing. Shell’s operating plan and outlook (including portfolio changes) are forecasted for a 10-year period and include significant actions to reduce its greenhouse gas (GHG) emissions in its journey towards its net-zero emissions target by 2050 as outlined in this report. However, our plan and pricing assumptions do not yet reflect Shell's 2050 net-zero emissions target, because our planning timeframe is 10 years and there is significant uncertainty on how society will transition to net-zero emissions. Instead these reflect the current economic environment, the pace of the world's energy transition and Shell’s reasonable expectation of how the next 10 years will evolve. As society moves towards net-zero emissions, Shell expects its operating plan, outlook and assumptions to be revised accordingly. Long term, it is expected that the current Shell portfolio will change and evolve with the energy transition. Decision-making on the future portfolio is guided by the pace of society’s progress and the aim of being in step with society as it moves towards the goal of the Paris Agreement. Shell has set out its strategy of how it will achieve its target to be a net-zero emissions energy business by 2050, in step with society’s progress towards achieving net-zero emissions. Currency translation Foreign currency transactions are translated using the exchange rate at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at quarter-end exchange rates of monetary assets and liabilities denominated in foreign currencies (including those in respect of inter-company balances, unless related to loans of a long-term investment nature) are recognised in income unless when recognised in other comprehensive income in respect of cash flow or net investment hedges. Foreign exchange gains and losses in income are presented within interest and other income or within purchases where not related to financing. Share capital issued in currencies other than the dollar is translated at the exchange rate at the date of issue. On consolidation, assets and liabilities of non-dollar entities are translated to dollars at year-end rates of exchange, while their statements of income, other comprehensive income and cash flows are translated at quarterly average rates. The resulting translation differences are recognised as currency translation differences within other comprehensive income. Upon sale of all or part of an interest in, or upon liquidation of, an entity, the appropriate portion of cumulative currency translation differences related to that entity is generally recognised in income. Revenue recognition Revenue from sales of oil, natural gas, chemicals and other products is recognised at the transaction price to which Shell expects to be entitled, after deducting sales taxes, excise duties and similar levies. For contracts that contain separate performance obligations, the transaction price is allocated to those separate performance obligations by reference to their relative stand-alone selling prices. Revenue is recognised when control of the products has been transferred to the customer. For sales by Integrated Gas and Upstream operations, this generally occurs when the product is physically transferred into a vessel, pipe or other delivery mechanism; for sales by refining operations, it is either when the product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms; and for sales of oil products and chemicals, it is either at the point of delivery or the point of receipt, depending on contractual conditions. Revenue resulting from hydrocarbon production from properties in which Shell has an interest with partners in joint arrangements is recognised on the basis of Shell’s volumes lifted and sold. Revenue resulting from the production of oil and natural gas under production-sharing contracts (PSCs) is recognised for those amounts relating to Shell’s cost recoveries and Shell’s share of the remaining production. Gains and losses on derivative contracts and the revenue and costs associated with other contracts that are classified as held primarily for the purpose of being traded are reported on a net basis in the Consolidated Statement of Income. Purchases and sales of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstocks for refinery operations are presented net in the Consolidated Statement of Income. Revenue resulting from arrangements that are not considered contracts with customers is presented as revenue from other sources. Research and development Development costs that are expected to generate probable future economic benefits are capitalised as intangible assets. All other research and development expenditure is recognised in income as incurred. Exploration costs Hydrocarbon exploration costs are accounted for under the successful efforts method: exploration costs are recognised in income when incurred, except that exploratory drilling costs, including in respect of the recapitalisation of the depreciation, are included in property, plant and equipment pending determination of proved reserves. Exploration costs capitalised in respect of exploration wells that are more than 12 months old are written off unless: (a) proved reserves are booked; or (b) (i) they have found commercially producible quantities of reserves and (ii) they are subject to further exploration or appraisal activity in that either drilling of additional exploratory wells is under way or firmly planned for the near future or other activities are being undertaken to sufficiently progress the assessing of reserves and the economic and operating viability of the project. Property, plant and equipment and intangible assets Recognition Property, plant and equipment comprise assets owned by Shell, assets held by Shell under lease contracts, and assets operated by Shell as contractor in PSCs. They include rights and concessions in respect of properties with proved reserves ("proved properties") and with no proved reserves ("unproved properties"). Property, plant and equipment, including expenditure on major inspections, and intangible assets are initially recognised in the Consolidated Balance Sheet at cost where it is probable that they will generate future economic benefits. This includes capitalisation of decommissioning and restoration costs associated with provisions for asset retirement (see "provisions"), certain development costs (see "research and development") and the effects of associated cash flow hedges (see "financial instruments") as applicable. The accounting for exploration costs is described separately (see "exploration costs"). Intangible assets include goodwill, liquefied natural gas (LNG) off-take and sales contracts obtained through acquisition, emission certificates, software costs and trademarks. Interest is capitalised as an increase in property, plant and equipment, on major capital projects during construction. Property, plant and equipment and intangible assets are subsequently carried at cost less accumulated depreciation, depletion and amortisation (including any impairment). Gains and losses on sale are determined by comparing the proceeds with the carrying amounts of assets sold and are recognised in income, within interest and other income. An asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, which is when the sale is highly probable, and it is available for immediate sale. Assets classified as held for sale are measured at the lower of the carrying amount upon classification and the fair value less costs to sell. Depreciation, depletion and amortisation Property, plant and equipment related to hydrocarbon production activities are in principle depreciated on a unit-of-production basis over the proved developed reserves of the field concerned, other than assets whose useful lives differ from the lifetime of the field which are depreciated applying the straight-line method. However, for certain Integrated Gas and Upstream assets, the use for this purpose of proved developed reserves, which are determined using the SEC-mandated yearly average oil and gas prices, would result in depreciation charges for these assets which do not reflect the pattern in which their future economic benefits are expected to be consumed as, for example, it may result in assets with long-term expected lives being depreciated in full within one year. Therefore, in these instances, other approaches are applied to determine the reserves base for the purpose of calculating depreciation, such as using management’s expectations of future oil and gas prices rather than yearly average prices, to provide a phasing of periodic depreciation charges that more appropriately reflects the expected utilisation of the assets concerned. (See Note 8) Rights and concessions in respect of proved properties are depleted on the unit-of-production basis over the total proved reserves of the relevant area. Where individually insignificant, unproved properties may be grouped and depreciated based on factors such as the average concession term and past experience of recognising proved reserves. Property, plant and equipment held under lease contracts and capitalised LNG off-take and sales contracts are depreciated or amortised over the term of the respective contract. Other property, plant and equipment and intangible assets are depreciated or amortised on a straight-line basis over their estimated useful lives, except for goodwill, which is not amortised. They include refineries and chemical plants (for which the useful life is generally 20 years), retail service stations (15 years), upgraders (30 years) and major inspection costs, which are depreciated over the estimated period before the next planned major inspection ( three On classification of an asset as held for sale, depreciation ceases. Estimates of the useful lives and residual values of property, plant and equipment and intangible assets are reviewed annually and adjusted if appropriate. Impairment The carrying amount of goodwill is tested for impairment annually; in addition, assets other than unproved properties (see "exploration costs") are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts for those assets may not be recoverable. On classification as held for sale, the carrying amounts of property, plant and equipment and intangible assets are also reviewed. If assets are determined to be impaired, the carrying amounts of those assets are written down to their recoverable amount, which is the higher of fair value less costs of disposal (see "fair value measurements") and value in use. Value in use is determined as the amount of estimated risk-adjusted discounted future cash flows. For this purpose, assets are grouped into cash-generating units based on separately identifiable and largely independent cash inflows. Estimates of future cash flows used in the evaluation of impairment of assets are made using management’s forecasts of commodity prices, market supply and demand, potential costs associated with operational GHG emissions, mainly related to CO₂, and forecast product and refining margins. In addition, management takes into consideration the expected useful lives of the manufacturing facilities, exploration and production assets, and expected production volumes. The latter takes into account assessments of field and reservoir performance and includes expectations about both proved reserves and volumes that are expected to constitute proved reserves in the future (unproved volumes), which are risk-weighted utilising geological, production, recovery and economic projections. Cash flow estimates are risk-adjusted to reflect local conditions as appropriate and discounted at a rate based on Shell’s marginal cost of debt. Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed. Impairment losses and reversals are reported within depreciation, depletion and amortisation. Judgements and estimates Proved oil and gas reserves Unit-of-production depreciation, depletion and amortisation charges are principally measured based on management’s estimates of proved developed oil and gas reserves. Also, exploration drilling costs are capitalised pending the results of further exploration or appraisal activity, which may take several years to complete and before any related proved reserves can be booked. Proved reserves are estimated by a central group of reserves experts. The estimated proved reserves are determined by reference to available geological and engineering data and only include volumes for which access to market is assured with reasonable certainty. Yearly average oil and gas prices are applied in the determination of proved reserves. Estimates of proved reserves are inherently imprecise, require the application of judgement and are subject to regular revision, either upward or downward, based on new information such as from the drilling of additional wells, observation of long-term reservoir performance under producing conditions and changes in economic factors, including product prices, contract terms, legislation or development plans. Changes to estimates of proved developed reserves affect prospectively the amounts of depreciation, depletion and amortisation charged and, consequently, the carrying amounts of exploration and production assets. Generally, in the normal course of business the diversity of the asset portfolio will limit the net effect of such revisions. The outcome of, or assessment of plans for, exploration or appraisal activity may result in the related capitalised exploration drilling costs being recognised in income in that period. Judgement is involved in determining when to use an alternative reserves base in order to appropriately reflect the expected utilisation of the assets concerned (see "depreciation, depletion and amortisation"). Information about the carrying amounts of exploration and production assets and the amounts charged to income, including depreciation, depletion and amortisation and the quantitative impact of the use of an alternative reserves base, is presented in Note 8. Impairment For the purposes of determining whether impairment of assets has occurred, and the extent of any impairment loss or its reversal, the key assumptions management uses in estimating risk-adjusted future cash flows for value in use measures are future oil and gas prices and refining margins. In addition, management uses other assumptions such as potential costs associated with operational GHG emissions and expected production volumes appropriate to the local circumstances and environment. These assumptions and the judgements of management that are based on them are subject to change as new information becomes available. Changes in assumptions could affect the carrying amounts of assets, and any impairment losses and reversals will affect income. Changes in economic conditions can affect the rate used to discount future cash flow estimates or the risk-adjustment in the future cash flows. Expected production volumes, which comprise proved reserves and unproved volumes, are used for impairment testing because management believes this to be the most appropriate indicator of expected future cash flows. As discussed in "Proved oil and gas reserves" above, reserves estimates are inherently imprecise. Furthermore, projections about unproved volumes are based on information that is necessarily less robust than that available for mature reservoirs. Estimation is involved with respect to the expected life of refineries and chemicals sites, and also including management’s view on the future development of refining margins. The determination of cash-generating units requires judgement. Changes in this determination could impact the calculation of value in use and therefore the conclusion on the recoverability of assets’ carrying amounts when performing an impairment test. Judgement, which is subject to change as new information becomes available, can be required in determining when an asset is classified as held for sale. A change in that judgement could result in impairment charges affecting income, depending on whether classification requires a write-down of the asset to its fair value less costs to sell. In assessing the value in use, the estimated risk adjusted future cash flows are discounted to their present value using a pre-tax discount rate that reflects Shell’s marginal cost of debt, current market assessments of the time value of money and residual risks (e.g. normal operational and other generic uncertainties). The discount rate applied does not reflect risks for which future cash flow estimates have been adjusted. Significant estimates Future commodity price assumptions used in the impairment testing in Integrated Gas and Upstream, presented in Note 8, tend to be stable because management does not consider short-term increases or decreases in prices as being indicative of long-term levels, but they are nonetheless subject to change. Until 2019 management’s estimate of longer-term refining margins used in the impairment testing in Oil Products was based on the reversion to mean methodology, unless a fundamental shift in markets had been identified, over the life of the refineries. Under this approach, it was assumed that refining margins would revert to historical averages over time. As from 2020, a different price methodology applies, based on Shell management's understanding and interpretation of demand and supply fundamentals in the near term and taking into account various other factors such as industry rationalisation and energy transition in the long term. Future commodity prices and refining margins used in impairment testing provide a source of estimation uncertainty as referred to in paragraph 125 of IAS 1 Presentation of Financial Statements (IAS 1.125). Information about the carrying amounts of assets and impairments and their sensitivity to changes in significant estimates are presented in Notes 7 and 8. Leases (from January 1, 2019) A contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for payments to be made to the owners (lessors) is accounted for as a lease. Contracts are assessed to determine whether a contract is, or contains, a lease at the inception of a contract or when the terms and conditions of a contract are significantly changed. The lease term is the non-cancellable period of a lease, together with contractual options to extend or to terminate the lease early, where it is reasonably certain that an extension option will be exercised or a termination option will not be exercised. At the commencement of a lease contract, a right-of-use asset and a corresponding lease liability are recognised, unless the lease term is 12 months or less. The commencement date of a lease is the date on which the underlying asset is made available for use. The lease liability is measured at an amount equal to the present value of the lease payments during the lease term that are not paid at that date. The lease liability includes contingent rentals and variable lease payments that depend on an index, rate, or where they are fixed payments in substance. The lease liability is remeasured when the contractual cash flows of variable lease payments change due to a change in an index or rate when the lease term changes following a reassessment. Lease payments are discounted using the interest rate implicit in the lease. If that rate is not readily available, the incremental borrowing rate is applied. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. In general, a corresponding right-of-use asset is recognised for an amount equal to each lease liability, adjusted by the amount of any pre-paid lease payment relating to the specific lease contract. The depreciation on right-of-use assets is recognised in income unless capitalised as exploration drilling cost (see "exploration cost") or capitalised when the right-of-use asset is used to construct another asset. Where Shell is the lessor in a lease arrangement at inception, the lease arrangement will be classified as a finance lease or an operating lease. Classification is based on the extent to which the risks and rewards incidental to ownership of the underlying asset lie with the lessor or the lessee. Where Shell, usually in its capacity as operator, has entered into a lease contract on behalf of a joint arrangement, a lease liability is recognised to the extent that Shell has primary responsibility for the lease liability. A finance sub-lease is subsequently recognised if the related right-of-use asset is subleased to the joint arrangement. This is usually the case when the joint arrangement has the right to direct the use and obtains substantially all of the economic benefits from using the asset. Impairment of the right-of-use asset Right-of-use assets are subject to existing impairment requirements as set out in "property, plant and equipment" (see Note 8). Judgements and estimates A lease term includes optional lease periods where it is reasonably certain Shell will exercise the option to extend or not to exercise the option to terminate the lease. Determination of the lease term is subject to judgement and has an impact on the measurement of the lease liability and related right-of-use asset. When assessing the lease term at the commencement date, Shell takes into consideration the broader economics of the contract. Reassessment of the lease term is performed upon changes in circumstances that may affect the probability that an option to extend or to terminate the lease will be exercised. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation. Leases (prior to January 1, 2019) Agreements under which payments are made to owners in return for the right to use an asset for a period are accounted for as leases. Leases that transfer substantially all the risks and rewards of ownership are recognised at the commencement of the lease term as finance leases within property, plant and equipment and debt at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Finance lease payments are apportioned between interest expense and repayments of debt. All other leases are classified as operating leases and the cost is recognised in income on a straight-line basis, except where capitalised as exploration drilling costs (see "exploration costs"). Joint arrangements and associates Arrangements under which Shell has contractually agreed to share control (see "Nature of the Consolidated Financial Statements" for the definition of control) with another party or parties are joint ventures where the parties have rights to the net assets of the arrangement, or joint operations where the parties have rights to the assets and obligations for the liabilities relating to the arrangement. Investments in entities over which Shell has the right to exercise significant influence but neither control nor joint control are classified as associates. Information about incorporated joint arrangements and associates at December 31, 2020, can be found in Exhibit 8. Investments in joint ventures and associates are accounted for using the equity method, under which the investment is initially recognised at cost and subsequently adjusted for the Shell share of post-acquisition income less dividends received and the Shell share of other comprehensive income and other movements in equity, together with any loans of a long-term investment nature. Where necessary, adjustments are made to the financial statements of joint ventures and associates to bring the accounting policies used into line with those of Shell. In an exchange of assets and liabilities for an interest in a joint venture, the non-Shell share of any excess of the fair value of the assets and liabilities transferred over the pre-exchange carrying amounts is recognised in income. Unrealised gains on other transactions between Shell and its joint ventures and associates are eliminated to the extent of Shell’s interest in them; unrealised losses are treated similarly but may also result in an assessment of whether the asset transferred is impaired. Shell recognises its assets and liabilities relating to its interests in joint operations, including its share of assets held jointly and liabilities incurred jointly with other partners. Inventories Inventories are stated at cost or net realisable value, whichever is lower. Cost comprises direct purchase costs (including transportation), and associated costs incurred in bringing inventories to their present condition and location, and is determined using the first-in, first-out (FIFO) method for oil, gas and chemicals and by the weighted average cost method for materials. Taxation The charge for current tax is calculated based on the income reported by the Company and its subsidiaries, as adjusted for items that are non-taxable or disallowed and using rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is determined, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Balance Sheet and on unused tax losses and credits carried forward. Deferred tax assets and liabilities are calculated using the enacted or substantively enacted rates that are expected to apply when an asset is realised or a liability is settled. They are not recognised where they arise on the initial recognition of goodwill or of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit, or in respect of taxable temporary differences associated with subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by Shell and it is probable that it will not reverse in the foreseeable future. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and credits carried forward can be utilised. Income tax receivables and payables as well as deferred tax assets and liabilities include provisions for uncertain income tax positions/treatments. Income taxes are recognised in income except when they relate to items recognised in other comprehensive income, in which case the tax is recognised in other comprehensive income. Income tax assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a right of offset within fiscal jurisdictions and an intention to settle such balances on a net basis. Judgements and estimates Tax liabilities are recognised when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. Provisions for uncertain income tax positions/treatments are measured at the most likely amount or the expe |
Changes to IFRS Not Yet Adopted
Changes to IFRS Not Yet Adopted | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Changes to IFRS Not Yet Adopted | 3 – CHANGES TO IFRS NOT YET ADOPTED Inter-Bank Offered Rate (IBOR) Reform - Phase 2 Amendments to IFRS 9 Financial Instruments (IFRS 9), IFRS 7 Financial Instruments: Disclosures (IFRS 7) and IFRS 16 Leases (IFRS 16) were issued in August 2020 that complement those amendments issued in 2019 (IBOR Reform - Phase 1) and focus on the effects of IBOR reform on a company’s financial statements that arise when, for example, an IBOR used to calculate interest on a financial asset is replaced with an alternative benchmark rate. In Phase 2 the IASB amended requirements relating to: changes in the basis for determining contractual cash flows of financial assets, financial liabilities and lease liabilities; hedge accounting; and disclosures. These amendments apply only to changes required by the IBOR reform to financial instruments and hedging relationships. The amendments are effective for periods beginning on or after January 1, 2021 and are to be applied retrospectively. Early application is permitted. Shell’s fixed-rate debt hedged to floating rate will be affected by the market-wide replacement of London Inter-Bank Offered Rate (LIBOR) by alternative risk-free reference rates, most significantly by reform of dollar LIBOR. The majority of Shell’s debt-related interest rate and currency swaps were designated in fair value hedge relationships at December 31, 2020. The notional amount of hedging instruments designated in hedge relationships affected by the reform, at December 31, 2020, was $23,010 million. Furthermore, Shell has one floating rate note of $500 million tied to LIBOR, maturing in 2023, which will be affected. A Group-wide project is in progress to manage the transition to alternative benchmark rates disclosures. UK-adopted international accounting standards On December 31, 2020 at 11pm BST, legislation made under the European Union (Withdrawal) Act 2018 brought into UK law IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (EU) (previously referred to as "IFRS as adopted by the EU") to provide continuity. These standards are referred to as UK-adopted international accounting standards . For reporting periods beginning on or after January 1, 2021, Shell's filing of the Annual Report to the Registrar of Companies for England and Wales ("Companies House") and other UK regulatory filings will be prepared in accordance with these UK-adopted international accounting standards. The IFRS endorsement powers for the UK have been transferred from the European Commission to the Secretary of State for Business, Energy and Industrial Strategy (BEIS). There are currently no material differences between the UK-adopted international accounting standards and IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the EU . But if divergence occurs between the two accounting frameworks this may result in the need to report against both accounting frameworks to meet the UK and Dutch reporting requirements. However, if the EU determines that UK-adopted international accounting standards are equivalent to IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the EU, any divergence between the two accounting frameworks would have no impact on Shell’s future reporting. The EU has not yet accepted the UK-adopted international accounting standards at the time of publishing this Report . It is expected that in the short term there will be no material differences between IFRS as issued by the IASB, UK-adopted international accounting standards and IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the EU. IFRS 17 Insurance contracts (IFRS 17) IFRS 17 was issued in 2017, and is required to be adopted for annual reporting periods beginning on or after January 1, 2023. The IFRS 17 model combines a current balance sheet measurement of insurance contracts with recognition of profit over the period that services are provided. The general model in the standard requires insurance contract liabilities to be measured using probability-weighted current estimates of future cash flows, an adjustment for risk, and a contractual service margin representing the profit expected from fulfilling the contracts. Effects of changes in the estimates of future cash flows and the risk adjustment relating to future services are recognised over the period services are provided rather than immediately in profit or loss. Shell is in the process of evaluating the initial impact of this standard . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Segment Information | 4 – SEGMENT INFORMATION General information Shell is an international energy company engaged in the principal aspects of the oil and gas industry and reports its business through segments. With effect from 2020, Shell's reporting segments consist of Integrated Gas, Upstream, Oil Products, Chemicals and Corporate, reflecting the way Shell reviews and assesses its performance. The Oil Products and Chemicals businesses were previously reported under the Downstream segment. Oil sands mining activities, previously included in the Upstream segment, are reported under Oil Products. Comparative information has been reclassified. The Integrated Gas segment manages liquefied natural gas (LNG) activities and the conversion of natural gas into gas-to-liquids (GTL) fuels and other products, as well as the New Energies portfolio. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver gas and liquids to market. It markets and trades natural gas, LNG, electricity and carbon-emission rights, and also markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels. The Upstream segment explores for and extracts crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to market. The Oil Products segment comprises the Refining and Trading, and Marketing classes of business. The Refining and Trading class of business turns crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. With effect from 2020, this class of business includes the oil sands mining activities which were previously reported under the Upstream segment. The Marketing class of business includes the Retail, Lubricants, Business-to-Business (B2B), Pipelines and Biofuels businesses. The Chemicals segment operates manufacturing plants and its own marketing network. The Corporate segment covers the non-operating activities supporting Shell, comprising Shell’s holdings and treasury organisation, its self-insurance activities and its headquarters and central functions. Basis of Segmental Reporting Sales between segments are based on prices generally equivalent to commercially available prices. Third-party revenue and non-current assets information by geographical area are based on the country of operation of the Group subsidiaries that report this information. Separate disclosure is provided for the UK as this is the Company’s country of domicile. Segment earnings are presented on a current cost of supplies basis (CCS earnings). On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. CCS earnings attributable to RDS plc shareholders is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. Finance expense and income related to core financing activities, as well as related taxes, are included in the Corporate segment earnings rather than in the earnings of the business segments. Information by segment on a current cost of supplies basis is as follows: 2020 $ million Integrated Gas Upstream Oil Products Chemicals Corporate Total Revenue: Third-party 33,287 6,767 128,717 11,721 51 180,543 [A] [B] Inter-segment 3,410 21,564 6,213 2,850 — 34,037 Share of profit/(loss) of joint ventures and associates (CCS basis) 562 (7) 988 567 (268) 1,842 Interest and other income, of which: 14 542 (93) — 406 869 Interest income 6 56 28 — 589 679 Net gains on sale and revaluation of non-current assets and businesses 218 55 (9) (2) 24 286 Other (210) 431 (112) 2 (207) (96) Third-party and inter-segment purchases (CCS basis) 21,112 4,505 113,177 9,969 8 148,771 Production and manufacturing expenses 5,723 10,521 5,942 1,787 28 24,001 Selling, distribution and administrative expenses 729 (23) 7,360 1,339 476 9,881 Research and development expenses 103 486 209 109 — 907 Exploration expenses 611 1,136 — — — 1,747 Depreciation, depletion and amortisation charge, of which: 17,704 23,119 10,473 1,116 32 52,444 Impairment losses 12,221 8,697 6,531 5 9 27,463 [C] Interest expense 76 374 56 3 3,580 4,089 Taxation (credit)/charge (CCS basis) (2,507) (467) (898) 7 (983) (4,848) CCS earnings (6,278) (10,785) (494) 808 (2,952) (19,701) [A] Includes $10,008 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior gains of $1,136 million related to sales contracts and prior losses of $539 million related to purchase contracts that were previously recognised and where physical settlement has taken place during 2020. [B] With effect from 2020, additional contracts are classified as held for trading purposes and consequently revenue is reported on a net rather than gross basis. The effect on revenue for the full year was a reduction of $46,289 million. [C] Impairment losses comprise Property, plant and equipment ( $26,676 million ) and Intangible assets ( $787 million ). 2019 $ million Integrated Gas Upstream [A] Oil Products [A] Chemicals [A] Corporate Total Revenue: Third-party 41,322 9,482 280,460 13,568 45 344,877 [B] Inter-segment 4,280 35,735 7,819 3,917 — 51,751 Share of profit/(loss) of joint ventures and associates (CCS basis) 1,791 379 1,179 546 (307) 3,588 Interest and other income, of which: 263 2,180 273 (7) 916 3,625 Interest income — — — — 899 899 Net gains on sale and revaluation of non-current assets and businesses 282 1,888 305 (8) 52 2,519 Other (19) 292 (32) 1 (35) 207 Third-party and inter-segment purchases (CCS basis) 23,498 6,982 262,004 13,039 (6) 305,517 Production and manufacturing expenses 5,768 11,102 7,536 1,995 37 26,438 Selling, distribution and administrative expenses 716 29 7,976 1,323 449 10,493 Research and development expenses 181 450 219 112 — 962 Exploration expenses 281 2,073 — — — 2,354 Depreciation, depletion and amortisation charge, of which: 6,238 16,881 4,461 1,074 47 28,701 Impairment losses 579 2,576 622 5 — 3,782 [C] Impairment reversals — — (190) — — (190) [D] Interest expense 104 526 77 5 3,978 4,690 Taxation charge/(credit) (CCS basis) 2,242 5,878 1,319 (2) (578) 8,859 CCS earnings 8,628 3,855 6,139 478 (3,273) 15,827 [A] Revised to conform with reporting segment changes applicable from 2020. [B] Includes $3,760 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. [C] Impairment losses comprise Property, plant and equipment ($3,639 million) and Intangible assets ($143 million). [D] See Note 8. 2018 $ million Integrated Gas Upstream [A] Oil Products [A] Chemicals [A] Corporate Total Revenue: Third-party 43,764 9,459 316,409 18,704 43 388,379 [B] Inter-segment 5,031 37,125 10,613 4,864 — 57,633 Share of profit/(loss) of joint ventures and associates (CCS basis) 2,273 285 1,101 684 (222) 4,121 Interest and other income, of which: 2,230 605 393 (53) 896 4,071 Interest income — — — — 772 772 Net gains on sale and revaluation of non-current assets and businesses 2,231 717 350 (53) 20 3,265 Other (1) (112) 43 — 104 34 Third-party and inter-segment purchases (CCS basis) 27,775 5,948 300,417 17,332 1 351,473 Production and manufacturing expenses 5,370 11,169 8,226 2,362 (157) 26,970 Selling, distribution and administrative expenses 458 29 9,183 1,130 560 11,360 Research and development expenses 186 493 205 102 — 986 Exploration expenses 208 1,132 — — — 1,340 Depreciation, depletion and amortisation charge, of which: 4,850 12,871 3,165 1,034 215 22,135 Impairment losses 200 1,065 346 78 7 1,696 [C] Impairment reversals — (1,265) — — — (1,265) [D] Interest expense 212 586 84 16 2,847 3,745 Taxation charge/(credit) (CCS basis) 2,795 8,756 1,211 339 (1,270) 11,831 CCS earnings 11,444 6,490 6,025 1,884 (1,479) 24,364 [A] Revised to conform with reporting segment changes applicable from 2020. [B] Includes $3,348 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. [C] Impairment losses comprise Property, plant and equipment ($1,515 million) and Intangible assets ($181 million). [D] See Note 8. Reconciliation of CCS earnings to income for the period $ million 2020 2019 2018 (Loss)/income attributable to Royal Dutch Shell plc shareholders (21,680) 15,842 23,352 Income attributable to non-controlling interest 146 590 554 (Loss)/income for the period (21,534) 16,432 23,906 Current cost of supplies adjustment: Purchases 2,359 (784) 559 Taxation (585) 194 (116) Share of profit of joint ventures and associates 59 (15) 15 Current cost of supplies adjustment 1,833 (605) 458 Of which: Attributable to Royal Dutch Shell plc shareholders 1,759 (572) 481 Attributable to non-controlling interest 74 (33) (23) CCS earnings (19,701) 15,827 24,364 Of which: CCS earnings attributable to Royal Dutch Shell plc shareholders (19,921) 15,270 23,833 CCS earnings attributable to non-controlling interest 220 557 531 Information by geographical area is as follows: 2020 $ million Europe Asia, USA Other Total Third-party revenue, by origin 50,138 [A] 65,139 50,856 14,410 180,543 Intangible assets, property, plant and equipment, joint ventures and associates at December 31 38,785 [B] 104,450 62,976 49,909 256,120 [A] Includes $12,958 million that originated from the UK. [B] Includes $23,302 million located in the UK. 2019 $ million Europe Asia, USA Other Total Third-party revenue, by origin 98,455 [A] 139,916 83,212 23,294 344,877 Intangible assets, property, plant and equipment, joint ventures and associates at December 31 43,262 [B] 119,732 67,105 54,544 284,643 [A] Includes $41,094 million that originated from the UK. [B] Includes $24,696 million located in the UK. 2018 $ million Europe Asia, USA Other Total Third-party revenue, by origin 118,960 [A] 153,716 89,876 25,827 388,379 Intangible assets, property, plant and equipment, joint ventures and associates at December 31 38,617 [B] 117,127 59,625 56,721 272,090 [A] Includes $54,659 million that originated from the UK. |
Interest and Other Income
Interest and Other Income | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Interest and Other Income | 5 – INTEREST AND OTHER INCOME $ million 2020 2019 2018 Interest income 679 899 772 Dividend income (from investments in equity securities) 22 23 104 Net gains on sale and revaluation of non-current assets and businesses 286 2,519 3,265 Net foreign exchange (losses)/gains on financing activities (391) 5 (174) Other 273 179 104 Total 869 3,625 4,071 In 2020, 'Other' income mainly related to amounts recognised in respect of sublease income from partners in joint operations. In 2019, net gains on sale of non-current assets and businesses arose mainly in respect of gains on the sale of Integrated Gas assets in Australia, Upstream assets in the USA and Denmark, as well as Oil Products assets in Saudi Arabia and China. |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Interest Expense | 6 – INTEREST EXPENSE $ million 2020 2019 2018 Interest incurred and similar charges 4,359 [A] 4,592 [A] 3,550 Less: interest capitalised (799) (752) (876) Other net losses on fair value and cash flow hedges of debt 32 132 169 Accretion expense 497 718 902 Total 4,089 4,690 3,745 [A] Includes $2,185 million (2019: $2,186 million) of interest expense related to leases, of which $1,031 million (2019: $1,137 million) related to those leases which before January 1, 2019 were classified as operating leases. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | 7 – INTANGIBLE ASSETS 2020 $ million Goodwill LNG off-take Software Other Total Cost At January 1 14,973 10,211 2,958 3,908 32,050 Additions 247 — 133 1,448 1,828 Sales, retirements and other movements (64) (181) (77) (637) (959) Currency translation differences 57 — 100 94 251 At December 31 15,213 10,030 3,114 4,813 33,170 Depreciation, depletion and amortisation, including impairments At January 1 768 4,014 2,524 1,258 8,564 Charge for the year [A] 276 835 156 695 1,962 Sales, retirements and other movements — (181) (129) 9 (301) Currency translation differences 18 — 76 29 123 At December 31 1,062 4,668 2,627 1,991 10,348 Carrying amount at December 31 14,151 5,362 487 2,822 [B] 22,822 [ A] Includes $787 million related to impairments, of which $472 million in 'Other' related to Integrated Gas. (See Note 8) [B] Includes $1,013 million related to emission certificates held for compliance purposes. (See Note 2 9) 2019 $ million Goodwill LNG off-take Software Other Total Cost At January 1 14,338 10,365 2,910 3,482 31,095 Additions 674 — 137 449 1,260 Sales, retirements and other movements (46) (154) (100) (22) (322) Currency translation differences 7 — 11 (1) 17 At December 31 14,973 10,211 2,958 3,908 32,050 Depreciation, depletion and amortisation, including impairments At January 1 622 3,293 2,425 1,169 7,509 Charge for the year [A] 135 876 176 178 1,365 Sales, retirements and other movements (1) (155) (87) (85) (328) Currency translation differences 12 — 10 (4) 18 At December 31 768 4,014 2,524 1,258 8,564 Carrying amount at December 31 14,205 6,197 434 2,650 23,486 [ A] Includes $143 million related to impairments. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | 8 – PROPERTY, PLANT AND EQUIPMENT 2020 $ million Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 18,596 286,666 104,817 29,081 439,160 Additions 1,728 9,659 6,287 3,460 21,134 Sales, retirements and other movements (5,928) 600 (5,510) (1,109) (11,947) Currency translation differences 92 3,632 2,282 970 6,976 At December 31 14,488 300,557 107,876 32,402 455,323 Depreciation, depletion and amortisation, including impairments At January 1 4,010 136,300 48,872 11,629 200,811 Charge for the year [A] 3,336 34,209 11,680 1,693 50,918 Sales, retirements and other movements (2,148) (5,075) (4,129) (1,091) (12,443) Currency translation differences 64 2,805 1,819 502 5,190 At December 31 5,262 168,239 58,242 12,733 244,476 Carrying amount at December 31 9,226 132,318 49,634 19,669 210,847 [A] Includes $26,676 million relating to impairment losses (see table 'Impairments' below). 2019 $ million Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 21,181 285,252 97,694 26,268 430,395 Additions 2,659 11,374 10,945 3,145 28,123 Sales, retirements and other movements (5,442) (11,253) (3,683) (456) (20,834) Currency translation differences 198 1,293 (139) 124 1,476 At December 31 18,596 286,666 104,817 29,081 439,160 Depreciation, depletion and amortisation, including impairments At January 1 3,287 131,692 46,218 10,465 191,662 Charge for the year 1,096 19,346 5,742 1,573 27,757 Sales, retirements and other movements (440) (15,567) (2,981) (437) (19,425) Currency translation differences 67 829 (107) 28 817 At December 31 4,010 136,300 48,872 11,629 200,811 Carrying amount at December 31 14,586 150,366 55,945 17,452 238,349 Sales, retirements and other movements in 2020 includes to sales of the Appalachia shale gas position and the Martinez refinery, both in the USA. The carrying amount of property, plant and equipment at December 31, 2020, included $31,611 million (2019: $27,779 million) of assets under construction. This amount excludes exploration and evaluation assets. The carrying amount at December 31, 2020, included $1,159 million of assets classified as held for sale (2019: $1,401 million). The carrying amount of exploration and production assets at December 31, 2020, included rights and concessions in respect of proved and unproved properties of $11,485 million (2019: $14,355 million). Exploration and evaluation assets principally comprise rights and concessions in respect of unproved properties and capitalised exploration drilling costs. The carrying amount of assets at December 31, 2020, for which an alternative reserves base was applied in the calculation of the depreciation charge (see Note 2), was $1,707 million (2019: $173 million). If no alternative reserves base had been used, the pre-tax depreciation charge for the year ended December 31, 2020, would have been $1,012 million higher (2019:$77 million, 2018: $1,003 million). Contractual commitments for the purchase and lease of property, plant and equipment at December 31, 2020, amounted to $5,699 million (2019: $4,599 million (as revised)). Right-of-use assets Within property, plant and equipment the following amounts relate to leases: $ million 2020 Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 5 15,213 13,574 5,759 34,551 Additions — 502 1,570 1,580 3,652 Sales, retirements and other movements — (1,370) (675) (75) (2,120) Currency translation differences — 95 57 120 272 At December 31 5 14,440 14,526 7,384 36,355 Depreciation, depletion and amortisation, including impairments At January 1 — 5,761 2,936 1,164 9,861 Charge for the year — 1,898 2,675 760 5,333 Sales, retirements and other movements — (712) (627) (158) (1,497) Currency translation differences — 50 29 27 106 At December 31 — 6,997 5,013 1,793 13,803 Carrying amount at December 31 5 7,443 9,513 5,591 22,552 $ million 2019 Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 — 16,379 10,718 5,017 32,114 Additions 5 664 3,124 917 4,710 Sales, retirements and other movements — (1,867) (268) (157) (2,292) Currency translation differences — 37 — (18) 19 At December 31 5 15,213 13,574 5,759 34,551 Depreciation, depletion and amortisation, including impairments At January 1 — 5,209 1,110 589 6,908 Charge for the year — 1,632 1,855 703 4,190 Sales, retirements and other movements — (1,091) (30) (128) (1,249) Currency translation differences — 11 1 — 12 At December 31 — 5,761 2,936 1,164 9,861 Carrying amount at December 31 5 9,452 10,638 4,595 24,690 Impairments $ million 2020 2019 2018 Impairment losses [A] Exploration and production 20,155 2,983 1,066 Manufacturing, supply and distribution 6,490 654 441 Other 31 2 8 Total 26,676 3,639 1,515 Impairment reversals [A] Exploration and production — — 1,265 Manufacturing, supply and distribution — 190 — Total — 190 1,265 [A] See Note 4. Impairment losses in 2020 were mainly triggered by Shell's revision of the mid- and long-term commodity price and refining margin outlook reflecting the expected effects of the macroeconomic environment and the COVID-19 pandemic as well as energy market demand and supply fundamentals. The impairment losses for exploration and production assets related primarily to Integrated Gas ($11,539 million), including the Queensland Curtis LNG and Prelude floating LNG operations, and Upstream ($8,629 million), including assets in the Gulf of Mexico, unconventional assets in North America, offshore assets in Brazil and Europe and a project in Nigeria (OPL 245). The impairment losses for manufacturing, supply and distribution related primarily to Oil Products ($6,493 million), including assets in Europe and the shutdown of the Convent refinery in the USA. Impairment losses in 2019 were mainly triggered by the revision to Shell's long-term oil and gas price outlook and change to future capital expenditure plans. The impairment losses related primarily to Upstream shale and deep-water properties in North and South America, in Integrated Gas to properties in Australia and in Oil Products to the refining portfolio. Impairment losses in 2018 were mainly in Upstream, and principally related to the disposal of Shell’s interests in Norway and Ireland and related to assets in the Gulf of Mexico. Impairment reversals in 2018 were mainly related to assets in North America. For impairment testing purposes, the respective carrying amounts of property, plant and equipment and intangible assets were compared with their value in use. Cash flow projections used in the determination of value in use were made using management’s forecasts of commodity prices, market supply and demand, potential costs associated with operational GHG emissions, product margins including forecast refining margins and expected production volumes (see Note 2). These cash flows were adjusted for the risks specific to the assets, and therefore these risks were not included in the determination of the discount rate applied. The nominal pre-tax rate applied in 2020 was 6% (2019: 6%; 2018: 6%). Oil and gas price assumptions applied for impairment testing are reviewed and, where necessary, adjusted on a periodic basis. Reviews include comparison with available market data and forecasts that reflect developments in demand such as global economic growth, technology efficiency, policy measures and, in supply, consideration of investment and resource potential, cost of development of new supply, and behaviour of major resource holders. The near-term commodity price assumptions applied in impairment testing in 2020 were as follows: Commodity price assumptions [A] 2021 2022 2023 2024 Brent crude oil ($/b) 40 50 60 63 Henry Hub natural gas ($/MMBtu) 2.50 2.50 2.75 3.03 [A] Money of the day. For periods after 2024, the real-terms long-term price assumptions applied were $60 per barrel (/b) (2019: $60/b)for Brent crude oil and $3.00 per million British thermal units (/MMBtu) (2019: $3.00 / MMBtu) for Henry Hub natural gas, both at real term 2020. Until 2019 management’s estimate of longer-term refining margins in Oil Products was based on the reversion to mean methodology, unless a fundamental shift in markets had been identified, over the life of the refineries. Under this approach, it was assumed that refining margins will revert to historical averages over time. As from 2020, a different price methodology has been applied, based on management's understanding and interpretation of demand and supply fundamentals in the near term and taking into account various other factors such as industry rationalisation and energy transition in the long term. This resulted in a downward revision of average long-term refining margins by around 30% from previous assumptions applied. Some 53% of the Group’s combined “Property, plant and equipment", "Investments in Joint Ventures and Associates" and "Intangible assets” were tested for impairment in 2020. Of the assets tested, some 56% were subject to either partial or full impairments. At December 31, 2020, the recoverable amounts principally determined through value in use of assets subject to impairment were $17.2 billion for Integrated Gas, $39.1 billion for Upstream and $1.8 billion for Oil Products respectively. The main sensitivities in relation to impairment are the commodity price assumptions in Integrated Gas and Upstream and refining margins in Oil Products. A change of -10% or +10% of the commodity price assumptions would ceteris paribus result in some $6.0-$8.0 billion impairment or of some $6.0-$9.0 billion impairment reversal respectively in Integrated Gas and Upstream. A change of -10% or +10% in long-term refining margins would ceteris paribus result in some $1.5-$2.5 billion impairment or some $1.7-$2.7 billion impairment reversal respectively in Oil Products. Capitalised exploration drilling costs $ million 2020 2019 2018 At January 1 5,668 6,629 6,981 Additions pending determination of proved reserves 1,016 2,036 2,588 Amounts charged to expense (815) (1,218) (449) Reclassifications to productive wells on determination of proved reserves (1,385) (1,655) (2,461) Other movements [A] (830) (124) (30) At December 31 3,654 5,668 6,629 [A] Includes $750 million impairment of capitalised exploration drilling costs. Projects Wells Number $ million Number $ million Between 1 and 5 years 33 1,666 80 1,275 Between 6 and 10 years 12 975 47 1,309 Between 11 and 15 years 7 213 21 217 Between 16 and 20 years — — 3 53 Total 52 2,854 151 2,854 Exploration drilling costs capitalised for periods greater than one year at December 31, 2020, analysed according to the most recent year of activity, are presented in the table above. These comprise $82 million relating to two projects where drilling activities were under way or firmly planned for the future, and $2,772 million relating to 50 projects awaiting development concepts. |
Joint Ventures and Associates
Joint Ventures and Associates | 12 Months Ended |
Dec. 31, 2020 | |
Interests In Other Entities [Abstract] | |
Joint Ventures and Associates | 9 – JOINT VENTURES AND ASSOCIATES Shell share of comprehensive income of joint ventures and associates $ million 2020 2019 2018 Joint Associates Total Joint Associates Total Joint Associates Total Income for the period 629 [A] 1,154 1,783 1,121 2,483 3,604 1,307 2,799 4,106 Other comprehensive 76 1 77 (82) 8 (74) 172 11 183 Comprehensive income for the period 705 1,155 1,860 1,039 2,491 3,530 1,479 2,810 4,289 [A] Includes $599 million impairment losses recognised in share of profit of joint ventures and associates. Carrying amount of interests in joint ventures and associates $ million Dec 31, 2020 Dec 31, 2019 Joint Associates Total Joint Associates Total Net assets 14,406 8,045 22,451 13,426 9,382 22,808 Transactions with joint ventures and associates $ million 2020 2019 2018 Sales and charges to joint ventures and associates 5,426 7,748 8,270 Purchases and charges from joint ventures and associates 8,262 11,581 [A] 13,758 [A] [A] As revised, following the reassessment of contractual relationships, by $2,008 million (2019) and $2,546 million (2018). These transactions principally comprise sales and purchases of goods and services in the ordinary course of business. Related balances outstanding at December 31, 2020, and 2019, are presented in Notes 11 and 15. Other arrangements in respect of joint ventures and associates $ million Dec 31, 2020 Dec 31, 2019 Commitments to make purchases from joint ventures and associates [A] 1,674 2,177 Commitments to provide debt or equity funding to joint ventures and associates 900 897 |
Investments in Securities
Investments in Securities | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement [Abstract] | |
Investments in Securities | 10 – INVESTMENTS IN SECURITIES Investment in securities $ million Dec 31, 2020 Dec 31, 2019 Equity securities: 1,396 1,437 Equity securities at fair value through other comprehensive income 1,396 1,437 Debt securities: 1,826 1,552 Debt securities at amortised cost 12 11 Debt securities at fair value through other comprehensive income 1,165 1,086 Debt securities at fair value through profit or loss 649 455 Total 3,222 2,989 At fair value Measured by reference to prices in active markets for identical assets 1,637 1,669 Measured by reference to other observable inputs 68 56 Measured using predominantly unobservable inputs 1,505 1,253 Total 3,210 2,978 At cost 12 11 Total 3,222 2,989 Equity securities at December 31, 2020, principally comprised interests below 5%in various investments. Debt securities principally comprised a portfolio required to be held by the Company’s internal insurance entities as security for their activities. Investments in securities measured using predominantly unobservable inputs [A] $ million 2020 2019 At January 1 1,253 1,193 Gains/(losses) recognised in other comprehensive income 45 (42) Purchases 329 340 Sales (60) (237) Other movements (62) (1) At December 31 1,505 1,253 |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade and Other Receivables | 11 – TRADE AND OTHER RECEIVABLES $ million Dec 31, 2020 Dec 31, 2019 Current Non-current Current Non-current Trade receivables 21,781 — 30,216 — Lease receivables 186 1,380 213 1,528 Other receivables 7,251 4,109 7,791 4,039 Amounts due from joint ventures and associates 726 829 912 1,078 Prepayments and deferred charges 3,681 1,323 4,282 1,440 Total 33,625 7,641 43,414 8,085 The fair value of financial assets included above approximates the carrying amount and was determined from predominantly unobservable inputs. Other receivables at December 31, 2020, include receivables from certain governments in their capacity as joint arrangement partners of $1,357 million (2019: $1,209 million), after provisions for impairments, that are overdue in part or in full. Recoverability and timing thereof are subject to uncertainty, however, the ultimate risk of default on the carrying amount is considered to be low. Other receivables also include income tax and other tax receivables (see Note 16). Provisions for impairments deducted from trade and other receivables amounted to $968 million at December 31, 2020 (2019: $649 million). Allowance for expected credit losses - trade receivables Shell uses a provision matrix to calculate expected credit losses (ECLs) for trade receivables. The provision matrix is initially based on Shell’s historical observed default rates. Shell calculates the ECL to adjust the historical credit loss experienced with forward-looking information. The ECL at December 31, 2020 is $112 million (2019: $83 million), which represents 0.27%-0.51% (2019: 0.08%-0.27%) of all trade receivables. The increase compared with prior year is mainly due to changes in the macroeconomic environment and the COVID-19 pandemic. A loss allowance provision of $349 million (2019: $193 million) was established, in addition to all other impairments to trade receivables as at December 31, 2020, that are outside of the provision matrix calculations. Lease receivables Lease contracts where Shell is the lessor are classified as finance leases or operating leases. Receivables for lease contracts classified as finance leases are as follows: $ million Dec 31, 2020 Dec 31, 2019 Less than one year 262 305 Between 1 and 5 years 859 953 5 years and later 852 1,019 Total undiscounted lease payments receivable 1,973 2,277 Unearned finance income 407 536 Net investment in leases 1,566 1,741 In addition at December 31, 2020, Shell is entitled to contractual payments under operating leases of $248 million (2019: $344 million). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Inventories | 12 – INVENTORIES $ million Dec 31, 2020 Dec 31, 2019 Oil, gas and chemicals 16,949 21,653 [A] Other including materials 2,508 2,418 [A] Total 19,457 24,071 [A] As revised, following the reclassification of non-physical trading inventories of $1,001 million from 'Oil, gas and chemicals' to 'Other including materials'. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and Cash Equivalents | 13 – CASH AND CASH EQUIVALENTS $ million Dec 31, 2020 Dec 31, 2019 Cash 4,831 4,168 Short-term bank deposits 2,220 2,665 Money market funds, reverse repos and other cash equivalents 24,779 11,222 Total 31,830 18,055 |
Debt and Lease Arrangements
Debt and Lease Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Debt and Lease Arrangements | 14 – DEBT AND LEASE ARRANGEMENTS Debt Debt $ million Dec 31, 2020 Dec 31, 2019 Debt Lease Total Debt Lease Total Short-term debt 7,535 — 7,535 3,962 — 3,962 Long-term debt due within 1 year 5,221 4,143 9,364 6,146 4,956 11,102 Current debt 12,756 4,143 16,899 10,108 4,956 15,064 Non-current debt 66,838 24,277 91,115 55,779 25,581 81,360 Total 79,594 28,420 108,014 65,887 30,537 96,424 Net debt $ million Asset/(liability) Current Non-current Derivative Cash and cash equivalents Net debt At January 1, 2020 (15,064) (81,360) (724) 18,055 (79,093) Cash flow 7,536 (13,121) (1,157) 13,603 6,861 Lease additions (870) (2,268) (3,138) Other movements (8,380) 8,354 524 — 498 Currency translation differences and foreign exchange gains/(losses) (121) (2,720) 2,155 172 (514) At December 31, 2020 (16,899) (91,115) 798 31,830 (75,386) At January 1, 2019 (13,046) (79,815) (1,345) 26,741 (67,465) Cash flow 10,333 (7,269) 351 (8,810) (5,395) Lease additions (971) (3,547) (4,518) Other movements (11,453) 9,179 453 — (1,821) Currency translation differences and foreign exchange gains/(losses) 73 92 (183) 124 106 At December 31, 2019 (15,064) (81,360) (724) 18,055 (79,093) Management's priorities for applying Shell's cash are first the reduction of net debt to $65 billion and, on achieving this milestone, distribution of a total of 20%—30% of cash flow from operations to shareholders. Remaining cash will be allocated to disciplined and measured capital expenditure growth and further debt reduction. Gearing $ million, except where indicated Dec 31, 2020 Dec 31, 2019 Net debt 75,386 79,093 Total equity 158,537 190,463 Total capital 233,923 269,556 Gearing 32.2 % 29.3 % Gearing is a measure of Shell’s capital structure and is defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity). Shell has access to international debt capital markets via two commercial paper (CP) programmes, a Euro medium-term note (EMTN) programme and a US universal shelf (US shelf) registration. Issuances under the CP programmes are supported by a committed credit facility and cash. Borrowing facilities and amounts undrawn $ million Facility Amount undrawn Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 CP programmes 20,000 20,000 13,254 16,610 EMTN programme unlimited unlimited N/A N/A US shelf registration — unlimited N/A N/A Committed credit facilities 22,651 10,000 22,651 10,000 Under the CP programmes, Shell can issue debt of up to $10 billion with maturities not exceeding 270 days and $10 billion with maturities not exceeding 397 days. The EMTN programme is updated each year, most recently in August 2020. In 2020, debt issued under this programme amounted to $6,734 million (2019: $3,322 million). The US shelf registration provides Shell with the flexibility to issue debt securities, ordinary shares, preferred shares and warrants. The registration is updated every three years. The US shelf registration expired in December 2020 . Concurrent with the filing of our Annual Report on Form 20-F with the Securities and Exchange Commission (SEC) on March 11, 2021, a new US shelf registration statement will be filed with the SEC and be effective upon filing. During 2020, debt totalling $6,250 million (2019: $4,000 million) was issued under the registration. On December 13, 2019, Shell entered into $10 billion revolving credit facilities, which in anticipation of the LIBOR reform (see Notes 2 and 3), were linked to the new Secured Overnight Financing Rate (SOFR). Under the terms of the facilities, the LIBOR interest rate was replaced by SOFR on the first anniversary of the signing date of these revolving credit facilities. The committed credit facilities are available at pre-agreed margins, with $2 billion expiring in 2021 and $8 billion expiring in 2025. Each facility includes a remaining one-year extension option at the discretion of each lender. The terms and availability are not conditional on Shell’s financial ratios nor its financial credit ratings. The interest and fees paid on both facilities are linked to Shell’s progress towards reaching its short-term Net Carbon Footprint intensity target. In April 2020, Shell entered into a dual currency $7,200 million and €4,432 million revolving credit facility expiring in April 2021, with two 6 month extension options at the discretion of Shell. The extension options have not been exercised, and the facility will expire in April 2021. In addition, other subsidiaries have access to undrawn short-term bank facilities totalling $3,115 million at December 31, 2020 (2019: $2,784 million). The following tables compare contractual cash flows for debt excluding lease liabilities at December 31 with the carrying amount in the Consolidated Balance Sheet. Contractual amounts reflect the effects of changes in foreign exchange rates; differences from carrying amounts reflect the effects of discounting, premiums and, where fair value hedge accounting is applied, fair value adjustments. Interest is estimated assuming interest rates applicable to variable rate debt remain constant and there is no change in aggregate principal amounts of debt other than repayment at scheduled maturity, as reflected in the table. 2020 $ million Contractual payments Less than Between Between Between Between 5 years Total Difference Carrying Commercial paper 6,746 — — — — — 6,746 (15) 6,731 Bonds 5,080 4,720 5,408 4,633 8,043 41,853 69,737 1,308 71,045 Bank and other borrowings 944 162 33 215 47 417 1,818 — 1,818 Total (excluding interest) 12,770 4,882 5,441 4,848 8,090 42,270 78,301 1,293 79,594 Interest 1,834 1,707 1,630 1,527 1,412 15,985 24,095 2019 $ million Contractual payments Less than Between Between Between Between 5 years Total Difference Carrying Commercial paper 3,390 — — — — — 3,390 (38) 3,352 Bonds 5,900 4,971 4,392 4,326 2,091 38,323 60,003 694 60,697 Bank and other borrowings 859 425 56 71 15 412 1,838 — 1,838 Total (excluding interest) 10,149 5,396 4,448 4,397 2,106 38,735 65,231 656 65,887 Interest 1,665 1,559 1,430 1,357 1,263 14,618 21,892 Interest rate swaps have been entered into against certain fixed rate debt affecting the effective interest rate on these balances (see Note 19). The fair value of debt excluding lease liabilities at December 31, 2020, was $88,294 million (2019: $71,163 million), mainly determined from the prices quoted for those securities. Lease arrangements Lease liabilities are secured on the leased assets. Shell has lease contracts in Integrated Gas and Upstream, principally for floating production storage and offloading units, subsea equipment, power generation, for drilling and ancillary equipment, service vessels, LNG vessels and land and buildings; in Oil Products, principally for tankers, storage capacity and retail sites; in Chemicals, principally for plant pipeline and machinery and in Corporate, principally for land and buildings. Lease expenses not included in the measurement of lease liability $ million 2020 2019 Expense relating to short-term leases 1,156 834 Expense relating to variable lease payments not included in the lease liabilities 1,209 1,091 The total cash outflow in respect of leases representing repayment of principal and payment of interest in 2020 was $6,891 million (2019: $7,866 million), recognised in the Consolidated Statement of Cash Flows from financing activities. The future lease payments under lease contracts and the carrying amounts at December 31, by payment date are as follows: 2020 $ million Contractual Interest Lease liabilities Less than 1 year 6,059 1,916 4,143 Between 1 and 5 years 16,681 5,617 11,064 5 years and later 19,999 6,786 13,213 Total 42,739 [A] 14,319 28,420 [A] Future cash outflows in respect of leases may differ from lease liabilities recognised due to future decisions that may be taken by Shell in respect of the use of leased assets. These decisions may result in variable lease payments being made. In addition, Shell may reconsider whether it will exercise extension options or termination options, where future reconsideration is not reflected in the lease liabilities. There is no exposure to these potential additional payments in excess of the recognised lease liabilities until these decisions have been taken by Shell. 2019 $ million Contractual lease payments Interest Lease liabilities Less than 1 year 7,337 2,381 4,956 Between 1 and 5 years 17,435 6,141 11,294 5 years and later 21,340 7,053 14,287 Total 46,112 15,575 30,537 |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade and Other Payables | 15 – TRADE AND OTHER PAYABLES $ million Dec 31, 2020 Dec 31, 2019 Current Non-current Current Non-current Trade payables 22,664 — 29,497 — Other payables [A] 6,941 1,843 6,356 2,060 Amounts due to joint ventures and associates 3,281 39 3,312 40 Accruals and deferred income 8,791 422 10,043 242 Total 41,677 2,304 49,208 2,342 [A] Includes obligations under environmental schemes for compliance purposes of $2,053 million as at December 31, 2020. (See Note 29) The fair value of financial liabilities included above approximates the carrying amount and was determined from predominantly unobservable inputs. Other payables include amounts due to joint arrangement partners and in respect of other project-related items. Information about offsetting, collateral and liquidity risk is presented in Note 19. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Taxation | 16 – TAXATION Taxation charge $ million 2020 2019 2018 Current tax: Charge in respect of current period 3,272 7,597 10,415 Adjustments in respect of prior periods (56) (1) 60 Total 3,216 7,596 10,475 Deferred tax: Relating to the origination and reversal of temporary differences, tax losses and credits (9,063) 1,377 1,438 Relating to changes in tax rates and legislation (16) (67) (157) Adjustments in respect of prior periods 430 147 (41) Total (8,649) 1,457 1,240 Total taxation (credit)/charge (5,433) 9,053 11,715 Adjustments in respect of prior periods relate to events in the current period and reflect the effects of changes in rules, facts or other factors compared with those used in establishing the current tax position or deferred tax balance in prior periods. Reconciliation of applicable tax charge at statutory tax rates to taxation charge $ million 2020 2019 2018 (Loss)/income before taxation (26,967) 25,485 35,621 Less: share of profit of joint ventures and associates (1,783) (3,604) (4,106) (Loss)/income before taxation and share of profit of joint ventures and associates (28,750) 21,881 31,515 Applicable tax (credit)/charge at standard statutory tax rates (8,330) 7,214 11,641 Adjustments in respect of prior periods 374 146 19 Tax effects of: Derecognition/(recognition) of deferred tax assets 1,458 846 (381) Expenses not deductible for tax purposes 1,239 1,493 1,176 Incentives for investment and development (557) (757) (557) Exchange rate differences 339 (34) 623 Disposals (34) (235) (524) Changes in tax rates and legislation (16) (67) (157) Income/(loss) not subject to tax at standard statutory rates 6 159 (286) Other reconciling items 88 288 161 Taxation (credit)/charge (5,433) 9,053 11,715 The weighted average of statutory tax rates was 29% in 2020 (2019: 33%; 2018: 37%). The loss before taxation was significantly impacted by asset impairments which occurred in jurisdictions subject to relatively lower tax rates, resulting in a lower weighted average statutory tax rate as compared with 2019. Taxes payable $ million Dec 31, 2020 Dec 31, 2019 Income taxes 3,111 3,478 Sales taxes, excise duties and similar levies 2,895 3,215 Total 6,006 6,693 Included in other receivables at December 31, 2020 was income tax receivable of $1,293 million (2019 : $1,328 million) (see Note 11). 2020 - Deferred tax $ million Deferred tax asset Decommissioning Property, plant and equipment Tax losses and credits Retirement benefits Other Total At January 1, 2020 5,380 3,014 11,629 3,660 4,361 28,044 Credit/(charge) to income 1,057 1,975 685 (250) 605 4,072 Currency translation differences 140 163 286 122 58 769 Other (10) 80 (104) 242 60 268 At December 31, 2020 6,567 5,232 12,496 3,774 5,084 33,153 Deferred tax liability At January 1, 2020 (28,040) (1,093) (2,909) (32,042) Credit to income 4,355 4 218 4,577 Currency translation differences (143) (2) (39) (184) Other 27 418 (101) 344 At December 31, 2020 (23,801) (673) (2,831) (27,305) Net deferred tax asset at December 31, 2020 5,848 Deferred tax asset/liability as presented in the balance sheet at December 31, 2020 Deferred tax asset 16,311 Deferred tax liability (10,463) 2019 - Deferred tax $ million Deferred tax asset Decommissioning Property, plant and equipment Tax losses and credits carried forward Retirement benefits Other Total At January 1, 2019 5,859 3,718 12,167 3,310 4,276 29,330 Credit/(charge) to income 15 (521) (647) (76) 10 (1,219) Currency translation differences 56 6 57 (8) (2) 109 Other (550) (189) 52 434 77 (176) At December 31, 2019 5,380 3,014 11,629 3,660 4,361 28,044 Deferred tax liability At January 1, 2019 (27,627) (1,674) (2,769) (32,070) (Charge)/credit to income (227) 46 (57) (238) Currency translation differences (129) (6) (5) (140) Other (57) 541 (78) 406 At December 31, 2019 (28,040) (1,093) (2,909) (32,042) Net deferred tax liability at December 31, 2019 (3,998) Deferred tax asset/liability as presented in the balance sheet at December 31, 2019 Deferred tax asset 10,524 Deferred tax liability (14,522) The presentation in the balance sheet takes into consideration the offsetting of deferred tax assets and deferred tax liabilities within the same tax jurisdiction, where this is permitted. The overall deferred tax position in a particular tax jurisdiction determines if a deferred tax balance related to that jurisdiction is presented within deferred tax assets or deferred tax liabilities. Other movements in deferred tax assets and liabilities principally relate to acquisitions, sales of non-current assets and businesses, and amounts recognised in other comprehensive income. The deferred tax category 'Other' primarily includes deferred tax positions in respect of leases, financial assets and liabilities, inventories, intangible assets and investments in subsidiaries, joint ventures and associates. Deferred tax assets of $16,311 million (2019: $10,524 million) are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those assets are likely to be recovered, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets. It is considered probable based on business forecasts that such taxable profits will be available. For Oil Products additional judgement is required; in some European jurisdictions the assessment of forecasted taxable profits resulting in deferred tax asset recognition of $778 million (2019: $1,194 million) extends for an additional 10 years beyond Shell’s regular 10 years planning horizon. In those situations, additional risking has been applied to the forecast of taxable profits. The amount of deferred tax assets which are dependent on future taxable profits not arising from the reversal of existing deferred tax liabilities, and which relate to tax jurisdictions where Shell has suffered a loss in the current or preceding year, was $12,759 million at December 31, 2020 (2019: $8,773 million). The increase of the amount compared with 2019 is primarily due to the reduction in deferred tax liabilities or increase in deferred tax assets resulting from impairments recorded in 2020, as well as a greater number of entities having incurred a loss in 2020. Unrecognised taxable temporary differences associated with undistributed retained earnings of investments in subsidiaries, joint ventures and associates amounted to $6,705 million at December 31, 2020 (2019: $6,356 million). These retained earnings are subject to withholding tax upon distribution. Unrecognised deductible temporary differences, unused tax losses and credits carried forward amounted to $42,836 million at December 31, 2020 (2019: $33,068 million), including amounts of $31,873 million (2019: $24,295 million) that are subject to time limits for utilisation of five years or later, or are not time limited. Furthermore, there are unrecognised losses for Petroleum Resource Rent Tax (PRRT) in Australia, amounting to $39,402 million as at the end of the most recent PRRT fiscal year, June 30, 2020 (June 30, 2019: $36,905 million).Based on business forecasts at existing commodity price levels, and the annual augmentation of the unused PRRT losses, this amount is expected to increase in the near future. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits [Abstract] | |
Retirement Benefits | 17 – RETIREMENT BENEFITS Retirement benefits are provided through a number of funded and unfunded defined benefit plans and defined contribution plans, the most significant of which are in the Netherlands, UK and USA. Benefits comprise principally pensions; retirement health care and life insurance are also provided in certain countries. Financial position $ million Dec 31, 2020 Dec 31, 2019 Obligations (115,792) (103,545) Plan assets 102,678 94,826 Asset ceilings (17) Deficit (13,131) (8,719) Retirement benefits in the Consolidated Balance Sheet: Non-current assets 2,474 4,717 Non-current liabilities (15,168) (13,017) Current liabilities (437) (419) Total (13,131) (8,719) Retirement benefit expense $ million 2020 2019 2018 Defined benefit plans: Interest expense on obligations 1,828 2,364 2,282 Interest income on plan assets (1,657) (2,253) (2,087) Current service cost, net of plan participants’ contributions 1,431 1,188 1,494 Other (174) 26 (221) Total 1,428 1,325 1,468 Defined contribution plans 423 428 410 Total retirement benefit expense 1,851 1,753 1,878 Retirement benefit expense is presented principally within production and manufacturing expenses and selling, distribution and administrative expenses in the Consolidated Statement of Income. Interest income on plan assets is calculated using the same rate as that applied to the related defined benefit obligations for each plan to determine interest expense. Remeasurements $ million 2020 2019 2018 Actuarial (losses)/gains on obligations: Due to changes in financial assumptions [A] (10,150) (11,711) 8,186 Due to experience adjustments [B] 804 232 (268) Due to changes in demographic assumptions [C] 1,375 (75) (459) Total (7,971) (11,554) 7,459 Return on plan assets in excess/(shortage) of interest income 4,509 8,460 (2,312) Other movements 7 (12) 66 Total remeasurements (3,455) (3,106) 5,213 [A] Mainly relates to changes in the discount rate assumptions. [B] Experience adjustments arise from differences between the actuarial assumptions made in respect of the year and actual outcomes. [C] Mainly relates to updates in mortality assumptions. Defined benefit plan obligations $ million, except where indicated 2020 2019 At January 1 103,545 91,856 Current service cost 1,435 1,186 Interest expense 1,828 2,364 Actuarial losses 7,971 11,554 Benefit payments (4,059) (3,961) Other movements (444) 194 Currency translation differences 5,516 352 At December 31 115,792 103,545 Comprising: Funded pension plans 105,338 93,727 Weighted average duration 18 years 17 years Unfunded pension plans 5,086 4,793 Weighted average duration 13 years 13 years Unfunded OPEB plans [A] 5,368 5,025 Weighted average duration 15 years 14 years [A] Mainly related to post-retirement medical benefits in the USA. Defined benefit plan assets $ million, except where indicated 2020 2019 At January 1 94,826 85,803 Return on plan assets in excess of interest income 4,509 8,460 Interest income 1,657 2,253 Employer contributions 614 1,462 Plan participants’ contributions 42 42 Benefit payments (3,843) (3,741) Other movements (281) 160 Currency translation differences 5,154 387 At December 31 102,678 94,826 Comprising: Quoted in active markets: Equities 25 % 26 % Debt securities 52 % 51 % Real estate 0 % 1 % Other: Equities 8 % 8 % Debt securities 5 % 4 % Real estate 6 % 6 % Investment funds 3 % 3 % Cash 1 % 1 % Employer contributions to defined benefit pension plans are based on actuarial valuations in accordance with local regulations and are estimated to be $1.6 billion in 2021. Characteristics of significant defined benefit and defined contribution plans and regulatory framework The Netherlands The principal defined benefit pension plan in the Netherlands is a funded career-averaged pension arrangement with retired employees drawing benefits as an annuity. The duration of the related Dutch defined benefit obligation is 19 years (2019: 19 years). Whilst the plan was closed to employees hired or rehired after July 1, 2013, it currently remains open for ongoing accrual for existing active members. 31% (2019: 34%) of the overall defined benefit liability in the Netherlands relates to active members. From July 1, 2013 onwards new employees in the Netherlands are entitled to membership of a defined contribution pension plan. In line with Dutch regulations, the defined benefit pension plan has a joint Trustee Board with trustee representatives nominated by the company, the Central Staff Council and retired members. The defined benefit pension plan also has an Accountability Council comprised of members nominated by the company, the Central Staff Council and retired members. Furthermore, there is a Supervisory Committee which includes external experts from the pension industry to oversee management, compliance and operations of the fund. The defined contribution pension plan has a one-tier Trustee Board with an independent chairperson, and trustee representatives nominated by the company and the Central Staff Council (currently no retired members in the fund to act as trustee) as well as two executive board members. The defined contribution fund also has an Accountability Council comprised of members nominated by the company and the Central Staff Council. The Dutch government is currently drafting a new regulatory framework for pensions in the Netherlands. The government aims to complete development of new regulations by January 2022 with subsequent implementation by January 2026. It is expected that these regulatory changes will have an impact on both the defined benefit pension plan and the defined contribution pension plan with anticipated changes currently being discussed with the Central Staff Council. UK The principal defined benefit pension plan in the UK is a funded final salary pension arrangement with retired employees mainly drawing benefits as an annuity with the option to take a portion as a lump sum. The duration of the related UK defined benefit obligation is 19 years (2019: 18 years). Whilst the plan was closed to employees hired or rehired on or after March 1, 2013, it currently remains open for ongoing accrual for existing active members. 21% (2019: 21%) of the overall defined liability in the UK relates to active members. From March 1, 2013 onwards new employees in the UK are entitled to membership of a defined contribution pension plan. In line with UK regulations, the defined benefit pension plan is governed by a corporate trustee whose board is comprised of four trustee directors nominated by the company including the chair and four member-nominated trustee directors. The defined contribution pension plan is governed by a corporate trustee whose board is comprised of three company nominated directors including the chair and two member-nominated trustee directors. The trustees are responsible for administering the plans in line with the Trust Deed and Regulations, including setting the investment strategy for the pension plans’ assets and paying member benefits, and are required to act in the best interests of the members of the pension plans. USA The principal defined benefit pension plan in the USA is a funded average final pay pension plan. At retirement, all retirees can choose to draw their benefit as an annuity, whereas some also have the choice to take their benefit as a lump sum. The duration of the related US defined benefit obligation is 13 years (2019: 13 years). In addition, the company provides a defined contribution plan. Each of these plans is subject to the provisions of the Employee Retirement Income Security Act (ERISA). 25% (2019: 31%) of the overall defined liability of the funded defined benefit plan in the USA relates to active members. Both the defined benefit pension plan and the defined contribution pension plan are governed by trustees who are appointed by the Plan Sponsor and are named fiduciaries with respect to the plans. The trustees are generally responsible for investment-related matters, appointing the Plan Administrator, maintaining general oversight and deciding appeals of participants. The company also sponsors "other post-retirement employee benefit" (OPEB) plans in the USA that provide medical, dental, and vision benefits as well as life insurance benefits to eligible retired employees. The plans are unfunded, and the company and retirees share the costs. The plan that provides post-retirement medical benefits is closed to employees hired or rehired on or after January 1, 2017. Certain life insurance benefits are paid by the company. Significant funding requirements: • Additional contributions to the Dutch defined benefit pension plan would be required if the 12-month rolling average local funding percentage falls below 105% for six months or more. At the most recent (2020) funding valuation the local funding percentage was above this level; • There are no set minimum statutory funding requirements for the UK plans. A professional qualified independent actuary, appointed by the trustee board, undertakes a local funding valuation typically every three years. The most recent completed funding valuation for the principal defined benefit plan was undertaken as at December 31, 2017. A funding valuation as at December 31, 2020 is currently under way. The most recent completed funding valuation (2017) revealed a funding ratio of 108% and the resulting Schedule of Contributions was for no Sponsor contribution (except for salary sacrifice contributions); and • Under the Pension Protection Act, US pension plans are subject to minimum required contribution levels based on the funding position. No contributions are required based on the most recent funding valuation. Associated risks to which retirement benefits are exposed There are inherent risks associated with defined benefit pension and OPEB plans. These risks are related to various assumptions made on valuation of the liabilities and the cash funding requirement of the underlying plans. Volatility in capital markets or government policies, and the resulting consequences for investment performance, interest and inflation rates, as well as changes in assumptions for mortality, retirement age or pensionable remuneration at retirement, could result in significant changes to the funding level of future liabilities, and in case of a shortfall, there could be a requirement to make substantial cash contributions (depending on the applicable local regulations). These inherent risks are managed by a pension forum, chaired by the Chief Financial Officer, which oversees Shell’s pension strategy, policy and operations. The forum is supported by a risk committee in reviewing the results of the assurance process with respect to the pension risk. Investment strategies Long-term investment strategies of plans are generally determined by the relevant pension plan trustees using a structured asset/liability modelling approach to define the asset mix that best meets the objectives of optimising returns within agreed risk levels while maintaining adequate funding levels. Principal and actuarial assumptions The principal assumptions applied in determining the present value of defined benefit obligations and their bases were as follows: • rates of increase in pensionable remuneration, pensions in payment and health-care costs: historical experience and management’s long-term expectation; • discount rates: prevailing long-term AA corporate bond yields, chosen to match the currency and duration of the relevant obligation; and • mortality rates: published standard mortality tables for the individual countries concerned adjusted for Shell experience where statistically significant. The weighted averages for those assumptions and related sensitivity information at December 31 are presented below. Sensitivity information indicates by how much the defined benefit obligations would increase or decrease if a given assumption were to increase or decrease with no change in other assumptions. $ million, except where indicated Effect of using alternative assumptions Assumptions used at nominal rates Increase/(decrease) in defined benefit obligations 2020 [A] 2019 Range 2020 2019 Rate of increase in pensionable remuneration 3.8 % 4.1 % -1% to +1% (1,780) to 1,948 (1,975) to 2,266 Rate of increase in pensions in payment 1.6 % 1.6 % -1% to +1% (10,937) to 13,523 (9,541) to 11,757 Rate of increase in health-care costs [B] 6.0 % 6.1 % -1% to +1% (605) to 751 (546) to 675 Discount rate for pension plans 1.5 % 2.1 % -1% to +1% 21,463 to (16,382) 18,431 to (14,155) Discount rate for health-care plans [B] 2.6 % 3.2 % -1% to +1% 791 to (624) 704 to (558) Expected age at death for persons aged 60: Men 87 years 87 years -1 year to +1 year (2,022) to 2,112 (1,717) to 1,782 Women 88 years 89 years -1 year to +1 year (1,985) to 2,070 (1,631) to 1,694 [A] The weighted average inflation rate used in the calculation of the defined benefit obligation is 1.7%. [B] Mainly related to post-retirement medical benefits in the USA . |
Decommissioning and Other Provi
Decommissioning and Other Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Decommissioning and Other Provisions | 18 – DECOMMISSIONING AND OTHER PROVISIONS $ million Decommissioning Legal Environmental Redundancy Other Total At January 1, 2020 Current 755 626 263 295 872 2,811 Non-current 18,264 1,185 934 220 1,196 21,799 19,019 1,811 1,197 515 2,068 24,610 Additions 1,697 [A] 502 199 986 2,386 5,770 Amounts charged against provisions (433) (522) (138) (375) (388) (1,856) Accretion expense 448 17 21 1 10 497 Disposals (154) — (7) — (18) (179) Remeasurements and other movements 2,090 (59) (73) (241) (265) 1,452 Currency translation differences 508 1 26 52 53 640 4,156 (61) 28 423 1,778 6,324 At December 31, 2020 Current 900 521 273 673 1,257 3,624 Non-current 22,275 1,229 952 265 2,589 27,310 23,175 1,750 1,225 938 3,846 30,934 At January 1, 2019 Current 876 213 264 441 1,547 3,341 Non-current 17,057 1,247 1,074 280 1,528 21,186 17,933 1,460 1,338 721 3,075 24,527 Additions 625 585 229 290 535 2,264 Amounts charged against provisions (797) (216) (223) (304) (562) (2,102) Accretion expense 644 28 16 3 25 716 Disposals (1,238) — (8) — (14) (1,260) Remeasurements and other movements 1,696 (45) (155) (192) (988) 316 Currency translation differences 156 (1) — (3) (3) 149 1,086 351 (141) (206) (1,007) 83 At December 31, 2019 Current 755 626 263 295 872 2,811 Non-current 18,264 1,185 934 220 1,196 21,799 19,019 1,811 1,197 515 2,068 24,610 [A] Includes $798 million additions for the recognition of decommissioning and restoration provisions in Integrated Gas and Upstream and $899 million for the recognition of decommissioning and restoration provisions for manufacturing facilities in Oil Products. The amount and timing of settlement in respect of these provisions are uncertain and dependent on various factors that are not always within management’s control. Reviews of estimated future decommissioning and restoration costs and the discount rate applied are carried out regularly. The discount rate applied at December 31, 2020 was 1.75% (2019: 3%). This decrease resulted from the significant decrease in capital markets rates in 2020. An increase of 0.5% or a decrease of 0.5% in the discount rate could result in a decrease of $1.7 billion or an increase of $2.2 billion of decommissioning and restoration provisions, respectively. Such increase/decrease will be reflected in the carrying amount of the related asset. Where applicable that carrying amount is tested for impairment. In 2020 , there was an increase of $3,999 million (2019: $2,241 million) in the decommissioning and restoration provision as a result of the change in the discount rate, partly offset by a decrease in the provision resulting from changes in cost estimates of $1,909 million (2019: $545 million), reported within remeasurements and other movements. Of the decommissioning and restoration provision at December 31, 2020, an estimated $3,921 million is expected to be utilised within one to five years, $2,206 million within six to 10 years, and the remainder in later periods. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Financial Instruments | 19 – FINANCIAL INSTRUMENTS Financial instruments in the Consolidated Balance Sheet include investments in securities (see Note 10), cash and cash equivalents (see Note 13), debt (see Note 14) and derivative contracts. Risks In the normal course of business, financial instruments of various kinds are used for the purposes of managing exposure to interest rate, foreign exchange and commodity price movements. Treasury standards are applicable to all subsidiaries and each subsidiary is required to adopt a treasury policy consistent with these standards. These policies cover: financing structure; interest rate and foreign exchange risk management; insurance; counterparty risk management; and use of derivative contracts. Wherever possible, treasury operations are carried out through specialist regional organisations without removing from each subsidiary the responsibility to formulate and implement appropriate treasury policies. Apart from forward foreign exchange contracts to meet known commitments, the use of derivative contracts by most subsidiaries is not permitted by their treasury policy. Other than in exceptional cases, the use of external derivative contracts is confined to specialist trading and central treasury organisations that have appropriate skills, experience, supervision, control and reporting systems. Shell’s operations expose it to market, credit and liquidity risk, as described below. Market risk Market risk is the possibility that changes in interest rates, foreign exchange rates or the prices of crude oil, natural gas, LNG, refined products, chemical feedstocks, power and carbon-emission rights will adversely affect the value of assets, liabilities or expected future cash flows. Interest rate risk Most debt is raised from central borrowing programmes. Shell’s policy continues to be to have debt principally denominated in dollars and to maintain a largely floating interest rate exposure profile; however, Shell has issued a significant amount of fixed rate debt in recent years, taking advantage of historically low interest rates available in debt markets. As a result, the majority of the debt portfolio at December 31, 2020, is at fixed rates and this reduces Shell’s adverse exposure to rising floating dollar interest rates (see Notes 2 and 3). The financing of most subsidiaries is structured on a floating-rate basis, and any further interest rate risk management is only applied under exceptional circumstances. On the basis of the floating-rate net cash position at December 31, 2020 (both issued and hedged), and assuming other factors (principally foreign exchange rates and commodity prices) remained constant and that no further interest rate management action was taken, an increase in interest rates of 1% would have increased 2020 income before taxation by $62 million (2019: $98 million decrease, based on the floating rate net debt position at December 31, 2019). The carrying amounts and maturities of debt and borrowing facilities are presented in Note 14. Interest expense is presented in Note 6. Foreign exchange risk Many of the markets in which Shell operates are priced, directly or indirectly, in dollars. As a result, the functional currency of most Integrated Gas and Upstream entities and those with significant cross-border business is the dollar. For Oil Products and Chemicals entities, the functional currency is typically the local currency. Consequently, Shell is exposed to varying levels of foreign exchange risk when an entity enters into transactions that are not denominated in its functional currency, when foreign currency monetary assets and liabilities are translated at the balance sheet date and as a result of holding net investments in operations that are not dollar-functional. Each entity is required to adopt treasury policies that are designed to measure and manage its foreign exchange exposures by reference to its functional currency. Foreign exchange gains and losses arise in the normal course of business from the recognition of receivables and payables and other monetary items in currencies other than an entity’s functional currency. Foreign exchange risk may also arise in connection with capital expenditure. For major projects, an assessment is made at the final investment decision stage whether to hedge any resulting exposure. Assuming other factors (principally interest rates and commodity prices) remained constant and that no further foreign exchange risk management action were taken, a 10% appreciation against the dollar at December 31 of the main currencies to which Shell is exposed would have the following effects: $ million Increase/(decrease) Increase in net assets 2020 2019 2020 2019 10% appreciation against the dollar of: Euro (263) 36 451 1,227 Malaysian ringgit 255 243 270 290 Australian dollar 179 (55) 598 835 Sterling (166) (58) 328 581 Canadian dollar 1 (97) 1,299 1,380 The above sensitivity information was calculated by reference to carrying amounts of assets and liabilities at December 31 only. The effect on income before taxation arises in connection with monetary balances denominated in currencies other than an entity’s functional currency; the effect on net assets arises principally from the translation of assets and liabilities of entities that are not dollar-functional. Foreign exchange gains and losses included in income are presented in Note 5. Commodity price risk Certain subsidiaries have a mandate to trade crude oil, natural gas, LNG, refined products, chemical feedstocks, power and carbon-emission rights, and to use commodity derivative contracts (forwards, futures, swaps and options) as a means of managing price and timing risks arising from this trading activity. In effecting these transactions, the entities concerned operate within procedures and policies designed to ensure that risks, including those relating to the default of counterparties, are managed within authorised limits. Value-at-risk (VAR) techniques based on variance/covariance or Monte Carlo simulation models are used to make a statistical assessment of the market risk arising from possible future changes in market values over a 1-day holding period and within a 95% confidence level. The calculation of potential changes in fair value takes into account positions, the history of price movements and the correlation of these price movements. Models are regularly reviewed against actual fair value movements to ensure integrity is maintained. The VAR year-end positions in respect of commodities traded in active markets, which are presented in the table below, are calculated on a diversified basis in order to reflect the effect of offsetting risk within combined portfolios. Value-at-risk (pre-tax) $ million December 31, 2020 December 31, 2019 Global oil 24 22 North America gas and power 14 12 Europe gas and power 11 5 Carbon-emission rights 7 4 Credit risk Policies are in place to ensure that sales of products are made to customers with appropriate creditworthiness. These policies include detailed credit analysis and monitoring of trading partners against counterparty credit limits. Credit information is regularly shared between business and finance functions, with dedicated teams in place to quickly identify and respond to cases of credit deterioration. Mitigation measures are defined and implemented for higher-risk business partners and customers, and include shortened payment terms, collateral or other security posting and vigorous collections. In addition, policies limit the amount of credit exposure to any individual financial institution. There are no material concentrations of credit risk, with individual customers or geographically, and there has been no significant level of counterparty default in recent years. Surplus cash is invested in a range of short-dated, secure and liquid instruments including short-term bank deposits, money market funds, reverse repos and similar instruments. The portfolio of these investments is diversified to avoid concentrating risk in any one instrument, country or counterparty. Management monitors the investments regularly and adjusts the investment portfolio in light of new market information where necessary to ensure credit risk is effectively diversified. In commodity trading, counterparty credit risk is managed within a framework of credit limits with utilisation being regularly reviewed. Credit risk exposure is monitored and the acceptable level of credit exposure is determined by a credit committee. Credit checks are performed by a department independent of traders, and are undertaken before contractual commitment. Where appropriate, netting arrangements, credit insurance, prepayments and collateral are used to manage specific risks. Shell routinely enters into offsetting, master netting and similar arrangements with trading and other counterparties to manage credit risk. Where there is a legally enforceable right of offset under such arrangements and Shell has the intention to settle on a net basis or realise the asset and settle the liability simultaneously, the net asset or liability is recognised in the Consolidated Balance Sheet, otherwise assets and liabilities are presented gross. These amounts, as presented net and gross within trade and other receivables, trade and other payables and derivative financial instruments in the Consolidated Balance Sheet at December 31, were as follows: 2020 $ million Amounts offset Amounts not offset Gross amounts Amounts Net amounts Cash collateral Other offsetting Net amounts Assets: Within trade receivables 10,658 6,470 4,188 14 79 4,095 Within derivative financial instruments 12,798 6,125 6,673 1,573 1,750 3,350 Liabilities: Within trade payables 10,580 6,467 4,113 1 79 4,033 Within derivative financial instruments 10,502 5,893 4,609 797 1,761 2,051 2019 $ million Amounts offset Amounts not offset Gross amounts Amounts Net amounts Cash collateral Other offsetting instruments Net amounts Assets: Within trade receivables 13,821 8,975 4,846 54 101 4,691 Within derivative financial instruments 12,995 7,310 5,685 531 2,262 2,892 Liabilities: Within trade payables 13,335 9,029 4,306 11 101 4,194 Within derivative financial instruments 12,355 7,253 5,102 706 2,262 2,134 Amounts not offset principally relate to contracts where the intention to settle on a net basis was not clearly established at December 31. The carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities at December 31, 2020, presented within trade and other receivables, was $1,909 million (2019: $1,948 million). The carrying amount of collateral held at December 31, 2020, presented within trade and other payables, was $1,675 million (2019: $718 million). Collateral mainly relates to initial margins held with commodity exchanges and over-the-counter counterparty variation margins. Some derivative contracts are fully cash collateralised, thereby eliminating both counterparty risk and the Group’s own non-performance risk. Liquidity risk Liquidity risk is the risk that suitable sources of funding for Shell’s business activities may not be available. Management believes that it has access to sufficient debt funding sources (capital markets) and to undrawn committed borrowing facilities to meet foreseeable requirements. Information about borrowing facilities is presented in Note 14. Derivative contracts and hedges Derivative contracts are used principally as hedging instruments, however, because hedge accounting is not always applied, movements in the carrying amounts of derivative contracts that are recognised in income are not always matched in the same period by the recognition of the income effects of the related hedged items. Carrying amounts, maturities and hedges The carrying amounts of derivative contracts at December 31, designated and not designated as hedging instruments for hedge accounting purposes, were as follows: 2020 $ million Assets Liabilities Designated Not Total Designated Not Total Net Interest rate swaps 451 — 451 26 22 48 403 Forward foreign exchange contracts — 276 276 — 651 651 (375) Currency swaps and options 1,890 13 1,903 280 63 343 1,560 Commodity derivatives — 5,534 5,534 92 4,565 4,657 877 Other contracts — 424 424 — 29 29 395 Total 2,341 6,247 8,588 398 5,330 5,728 2,860 2019 $ million Assets Liabilities Designated Not Total Designated Not Total Net Interest rate swaps 227 8 235 34 24 58 177 Forward foreign exchange contracts 7 236 243 2 309 311 (68) Currency swaps and options 90 15 105 932 56 988 (883) Commodity derivatives — 6,914 6,914 — 5,281 5,281 1,633 Other contracts — 341 341 — — — 341 Total 324 7,514 7,838 968 5,670 6,638 1,200 Net gains before tax on derivative contracts, excluding realised commodity contracts and those accounted for as hedges, were $1,676 million in 2020 (2019: $2,004 million losses; 2018: $1,818 million losses). The International Financial Reporting Interpretation Committee (IFRIC) guidance concerning the physical settlement of a contract to buy or sell a non-financial item has been applied prospectively as from 2020. The result of this decision is that $597 million of prior gains that would have previously reversed at the time of trade delivery, have been excluded from the amount disclosed in 2020. Certain contracts, mainly to hedge price risk relating to forecast commodity transactions, were designated in cash flow hedging relationships and are presented after the offset of related margin balances with exchanges. Contracts to hedge foreign exchange risks were also designated in cash flow hedging relationships and the net carrying amount of these contracts at December 31, 2020, was an asset of $556 million (2019: $167 million liability). See Note 22 for the accumulated balance recognised within other comprehensive income. Certain interest rate and currency swaps were designated in fair value hedges, principally in respect of debt for which the net carrying amount of the related derivative contracts, net of accrued interest, at December 31, 2020, was an asset of $1,422 million (2019: $518 million liability). In 2020, €3 billion of debt instruments were designated as hedges of net investments in foreign operations, relating to the foreign exchange risk arising between certain intermediate holding companies and their subsidiaries. See Note 22 for the accumulated balance recognised within other comprehensive income. In the course of trading operations, certain contracts are entered into for delivery of commodities that are accounted for as derivatives. The resulting price exposures are managed by entering into related derivative contracts. These contracts are managed on a fair value basis and the maximum exposure to liquidity risk is the undiscounted fair value of derivative liabilities. For a minority of commodity derivatives contracts, carrying amounts cannot be derived from quoted market prices or other observable inputs, in which case fair value is estimated using valuation techniques such as Black-Scholes, option spread models and extrapolation using quoted spreads with assumptions developed internally based on observable market activity. Other contracts include certain contracts that are held to sell or purchase commodities and others containing embedded derivatives, which are required to be recognised at fair value because of pricing or delivery conditions, even though they were entered into to meet operational requirements. These contracts are expected to mature in 2021-2025, with certain contracts having early termination rights (for either party). Valuations are derived from quoted market prices. The contractual maturities of derivative liabilities at December 31 compare with their carrying amounts in the Consolidated Balance Sheet as follows: 2020 $ million Contractual maturities Less than Between Between Between Between 5 years Total Difference Carrying Interest rate swaps 12 10 9 7 5 6 49 (1) 48 Forward foreign exchange contracts 504 56 22 38 — — 620 31 651 Currency swaps and options 174 13 28 — 159 — 374 (31) 343 Commodity derivatives 2,990 743 265 174 115 391 4,678 (21) 4,657 Other contracts 15 15 — — — — 30 (1) 29 Total 3,695 837 324 219 279 397 5,751 (23) 5,728 [A] Mainly related to the effect of discounting. 2019 $ million Contractual maturities Less than Between Between Between Between 5 years Total Difference Carrying Interest rate swaps 35 8 4 4 5 4 60 (2) 58 Forward foreign exchange contracts 214 40 8 — 118 — 380 (69) 311 Currency swaps and options 255 475 444 201 204 1,777 3,356 (2,368) 988 Commodity derivatives 3,472 756 349 189 123 511 5,400 (119) 5,281 Other contracts — — — — — — — — — Total 3,976 1,279 805 394 450 2,292 9,196 (2,558) 6,638 [A] Mainly related to the effect of discounting. Fair value measurements The net carrying amounts of derivative contracts held at December 31, categorised according to the predominant source and nature of inputs used in determining the fair value of each contract, were as follows: 2020 $ million Prices in active markets for identical Other Unobservable Total Interest rate swaps — 403 — 403 Forward foreign exchange contracts — (375) — (375) Currency swaps and options — 1,560 — 1,560 Commodity derivatives 37 (237) 1,077 877 Other contracts 20 375 — 395 Total 57 1,726 1,077 2,860 2019 $ million Prices in active markets for identical Other Unobservable Total Interest rate swaps — 177 — 177 Forward foreign exchange contracts — (68) — (68) Currency swaps and options — (883) — (883) Commodity derivatives (6) 895 744 1,633 Other contracts 27 304 10 341 Total 21 425 754 1,200 Net carrying amounts of derivative contracts measured using predominantly unobservable inputs $ million 2020 2019 At January 1 754 (27) Net gains recognised in revenue 564 1,085 Purchases 217 453 Sales (450) (633) Settlements (9) — Recategorisations (net) (12) (125) Currency translation differences 13 1 At December 31 1,077 754 Included in net gains recognised in revenue in 2020 were unrealised net gains totalling $743 million relating to assets and liabilities held at December 31, 2020 (2019: $612 million gains). Unrecognised day one gains or losses Certain long-term commodity purchase contracts extend to periods where observable pricing data are limited and so their value may include estimates for a portion of the value. Where this is more than an insignificant part of the overall contract valuation, any gains or losses will be deferred. Valuation techniques are further described in Note 2. The unrecognised gains on these derivative contracts at December 31, 2020 were as follows: $ million 2020 2019 At January 1 929 388 Movements 39 541 At December 31 968 929 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share capital | 20 – SHARE CAPITAL Issued and fully paid ordinary shares of €0.07 each [A] Number of shares Nominal value ($ million) A B A B Total At January 1, 2020 4,151,787,517 3,729,407,107 349 308 657 Repurchases of shares (50,548,018) (23,223,271) (4) (2) (6) At December 31, 2020 4,101,239,499 3,706,183,836 345 306 651 At January 1, 2019 4,471,889,296 3,745,486,731 376 309 685 Repurchases of shares (320,101,779) (16,079,624) (27) (1) (28) At December 31, 2019 4,151,787,517 3,729,407,107 349 308 657 [A] Share capital at December 31, 2020, and 2019, also included 50,000 issued and fully paid sterling deferred shares of £ 1 each. At the Company’s Annual General Meeting (AGM) on May 19, 2020, the Board was authorised to allot ordinary shares in the Company, and to grant rights to subscribe for or to convert any security into ordinary shares in the Company, up to an aggregate nominal amount of €182.7 million (representing 2,611 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 19, 2021, and the end of the AGM to be held in 2021, unless previously renewed, revoked or varied by the Company in a general meeting. At the May 19, 2020 AGM, shareholders granted the Company the authority to repurchase up to 783 million ordinary shares (excluding any treasury shares), renewing the authority granted by the shareholders at previous AGMs. The authority will expire at the earlier of the close of business on August 19, 2021, and the end of the AGM of the Company to be held in 2021. Ordinary shares purchased by the Company pursuant to this authority will either be cancelled or held in treasury. Treasury shares are shares in the Company which are owned by the Company itself. The minimum price, exclusive of expenses, which may be paid for an ordinary share is €0.07. The maximum price, exclusive of expenses, which may be paid for an ordinary share is the higher of: (i) an amount equal to 5% above the average market value for an ordinary share for the five business days immediately preceding the date of the purchase; and (ii) the higher of the price of the last independent trade and the highest current independent bid on the trading venues where the purchase is carried out. |
Share-based Compensation Plans
Share-based Compensation Plans and Shares Held in Trust | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangements [Abstract] | |
Share-based Compensation Plans and Shares Held in Trust | 21 – SHARE-BASED COMPENSATION PLANS AND SHARES HELD IN TRUST Share-based compensation expense $ million 2020 2019 2018 Equity-settled [A] 359 537 531 Total 359 537 531 [A] On an incidental basis awards may be cash-settled, where an equity settlement is not possible under local regulations. The principal share-based employee compensation plans are the PSP and LTIP. Awards of shares and American Depositary Shares (ADS) of the Company under the PSP and LTIP are granted upon certain conditions to eligible employees. The actual amount of shares that may vest ranges from 0% to 200%of the awards, depending on the outcomes of prescribed performance conditions over a three-year period beginning on January 1 of the award year. Shares and ADSs vest for nil consideration. Share awards under the PSP and LTIP Number of A shares Number of B shares Number of A ADSs Weighted Average remaining contractual life (years) At January 1, 2020 29 10 8 1.0 Granted 10 4 3 Vested (9) (4) (3) Forfeited (1) — — At December 31, 2020 29 10 8 1.0 At January 1, 2019 30 12 8 1.0 Granted 11 3 3 Vested (11) (5) (3) Forfeited (1) — — At December 31, 2019 29 10 8 1.0 Other plans offer eligible employees opportunities to acquire shares and ADSs of the Company or receive cash benefits measured by reference to the Company’s share price. |
Other Reserves
Other Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Other Reserves | 22 – OTHER RESERVES Other reserves attributable to Royal Dutch Shell plc shareholders $ million Merger Share Capital Share plan Accumulated Total At January 1, 2020 37,298 154 123 1,049 (24,173) 14,451 Other comprehensive loss attributable to Royal Dutch Shell plc shareholders — — — — (1,832) (1,832) Transfer from other comprehensive income — — — — 270 270 Repurchases of shares — — 6 — — 6 Share-based compensation — — — (143) — (143) At December 31, 2020 37,298 154 129 906 (25,735) 12,752 At January 1, 2019 37,298 154 95 1,098 (22,030) 16,615 Other comprehensive loss attributable to Royal Dutch Shell plc shareholders — — — — (2,069) (2,069) Transfer from other comprehensive income — — — — (74) (74) Repurchases of shares — — 28 — — 28 Share-based compensation — — — (49) — (49) At December 31, 2019 37,298 154 123 1,049 (24,173) 14,451 At January 1, 2018 37,298 154 84 1,440 (22,182) 16,794 Other comprehensive income attributable to Royal Dutch Shell plc shareholders — — — — 1,123 1,123 Transfer from other comprehensive income — — — — (971) (971) Repurchases of shares — — 11 — — 11 Share-based compensation — — — (342) — (342) At December 31, 2018 37,298 154 95 1,098 (22,030) 16,615 The merger reserve and share premium reserve were established as a consequence of the Company becoming the single parent company of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, plc, now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Royal Dutch Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans. The capital redemption reserve was established in connection with repurchases of shares of the Company. The share plan reserve is in respect of equity-settled share-based compensation plans (see Note 21). The movement comprises the net of the charge for the year and the release as a result of vested awards and is after deduction of tax of $4 million in 2020 (2019: $45 million; 2018: $71 million). Accumulated other comprehensive income comprises the following: Accumulated other comprehensive income attributable to Royal Dutch Shell plc shareholders $ million Currency Equity Debt Cash flow Net investment Deferred Retirement Total At January 1, 2020 (9,415) 793 8 (233) (2,016) (287) (13,023) (24,173) Recognised in other comprehensive income 1,204 68 31 (9) (423) 17 (3,455) (2,567) Reclassified to income (28) — (8) (173) — 94 — (115) Reclassified to the balance sheet — — — 16 — — 16 Reclassified to retained earnings — 169 — — — 101 270 Tax on amounts recognised/reclassified 3 (4) — 6 (11) 753 747 Total, net of tax 1,179 233 23 (160) (423) 100 (2,601) (1,649) Share of joint ventures and associates 51 118 — (92) — — 77 Other comprehensive income/(loss) for the period 1,230 351 23 (252) (423) 100 (2,601) (1,572) Less: non-controlling interest 10 — — — — — 10 Attributable to Royal Dutch Shell plc shareholders 1,240 351 23 (252) (423) 100 (2,601) (1,562) At December 31, 2020 (8,175) 1,144 31 (485) (2,439) (187) (15,624) (25,735) At January 1, 2019 (9,722) 906 (21) 117 (2,025) (353) (10,932) (22,030) Recognised in other comprehensive income 302 (17) 24 (592) 13 9 (3,106) (3,367) Reclassified to income 38 — 5 268 — 86 — 397 Reclassified to the balance sheet — — — 11 — — 11 Reclassified to retained earnings — (85) — — — 11 (74) Tax on amounts recognised/reclassified 4 (13) — 37 (4) (29) 1,004 999 Total, net of tax 344 (115) 29 (276) 9 66 (2,091) (2,034) Share of joint ventures and associates (2) 2 — (74) — — (74) Other comprehensive loss for the period 342 (113) 29 (350) 9 66 (2,091) (2,108) Less: non-controlling interest (35) — — — — — (35) Attributable to Royal Dutch Shell plc shareholders 307 (113) 29 (350) 9 66 (2,091) (2,143) At December 31, 2019 (9,415) 793 8 (233) (2,016) (287) (13,023) (24,173) At January 1, 2018 (6,711) 1,975 (6) (627) (2,024) (144) (14,645) (22,182) Recognised in other comprehensive income (3,793) (147) (15) 50 (1) (362) 5,213 945 Reclassified to income 651 — — 722 — 95 — 1,468 Reclassified to the balance sheet — — — (30) — — (30) Reclassified to retained earnings — (1,108) — — — 137 (971) Tax on amounts recognised/reclassified (29) (6) — (12) 58 (1,625) (1,614) Total, net of tax (3,171) (1,261) (15) 730 (1) (209) 3,725 (202) Share of joint ventures and associates (25) 193 — 14 — 1 183 Other comprehensive loss/income for the period (3,196) (1,068) (15) 744 (1) (209) 3,726 (19) Less: non-controlling interest 185 (1) — — — (13) 171 Attributable to Royal Dutch Shell plc shareholders (3,011) (1,069) (15) 744 (1) (209) 3,713 152 At December 31, 2018 (9,722) 906 (21) 117 (2,025) (353) (10,932) (22,030) |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Dividends | 23 – DIVIDENDS Interim dividends $ per share $ million 2020 2019 2018 2020 2019 2018 A shares: Cash: March 0.47 0.47 0.47 1,862 2,100 2,176 June 0.16 0.47 0.47 653 2,062 2,140 September 0.16 0.47 0.47 654 2,007 2,165 December 0.1665 0.47 0.47 691 1,978 2,124 Total - A shares 0.9565 1.88 1.88 3,860 8,147 8,605 B shares: Cash: March 0.47 0.47 0.47 1,620 1,775 1,794 June 0.16 0.47 0.47 586 1,762 1,746 September 0.16 0.47 0.47 582 1,765 1,784 December 0.1665 0.47 0.47 622 1,749 1,746 Total - B shares 0.9565 1.88 1.88 3,410 7,051 7,070 Total 7,270 15,198 15,675 In addition, on February 4, 2021, the Directors announced a further interim dividend in respect of 2020 of $0.1665 per A share and $0.1665 per B share. The total dividend is estimated to be $1,300 million and is payable on March 29, 2021, to shareholders on the register at February 19, 2021. Dividends on A shares are by default paid in euros, although holders may elect to receive dividends in US dollars or in sterling. Dividends on B shares are by default paid in sterling, although holders may elect to receive dividends in US dollars or in euros. Dividends on ADSs are paid in dollars. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Earnings Per Share | 24 – EARNINGS PER SHARE 2020 2019 2018 (Loss)/income attributable to Royal Dutch Shell plc shareholders ($ million) (21,680) 15,842 23,352 Weighted average number of A and B shares used as the basis for determining: Basic earnings per share (million of shares) 7,795.6 8,058.3 8,282.8 Diluted earnings per share (million of shares) 7,795.6 8,112.5 8,348.7 Basic earnings per share are calculated by dividing the income attributable to Royal Dutch Shell plc shareholders for the year by the weighted average number of A and B shares outstanding during the year. The weighted average number of shares outstanding excludes shares held in trust. Diluted earnings per share are based on the same income/(loss) figures. The weighted average number of shares outstanding during the year is increased by dilutive shares related to share-based compensation plans. If the inclusion of potentially issuable shares could decrease diluted loss per share, the potentially issuable shares are excluded from the weighted average number of shares outstanding used to calculate diluted earnings per share. The number of potentially issuable shares that has been excluded from the calculation for 2020 is 36.0 million shares. |
Legal Proceedings and Other Con
Legal Proceedings and Other Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Legal Proceedings and Other Contingencies | 25 – LEGAL PROCEEDINGS AND OTHER CONTINGENCIES General In the ordinary course of business, Shell subsidiaries are subject to a number of contingencies arising from litigation and claims brought by governmental authorities, including tax authorities, and private parties. The operations and earnings of Shell subsidiaries continue, from time to time, to be affected to varying degrees by political, legislative, fiscal and regulatory developments, including those relating to the protection of the environment and indigenous groups in the countries in which they operate. The industries in which Shell subsidiaries are engaged are also subject to physical risks of various types. The amounts claimed in relation to such events and, if such claims against Shell were successful, the costs of implementing the remedies sought in the various cases could be substantial. Based on information available to date and taking into account that in some cases it is not practicable to estimate the possible magnitude or timing of any resultant payments, management believes that the foregoing are not expected to have a material adverse impact on Shell’s Consolidated Financial Statements. However, there remains a high degree of uncertainty around these contingencies, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition. In certain divestment transactions, liabilities related to decommissioning and restoration are de-recognised upon transfer of these obligations to the buyer. For certain of these obligations Shell has issued guarantees to third parties and continues to be liable in case the primary obligor is not able to meet its obligation. These potential obligations arising from issuance of these guarantees are assessed to be remote. Decommissioning and restoration of manufacturing facilities Industry practice has been not to recognise decommissioning and restoration provisions associated with manufacturing facilities in Oil Products and Chemicals. This was on the basis that these assets were considered to have indefinite lives and, therefore, that it was considered remote that an outflow of economic benefits would be required. In 2020, the changed macroeconomic fundamentals were considered, together with Shell’s plans to rationalise the Group’s manufacturing portfolio. It was also reconsidered whether it remained appropriate not to recognise decommissioning and restoration provisions for manufacturing facilities. It was concluded that the assumption of indefinite lives for manufacturing facilities is no longer appropriate, and the need for either recognition of decommissioning and restoration provisions or contingent liability disclosure was reviewed. In 2020, provisions have been recognised for certain shorter-lived manufacturing facilities (See Note 18). For the remaining longer-lived facilities, where decommissioning would generally be more than 50 years away, it was concluded that, while there is a present obligation that has arisen from past events, the amount of the obligation cannot be measured with sufficient reliability. This conclusion was reached on the basis that the settlement dates are indeterminate; and that other estimates, such as extremely long-term discount rates for which there is no observable measure, are not reliable. Consequently, a decommissioning and restoration obligation exists that cannot be recognised or quantified and that is disclosed as a contingent liability. Pesticide litigation Shell Oil Company (SOC), along with another agricultural chemical pesticide manufacturer and several distributors, has been sued by public and quasi-public water purveyors, water storage districts, and private landowners alleging responsibility for groundwater contamination caused by applications of chemical pesticides. There are approximately 60 such cases currently pending. These suits assert various theories of strict liability and negligence, and seek to recover actual damages, including drinking well treatment and remediation costs. Most assert claims for punitive damages. While the Company continues to vigorously defend these lawsuits, a new environmental regulatory standard became effective in the State of California, where a majority of the suits are pending. Effective January 2018, the new standard requires public water systems state-wide to perform quarterly or monthly sampling of their drinking water sources for a chemical contained in certain pesticides. Water systems deemed out of compliance with the five parts per trillion regulatory standard must take corrective action to resolve the exceedance or take the potable water source out of service. In response to this new regulatory standard, the Company is monitoring the sampling results to determine the number of wells potentially impacted. Based on the claims asserted and SOC’s track record, with regard to amounts paid to resolve varying claims, management does not expect the outcome of these lawsuits pending at December 31, 2020, to have a material adverse impact on Shell. However, there remains a high degree of uncertainty regarding the potential outcome of some of these pending lawsuits, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition. Climate change litigation In the USA, 18 lawsuits have been filed by several municipalities and/or states against oil and gas companies, including Royal Dutch Shell plc. The plaintiffs seek damages for a variety of claims including harm to their public and private infrastructure from rising sea levels and other alleged impacts of climate change caused by the defendants’ fossil fuel products. A similar suit has been filed by a crab-fishing industry group claiming harm to their fisheries as a result of alleged ocean-related impacts of climate change. In the Netherlands a case has been filed against Shell by a group of environmental non-governmental organisations (eNGOs) and individual claimants seeking a court order that emission levels from Shell’s activities and sold energy products are unlawful and that by 2030 it should reduce those emissions by least (net) 45%, alternatively 35% or 25% ( as compared with 2019 levels). Management believes the outcome of these matters should be resolved in a manner favourable to Shell, but there remains a high degree of uncertainty regarding the ultimate outcome of these lawsuits, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition. Brazil tax Pursuant to Law 7.183/2015 issued by the State of Rio de Janeiro (RJ State) and effective March 2016, a value-added levy has been imposed on oil extraction in the RJ State. The Company understands that the obligations arising from this law are not legally sustainable and Shell obtained favourable injunctions suspending the enforcement of the law in two separate lawsuits, one filed to cover year 2016 and the other covering year 2017 onwards. The injunctions remain in effect and Shell received favourable decisions on the subject matter from the RJ State Court. The RJ State has appealed against both decisions and one is pending confirmation by the State Court while the other is pending final decisions by the Brazilian Superior and Supreme Courts. In addition, and as this is an industry-wide issue, the Brazilian Association of Oil and Gas Exploration and Production Companies, of which Shell is a member, filed a suit in February 2016 before the Brazilian Supreme Court, challenging the constitutionality of the law. This matter is currently pending with the Supreme Court. Should Shell be required to pay such a levy, it could result in a potential total liability of approximately $5,473 million as of end 2020. Louisiana coast litigation The State of Louisiana and multiple local governments have initiated 43 lawsuits against 200 oil and gas companies, claiming either current or historical oil and gas operations caused or contributed to contamination, land loss and the erosion of the Louisiana coastline. Shell entities are named in 14 of the suits. Although the State and local parishes fail to claim specified amounts, these claims represent potentially material matters. The cases are of first impression, arise out of an untested 1980 Louisiana statute and represent a novel attempt to render illegal operations that federal and state agencies permitted and authorised at the time. Management believes the outcome of these matters should ultimately be resolved in a manner favourable to Shell; there remains a high degree of uncertainty, however, concerning the scope of the claims and the ultimate outcomes, as well as their potential effects on future operations, earnings, cash flows, reputation and Shell’s financial condition. NAM (Groningen gas field) litigation Since 1963 NAM – a joint venture between Shell and ExxonMobil (50%—50%) – has been producing gas from the Groningen field, the largest gas field in Western Europe. After smaller tremors in the 1990s and the late 2000s, an earthquake measuring 3.6 on the Richter scale occurred in 2012, causing damage to properties in the affected area, and the area continues to experience tremor/earthquake-type events. NAM has received more than 100,000 claims for physical damage to property – the majority of which have been successfully settled. The Dutch State has taken over the damage-claim-handling from NAM for all claim categories (physical damage to property, housing value loss, emotional damages and loss of living enjoyment) while NAM remains financially responsible. NAM still faces claims in civil litigation from claimants who elect not to use the government arrangement or from claims pre-dating the governmental arrangements. These claims include, but are not limited to: • housing claims where NAM was found liable for value loss; • emotional damages and loss of living enjoyment, ~5,000 claimants; and • other civil litigation matters. There remains a high degree of uncertainty concerning the ultimate outcomes and their potential effects on future operations, earnings, cash flows, reputation and Shell’s financial condition. Nigerian litigation Shell subsidiaries and associates operating in Nigeria are parties to various environmental and contractual disputes brought in the courts of Nigeria, England and the Netherlands. These disputes are at different stages in litigation, including at the appellate stage, where judgements have been rendered against Shell entities. If taken at face value, the aggregate amount of these judgements could be seen as material. Management, however, believes that the outcomes of these matters will ultimately be resolved in a manner favourable to Shell. However, there remains a high degree of uncertainty regarding these cases, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition. OPL 245 Authorities are investigating Shell Nigeria Exploration and Production Company Ltd.’s (SNEPCO’s) investment in Nigerian oil block OPL 245 and the 2011 settlement of litigation pertaining to that block with regard to potential anti-bribery and anti-corruption laws. On January 27, 2017, the Nigeria Federal High Court issued an Interim Order of Attachment for Oil Prospecting Licence 245 (OPL 245), pending the conclusion of the investigation. SNEPCO applied for and was granted a discharge of this order on constitutional and procedural grounds. Also in Nigeria, in March 2017 criminal charges alleging official corruption and conspiracy to commit official corruption were filed against SNEPCO, one current Shell employee and third parties including ENI SpA and one of its subsidiaries. Those proceedings are ongoing. In January 2020, criminal charges alleging disobeying direction of law were filed in Nigeria against Shell Nigeria Ultra Deep Ltd., SNEPCO, and third parties including Nigeria Agip Exploration Limited (NAE). Those proceedings are ongoing. In March 2017, parties alleging to be shareholders of Malabu Oil and Gas Company Ltd. (Malabu) filed two actions to challenge the 2011 settlement and the award of OPL 245 to SNEPCO and an ENI SpA subsidiary by the Federal Government of Nigeria. Those proceedings are also ongoing. On May 8, 2018, Human Environmental Development Agenda (HEDA) sought permission from the Federal High Court of Nigeria to apply for an order to direct the Attorney General of the Federation to revoke OPL 245 on grounds that the entire Malabu transaction in relation to the OPL is unconstitutional, illegal and void as it was obtained through fraudulent and corrupt practice. On October 4, 2018, SNEPCO was joined as a defendant in the HEDA action. Those proceedings are ongoing. On July 3, 2019, the Nigerian Federal High Court upheld objections from SNEPCO and NAE and struck the lawsuit filed by HEDA. The suit was struck because of the statute of limitations and the determination by the court that it lacked jurisdiction to hear the matter. HEDA has appealed the judgement. On December 12, 2018, the Federal Republic of Nigeria (FRN) issued a claim form in the UK against Shell and six of its subsidiaries, ENI SpA and two of its subsidiaries, Malabu as well as two other entities for the amount of $1,092 million plus damages for having participated in a fraudulent and corrupt scheme leading to the acquisition by Shell and ENI corporate defendants in 2011 of OPL 245. The Shell entities were served with proceedings in April and May 2019, following which they, and other defendants, challenged the jurisdiction of the English courts. Following a hearing in April 2020, the English High Court rendered judgement in May 2020, dismissing the claims in England and refusing the FRN’s request for permission to appeal. In September 2020, the UK Court of Appeal also refused the FRN’s permission to appeal, meaning the case is now concluded. On February 14, 2017, Royal Dutch Shell plc received a notice of request for indictment from the Milan public prosecutor with respect to this matter. On December 20, 2017, Royal Dutch Shell plc and four former Shell employees including one former executive were remanded to trial in Milan. On May 14, 2018, a trial commenced in the Court of Milan. The FRN was admitted as a civil claimant by a court decision on July 20, 2018. On September 18, 2018, Shell was joined to the proceedings as the civilly responsible party for the damages caused by the alleged illegal acts of the four former Shell employees. Three other Shell entities (Shell UK Ltd, Shell Petroleum Development Company of Nigeria Ltd. and Shell Exploration and Production Africa Ltd.) also joined the proceedings as responsabile civile for their respective former employees at that phase of the proceedings. The trial is ongoing with closing arguments completed in January and rebuttals scheduled for February. Based on Shell’s review of the Milan public prosecutor’s file and the information and facts currently available to Shell, management does not believe there is a basis to convict Shell or the four former Shell employees. On September 20, 2018, a guilty judgement was filed by the Milan Judge of the Preliminary Hearing in a separate OPL 245 fast-track trial of two individuals, neither of whom worked for or on behalf of Shell. That decision is under appeal. Separate OPL 245 pre-trial criminal proceedings are pending against another individual who also did not work for or on behalf of Shell. |
Employees
Employees | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Employees | 26 – EMPLOYEES Employee costs $ million 2020 2019 2018 Remuneration 9,128 10,075 10,167 Social security contributions 793 844 810 Retirement benefits (see Note 17) 1,851 1,753 1,878 Share-based compensation (see Note 21) 359 537 531 Total [A] 12,131 13,209 13,386 [A] Excludes employees seconded to joint ventures and associates. Average employee numbers Thousand 2020 2019 2018 Integrated Gas 11 10 9 Upstream [A] 14 14 14 Oil Products [A] 34 32 35 Chemicals [A] 2 4 4 Corporate [B] 25 23 20 Total [C] 86 83 82 [A] Due to the resegmentations. (See Note 4) [B] Includes all employees working in business service centres irrespective of the segment they support. |
Directors and Senior Management
Directors and Senior Management | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
Directors and Senior Management | 27 – DIRECTORS AND SENIOR MANAGEMENT Remuneration of Directors of the Company $ million 2020 2019 2018 Emoluments 6 8 12 Value of released awards under long-term incentive plans 6 12 20 Employer contributions to pension plans 1 1 1 Emoluments comprise salaries and fees, annual bonuses (for the period for which performance is assessed) and other benefits. The value of released awards under long-term incentive plans for the period is in respect of the performance period ending in that year. In 2020 retirement benefits were accrued in respect of qualifying services under defined benefit plans by two Directors. Further information on the remuneration of the Directors can be found in the Directors’ Remuneration Report on pages 116-119. Directors and Senior Management expense $ million 2020 2019 2018 Short-term benefits 14 18 26 Retirement benefits 3 3 3 Share-based compensation 17 15 14 Termination and related amounts 2 2 — Total 36 38 43 Directors and Senior Management comprise members of the Executive Committee and the Non-executive Directors of the Company. |
Auditor's Remuneration
Auditor's Remuneration | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Auditor's Remuneration | 28 – AUDITOR’S REMUNERATION $ million 2020 2019 2018 Fees in respect of the audit of the Consolidated and Parent Company Financial Statements, including audit of consolidation returns 36 32 31 Other audit fees, principally in respect of audits of accounts of subsidiaries 17 18 16 Total audit fees 53 50 47 Audit-related fees 3 4 5 Fees in respect of other non-audit services [A] 2 — 1 Total 58 54 53 [A] Various services that were classified as ‘Audit-related’ in the past are classified as ‘Other non-audit services’ under the revised UK auditor rules that apply since March 15, 2020 |
Emissions Schemes and Related E
Emissions Schemes and Related Environmental Plans | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Emissions Schemes and Related Environmental Plans | 29 – EMISSION SCHEMES AND RELATED ENVIRONMENTAL PLANS Emission trading schemes Generally, emission trading schemes (ETS) are mandated governmental schemes to control emission levels and enhance clean energy transition, allowing for the trading of emission certificates. In most ETS, governments set an emission cap for one or more sectors. Generally, entities in scope of the scheme are allowed to buy emission certificates to cover shortages or sell surplus emission certificates. In certain countries emissions are priced through a carbon tax. For Shell, the most significant carbon pricing mechanisms are established in the EU, Canada, Singapore and the USA. Biofuel schemes Biofuel schemes are mandated schemes that set binding national targets on the share of renewables in fuel consumption or measures on reducing GHG emissions by fuel suppliers. Biofuels are blended with existing fuels such as gasoline and diesel to reduce net emissions. The share of biofuel in the total sales mix of fuel is used to comply with regulatory requirements. This can be achieved by biofuel production through ‘selfblending’ in jurisdictions that grant the biofuel certificates at blending stage or through purchase of renewable, certified feedstock like ethanol used subsequently in the manufacturing process. Renewable power schemes Renewable power schemes create a financial incentive to consume power that is sourced from renewable origins or requires that a minimum percentage of power sold meets the green definition of the relevant standard. These regulations are typically accompanied by schemes supporting investments in the renewable technology. Renewable power schemes generally use certificates to monitor compliance, where renewable power credits are granted for each MWh of energy generated that meets the predefined renewable criteria. Shell’s compliance obligation under renewable power schemes comes primarily from energy supply and results from regulations applying in Europe, North America and Australia. 2020 $ million ETS and related schemes Biofuels Renewable power Total Emission and related cost recognised in the Income Statement 150 [A] 1,137 [B] 364 1,651 Purchased certificates presented under intangible assets 157 780 76 1,013 Obligation at the end of the period presented under other liabilities (154) [C] (1,603) (296) (2,053) Of which: Short term (154) (1,549) (290) (1,993) Long term — (54) (6) (60) Net asset/(liability) at the end of the period 3 (823) (220) (1,040) [A] Includes cost of emission certificates that were allocated free of charge, with an equivalent fair value at grant date of $377 million. [B] Represents the cost of biofuel certificates required in addition to own blending activities performed. [C] Includes emission certificates that were allocated free of charge with a carrying amount of zero and an equivalent fair value at grant date of $398 million. Emission certificates acquired that are held for compliance purposes are recognised at cost under intangible assets. In addition, a portfolio of emission certificates is held for trading purposes and classified under inventory (see Notes 2 and Note 12). Cost recognised in the Consolidated Statement of Income represents the compliance cost associated with emissions or with products sold during the year. The liability at year-end represents the compliance cost recognised over current and past compliance periods to the extent not settled to date. Liabilities are settled in line with compliance periods, which depend on the scheme and may not coincide with the calendar year. Due to the increasing importance of emission schemes and related environmental plans, this Note is newly included in 2020 and comparatives are not provided. The figures present compliance schemes only, excluding voluntary activities. |
Post-Balance Sheet Events
Post-Balance Sheet Events | 12 Months Ended |
Dec. 31, 2020 | |
Events After Reporting Period [Abstract] | |
Post-Balance Sheet Events | 30 – POST-BALANCE SHEET EVENTS A restructuring plan named Reshape was announced in the third quarter 2020. Under Reshape, between 7,000 and 9,000 job reductions are expected by the end of 2022, including around 1,500 people who have already elected to take selective voluntary severance in 2020. In January 2021 the impact of Reshape was communicated to employees, establishing for some employees, a constructive obligation that satisfies the IFRS criteria for recognising a provision. This represents a non-adjusting post-balance sheet event under IFRS. The costs for this phase of the plan, and where the IFRS recognition criteria have been satisfied, are in the range of $650 million to $850 million (Shell share pre-tax) and will be recognised in the first quarter of 2021. Further redundancy costs will be recognised once the IFRS recognition criteria are met during 2021 and 2022. On February 17, 2021, an agreement was reached with publicly listed Canadian energy company Crescent Point Energy Corp. to sell the Duvernay shale light oil position in Alberta, Canada, for a total consideration of $707 million (C$900 million). The transaction has an effective date of January 1, 2021. The consideration is comprised of $550 million in cash and 50 million shares (valued at $157 million) in Crescent Point Energy common stock (TSX: CPG). Subject to regulatory approvals, the transaction is expected to close in April 2021. On March 9, 2021, we announced that Shell Egypt and one of its affiliates have signed an agreement with a consortium made up of subsidiaries of Cheiron Petroleum Corporation and Cairn Energy plc to acquire Shell’s upstream assets in Egypt’s Western Desert for a base consideration of $646 million and additional payments of up to $280 million between 2021 and 2024, contingent on the oil price and the results of further exploration. The transaction is subject to government and regulatory approvals and is expected to complete in the second half of 2021. |
Significant Accounting Polici_2
Significant Accounting Policies, Judgements and Estimates (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Nature of the Consolidated Financial Statements | This Note describes Shell’s significant accounting policies, which are those relevant to an understanding of the Consolidated Financial Statements. It includes the measurement bases used in preparing the Consolidated Financial Statements. It allows an understanding as to how transactions, other events and conditions are reported. It also describes: (a) judgements, apart from those involving estimations, that management makes in applying the policies that have the most significant effect on the amounts recognised in the Consolidated Financial Statements; and (b) estimations, including assumptions about the future, that management makes in applying the policies. The sources of estimation uncertainty that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are specifically identified as a significant estimate. The accounting policies applied are consistent with those of the previous financial year except for the adoption as from January 1, 2020 of amendments to IFRS 9 Financial Instruments (IFRS 9) and IFRS 7 Financial Instruments: Disclosures (IFRS 7), and IFRS 3 Business Combinations (IFRS 3). The transition to the accounting pronouncements as listed below has no or no material impact. IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Inter-Bank Offered Rate (IBOR) Reform - Phase 1 IFRS 9 and IFRS 7 contain a temporary targeted exception from applying specific hedge accounting requirements pre-IBOR reform. By applying the exception, Shell anticipates that the interest rate benchmark on which the hedged risk is based is not altered as a result of the IBOR reform. However, any hedge ineffectiveness continues to be recorded in the income statement. The exception ceases to apply when the uncertainty arising from interest rate benchmark reform is no longer present. IFRS 3 Business Combinations The amendment to IFRS 3 resolves the difficulties that arose when an entity determined whether it acquired a business or a group of assets. Under the amended definition of a business, an acquisition qualifies as a business combination when the assets and liabilities acquired include an input and a substantive process that together significantly contribute to the ability to create outputs. The amended definition of a business is applied prospectively. Nature of the Consolidated Financial Statements The Consolidated Financial Statements are presented in US dollars (dollars) and comprise the financial statements of the Company and its subsidiaries, being those entities over which the Company has control, either directly or indirectly, through exposure or rights to their variable returns and the ability to affect those returns through its power over the entities. Information about subsidiaries at December 31, 2020, can be found in Exhibit 8. Subsidiaries are consolidated from the date on which control is obtained until the date that such control ceases, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from such transactions, are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Non-controlling interest represents the proportion of income, other comprehensive income and net assets in subsidiaries that is not attributable to the Company’s shareholders. Climate change and energy transition Meeting the goals of the Paris Agreement is a global and Shell target. Shell’s pathway to Paris alignment is reflected in the Group’s strategy and in 2020 we announced a long-term target to become a net-zero emissions energy business by 2050, in step with society. It is important to note that the world needs to transform in a number of complex and interconnected ways. While the world has made some movement towards the goals of Paris, unfortunately, society is not yet on a path to meet Paris. Getting the energy system on a path to net-zero emissions will require coordinated action between energy providers, energy users and governments. One of the key aspects that underpin Shell's financial statements are the oil and gas price and refining margin assumptions. These price assumptions are developed with input from our scenarios and other factors. The mid-price is our reasonable best estimate and the basis for our operating plans, outlooks and impairment testing. Shell’s operating plan and outlook (including portfolio changes) are forecasted for a 10-year period and include significant actions to reduce its greenhouse gas (GHG) emissions in its journey towards its net-zero emissions target by 2050 as outlined in this report. However, our plan and pricing assumptions do not yet reflect Shell's 2050 net-zero emissions target, because our planning timeframe is 10 years and there is significant uncertainty on how society will transition to net-zero emissions. Instead these reflect the current economic environment, the pace of the world's energy transition and Shell’s reasonable expectation of how the next 10 years will evolve. As society moves towards net-zero emissions, Shell expects its operating plan, outlook and assumptions to be revised accordingly. |
Currency Translation | Currency translation Foreign currency transactions are translated using the exchange rate at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at quarter-end exchange rates of monetary assets and liabilities denominated in foreign currencies (including those in respect of inter-company balances, unless related to loans of a long-term investment nature) are recognised in income unless when recognised in other comprehensive income in respect of cash flow or net investment hedges. Foreign exchange gains and losses in income are presented within interest and other income or within purchases where not related to financing. Share capital issued in currencies other than the dollar is translated at the exchange rate at the date of issue. |
Revenue Recognition | Revenue recognition Revenue from sales of oil, natural gas, chemicals and other products is recognised at the transaction price to which Shell expects to be entitled, after deducting sales taxes, excise duties and similar levies. For contracts that contain separate performance obligations, the transaction price is allocated to those separate performance obligations by reference to their relative stand-alone selling prices. Revenue is recognised when control of the products has been transferred to the customer. For sales by Integrated Gas and Upstream operations, this generally occurs when the product is physically transferred into a vessel, pipe or other delivery mechanism; for sales by refining operations, it is either when the product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms; and for sales of oil products and chemicals, it is either at the point of delivery or the point of receipt, depending on contractual conditions. Revenue resulting from hydrocarbon production from properties in which Shell has an interest with partners in joint arrangements is recognised on the basis of Shell’s volumes lifted and sold. Revenue resulting from the production of oil and natural gas under production-sharing contracts (PSCs) is recognised for those amounts relating to Shell’s cost recoveries and Shell’s share of the remaining production. Gains and losses on derivative contracts and the revenue and costs associated with other contracts that are classified as held primarily for the purpose of being traded are reported on a net basis in the Consolidated Statement of Income. Purchases and sales of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstocks for refinery operations are presented net in the Consolidated Statement of Income. |
Research and Development | Research and development Development costs that are expected to generate probable future economic benefits are capitalised as intangible assets. All other research and development expenditure is recognised in income as incurred. |
Exploration Costs | Exploration costs Hydrocarbon exploration costs are accounted for under the successful efforts method: exploration costs are recognised in income when incurred, except that exploratory drilling costs, including in respect of the recapitalisation of the depreciation, are included in property, plant and equipment pending determination of proved reserves. Exploration costs capitalised in respect of exploration wells that are more than 12 months old are written off unless: (a) proved reserves are booked; or (b) (i) they have found commercially producible quantities of reserves and (ii) they are subject to further exploration or appraisal activity in that either drilling of additional exploratory wells is under way or firmly planned for the near future or other activities are being undertaken to sufficiently progress the assessing of reserves and the economic and operating viability of the project. |
Property, Plant and Equipment and Intangible Assets | Property, plant and equipment and intangible assets Recognition Property, plant and equipment comprise assets owned by Shell, assets held by Shell under lease contracts, and assets operated by Shell as contractor in PSCs. They include rights and concessions in respect of properties with proved reserves ("proved properties") and with no proved reserves ("unproved properties"). Property, plant and equipment, including expenditure on major inspections, and intangible assets are initially recognised in the Consolidated Balance Sheet at cost where it is probable that they will generate future economic benefits. This includes capitalisation of decommissioning and restoration costs associated with provisions for asset retirement (see "provisions"), certain development costs (see "research and development") and the effects of associated cash flow hedges (see "financial instruments") as applicable. The accounting for exploration costs is described separately (see "exploration costs"). Intangible assets include goodwill, liquefied natural gas (LNG) off-take and sales contracts obtained through acquisition, emission certificates, software costs and trademarks. Interest is capitalised as an increase in property, plant and equipment, on major capital projects during construction. Property, plant and equipment and intangible assets are subsequently carried at cost less accumulated depreciation, depletion and amortisation (including any impairment). Gains and losses on sale are determined by comparing the proceeds with the carrying amounts of assets sold and are recognised in income, within interest and other income. An asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, which is when the sale is highly probable, and it is available for immediate sale. Assets classified as held for sale are measured at the lower of the carrying amount upon classification and the fair value less costs to sell. Depreciation, depletion and amortisation Property, plant and equipment related to hydrocarbon production activities are in principle depreciated on a unit-of-production basis over the proved developed reserves of the field concerned, other than assets whose useful lives differ from the lifetime of the field which are depreciated applying the straight-line method. However, for certain Integrated Gas and Upstream assets, the use for this purpose of proved developed reserves, which are determined using the SEC-mandated yearly average oil and gas prices, would result in depreciation charges for these assets which do not reflect the pattern in which their future economic benefits are expected to be consumed as, for example, it may result in assets with long-term expected lives being depreciated in full within one year. Therefore, in these instances, other approaches are applied to determine the reserves base for the purpose of calculating depreciation, such as using management’s expectations of future oil and gas prices rather than yearly average prices, to provide a phasing of periodic depreciation charges that more appropriately reflects the expected utilisation of the assets concerned. (See Note 8) Rights and concessions in respect of proved properties are depleted on the unit-of-production basis over the total proved reserves of the relevant area. Where individually insignificant, unproved properties may be grouped and depreciated based on factors such as the average concession term and past experience of recognising proved reserves. Property, plant and equipment held under lease contracts and capitalised LNG off-take and sales contracts are depreciated or amortised over the term of the respective contract. Other property, plant and equipment and intangible assets are depreciated or amortised on a straight-line basis over their estimated useful lives, except for goodwill, which is not amortised. They include refineries and chemical plants (for which the useful life is generally 20 years), retail service stations (15 years), upgraders (30 years) and major inspection costs, which are depreciated over the estimated period before the next planned major inspection ( three On classification of an asset as held for sale, depreciation ceases. Estimates of the useful lives and residual values of property, plant and equipment and intangible assets are reviewed annually and adjusted if appropriate. Impairment The carrying amount of goodwill is tested for impairment annually; in addition, assets other than unproved properties (see "exploration costs") are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts for those assets may not be recoverable. On classification as held for sale, the carrying amounts of property, plant and equipment and intangible assets are also reviewed. If assets are determined to be impaired, the carrying amounts of those assets are written down to their recoverable amount, which is the higher of fair value less costs of disposal (see "fair value measurements") and value in use. Value in use is determined as the amount of estimated risk-adjusted discounted future cash flows. For this purpose, assets are grouped into cash-generating units based on separately identifiable and largely independent cash inflows. Estimates of future cash flows used in the evaluation of impairment of assets are made using management’s forecasts of commodity prices, market supply and demand, potential costs associated with operational GHG emissions, mainly related to CO₂, and forecast product and refining margins. In addition, management takes into consideration the expected useful lives of the manufacturing facilities, exploration and production assets, and expected production volumes. The latter takes into account assessments of field and reservoir performance and includes expectations about both proved reserves and volumes that are expected to constitute proved reserves in the future (unproved volumes), which are risk-weighted utilising geological, production, recovery and economic projections. Cash flow estimates are risk-adjusted to reflect local conditions as appropriate and discounted at a rate based on Shell’s marginal cost of debt. Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed. Impairment losses and reversals are reported within depreciation, depletion and amortisation. Judgements and estimates Proved oil and gas reserves Unit-of-production depreciation, depletion and amortisation charges are principally measured based on management’s estimates of proved developed oil and gas reserves. Also, exploration drilling costs are capitalised pending the results of further exploration or appraisal activity, which may take several years to complete and before any related proved reserves can be booked. Proved reserves are estimated by a central group of reserves experts. The estimated proved reserves are determined by reference to available geological and engineering data and only include volumes for which access to market is assured with reasonable certainty. Yearly average oil and gas prices are applied in the determination of proved reserves. Estimates of proved reserves are inherently imprecise, require the application of judgement and are subject to regular revision, either upward or downward, based on new information such as from the drilling of additional wells, observation of long-term reservoir performance under producing conditions and changes in economic factors, including product prices, contract terms, legislation or development plans. Changes to estimates of proved developed reserves affect prospectively the amounts of depreciation, depletion and amortisation charged and, consequently, the carrying amounts of exploration and production assets. Generally, in the normal course of business the diversity of the asset portfolio will limit the net effect of such revisions. The outcome of, or assessment of plans for, exploration or appraisal activity may result in the related capitalised exploration drilling costs being recognised in income in that period. Judgement is involved in determining when to use an alternative reserves base in order to appropriately reflect the expected utilisation of the assets concerned (see "depreciation, depletion and amortisation"). Information about the carrying amounts of exploration and production assets and the amounts charged to income, including depreciation, depletion and amortisation and the quantitative impact of the use of an alternative reserves base, is presented in Note 8. Impairment For the purposes of determining whether impairment of assets has occurred, and the extent of any impairment loss or its reversal, the key assumptions management uses in estimating risk-adjusted future cash flows for value in use measures are future oil and gas prices and refining margins. In addition, management uses other assumptions such as potential costs associated with operational GHG emissions and expected production volumes appropriate to the local circumstances and environment. These assumptions and the judgements of management that are based on them are subject to change as new information becomes available. Changes in assumptions could affect the carrying amounts of assets, and any impairment losses and reversals will affect income. Changes in economic conditions can affect the rate used to discount future cash flow estimates or the risk-adjustment in the future cash flows. Expected production volumes, which comprise proved reserves and unproved volumes, are used for impairment testing because management believes this to be the most appropriate indicator of expected future cash flows. As discussed in "Proved oil and gas reserves" above, reserves estimates are inherently imprecise. Furthermore, projections about unproved volumes are based on information that is necessarily less robust than that available for mature reservoirs. Estimation is involved with respect to the expected life of refineries and chemicals sites, and also including management’s view on the future development of refining margins. The determination of cash-generating units requires judgement. Changes in this determination could impact the calculation of value in use and therefore the conclusion on the recoverability of assets’ carrying amounts when performing an impairment test. Judgement, which is subject to change as new information becomes available, can be required in determining when an asset is classified as held for sale. A change in that judgement could result in impairment charges affecting income, depending on whether classification requires a write-down of the asset to its fair value less costs to sell. In assessing the value in use, the estimated risk adjusted future cash flows are discounted to their present value using a pre-tax discount rate that reflects Shell’s marginal cost of debt, current market assessments of the time value of money and residual risks (e.g. normal operational and other generic uncertainties). The discount rate applied does not reflect risks for which future cash flow estimates have been adjusted. Significant estimates Future commodity price assumptions used in the impairment testing in Integrated Gas and Upstream, presented in Note 8, tend to be stable because management does not consider short-term increases or decreases in prices as being indicative of long-term levels, but they are nonetheless subject to change. Until 2019 management’s estimate of longer-term refining margins used in the impairment testing in Oil Products was based on the reversion to mean methodology, unless a fundamental shift in markets had been identified, over the life of the refineries. Under this approach, it was assumed that refining margins would revert to historical averages over time. As from 2020, a different price methodology applies, based on Shell management's understanding and interpretation of demand and supply fundamentals in the near term and taking into account various other factors such as industry rationalisation and energy transition in the long term. Future commodity prices and refining margins used in impairment testing provide a source of estimation uncertainty as referred to in paragraph 125 of IAS 1 Presentation of Financial Statements (IAS 1.125). |
Leases | Leases (from January 1, 2019) A contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for payments to be made to the owners (lessors) is accounted for as a lease. Contracts are assessed to determine whether a contract is, or contains, a lease at the inception of a contract or when the terms and conditions of a contract are significantly changed. The lease term is the non-cancellable period of a lease, together with contractual options to extend or to terminate the lease early, where it is reasonably certain that an extension option will be exercised or a termination option will not be exercised. At the commencement of a lease contract, a right-of-use asset and a corresponding lease liability are recognised, unless the lease term is 12 months or less. The commencement date of a lease is the date on which the underlying asset is made available for use. The lease liability is measured at an amount equal to the present value of the lease payments during the lease term that are not paid at that date. The lease liability includes contingent rentals and variable lease payments that depend on an index, rate, or where they are fixed payments in substance. The lease liability is remeasured when the contractual cash flows of variable lease payments change due to a change in an index or rate when the lease term changes following a reassessment. Lease payments are discounted using the interest rate implicit in the lease. If that rate is not readily available, the incremental borrowing rate is applied. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. In general, a corresponding right-of-use asset is recognised for an amount equal to each lease liability, adjusted by the amount of any pre-paid lease payment relating to the specific lease contract. The depreciation on right-of-use assets is recognised in income unless capitalised as exploration drilling cost (see "exploration cost") or capitalised when the right-of-use asset is used to construct another asset. Where Shell is the lessor in a lease arrangement at inception, the lease arrangement will be classified as a finance lease or an operating lease. Classification is based on the extent to which the risks and rewards incidental to ownership of the underlying asset lie with the lessor or the lessee. Where Shell, usually in its capacity as operator, has entered into a lease contract on behalf of a joint arrangement, a lease liability is recognised to the extent that Shell has primary responsibility for the lease liability. A finance sub-lease is subsequently recognised if the related right-of-use asset is subleased to the joint arrangement. This is usually the case when the joint arrangement has the right to direct the use and obtains substantially all of the economic benefits from using the asset. Impairment of the right-of-use asset Right-of-use assets are subject to existing impairment requirements as set out in "property, plant and equipment" (see Note 8). Judgements and estimates A lease term includes optional lease periods where it is reasonably certain Shell will exercise the option to extend or not to exercise the option to terminate the lease. Determination of the lease term is subject to judgement and has an impact on the measurement of the lease liability and related right-of-use asset. When assessing the lease term at the commencement date, Shell takes into consideration the broader economics of the contract. Reassessment of the lease term is performed upon changes in circumstances that may affect the probability that an option to extend or to terminate the lease will be exercised. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation. Leases (prior to January 1, 2019) Agreements under which payments are made to owners in return for the right to use an asset for a period are accounted for as leases. Leases that transfer substantially all the risks and rewards of ownership are recognised at the commencement of the lease term as finance leases within property, plant and |
Joint Arrangements and Associates | Joint arrangements and associates Arrangements under which Shell has contractually agreed to share control (see "Nature of the Consolidated Financial Statements" for the definition of control) with another party or parties are joint ventures where the parties have rights to the net assets of the arrangement, or joint operations where the parties have rights to the assets and obligations for the liabilities relating to the arrangement. Investments in entities over which Shell has the right to exercise significant influence but neither control nor joint control are classified as associates. Information about incorporated joint arrangements and associates at December 31, 2020, can be found in Exhibit 8. Investments in joint ventures and associates are accounted for using the equity method, under which the investment is initially recognised at cost and subsequently adjusted for the Shell share of post-acquisition income less dividends received and the Shell share of other comprehensive income and other movements in equity, together with any loans of a long-term investment nature. Where necessary, adjustments are made to the financial statements of joint ventures and associates to bring the accounting policies used into line with those of Shell. In an exchange of assets and liabilities for an interest in a joint venture, the non-Shell share of any excess of the fair value of the assets and liabilities transferred over the pre-exchange carrying amounts is recognised in income. Unrealised gains on other transactions between Shell and its joint ventures and associates are eliminated to the extent of Shell’s interest in them; unrealised losses are treated similarly but may also result in an assessment of whether the asset transferred is impaired. |
Inventories | Inventories |
Taxation | Taxation The charge for current tax is calculated based on the income reported by the Company and its subsidiaries, as adjusted for items that are non-taxable or disallowed and using rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is determined, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Balance Sheet and on unused tax losses and credits carried forward. Deferred tax assets and liabilities are calculated using the enacted or substantively enacted rates that are expected to apply when an asset is realised or a liability is settled. They are not recognised where they arise on the initial recognition of goodwill or of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit, or in respect of taxable temporary differences associated with subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by Shell and it is probable that it will not reverse in the foreseeable future. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and credits carried forward can be utilised. Income tax receivables and payables as well as deferred tax assets and liabilities include provisions for uncertain income tax positions/treatments. Income taxes are recognised in income except when they relate to items recognised in other comprehensive income, in which case the tax is recognised in other comprehensive income. Income tax assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a right of offset within fiscal jurisdictions and an intention to settle such balances on a net basis. Judgements and estimates Tax liabilities are recognised when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. Provisions for uncertain income tax positions/treatments are measured at the most likely amount or the expected value, whichever method is more appropriate. Generally, uncertain tax treatments are assessed on an individual basis, except where they are expected to be settled collectively. It is assumed that taxing authorities will examine positions taken if they have the right to do so and that they have full knowledge of the relevant information. A change in estimate of the likelihood of a future outflow and/or in the expected amount to be settled would be recognised in income in the period in which the change occurs. This requires the application of judgement as to the ultimate outcome, which can change over time depending on facts and circumstances. Judgements mainly relate to transfer pricing, including inter-company financing, interpretation of PSCs, expenditure deductible for tax purposes and taxation arising on disposal. |
Retirement Benefits | Retirement benefits Benefits in the form of retirement pensions and health care and life insurance are provided to certain employees and retirees under defined benefit and defined contribution plans. Obligations under defined benefit plans are calculated annually by independent actuaries using the projected unit credit method, which takes into account employees’ years of service and, for pensions, average or final pensionable remuneration, and are discounted to their present value using interest rates of high-quality corporate bonds denominated in the currency in which the benefits will be paid and of a duration consistent with the plan obligations. Where plans are funded, payments are made to independently managed trusts; assets held by those trusts are measured at fair value. Defined benefit plan surpluses are recognised as assets to the extent that they are considered recoverable, which is generally by way of a refund or lower future employer contributions. The amounts recognised in income in respect of defined benefit plans mainly comprise service cost and net interest. Service cost comprises principally the increase in the present value of the obligation for benefits resulting from employee service during the period (current service cost) and also amounts relating to past service and settlements or amendments of plans. Plan amendments are changes to benefits and are generally recognised when all legal and regulatory approvals have been received and the effects have been communicated to members. Net interest is calculated using the net defined benefit liability or asset matched against the discount rate yield curve at the beginning of each year for each plan. Remeasurements of the net defined benefit liability or asset resulting from actuarial gains and losses, and the return on plan assets excluding the amount recognised in income, are recognised in other comprehensive income. For defined contribution plans, pension expense represents the amount of employer contributions payable for the period. Significant judgements and estimates Defined benefit obligations and plan assets, and the resulting liabilities and assets that are recognised, require significant estimation as these are subject to volatility as (actuarial) assumptions regarding future outcomes and market values change. Substantial judgement is required in determining the actuarial assumptions, which vary for the different plans to reflect local conditions but are determined under a common process in consultation with independent actuaries. The assumptions applied in respect of each plan are reviewed annually and adjusted where necessary to reflect changes in experience and actuarial recommendations. Actuarial assumptions applied in determining defined benefit obligations provide a source of estimation uncertainty as referred to in IAS 1.125. |
Provisions | Provisions Provisions are recognised at the balance sheet date at management’s best estimate of the expenditure required to settle the present obligation. Non-current amounts are discounted at a rate intended to reflect the time value of money. The carrying amounts of provisions and the discount rate applied are regularly reviewed and adjusted for new facts or changes in law, technology or financial markets. Provisions for decommissioning and restoration costs, which arise principally in connection with hydrocarbon production facilities, oil products manufacturing facilities and pipelines, are measured on the basis of current requirements, technology and price levels; the present value is calculated using amounts discounted over the useful economic life of the assets. The liability is recognised (together with a corresponding amount as part of the related property, plant and equipment) once a legal or constructive obligation arises to dismantle an item of property, plant and equipment and to restore the site on which it is located and when a reasonable estimate can be made. The effects of changes resulting from revisions to the timing or the amount of the original estimate of the provision are reflected on a prospective basis, generally by adjustment to the carrying amount of the related property, plant and equipment. However, where there is no related asset, or the change reduces the carrying amount to nil, the effect, or the amount in excess of the reduction in the related asset to nil, is recognised in income. Shell reviews its refinery and chemical sites on a regular basis to determine whether any changes in assumptions, including expected life, trigger the need to recognise a provision for decommissioning and restoration. Redundancy provisions are recognised when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline, and the employees affected have been notified of the plan's main features. An onerous contract provision is recognised when the unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable cost under a contract is the lower of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract. Before an onerous provision is recognised Shell first recognises any impairment loss that has occurred on assets dedicated to that contract. Other provisions are recognised in income in the period in which an obligation arises and the amount can be reasonably estimated. Provisions are measured based on current legal requirements and existing technology where applicable. Recognition of any joint and several liability is based on management’s best estimate of the final pro rata share of the liability. Provisions are determined independently of expected insurance recoveries. Recoveries are recognised when virtually certain of realisation. Estimates Estimates of provisions for future decommissioning and restoration costs are recognised and based on current legal and constructive requirements, technology and price levels. Because actual cash outflows can differ from estimates due to changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes. Significant estimate The discount rate applied to reflect the time value of money in the carrying amount of provisions requires estimation. The discount rate applied is reviewed regularly and adjusted following changes in market rates. The discount rate applied to determine the carrying amount of provisions provides a source of estimation uncertainty as referred to in IAS 1.125. |
Financial Instruments | Financial instruments Financial assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a legally enforceable right of offset and Shell has the intention to settle on a net basis or realise the asset and settle the liability simultaneously. Financial Assets Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. The classification of financial assets is determined by the contractual cash flows and where applicable the business model for managing the financial assets. Debt instruments are measured at amortised cost, if the objective of the business model is to hold the financial asset in order to collect contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest. It is initially recognised at fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset. Subsequently the financial asset is measured using the effective interest method less any impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. All equity instruments and other debt instruments are recognised at fair value. For equity instruments, on initial recognition, an irrevocable election (on an instrument-by-instrument basis) can be made to designate these as at fair value through other comprehensive income instead of fair value through profit or loss. Dividends received on equity instruments are recognised as other income in profit or loss when the right of payment has been established, except when Shell benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in other comprehensive income. Investments in securities Investments in securities (“securities”) comprise equity and debt securities. Equity securities are carried at fair value. Generally, unrealised holding gains and losses are recognised in other comprehensive income. On sale, net gains and losses previously accumulated in other comprehensive income are transferred to retained earnings. Debt securities are generally carried at fair value with unrealised holding gains and losses recognised in other comprehensive income. On sale, net gains and losses previously accumulated in other comprehensive income are recognised in income. Impairment of financial assets The expected credit loss model is applied for recognition and measurement of impairments in financial assets measured at amortised cost or at fair value through other comprehensive income. The expected credit loss model is also applied for financial guarantee contracts to which IFRS 9 applies and which are not accounted for at fair value through profit or loss. The loss allowance for the financial asset is measured at an amount equal to the 12-month expected credit losses. If the credit risk on the financial asset has increased significantly since initial recognition, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses. Changes in loss allowances are recognised in profit or loss. For trade receivables, a simplified impairment approach is applied recognising expected lifetime losses from initial recognition. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand, including offsetting bank overdrafts, short-term bank deposits, money market funds, reverse repos and similar instruments that generally have a maturity of three months or less at the date of purchase. Financial Liabilities Financial liabilities are measured at amortised cost, unless they are required to be measured at fair value through profit or loss, such as instruments held for trading, or Shell has opted to measure them at fair value through profit or loss. Debt and trade payables are recognised initially at fair value based on amounts exchanged, net of transaction costs, and subsequently at amortised cost except for fixed rate debt subject to fair value hedging which is remeasured for the hedged risk (see below). Interest expense on debt is accounted for using the effective interest method, and other than interest capitalised, is recognised in income. For financial liabilities that are measured under the fair value option, the change in the fair value related to own credit risk is recognised in other comprehensive income. The remaining fair value change is recognised at fair value through profit or loss. Derivative contracts and hedges Derivative contracts are used in the management of interest rate risk, foreign exchange risk, commodity price risk, and foreign currency cash balances. Derivatives that are not closely related to the host contract in terms of economic characteristics and risks and the host contract of which is not a financial asset are separated from their host contract and recognised at fair value with the associated gains and losses recognised in income. Contracts to buy or sell a non-financial item that can be settled net in cash are accounted for as financial instruments, with the exception of those contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with Shell’s expected purchase, sale or usage requirements. Gains or losses arising from changes in the fair value of derivatives that are not designated as effective hedging instruments are recognised in income. Certain derivative contracts qualify and are designated either: as a fair value hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment; or as a cash flow hedge for the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecast transaction; or as a net investment hedge of the change in foreign exchange rates associated with net investments in foreign operations with a different functional currency than Shell’s functional currency. A change in the fair value of a hedging instrument designated as a fair value hedge is recognised in income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in fair value of a derivative contract designated as a cash flow hedge is recognised in other comprehensive income until the hedged transaction occurs; any ineffective portion is recognised in income. Where the hedged item is a non-financial asset or liability, the amount in accumulated other comprehensive income is transferred to the initial carrying amount of the asset or liability (reclassified to the balance sheet); a net investment hedge is accounted for similarly to a cash flow hedge. Gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised in other comprehensive income while any gains or losses relating to the ineffective portion are recognised in the income statements. On disposal of the foreign operation, the cumulative value of any such gains or losses recorded in other comprehensive income is reclassified to the income statement. The effective portion of a change due to retranslation at quarter-end exchange rates in the carrying amount of debt and the principal amount of derivative contracts used to hedge net investments in foreign operations is recognised in other comprehensive income until the related investment is sold or liquidated; any ineffective portion is recognised in income. All relationships between hedging instruments and hedged items are documented, as well as risk management objectives and strategies for undertaking hedge transactions. The effectiveness of hedges is also continually assessed and hedge accounting is discontinued when there is a change in the risk management strategy. |
Fair Value Measurements | Fair value measurements Fair value measurements are estimates of the amounts for which assets or liabilities could be transferred at the measurement date, based on the assumption that such transfers take place between participants in principal markets and, where applicable, taking highest and best use into account. Estimates |
Share-based Compensation Plans | Share-based compensation plans |
Shares Held in Trust | Shares held in trust |
Acquisitions and Sales of Interests in a Business | Acquisitions and sales of interests in a business |
Environmental Schemes and Related Environmental Plans | Environmental schemes and related environmental plans Emission trading schemes Emission certificates acquired for compliance purposes are initially recognised at cost and classified under intangible assets. In the schemes where a cap is set for emissions, the associated emission certificates granted are recognised at cost, which may be zero. Emission certificates held for trading purposes are recognised at cost or net realisable value, whichever is lower, and classified under inventory. An emission liability is recognised under other liabilities when actual emissions occur that give rise to an obligation. To the extent the liability is covered by emission certificates held for compliance purposes, the liability is measured with reference to the value of these emission certificates held and for the remaining uncovered portion at fair market value. The associated expense is presented under "production and manufacturing expenses". Both the emission certificates and the emission liability are derecognised upon settling the liability with the respective regulator. Biofuel certificates Self-generated biofuel certificates are recognised at nil value, as they primarily offset the obligation. Biofuel certificates acquired that are held for compliance purposes are recognised at cost under intangible assets. A biofuel liability is recognised under other liabilities when the number of biofuel certificates available from own activities is less than required. To the extent covered by biofuel certificates held for compliance purposes, the liability is measured with reference to the value of these certificates held and for the remaining uncovered portion at market value. Biofuel certificates and the biofuel liability are both derecognised upon settling the liability with the respective regulator. Renewable power schemes Renewable power certificates acquired for compliance purposes are recognised at cost as an intangible asset. Self-generated renewable power certificates are generally transferred to the customer upon sales of electricity. A renewable power liability is recognised under other liabilities when electricity sales take place that give rise to an obligation to retire renewable power certificates. The associated cost is recognised in "Purchases" in the income statement. If the obligation relates to power consumed in business operations, it is presented in other liabilities with cost reflected in "Production and manufacturing expenses". To the extent covered by renewable power certificates held for compliance purposes, the liability is measured with reference to the value of these renewable power certificates and for the remaining uncovered portion at market value. Renewable power certificates and the renewable power liability are derecognised upon settling the liability with the respective regulator. |
Consolidated Statement of Income Presentation | Consolidated Statement of Income presentation |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Summary of Information by Segment on Current Cost of Supplies Basis | Information by segment on a current cost of supplies basis is as follows: 2020 $ million Integrated Gas Upstream Oil Products Chemicals Corporate Total Revenue: Third-party 33,287 6,767 128,717 11,721 51 180,543 [A] [B] Inter-segment 3,410 21,564 6,213 2,850 — 34,037 Share of profit/(loss) of joint ventures and associates (CCS basis) 562 (7) 988 567 (268) 1,842 Interest and other income, of which: 14 542 (93) — 406 869 Interest income 6 56 28 — 589 679 Net gains on sale and revaluation of non-current assets and businesses 218 55 (9) (2) 24 286 Other (210) 431 (112) 2 (207) (96) Third-party and inter-segment purchases (CCS basis) 21,112 4,505 113,177 9,969 8 148,771 Production and manufacturing expenses 5,723 10,521 5,942 1,787 28 24,001 Selling, distribution and administrative expenses 729 (23) 7,360 1,339 476 9,881 Research and development expenses 103 486 209 109 — 907 Exploration expenses 611 1,136 — — — 1,747 Depreciation, depletion and amortisation charge, of which: 17,704 23,119 10,473 1,116 32 52,444 Impairment losses 12,221 8,697 6,531 5 9 27,463 [C] Interest expense 76 374 56 3 3,580 4,089 Taxation (credit)/charge (CCS basis) (2,507) (467) (898) 7 (983) (4,848) CCS earnings (6,278) (10,785) (494) 808 (2,952) (19,701) [A] Includes $10,008 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior gains of $1,136 million related to sales contracts and prior losses of $539 million related to purchase contracts that were previously recognised and where physical settlement has taken place during 2020. [B] With effect from 2020, additional contracts are classified as held for trading purposes and consequently revenue is reported on a net rather than gross basis. The effect on revenue for the full year was a reduction of $46,289 million. [C] Impairment losses comprise Property, plant and equipment ( $26,676 million ) and Intangible assets ( $787 million ). 2019 $ million Integrated Gas Upstream [A] Oil Products [A] Chemicals [A] Corporate Total Revenue: Third-party 41,322 9,482 280,460 13,568 45 344,877 [B] Inter-segment 4,280 35,735 7,819 3,917 — 51,751 Share of profit/(loss) of joint ventures and associates (CCS basis) 1,791 379 1,179 546 (307) 3,588 Interest and other income, of which: 263 2,180 273 (7) 916 3,625 Interest income — — — — 899 899 Net gains on sale and revaluation of non-current assets and businesses 282 1,888 305 (8) 52 2,519 Other (19) 292 (32) 1 (35) 207 Third-party and inter-segment purchases (CCS basis) 23,498 6,982 262,004 13,039 (6) 305,517 Production and manufacturing expenses 5,768 11,102 7,536 1,995 37 26,438 Selling, distribution and administrative expenses 716 29 7,976 1,323 449 10,493 Research and development expenses 181 450 219 112 — 962 Exploration expenses 281 2,073 — — — 2,354 Depreciation, depletion and amortisation charge, of which: 6,238 16,881 4,461 1,074 47 28,701 Impairment losses 579 2,576 622 5 — 3,782 [C] Impairment reversals — — (190) — — (190) [D] Interest expense 104 526 77 5 3,978 4,690 Taxation charge/(credit) (CCS basis) 2,242 5,878 1,319 (2) (578) 8,859 CCS earnings 8,628 3,855 6,139 478 (3,273) 15,827 [A] Revised to conform with reporting segment changes applicable from 2020. [B] Includes $3,760 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. [C] Impairment losses comprise Property, plant and equipment ($3,639 million) and Intangible assets ($143 million). [D] See Note 8. 2018 $ million Integrated Gas Upstream [A] Oil Products [A] Chemicals [A] Corporate Total Revenue: Third-party 43,764 9,459 316,409 18,704 43 388,379 [B] Inter-segment 5,031 37,125 10,613 4,864 — 57,633 Share of profit/(loss) of joint ventures and associates (CCS basis) 2,273 285 1,101 684 (222) 4,121 Interest and other income, of which: 2,230 605 393 (53) 896 4,071 Interest income — — — — 772 772 Net gains on sale and revaluation of non-current assets and businesses 2,231 717 350 (53) 20 3,265 Other (1) (112) 43 — 104 34 Third-party and inter-segment purchases (CCS basis) 27,775 5,948 300,417 17,332 1 351,473 Production and manufacturing expenses 5,370 11,169 8,226 2,362 (157) 26,970 Selling, distribution and administrative expenses 458 29 9,183 1,130 560 11,360 Research and development expenses 186 493 205 102 — 986 Exploration expenses 208 1,132 — — — 1,340 Depreciation, depletion and amortisation charge, of which: 4,850 12,871 3,165 1,034 215 22,135 Impairment losses 200 1,065 346 78 7 1,696 [C] Impairment reversals — (1,265) — — — (1,265) [D] Interest expense 212 586 84 16 2,847 3,745 Taxation charge/(credit) (CCS basis) 2,795 8,756 1,211 339 (1,270) 11,831 CCS earnings 11,444 6,490 6,025 1,884 (1,479) 24,364 [A] Revised to conform with reporting segment changes applicable from 2020. [B] Includes $3,348 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. [C] Impairment losses comprise Property, plant and equipment ($1,515 million) and Intangible assets ($181 million). [D] See Note 8. |
Summary of Reconciliation of CCS Earnings to Income | Reconciliation of CCS earnings to income for the period $ million 2020 2019 2018 (Loss)/income attributable to Royal Dutch Shell plc shareholders (21,680) 15,842 23,352 Income attributable to non-controlling interest 146 590 554 (Loss)/income for the period (21,534) 16,432 23,906 Current cost of supplies adjustment: Purchases 2,359 (784) 559 Taxation (585) 194 (116) Share of profit of joint ventures and associates 59 (15) 15 Current cost of supplies adjustment 1,833 (605) 458 Of which: Attributable to Royal Dutch Shell plc shareholders 1,759 (572) 481 Attributable to non-controlling interest 74 (33) (23) CCS earnings (19,701) 15,827 24,364 Of which: CCS earnings attributable to Royal Dutch Shell plc shareholders (19,921) 15,270 23,833 CCS earnings attributable to non-controlling interest 220 557 531 |
Summary of Information by Geographical Area | Information by geographical area is as follows: 2020 $ million Europe Asia, USA Other Total Third-party revenue, by origin 50,138 [A] 65,139 50,856 14,410 180,543 Intangible assets, property, plant and equipment, joint ventures and associates at December 31 38,785 [B] 104,450 62,976 49,909 256,120 [A] Includes $12,958 million that originated from the UK. [B] Includes $23,302 million located in the UK. 2019 $ million Europe Asia, USA Other Total Third-party revenue, by origin 98,455 [A] 139,916 83,212 23,294 344,877 Intangible assets, property, plant and equipment, joint ventures and associates at December 31 43,262 [B] 119,732 67,105 54,544 284,643 [A] Includes $41,094 million that originated from the UK. [B] Includes $24,696 million located in the UK. 2018 $ million Europe Asia, USA Other Total Third-party revenue, by origin 118,960 [A] 153,716 89,876 25,827 388,379 Intangible assets, property, plant and equipment, joint ventures and associates at December 31 38,617 [B] 117,127 59,625 56,721 272,090 [A] Includes $54,659 million that originated from the UK. |
Interest and Other Income (Tabl
Interest and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Summary of Interest and Other Income | $ million 2020 2019 2018 Interest income 679 899 772 Dividend income (from investments in equity securities) 22 23 104 Net gains on sale and revaluation of non-current assets and businesses 286 2,519 3,265 Net foreign exchange (losses)/gains on financing activities (391) 5 (174) Other 273 179 104 Total 869 3,625 4,071 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Summary of Interest Expense | $ million 2020 2019 2018 Interest incurred and similar charges 4,359 [A] 4,592 [A] 3,550 Less: interest capitalised (799) (752) (876) Other net losses on fair value and cash flow hedges of debt 32 132 169 Accretion expense 497 718 902 Total 4,089 4,690 3,745 [A] Includes $2,185 million (2019: $2,186 million) of interest expense related to leases, of which $1,031 million (2019: $1,137 million) related to those leases which before January 1, 2019 were classified as operating leases. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Summary of Intangible Assets and Goodwill | 2020 $ million Goodwill LNG off-take Software Other Total Cost At January 1 14,973 10,211 2,958 3,908 32,050 Additions 247 — 133 1,448 1,828 Sales, retirements and other movements (64) (181) (77) (637) (959) Currency translation differences 57 — 100 94 251 At December 31 15,213 10,030 3,114 4,813 33,170 Depreciation, depletion and amortisation, including impairments At January 1 768 4,014 2,524 1,258 8,564 Charge for the year [A] 276 835 156 695 1,962 Sales, retirements and other movements — (181) (129) 9 (301) Currency translation differences 18 — 76 29 123 At December 31 1,062 4,668 2,627 1,991 10,348 Carrying amount at December 31 14,151 5,362 487 2,822 [B] 22,822 [ A] Includes $787 million related to impairments, of which $472 million in 'Other' related to Integrated Gas. (See Note 8) [B] Includes $1,013 million related to emission certificates held for compliance purposes. (See Note 2 9) 2019 $ million Goodwill LNG off-take Software Other Total Cost At January 1 14,338 10,365 2,910 3,482 31,095 Additions 674 — 137 449 1,260 Sales, retirements and other movements (46) (154) (100) (22) (322) Currency translation differences 7 — 11 (1) 17 At December 31 14,973 10,211 2,958 3,908 32,050 Depreciation, depletion and amortisation, including impairments At January 1 622 3,293 2,425 1,169 7,509 Charge for the year [A] 135 876 176 178 1,365 Sales, retirements and other movements (1) (155) (87) (85) (328) Currency translation differences 12 — 10 (4) 18 At December 31 768 4,014 2,524 1,258 8,564 Carrying amount at December 31 14,205 6,197 434 2,650 23,486 [ A] Includes $143 million related to impairments. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Summary of Property Plant and Equipment | 2020 $ million Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 18,596 286,666 104,817 29,081 439,160 Additions 1,728 9,659 6,287 3,460 21,134 Sales, retirements and other movements (5,928) 600 (5,510) (1,109) (11,947) Currency translation differences 92 3,632 2,282 970 6,976 At December 31 14,488 300,557 107,876 32,402 455,323 Depreciation, depletion and amortisation, including impairments At January 1 4,010 136,300 48,872 11,629 200,811 Charge for the year [A] 3,336 34,209 11,680 1,693 50,918 Sales, retirements and other movements (2,148) (5,075) (4,129) (1,091) (12,443) Currency translation differences 64 2,805 1,819 502 5,190 At December 31 5,262 168,239 58,242 12,733 244,476 Carrying amount at December 31 9,226 132,318 49,634 19,669 210,847 [A] Includes $26,676 million relating to impairment losses (see table 'Impairments' below). 2019 $ million Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 21,181 285,252 97,694 26,268 430,395 Additions 2,659 11,374 10,945 3,145 28,123 Sales, retirements and other movements (5,442) (11,253) (3,683) (456) (20,834) Currency translation differences 198 1,293 (139) 124 1,476 At December 31 18,596 286,666 104,817 29,081 439,160 Depreciation, depletion and amortisation, including impairments At January 1 3,287 131,692 46,218 10,465 191,662 Charge for the year 1,096 19,346 5,742 1,573 27,757 Sales, retirements and other movements (440) (15,567) (2,981) (437) (19,425) Currency translation differences 67 829 (107) 28 817 At December 31 4,010 136,300 48,872 11,629 200,811 Carrying amount at December 31 14,586 150,366 55,945 17,452 238,349 |
Summary of Right-of-use Assets | Within property, plant and equipment the following amounts relate to leases: $ million 2020 Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 5 15,213 13,574 5,759 34,551 Additions — 502 1,570 1,580 3,652 Sales, retirements and other movements — (1,370) (675) (75) (2,120) Currency translation differences — 95 57 120 272 At December 31 5 14,440 14,526 7,384 36,355 Depreciation, depletion and amortisation, including impairments At January 1 — 5,761 2,936 1,164 9,861 Charge for the year — 1,898 2,675 760 5,333 Sales, retirements and other movements — (712) (627) (158) (1,497) Currency translation differences — 50 29 27 106 At December 31 — 6,997 5,013 1,793 13,803 Carrying amount at December 31 5 7,443 9,513 5,591 22,552 $ million 2019 Exploration and production Exploration Production Manufacturing, Other Total Cost At January 1 — 16,379 10,718 5,017 32,114 Additions 5 664 3,124 917 4,710 Sales, retirements and other movements — (1,867) (268) (157) (2,292) Currency translation differences — 37 — (18) 19 At December 31 5 15,213 13,574 5,759 34,551 Depreciation, depletion and amortisation, including impairments At January 1 — 5,209 1,110 589 6,908 Charge for the year — 1,632 1,855 703 4,190 Sales, retirements and other movements — (1,091) (30) (128) (1,249) Currency translation differences — 11 1 — 12 At December 31 — 5,761 2,936 1,164 9,861 Carrying amount at December 31 5 9,452 10,638 4,595 24,690 |
Summary of Impairments | Impairments $ million 2020 2019 2018 Impairment losses [A] Exploration and production 20,155 2,983 1,066 Manufacturing, supply and distribution 6,490 654 441 Other 31 2 8 Total 26,676 3,639 1,515 Impairment reversals [A] Exploration and production — — 1,265 Manufacturing, supply and distribution — 190 — Total — 190 1,265 |
Summary of Commodity Price Assumptions Applied in Impairment Testing | The near-term commodity price assumptions applied in impairment testing in 2020 were as follows: Commodity price assumptions [A] 2021 2022 2023 2024 Brent crude oil ($/b) 40 50 60 63 Henry Hub natural gas ($/MMBtu) 2.50 2.50 2.75 3.03 |
Summary of Capitalised Exploration Drilling Costs | Capitalised exploration drilling costs $ million 2020 2019 2018 At January 1 5,668 6,629 6,981 Additions pending determination of proved reserves 1,016 2,036 2,588 Amounts charged to expense (815) (1,218) (449) Reclassifications to productive wells on determination of proved reserves (1,385) (1,655) (2,461) Other movements [A] (830) (124) (30) At December 31 3,654 5,668 6,629 [A] Includes $750 million impairment of capitalised exploration drilling costs. Projects Wells Number $ million Number $ million Between 1 and 5 years 33 1,666 80 1,275 Between 6 and 10 years 12 975 47 1,309 Between 11 and 15 years 7 213 21 217 Between 16 and 20 years — — 3 53 Total 52 2,854 151 2,854 |
Joint Ventures and Associates (
Joint Ventures and Associates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interests In Other Entities [Abstract] | |
Summary of Shell Share of Comprehensive Income of Joint Ventures and Associates | Shell share of comprehensive income of joint ventures and associates $ million 2020 2019 2018 Joint Associates Total Joint Associates Total Joint Associates Total Income for the period 629 [A] 1,154 1,783 1,121 2,483 3,604 1,307 2,799 4,106 Other comprehensive 76 1 77 (82) 8 (74) 172 11 183 Comprehensive income for the period 705 1,155 1,860 1,039 2,491 3,530 1,479 2,810 4,289 [A] Includes $599 million impairment losses recognised in share of profit of joint ventures and associates. |
Summary of Carrying Amount of Interests in Joint Ventures and Associates | Carrying amount of interests in joint ventures and associates $ million Dec 31, 2020 Dec 31, 2019 Joint Associates Total Joint Associates Total Net assets 14,406 8,045 22,451 13,426 9,382 22,808 |
Summary of Transactions with Joint Ventures and Associates | Transactions with joint ventures and associates $ million 2020 2019 2018 Sales and charges to joint ventures and associates 5,426 7,748 8,270 Purchases and charges from joint ventures and associates 8,262 11,581 [A] 13,758 [A] |
Summary of Other Arrangements in Respect of Joint Ventures and Associates | Other arrangements in respect of joint ventures and associates $ million Dec 31, 2020 Dec 31, 2019 Commitments to make purchases from joint ventures and associates [A] 1,674 2,177 Commitments to provide debt or equity funding to joint ventures and associates 900 897 |
Investments in Securities (Tabl
Investments in Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement [Abstract] | |
Schedule of Investments in Securities | Investment in securities $ million Dec 31, 2020 Dec 31, 2019 Equity securities: 1,396 1,437 Equity securities at fair value through other comprehensive income 1,396 1,437 Debt securities: 1,826 1,552 Debt securities at amortised cost 12 11 Debt securities at fair value through other comprehensive income 1,165 1,086 Debt securities at fair value through profit or loss 649 455 Total 3,222 2,989 At fair value Measured by reference to prices in active markets for identical assets 1,637 1,669 Measured by reference to other observable inputs 68 56 Measured using predominantly unobservable inputs 1,505 1,253 Total 3,210 2,978 At cost 12 11 Total 3,222 2,989 |
Schedule of Investments in Securities Using Predominantly Unobservable Inputs | Investments in securities measured using predominantly unobservable inputs [A] $ million 2020 2019 At January 1 1,253 1,193 Gains/(losses) recognised in other comprehensive income 45 (42) Purchases 329 340 Sales (60) (237) Other movements (62) (1) At December 31 1,505 1,253 |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Trade and Other Receivables | $ million Dec 31, 2020 Dec 31, 2019 Current Non-current Current Non-current Trade receivables 21,781 — 30,216 — Lease receivables 186 1,380 213 1,528 Other receivables 7,251 4,109 7,791 4,039 Amounts due from joint ventures and associates 726 829 912 1,078 Prepayments and deferred charges 3,681 1,323 4,282 1,440 Total 33,625 7,641 43,414 8,085 |
Summary of Maturity Analysis of Finance Lease Receivables | Lease contracts where Shell is the lessor are classified as finance leases or operating leases. Receivables for lease contracts classified as finance leases are as follows: $ million Dec 31, 2020 Dec 31, 2019 Less than one year 262 305 Between 1 and 5 years 859 953 5 years and later 852 1,019 Total undiscounted lease payments receivable 1,973 2,277 Unearned finance income 407 536 Net investment in leases 1,566 1,741 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Detailed Information of Inventories | $ million Dec 31, 2020 Dec 31, 2019 Oil, gas and chemicals 16,949 21,653 [A] Other including materials 2,508 2,418 [A] Total 19,457 24,071 [A] As revised, following the reclassification of non-physical trading inventories of $1,001 million from 'Oil, gas and chemicals' to 'Other including materials'. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Cash and Cash Equivalents | $ million Dec 31, 2020 Dec 31, 2019 Cash 4,831 4,168 Short-term bank deposits 2,220 2,665 Money market funds, reverse repos and other cash equivalents 24,779 11,222 Total 31,830 18,055 |
Debt and Lease Arrangements (Ta
Debt and Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Schedule of Debt | Debt $ million Dec 31, 2020 Dec 31, 2019 Debt Lease Total Debt Lease Total Short-term debt 7,535 — 7,535 3,962 — 3,962 Long-term debt due within 1 year 5,221 4,143 9,364 6,146 4,956 11,102 Current debt 12,756 4,143 16,899 10,108 4,956 15,064 Non-current debt 66,838 24,277 91,115 55,779 25,581 81,360 Total 79,594 28,420 108,014 65,887 30,537 96,424 |
Schedule of Net Debt | Net debt $ million Asset/(liability) Current Non-current Derivative Cash and cash equivalents Net debt At January 1, 2020 (15,064) (81,360) (724) 18,055 (79,093) Cash flow 7,536 (13,121) (1,157) 13,603 6,861 Lease additions (870) (2,268) (3,138) Other movements (8,380) 8,354 524 — 498 Currency translation differences and foreign exchange gains/(losses) (121) (2,720) 2,155 172 (514) At December 31, 2020 (16,899) (91,115) 798 31,830 (75,386) At January 1, 2019 (13,046) (79,815) (1,345) 26,741 (67,465) Cash flow 10,333 (7,269) 351 (8,810) (5,395) Lease additions (971) (3,547) (4,518) Other movements (11,453) 9,179 453 — (1,821) Currency translation differences and foreign exchange gains/(losses) 73 92 (183) 124 106 At December 31, 2019 (15,064) (81,360) (724) 18,055 (79,093) |
Schedule of Gearing | Gearing $ million, except where indicated Dec 31, 2020 Dec 31, 2019 Net debt 75,386 79,093 Total equity 158,537 190,463 Total capital 233,923 269,556 Gearing 32.2 % 29.3 % |
Schedule of Borrowing Facilities and Amounts Undrawn | Borrowing facilities and amounts undrawn $ million Facility Amount undrawn Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 CP programmes 20,000 20,000 13,254 16,610 EMTN programme unlimited unlimited N/A N/A US shelf registration — unlimited N/A N/A Committed credit facilities 22,651 10,000 22,651 10,000 |
Schedule of Difference in Contractual Cash Flows for Debt Excluding Lease Liabilities with the Carrying Amount | The following tables compare contractual cash flows for debt excluding lease liabilities at December 31 with the carrying amount in the Consolidated Balance Sheet. Contractual amounts reflect the effects of changes in foreign exchange rates; differences from carrying amounts reflect the effects of discounting, premiums and, where fair value hedge accounting is applied, fair value adjustments. Interest is estimated assuming interest rates applicable to variable rate debt remain constant and there is no change in aggregate principal amounts of debt other than repayment at scheduled maturity, as reflected in the table. 2020 $ million Contractual payments Less than Between Between Between Between 5 years Total Difference Carrying Commercial paper 6,746 — — — — — 6,746 (15) 6,731 Bonds 5,080 4,720 5,408 4,633 8,043 41,853 69,737 1,308 71,045 Bank and other borrowings 944 162 33 215 47 417 1,818 — 1,818 Total (excluding interest) 12,770 4,882 5,441 4,848 8,090 42,270 78,301 1,293 79,594 Interest 1,834 1,707 1,630 1,527 1,412 15,985 24,095 2019 $ million Contractual payments Less than Between Between Between Between 5 years Total Difference Carrying Commercial paper 3,390 — — — — — 3,390 (38) 3,352 Bonds 5,900 4,971 4,392 4,326 2,091 38,323 60,003 694 60,697 Bank and other borrowings 859 425 56 71 15 412 1,838 — 1,838 Total (excluding interest) 10,149 5,396 4,448 4,397 2,106 38,735 65,231 656 65,887 Interest 1,665 1,559 1,430 1,357 1,263 14,618 21,892 |
Schedule of Lease Expenses not Included in the Measurement of Lease Liability | Lease expenses not included in the measurement of lease liability $ million 2020 2019 Expense relating to short-term leases 1,156 834 Expense relating to variable lease payments not included in the lease liabilities 1,209 1,091 |
Schedule of Future Lease Payments Under Lease Contracts | The future lease payments under lease contracts and the carrying amounts at December 31, by payment date are as follows: 2020 $ million Contractual Interest Lease liabilities Less than 1 year 6,059 1,916 4,143 Between 1 and 5 years 16,681 5,617 11,064 5 years and later 19,999 6,786 13,213 Total 42,739 [A] 14,319 28,420 [A] Future cash outflows in respect of leases may differ from lease liabilities recognised due to future decisions that may be taken by Shell in respect of the use of leased assets. These decisions may result in variable lease payments being made. In addition, Shell may reconsider whether it will exercise extension options or termination options, where future reconsideration is not reflected in the lease liabilities. There is no exposure to these potential additional payments in excess of the recognised lease liabilities until these decisions have been taken by Shell. 2019 $ million Contractual lease payments Interest Lease liabilities Less than 1 year 7,337 2,381 4,956 Between 1 and 5 years 17,435 6,141 11,294 5 years and later 21,340 7,053 14,287 Total 46,112 15,575 30,537 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Detailed Information about Trade and other Payables | $ million Dec 31, 2020 Dec 31, 2019 Current Non-current Current Non-current Trade payables 22,664 — 29,497 — Other payables [A] 6,941 1,843 6,356 2,060 Amounts due to joint ventures and associates 3,281 39 3,312 40 Accruals and deferred income 8,791 422 10,043 242 Total 41,677 2,304 49,208 2,342 [A] Includes obligations under environmental schemes for compliance purposes of $2,053 million as at December 31, 2020. (See Note 29) |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Summary of Taxation Charge | Taxation charge $ million 2020 2019 2018 Current tax: Charge in respect of current period 3,272 7,597 10,415 Adjustments in respect of prior periods (56) (1) 60 Total 3,216 7,596 10,475 Deferred tax: Relating to the origination and reversal of temporary differences, tax losses and credits (9,063) 1,377 1,438 Relating to changes in tax rates and legislation (16) (67) (157) Adjustments in respect of prior periods 430 147 (41) Total (8,649) 1,457 1,240 Total taxation (credit)/charge (5,433) 9,053 11,715 |
Summary of Reconciliation of Applicable Tax Charge at Statutory Tax Rates to Taxation Charge | Reconciliation of applicable tax charge at statutory tax rates to taxation charge $ million 2020 2019 2018 (Loss)/income before taxation (26,967) 25,485 35,621 Less: share of profit of joint ventures and associates (1,783) (3,604) (4,106) (Loss)/income before taxation and share of profit of joint ventures and associates (28,750) 21,881 31,515 Applicable tax (credit)/charge at standard statutory tax rates (8,330) 7,214 11,641 Adjustments in respect of prior periods 374 146 19 Tax effects of: Derecognition/(recognition) of deferred tax assets 1,458 846 (381) Expenses not deductible for tax purposes 1,239 1,493 1,176 Incentives for investment and development (557) (757) (557) Exchange rate differences 339 (34) 623 Disposals (34) (235) (524) Changes in tax rates and legislation (16) (67) (157) Income/(loss) not subject to tax at standard statutory rates 6 159 (286) Other reconciling items 88 288 161 Taxation (credit)/charge (5,433) 9,053 11,715 |
Summary of Taxes Payable | Taxes payable $ million Dec 31, 2020 Dec 31, 2019 Income taxes 3,111 3,478 Sales taxes, excise duties and similar levies 2,895 3,215 Total 6,006 6,693 |
Summary of Deferred Tax | 2020 - Deferred tax $ million Deferred tax asset Decommissioning Property, plant and equipment Tax losses and credits Retirement benefits Other Total At January 1, 2020 5,380 3,014 11,629 3,660 4,361 28,044 Credit/(charge) to income 1,057 1,975 685 (250) 605 4,072 Currency translation differences 140 163 286 122 58 769 Other (10) 80 (104) 242 60 268 At December 31, 2020 6,567 5,232 12,496 3,774 5,084 33,153 Deferred tax liability At January 1, 2020 (28,040) (1,093) (2,909) (32,042) Credit to income 4,355 4 218 4,577 Currency translation differences (143) (2) (39) (184) Other 27 418 (101) 344 At December 31, 2020 (23,801) (673) (2,831) (27,305) Net deferred tax asset at December 31, 2020 5,848 Deferred tax asset/liability as presented in the balance sheet at December 31, 2020 Deferred tax asset 16,311 Deferred tax liability (10,463) 2019 - Deferred tax $ million Deferred tax asset Decommissioning Property, plant and equipment Tax losses and credits carried forward Retirement benefits Other Total At January 1, 2019 5,859 3,718 12,167 3,310 4,276 29,330 Credit/(charge) to income 15 (521) (647) (76) 10 (1,219) Currency translation differences 56 6 57 (8) (2) 109 Other (550) (189) 52 434 77 (176) At December 31, 2019 5,380 3,014 11,629 3,660 4,361 28,044 Deferred tax liability At January 1, 2019 (27,627) (1,674) (2,769) (32,070) (Charge)/credit to income (227) 46 (57) (238) Currency translation differences (129) (6) (5) (140) Other (57) 541 (78) 406 At December 31, 2019 (28,040) (1,093) (2,909) (32,042) Net deferred tax liability at December 31, 2019 (3,998) Deferred tax asset/liability as presented in the balance sheet at December 31, 2019 Deferred tax asset 10,524 Deferred tax liability (14,522) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits [Abstract] | |
Summary of Retirement Benefits by Financial Position | Financial position $ million Dec 31, 2020 Dec 31, 2019 Obligations (115,792) (103,545) Plan assets 102,678 94,826 Asset ceilings (17) Deficit (13,131) (8,719) Retirement benefits in the Consolidated Balance Sheet: Non-current assets 2,474 4,717 Non-current liabilities (15,168) (13,017) Current liabilities (437) (419) Total (13,131) (8,719) |
Summary of Retirement Benefit Expense | Retirement benefit expense $ million 2020 2019 2018 Defined benefit plans: Interest expense on obligations 1,828 2,364 2,282 Interest income on plan assets (1,657) (2,253) (2,087) Current service cost, net of plan participants’ contributions 1,431 1,188 1,494 Other (174) 26 (221) Total 1,428 1,325 1,468 Defined contribution plans 423 428 410 Total retirement benefit expense 1,851 1,753 1,878 |
Summary of Remeasurements | Remeasurements $ million 2020 2019 2018 Actuarial (losses)/gains on obligations: Due to changes in financial assumptions [A] (10,150) (11,711) 8,186 Due to experience adjustments [B] 804 232 (268) Due to changes in demographic assumptions [C] 1,375 (75) (459) Total (7,971) (11,554) 7,459 Return on plan assets in excess/(shortage) of interest income 4,509 8,460 (2,312) Other movements 7 (12) 66 Total remeasurements (3,455) (3,106) 5,213 [A] Mainly relates to changes in the discount rate assumptions. [B] Experience adjustments arise from differences between the actuarial assumptions made in respect of the year and actual outcomes. |
Summary of Defined Benefit Plan Obligations and Assets | Defined benefit plan obligations $ million, except where indicated 2020 2019 At January 1 103,545 91,856 Current service cost 1,435 1,186 Interest expense 1,828 2,364 Actuarial losses 7,971 11,554 Benefit payments (4,059) (3,961) Other movements (444) 194 Currency translation differences 5,516 352 At December 31 115,792 103,545 Comprising: Funded pension plans 105,338 93,727 Weighted average duration 18 years 17 years Unfunded pension plans 5,086 4,793 Weighted average duration 13 years 13 years Unfunded OPEB plans [A] 5,368 5,025 Weighted average duration 15 years 14 years [A] Mainly related to post-retirement medical benefits in the USA. Defined benefit plan assets $ million, except where indicated 2020 2019 At January 1 94,826 85,803 Return on plan assets in excess of interest income 4,509 8,460 Interest income 1,657 2,253 Employer contributions 614 1,462 Plan participants’ contributions 42 42 Benefit payments (3,843) (3,741) Other movements (281) 160 Currency translation differences 5,154 387 At December 31 102,678 94,826 Comprising: Quoted in active markets: Equities 25 % 26 % Debt securities 52 % 51 % Real estate 0 % 1 % Other: Equities 8 % 8 % Debt securities 5 % 4 % Real estate 6 % 6 % Investment funds 3 % 3 % Cash 1 % 1 % |
Summary of Assumptions for Sensitivity Analysis | The weighted averages for those assumptions and related sensitivity information at December 31 are presented below. Sensitivity information indicates by how much the defined benefit obligations would increase or decrease if a given assumption were to increase or decrease with no change in other assumptions. $ million, except where indicated Effect of using alternative assumptions Assumptions used at nominal rates Increase/(decrease) in defined benefit obligations 2020 [A] 2019 Range 2020 2019 Rate of increase in pensionable remuneration 3.8 % 4.1 % -1% to +1% (1,780) to 1,948 (1,975) to 2,266 Rate of increase in pensions in payment 1.6 % 1.6 % -1% to +1% (10,937) to 13,523 (9,541) to 11,757 Rate of increase in health-care costs [B] 6.0 % 6.1 % -1% to +1% (605) to 751 (546) to 675 Discount rate for pension plans 1.5 % 2.1 % -1% to +1% 21,463 to (16,382) 18,431 to (14,155) Discount rate for health-care plans [B] 2.6 % 3.2 % -1% to +1% 791 to (624) 704 to (558) Expected age at death for persons aged 60: Men 87 years 87 years -1 year to +1 year (2,022) to 2,112 (1,717) to 1,782 Women 88 years 89 years -1 year to +1 year (1,985) to 2,070 (1,631) to 1,694 [A] The weighted average inflation rate used in the calculation of the defined benefit obligation is 1.7%. [B] Mainly related to post-retirement medical benefits in the USA . |
Decommissioning and Other Pro_2
Decommissioning and Other Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Summary of Decommissioning and Other Provisions | $ million Decommissioning Legal Environmental Redundancy Other Total At January 1, 2020 Current 755 626 263 295 872 2,811 Non-current 18,264 1,185 934 220 1,196 21,799 19,019 1,811 1,197 515 2,068 24,610 Additions 1,697 [A] 502 199 986 2,386 5,770 Amounts charged against provisions (433) (522) (138) (375) (388) (1,856) Accretion expense 448 17 21 1 10 497 Disposals (154) — (7) — (18) (179) Remeasurements and other movements 2,090 (59) (73) (241) (265) 1,452 Currency translation differences 508 1 26 52 53 640 4,156 (61) 28 423 1,778 6,324 At December 31, 2020 Current 900 521 273 673 1,257 3,624 Non-current 22,275 1,229 952 265 2,589 27,310 23,175 1,750 1,225 938 3,846 30,934 At January 1, 2019 Current 876 213 264 441 1,547 3,341 Non-current 17,057 1,247 1,074 280 1,528 21,186 17,933 1,460 1,338 721 3,075 24,527 Additions 625 585 229 290 535 2,264 Amounts charged against provisions (797) (216) (223) (304) (562) (2,102) Accretion expense 644 28 16 3 25 716 Disposals (1,238) — (8) — (14) (1,260) Remeasurements and other movements 1,696 (45) (155) (192) (988) 316 Currency translation differences 156 (1) — (3) (3) 149 1,086 351 (141) (206) (1,007) 83 At December 31, 2019 Current 755 626 263 295 872 2,811 Non-current 18,264 1,185 934 220 1,196 21,799 19,019 1,811 1,197 515 2,068 24,610 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Summary of 10% Appreciation Against the Dollar of Main Currencies | Assuming other factors (principally interest rates and commodity prices) remained constant and that no further foreign exchange risk management action were taken, a 10% appreciation against the dollar at December 31 of the main currencies to which Shell is exposed would have the following effects: $ million Increase/(decrease) Increase in net assets 2020 2019 2020 2019 10% appreciation against the dollar of: Euro (263) 36 451 1,227 Malaysian ringgit 255 243 270 290 Australian dollar 179 (55) 598 835 Sterling (166) (58) 328 581 Canadian dollar 1 (97) 1,299 1,380 |
Schedule of Value at Risk Pre-tax | The VAR year-end positions in respect of commodities traded in active markets, which are presented in the table below, are calculated on a diversified basis in order to reflect the effect of offsetting risk within combined portfolios. Value-at-risk (pre-tax) $ million December 31, 2020 December 31, 2019 Global oil 24 22 North America gas and power 14 12 Europe gas and power 11 5 Carbon-emission rights 7 4 |
Schedule of Trade and Other Receivables, Other Payables and Derivative Financial Instruments | These amounts, as presented net and gross within trade and other receivables, trade and other payables and derivative financial instruments in the Consolidated Balance Sheet at December 31, were as follows: 2020 $ million Amounts offset Amounts not offset Gross amounts Amounts Net amounts Cash collateral Other offsetting Net amounts Assets: Within trade receivables 10,658 6,470 4,188 14 79 4,095 Within derivative financial instruments 12,798 6,125 6,673 1,573 1,750 3,350 Liabilities: Within trade payables 10,580 6,467 4,113 1 79 4,033 Within derivative financial instruments 10,502 5,893 4,609 797 1,761 2,051 2019 $ million Amounts offset Amounts not offset Gross amounts Amounts Net amounts Cash collateral Other offsetting instruments Net amounts Assets: Within trade receivables 13,821 8,975 4,846 54 101 4,691 Within derivative financial instruments 12,995 7,310 5,685 531 2,262 2,892 Liabilities: Within trade payables 13,335 9,029 4,306 11 101 4,194 Within derivative financial instruments 12,355 7,253 5,102 706 2,262 2,134 |
Schedule of Carrying Amounts of Derivative Contracts Designated and Not Designated as Hedging Instruments for Hedge Accounting | The carrying amounts of derivative contracts at December 31, designated and not designated as hedging instruments for hedge accounting purposes, were as follows: 2020 $ million Assets Liabilities Designated Not Total Designated Not Total Net Interest rate swaps 451 — 451 26 22 48 403 Forward foreign exchange contracts — 276 276 — 651 651 (375) Currency swaps and options 1,890 13 1,903 280 63 343 1,560 Commodity derivatives — 5,534 5,534 92 4,565 4,657 877 Other contracts — 424 424 — 29 29 395 Total 2,341 6,247 8,588 398 5,330 5,728 2,860 2019 $ million Assets Liabilities Designated Not Total Designated Not Total Net Interest rate swaps 227 8 235 34 24 58 177 Forward foreign exchange contracts 7 236 243 2 309 311 (68) Currency swaps and options 90 15 105 932 56 988 (883) Commodity derivatives — 6,914 6,914 — 5,281 5,281 1,633 Other contracts — 341 341 — — — 341 Total 324 7,514 7,838 968 5,670 6,638 1,200 |
Contractual Maturities of Derivative Liabilities | The contractual maturities of derivative liabilities at December 31 compare with their carrying amounts in the Consolidated Balance Sheet as follows: 2020 $ million Contractual maturities Less than Between Between Between Between 5 years Total Difference Carrying Interest rate swaps 12 10 9 7 5 6 49 (1) 48 Forward foreign exchange contracts 504 56 22 38 — — 620 31 651 Currency swaps and options 174 13 28 — 159 — 374 (31) 343 Commodity derivatives 2,990 743 265 174 115 391 4,678 (21) 4,657 Other contracts 15 15 — — — — 30 (1) 29 Total 3,695 837 324 219 279 397 5,751 (23) 5,728 [A] Mainly related to the effect of discounting. 2019 $ million Contractual maturities Less than Between Between Between Between 5 years Total Difference Carrying Interest rate swaps 35 8 4 4 5 4 60 (2) 58 Forward foreign exchange contracts 214 40 8 — 118 — 380 (69) 311 Currency swaps and options 255 475 444 201 204 1,777 3,356 (2,368) 988 Commodity derivatives 3,472 756 349 189 123 511 5,400 (119) 5,281 Other contracts — — — — — — — — — Total 3,976 1,279 805 394 450 2,292 9,196 (2,558) 6,638 |
Summary of Net Carrying Amounts of Derivative Contracts Held | The net carrying amounts of derivative contracts held at December 31, categorised according to the predominant source and nature of inputs used in determining the fair value of each contract, were as follows: 2020 $ million Prices in active markets for identical Other Unobservable Total Interest rate swaps — 403 — 403 Forward foreign exchange contracts — (375) — (375) Currency swaps and options — 1,560 — 1,560 Commodity derivatives 37 (237) 1,077 877 Other contracts 20 375 — 395 Total 57 1,726 1,077 2,860 2019 $ million Prices in active markets for identical Other Unobservable Total Interest rate swaps — 177 — 177 Forward foreign exchange contracts — (68) — (68) Currency swaps and options — (883) — (883) Commodity derivatives (6) 895 744 1,633 Other contracts 27 304 10 341 Total 21 425 754 1,200 |
Summary of Net Carrying Amounts of Derivative Contracts Measured Using Predominantly Unobservable Inputs | Net carrying amounts of derivative contracts measured using predominantly unobservable inputs $ million 2020 2019 At January 1 754 (27) Net gains recognised in revenue 564 1,085 Purchases 217 453 Sales (450) (633) Settlements (9) — Recategorisations (net) (12) (125) Currency translation differences 13 1 At December 31 1,077 754 |
Reconciliation of Derivative Contracts with Unrecognized Day One Gains or Losses | The unrecognised gains on these derivative contracts at December 31, 2020 were as follows: $ million 2020 2019 At January 1 929 388 Movements 39 541 At December 31 968 929 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Summary of Issued and Fully Paid Ordinary Shares | Issued and fully paid ordinary shares of €0.07 each [A] Number of shares Nominal value ($ million) A B A B Total At January 1, 2020 4,151,787,517 3,729,407,107 349 308 657 Repurchases of shares (50,548,018) (23,223,271) (4) (2) (6) At December 31, 2020 4,101,239,499 3,706,183,836 345 306 651 At January 1, 2019 4,471,889,296 3,745,486,731 376 309 685 Repurchases of shares (320,101,779) (16,079,624) (27) (1) (28) At December 31, 2019 4,151,787,517 3,729,407,107 349 308 657 [A] Share capital at December 31, 2020, and 2019, also included 50,000 issued and fully paid sterling deferred shares of £ |
Share-based Compensation Plan_2
Share-based Compensation Plans and Shares Held in Trust (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangements [Abstract] | |
Summary of Share-based Compensation Expense | Share-based compensation expense $ million 2020 2019 2018 Equity-settled [A] 359 537 531 Total 359 537 531 [A] On an incidental basis awards may be cash-settled, where an equity settlement is not possible under local regulations. |
Schedule of Share Awards Under the PSP and LTIP | Share awards under the PSP and LTIP Number of A shares Number of B shares Number of A ADSs Weighted Average remaining contractual life (years) At January 1, 2020 29 10 8 1.0 Granted 10 4 3 Vested (9) (4) (3) Forfeited (1) — — At December 31, 2020 29 10 8 1.0 At January 1, 2019 30 12 8 1.0 Granted 11 3 3 Vested (11) (5) (3) Forfeited (1) — — At December 31, 2019 29 10 8 1.0 |
Other Reserves (Tables)
Other Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Summary of Other Reserves Attributable to Royal Dutch Shell plc Shareholders | Other reserves attributable to Royal Dutch Shell plc shareholders $ million Merger Share Capital Share plan Accumulated Total At January 1, 2020 37,298 154 123 1,049 (24,173) 14,451 Other comprehensive loss attributable to Royal Dutch Shell plc shareholders — — — — (1,832) (1,832) Transfer from other comprehensive income — — — — 270 270 Repurchases of shares — — 6 — — 6 Share-based compensation — — — (143) — (143) At December 31, 2020 37,298 154 129 906 (25,735) 12,752 At January 1, 2019 37,298 154 95 1,098 (22,030) 16,615 Other comprehensive loss attributable to Royal Dutch Shell plc shareholders — — — — (2,069) (2,069) Transfer from other comprehensive income — — — — (74) (74) Repurchases of shares — — 28 — — 28 Share-based compensation — — — (49) — (49) At December 31, 2019 37,298 154 123 1,049 (24,173) 14,451 At January 1, 2018 37,298 154 84 1,440 (22,182) 16,794 Other comprehensive income attributable to Royal Dutch Shell plc shareholders — — — — 1,123 1,123 Transfer from other comprehensive income — — — — (971) (971) Repurchases of shares — — 11 — — 11 Share-based compensation — — — (342) — (342) At December 31, 2018 37,298 154 95 1,098 (22,030) 16,615 |
Summary of Accumulated Other Comprehensive Income Attributable to Royal Dutch Shell plc Shareholders | Accumulated other comprehensive income comprises the following: Accumulated other comprehensive income attributable to Royal Dutch Shell plc shareholders $ million Currency Equity Debt Cash flow Net investment Deferred Retirement Total At January 1, 2020 (9,415) 793 8 (233) (2,016) (287) (13,023) (24,173) Recognised in other comprehensive income 1,204 68 31 (9) (423) 17 (3,455) (2,567) Reclassified to income (28) — (8) (173) — 94 — (115) Reclassified to the balance sheet — — — 16 — — 16 Reclassified to retained earnings — 169 — — — 101 270 Tax on amounts recognised/reclassified 3 (4) — 6 (11) 753 747 Total, net of tax 1,179 233 23 (160) (423) 100 (2,601) (1,649) Share of joint ventures and associates 51 118 — (92) — — 77 Other comprehensive income/(loss) for the period 1,230 351 23 (252) (423) 100 (2,601) (1,572) Less: non-controlling interest 10 — — — — — 10 Attributable to Royal Dutch Shell plc shareholders 1,240 351 23 (252) (423) 100 (2,601) (1,562) At December 31, 2020 (8,175) 1,144 31 (485) (2,439) (187) (15,624) (25,735) At January 1, 2019 (9,722) 906 (21) 117 (2,025) (353) (10,932) (22,030) Recognised in other comprehensive income 302 (17) 24 (592) 13 9 (3,106) (3,367) Reclassified to income 38 — 5 268 — 86 — 397 Reclassified to the balance sheet — — — 11 — — 11 Reclassified to retained earnings — (85) — — — 11 (74) Tax on amounts recognised/reclassified 4 (13) — 37 (4) (29) 1,004 999 Total, net of tax 344 (115) 29 (276) 9 66 (2,091) (2,034) Share of joint ventures and associates (2) 2 — (74) — — (74) Other comprehensive loss for the period 342 (113) 29 (350) 9 66 (2,091) (2,108) Less: non-controlling interest (35) — — — — — (35) Attributable to Royal Dutch Shell plc shareholders 307 (113) 29 (350) 9 66 (2,091) (2,143) At December 31, 2019 (9,415) 793 8 (233) (2,016) (287) (13,023) (24,173) At January 1, 2018 (6,711) 1,975 (6) (627) (2,024) (144) (14,645) (22,182) Recognised in other comprehensive income (3,793) (147) (15) 50 (1) (362) 5,213 945 Reclassified to income 651 — — 722 — 95 — 1,468 Reclassified to the balance sheet — — — (30) — — (30) Reclassified to retained earnings — (1,108) — — — 137 (971) Tax on amounts recognised/reclassified (29) (6) — (12) 58 (1,625) (1,614) Total, net of tax (3,171) (1,261) (15) 730 (1) (209) 3,725 (202) Share of joint ventures and associates (25) 193 — 14 — 1 183 Other comprehensive loss/income for the period (3,196) (1,068) (15) 744 (1) (209) 3,726 (19) Less: non-controlling interest 185 (1) — — — (13) 171 Attributable to Royal Dutch Shell plc shareholders (3,011) (1,069) (15) 744 (1) (209) 3,713 152 At December 31, 2018 (9,722) 906 (21) 117 (2,025) (353) (10,932) (22,030) |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Summary of Interim Dividends | Interim dividends $ per share $ million 2020 2019 2018 2020 2019 2018 A shares: Cash: March 0.47 0.47 0.47 1,862 2,100 2,176 June 0.16 0.47 0.47 653 2,062 2,140 September 0.16 0.47 0.47 654 2,007 2,165 December 0.1665 0.47 0.47 691 1,978 2,124 Total - A shares 0.9565 1.88 1.88 3,860 8,147 8,605 B shares: Cash: March 0.47 0.47 0.47 1,620 1,775 1,794 June 0.16 0.47 0.47 586 1,762 1,746 September 0.16 0.47 0.47 582 1,765 1,784 December 0.1665 0.47 0.47 622 1,749 1,746 Total - B shares 0.9565 1.88 1.88 3,410 7,051 7,070 Total 7,270 15,198 15,675 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of Earnings Per Share | 2020 2019 2018 (Loss)/income attributable to Royal Dutch Shell plc shareholders ($ million) (21,680) 15,842 23,352 Weighted average number of A and B shares used as the basis for determining: Basic earnings per share (million of shares) 7,795.6 8,058.3 8,282.8 Diluted earnings per share (million of shares) 7,795.6 8,112.5 8,348.7 |
Employees (Tables)
Employees (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Summary of Employee Costs | Employee costs $ million 2020 2019 2018 Remuneration 9,128 10,075 10,167 Social security contributions 793 844 810 Retirement benefits (see Note 17) 1,851 1,753 1,878 Share-based compensation (see Note 21) 359 537 531 Total [A] 12,131 13,209 13,386 [A] Excludes employees seconded to joint ventures and associates. |
Summary of Average Employee Numbers | Average employee numbers Thousand 2020 2019 2018 Integrated Gas 11 10 9 Upstream [A] 14 14 14 Oil Products [A] 34 32 35 Chemicals [A] 2 4 4 Corporate [B] 25 23 20 Total [C] 86 83 82 [A] Due to the resegmentations. (See Note 4) [B] Includes all employees working in business service centres irrespective of the segment they support. |
Directors and Senior Manageme_2
Directors and Senior Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
Summary of Remuneration of Directors of the Company | Remuneration of Directors of the Company $ million 2020 2019 2018 Emoluments 6 8 12 Value of released awards under long-term incentive plans 6 12 20 Employer contributions to pension plans 1 1 1 |
Summary of Directors and Senior Management Expense | Directors and Senior Management expense $ million 2020 2019 2018 Short-term benefits 14 18 26 Retirement benefits 3 3 3 Share-based compensation 17 15 14 Termination and related amounts 2 2 — Total 36 38 43 |
Auditor's Remuneration (Tables)
Auditor's Remuneration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Summary of Auditor's Remuneration | $ million 2020 2019 2018 Fees in respect of the audit of the Consolidated and Parent Company Financial Statements, including audit of consolidation returns 36 32 31 Other audit fees, principally in respect of audits of accounts of subsidiaries 17 18 16 Total audit fees 53 50 47 Audit-related fees 3 4 5 Fees in respect of other non-audit services [A] 2 — 1 Total 58 54 53 [A] Various services that were classified as ‘Audit-related’ in the past are classified as ‘Other non-audit services’ under the revised UK auditor rules that apply since March 15, 2020 |
Emissions Schemes and Related_2
Emissions Schemes and Related Environmental Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Summary of Emission Schemes and Related Environmental Plans | 2020 $ million ETS and related schemes Biofuels Renewable power Total Emission and related cost recognised in the Income Statement 150 [A] 1,137 [B] 364 1,651 Purchased certificates presented under intangible assets 157 780 76 1,013 Obligation at the end of the period presented under other liabilities (154) [C] (1,603) (296) (2,053) Of which: Short term (154) (1,549) (290) (1,993) Long term — (54) (6) (60) Net asset/(liability) at the end of the period 3 (823) (220) (1,040) [A] Includes cost of emission certificates that were allocated free of charge, with an equivalent fair value at grant date of $377 million. [B] Represents the cost of biofuel certificates required in addition to own blending activities performed. [C] Includes emission certificates that were allocated free of charge with a carrying amount of zero and an equivalent fair value at grant date of $398 million. |
Significant Accounting Polici_3
Significant Accounting Policies, Judgements and Estimates (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Planning horizon | 10 years |
Self-generated biofuel certificates, value recognized | $ 0 |
Chemical plants | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Useful lives of tangible assets | 20 years |
Retail Service Stations | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Useful lives of tangible assets | 15 years |
Upgraders | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Useful lives of tangible assets | 30 years |
Upgraders | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Major inspection costs useful economic life | 3 years |
Upgraders | Top of range | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Major inspection costs useful economic life | 5 years |
Changes to IFRS Not Yet Adopt_2
Changes to IFRS Not Yet Adopted (Details) $ in Millions | Dec. 31, 2020USD ($) |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Notional amount of hedging instruments designated in hedge relationships affected by the reform | $ 23,010 |
Floating rate note tied to LIBOR that will be affected | $ 500 |
Segment Information - Informati
Segment Information - Information by Segment on Current Cost of Supplies Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 180,543 | $ 344,877 | $ 388,379 |
Share of profit/(loss) of joint ventures and associates (CCS basis) | 1,842 | 3,588 | 4,121 |
Total | 869 | 3,625 | 4,071 |
Interest income | 679 | 899 | 772 |
Net gains on sale and revaluation of non-current assets and businesses | 286 | 2,519 | 3,265 |
Other | (96) | 207 | 34 |
Production and manufacturing expenses | 24,001 | 26,438 | 26,970 |
Selling, distribution and administrative expenses | 9,881 | 10,493 | 11,360 |
Research and development | 907 | 962 | 986 |
Exploration | 1,747 | 2,354 | 1,340 |
Depreciation, depletion and amortisation charge, of which: | 52,444 | 28,701 | 22,135 |
Interest expense | 4,089 | 4,690 | 3,745 |
Taxation (credit)/charge (CCS basis) | (4,848) | 8,859 | 11,831 |
Other revenue | 10,008 | 3,760 | 3,348 |
Reduction in revenue due to contracts classified as held for trading, reported on a net basis | 46,289 | ||
Impairment losses on property, plant and equipment | 26,676 | 3,639 | 1,515 |
Impairment losses on intangible assets | 787 | 143 | 181 |
Purchase contract | |||
Disclosure of operating segments [line items] | |||
Reversal of losses on purchase contracts | 539 | ||
Sales contract | |||
Disclosure of operating segments [line items] | |||
Reversal of gains on sales contracts | 1,136 | ||
CCS earnings | |||
Disclosure of operating segments [line items] | |||
Taxation (credit)/charge (CCS basis) | 585 | (194) | 116 |
CCS earnings | (19,701) | 15,827 | 24,364 |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Third-party and inter-segment purchases (CCS basis) | 148,771 | 305,517 | 351,473 |
Production and manufacturing expenses | 24,001 | 26,438 | 26,970 |
Selling, distribution and administrative expenses | 9,881 | 10,493 | 11,360 |
Research and development | 907 | 962 | 986 |
Exploration | 1,747 | 2,354 | 1,340 |
Depreciation, depletion and amortisation charge, of which: | 52,444 | 28,701 | 22,135 |
Impairment losses | 27,463 | 3,782 | 1,696 |
Impairment reversals | (190) | (1,265) | |
Interest expense | 4,089 | 4,690 | 3,745 |
Inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue | 34,037 | 51,751 | 57,633 |
Integrated Gas | |||
Disclosure of operating segments [line items] | |||
Revenue | 33,287 | 41,322 | 43,764 |
Share of profit/(loss) of joint ventures and associates (CCS basis) | 562 | 1,791 | 2,273 |
Total | 14 | 263 | 2,230 |
Interest income | 6 | 0 | 0 |
Net gains on sale and revaluation of non-current assets and businesses | 218 | 282 | 2,231 |
Other | (210) | (19) | (1) |
Taxation (credit)/charge (CCS basis) | (2,507) | 2,242 | 2,795 |
Impairment losses on intangible assets | 472 | ||
Integrated Gas | CCS earnings | |||
Disclosure of operating segments [line items] | |||
CCS earnings | (6,278) | 8,628 | 11,444 |
Integrated Gas | Operating segments | |||
Disclosure of operating segments [line items] | |||
Third-party and inter-segment purchases (CCS basis) | 21,112 | 23,498 | 27,775 |
Production and manufacturing expenses | 5,723 | 5,768 | 5,370 |
Selling, distribution and administrative expenses | 729 | 716 | 458 |
Research and development | 103 | 181 | 186 |
Exploration | 611 | 281 | 208 |
Depreciation, depletion and amortisation charge, of which: | 17,704 | 6,238 | 4,850 |
Impairment losses | 12,221 | 579 | 200 |
Impairment reversals | 0 | 0 | |
Interest expense | 76 | 104 | 212 |
Integrated Gas | Inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,410 | 4,280 | 5,031 |
Upstream | |||
Disclosure of operating segments [line items] | |||
Revenue | 6,767 | 9,482 | 9,459 |
Share of profit/(loss) of joint ventures and associates (CCS basis) | (7) | 379 | 285 |
Total | 542 | 2,180 | 605 |
Interest income | 56 | 0 | 0 |
Net gains on sale and revaluation of non-current assets and businesses | 55 | 1,888 | 717 |
Other | 431 | 292 | (112) |
Taxation (credit)/charge (CCS basis) | (467) | 5,878 | 8,756 |
Upstream | CCS earnings | |||
Disclosure of operating segments [line items] | |||
CCS earnings | (10,785) | 3,855 | 6,490 |
Upstream | Operating segments | |||
Disclosure of operating segments [line items] | |||
Third-party and inter-segment purchases (CCS basis) | 4,505 | 6,982 | 5,948 |
Production and manufacturing expenses | 10,521 | 11,102 | 11,169 |
Selling, distribution and administrative expenses | (23) | 29 | 29 |
Research and development | 486 | 450 | 493 |
Exploration | 1,136 | 2,073 | 1,132 |
Depreciation, depletion and amortisation charge, of which: | 23,119 | 16,881 | 12,871 |
Impairment losses | 8,697 | 2,576 | 1,065 |
Impairment reversals | 0 | (1,265) | |
Interest expense | 374 | 526 | 586 |
Upstream | Inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue | 21,564 | 35,735 | 37,125 |
Oil Products | |||
Disclosure of operating segments [line items] | |||
Revenue | 128,717 | 280,460 | 316,409 |
Share of profit/(loss) of joint ventures and associates (CCS basis) | 988 | 1,179 | 1,101 |
Total | (93) | 273 | 393 |
Interest income | 28 | 0 | 0 |
Net gains on sale and revaluation of non-current assets and businesses | (9) | 305 | 350 |
Other | (112) | (32) | 43 |
Taxation (credit)/charge (CCS basis) | (898) | 1,319 | 1,211 |
Oil Products | CCS earnings | |||
Disclosure of operating segments [line items] | |||
CCS earnings | (494) | 6,139 | 6,025 |
Oil Products | Operating segments | |||
Disclosure of operating segments [line items] | |||
Third-party and inter-segment purchases (CCS basis) | 113,177 | 262,004 | 300,417 |
Production and manufacturing expenses | 5,942 | 7,536 | 8,226 |
Selling, distribution and administrative expenses | 7,360 | 7,976 | 9,183 |
Research and development | 209 | 219 | 205 |
Exploration | 0 | 0 | 0 |
Depreciation, depletion and amortisation charge, of which: | 10,473 | 4,461 | 3,165 |
Impairment losses | 6,531 | 622 | 346 |
Impairment reversals | (190) | 0 | |
Interest expense | 56 | 77 | 84 |
Oil Products | Inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue | 6,213 | 7,819 | 10,613 |
Chemicals | |||
Disclosure of operating segments [line items] | |||
Revenue | 11,721 | 13,568 | 18,704 |
Share of profit/(loss) of joint ventures and associates (CCS basis) | 567 | 546 | 684 |
Total | 0 | (7) | (53) |
Interest income | 0 | 0 | 0 |
Net gains on sale and revaluation of non-current assets and businesses | (2) | (8) | (53) |
Other | 2 | 1 | 0 |
Taxation (credit)/charge (CCS basis) | 7 | (2) | 339 |
Chemicals | CCS earnings | |||
Disclosure of operating segments [line items] | |||
CCS earnings | 808 | 478 | 1,884 |
Chemicals | Operating segments | |||
Disclosure of operating segments [line items] | |||
Third-party and inter-segment purchases (CCS basis) | 9,969 | 13,039 | 17,332 |
Production and manufacturing expenses | 1,787 | 1,995 | 2,362 |
Selling, distribution and administrative expenses | 1,339 | 1,323 | 1,130 |
Research and development | 109 | 112 | 102 |
Exploration | 0 | 0 | 0 |
Depreciation, depletion and amortisation charge, of which: | 1,116 | 1,074 | 1,034 |
Impairment losses | 5 | 5 | 78 |
Impairment reversals | 0 | 0 | |
Interest expense | 3 | 5 | 16 |
Chemicals | Inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,850 | 3,917 | 4,864 |
Corporate | |||
Disclosure of operating segments [line items] | |||
Revenue | 51 | 45 | 43 |
Share of profit/(loss) of joint ventures and associates (CCS basis) | (268) | (307) | (222) |
Total | 406 | 916 | 896 |
Interest income | 589 | 899 | 772 |
Net gains on sale and revaluation of non-current assets and businesses | 24 | 52 | 20 |
Other | (207) | (35) | 104 |
Taxation (credit)/charge (CCS basis) | (983) | (578) | (1,270) |
Corporate | CCS earnings | |||
Disclosure of operating segments [line items] | |||
CCS earnings | (2,952) | (3,273) | (1,479) |
Corporate | Operating segments | |||
Disclosure of operating segments [line items] | |||
Third-party and inter-segment purchases (CCS basis) | 8 | (6) | 1 |
Production and manufacturing expenses | 28 | 37 | (157) |
Selling, distribution and administrative expenses | 476 | 449 | 560 |
Research and development | 0 | 0 | 0 |
Exploration | 0 | 0 | 0 |
Depreciation, depletion and amortisation charge, of which: | 32 | 47 | 215 |
Impairment losses | 9 | 0 | 7 |
Impairment reversals | 0 | 0 | |
Interest expense | 3,580 | 3,978 | 2,847 |
Corporate | Inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Segment Information - Summary o
Segment Information - Summary of Reconciliation of CCS Earnings to Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Reconciliation Of Ccs Earnings To Income [Line Items] | |||
(Loss)/income attributable to Royal Dutch Shell plc shareholders | $ (21,680) | $ 15,842 | $ 23,352 |
Income attributable to non-controlling interest | 146 | 590 | 554 |
(Loss)/income for the period | (21,534) | 16,432 | 23,906 |
Current cost of supplies adjustment: | |||
Taxation | 4,848 | (8,859) | (11,831) |
CCS earnings | |||
Current cost of supplies adjustment: | |||
Purchases | 2,359 | (784) | 559 |
Taxation | (585) | 194 | (116) |
Share of profit of joint ventures and associates | 59 | (15) | 15 |
Current cost of supplies adjustment | 1,833 | (605) | 458 |
Of which: | |||
Attributable to Royal Dutch Shell plc shareholders | 1,759 | (572) | 481 |
Attributable to non-controlling interest | 74 | (33) | (23) |
CCS earnings | (19,701) | 15,827 | 24,364 |
Of which: | |||
CCS earnings attributable to Royal Dutch Shell plc shareholders | (19,921) | 15,270 | 23,833 |
CCS earnings attributable to non-controlling interest | $ 220 | $ 557 | $ 531 |
Segment Information - Summary_2
Segment Information - Summary of Information by Geographical Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographical areas [line items] | |||
Third-party revenue, by origin | $ 180,543 | $ 344,877 | $ 388,379 |
Intangible assets, property, plant and equipment, joint ventures and associates at December 31 | 256,120 | 284,643 | 272,090 |
Europe | |||
Disclosure of geographical areas [line items] | |||
Third-party revenue, by origin | 50,138 | 98,455 | 118,960 |
Intangible assets, property, plant and equipment, joint ventures and associates at December 31 | 38,785 | 43,262 | 38,617 |
Asia, Oceania, Africa | |||
Disclosure of geographical areas [line items] | |||
Third-party revenue, by origin | 65,139 | 139,916 | 153,716 |
Intangible assets, property, plant and equipment, joint ventures and associates at December 31 | 104,450 | 119,732 | 117,127 |
USA | |||
Disclosure of geographical areas [line items] | |||
Third-party revenue, by origin | 50,856 | 83,212 | 89,876 |
Intangible assets, property, plant and equipment, joint ventures and associates at December 31 | 62,976 | 67,105 | 59,625 |
Other Americas | |||
Disclosure of geographical areas [line items] | |||
Third-party revenue, by origin | 14,410 | 23,294 | 25,827 |
Intangible assets, property, plant and equipment, joint ventures and associates at December 31 | 49,909 | 54,544 | 56,721 |
UK | |||
Disclosure of geographical areas [line items] | |||
Third-party revenue, by origin | 12,958 | 41,094 | 54,659 |
Intangible assets, property, plant and equipment, joint ventures and associates at December 31 | $ 23,302 | $ 24,696 | $ 21,863 |
Interest and Other Income - Sum
Interest and Other Income - Summary of Interest and Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Interest income | $ 679 | $ 899 | $ 772 |
Dividend income (from investments in equity securities) | 22 | 23 | 104 |
Net gains on sale and revaluation of non-current assets and businesses | 286 | 2,519 | 3,265 |
Net foreign exchange (losses)/gains on financing activities | (391) | 5 | (174) |
Other | 273 | 179 | 104 |
Total | $ 869 | $ 3,625 | $ 4,071 |
Interest Expense - Summary of I
Interest Expense - Summary of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Interest incurred and similar charges | $ 4,359 | $ 4,592 | $ 3,550 |
Less: interest capitalised | (799) | (752) | (876) |
Other net losses on fair value and cash flow hedges of debt | 32 | 132 | 169 |
Accretion expense | 497 | 718 | 902 |
Total | 4,089 | 4,690 | $ 3,745 |
Interest expense related to leases | 2,185 | 2,186 | |
Interest expense related to leases previously classified as operating leases | $ 1,031 | $ 1,137 |
Interest Expense - Narrative (D
Interest Expense - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Percentage of interest capitalised | 4.50% | 4.50% | 4.00% |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | $ 23,486 | ||
Ending balance | 22,822 | $ 23,486 | |
Impairment losses on intangible assets | 787 | 143 | $ 181 |
Integrated Gas | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Impairment losses on intangible assets | 472 | ||
Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 32,050 | 31,095 | |
Additions | 1,828 | 1,260 | |
Sales, retirements and other movements | 959 | 322 | |
Currency translation differences | 251 | 17 | |
Ending balance | 33,170 | 32,050 | 31,095 |
Depreciation, depletion and amortisation, including impairments | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (8,564) | (7,509) | |
Charge for the year | 1,962 | 1,365 | |
Sales, retirements and other movements | (301) | (328) | |
Currency translation differences | (123) | (18) | |
Ending balance | (10,348) | (8,564) | (7,509) |
Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 14,205 | ||
Ending balance | 14,151 | 14,205 | |
Goodwill | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 14,973 | 14,338 | |
Additions | 247 | 674 | |
Sales, retirements and other movements | 64 | 46 | |
Currency translation differences | 57 | 7 | |
Ending balance | 15,213 | 14,973 | 14,338 |
Goodwill | Depreciation, depletion and amortisation, including impairments | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (768) | (622) | |
Charge for the year | 276 | 135 | |
Sales, retirements and other movements | 0 | (1) | |
Currency translation differences | (18) | (12) | |
Ending balance | (1,062) | (768) | (622) |
LNG off-take and sales contracts | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 6,197 | ||
Ending balance | 5,362 | 6,197 | |
LNG off-take and sales contracts | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 10,211 | 10,365 | |
Additions | 0 | 0 | |
Sales, retirements and other movements | 181 | 154 | |
Currency translation differences | 0 | 0 | |
Ending balance | 10,030 | 10,211 | 10,365 |
LNG off-take and sales contracts | Depreciation, depletion and amortisation, including impairments | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (4,014) | (3,293) | |
Charge for the year | 835 | 876 | |
Sales, retirements and other movements | (181) | (155) | |
Currency translation differences | 0 | 0 | |
Ending balance | (4,668) | (4,014) | (3,293) |
Software | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 434 | ||
Ending balance | 487 | 434 | |
Software | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 2,958 | 2,910 | |
Additions | 133 | 137 | |
Sales, retirements and other movements | 77 | 100 | |
Currency translation differences | 100 | 11 | |
Ending balance | 3,114 | 2,958 | 2,910 |
Software | Depreciation, depletion and amortisation, including impairments | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (2,524) | (2,425) | |
Charge for the year | 156 | 176 | |
Sales, retirements and other movements | (129) | (87) | |
Currency translation differences | (76) | (10) | |
Ending balance | (2,627) | (2,524) | (2,425) |
Other | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 2,650 | ||
Ending balance | 2,822 | 2,650 | |
Other | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 3,908 | 3,482 | |
Additions | 1,448 | 449 | |
Sales, retirements and other movements | 637 | 22 | |
Currency translation differences | 94 | (1) | |
Ending balance | 4,813 | 3,908 | 3,482 |
Other | Depreciation, depletion and amortisation, including impairments | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (1,258) | (1,169) | |
Charge for the year | 695 | 178 | |
Sales, retirements and other movements | 9 | (85) | |
Currency translation differences | (29) | 4 | |
Ending balance | (1,991) | $ (1,258) | $ (1,169) |
Total | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Ending balance | $ 1,013 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - BG Group Plc $ in Millions | Dec. 31, 2020USD ($) |
Integrated Gas | |
Disclosure of detailed information about intangible assets [line items] | |
Goodwill | $ 4,800 |
Upstream | |
Disclosure of detailed information about intangible assets [line items] | |
Goodwill | 5,946 |
Oil Products | |
Disclosure of detailed information about intangible assets [line items] | |
Goodwill | $ 1,609 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 238,349 | |
Ending balance | 210,847 | $ 238,349 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 439,160 | 430,395 |
Additions | 21,134 | 28,123 |
Sales, retirements and other movements | 11,947 | 20,834 |
Currency translation differences | 6,976 | 1,476 |
Ending balance | 455,323 | 439,160 |
Depreciation, depletion and amortisation, including impairments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (200,811) | (191,662) |
Charge for the year | 50,918 | 27,757 |
Sales, retirements and other movements | (12,443) | (19,425) |
Currency translation differences | (5,190) | (817) |
Ending balance | (244,476) | (200,811) |
Exploration and evaluation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 14,586 | |
Ending balance | 9,226 | 14,586 |
Exploration and evaluation | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 18,596 | 21,181 |
Additions | 1,728 | 2,659 |
Sales, retirements and other movements | 5,928 | 5,442 |
Currency translation differences | 92 | 198 |
Ending balance | 14,488 | 18,596 |
Exploration and evaluation | Depreciation, depletion and amortisation, including impairments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (4,010) | (3,287) |
Charge for the year | 3,336 | 1,096 |
Sales, retirements and other movements | (2,148) | (440) |
Currency translation differences | (64) | (67) |
Ending balance | (5,262) | (4,010) |
Production | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 150,366 | |
Ending balance | 132,318 | 150,366 |
Production | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 286,666 | 285,252 |
Additions | 9,659 | 11,374 |
Sales, retirements and other movements | (600) | 11,253 |
Currency translation differences | 3,632 | 1,293 |
Ending balance | 300,557 | 286,666 |
Production | Depreciation, depletion and amortisation, including impairments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (136,300) | (131,692) |
Charge for the year | 34,209 | 19,346 |
Sales, retirements and other movements | (5,075) | (15,567) |
Currency translation differences | (2,805) | (829) |
Ending balance | (168,239) | (136,300) |
Manufacturing, supply and distribution | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 55,945 | |
Ending balance | 49,634 | 55,945 |
Manufacturing, supply and distribution | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 104,817 | 97,694 |
Additions | 6,287 | 10,945 |
Sales, retirements and other movements | 5,510 | 3,683 |
Currency translation differences | 2,282 | (139) |
Ending balance | 107,876 | 104,817 |
Manufacturing, supply and distribution | Depreciation, depletion and amortisation, including impairments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (48,872) | (46,218) |
Charge for the year | 11,680 | 5,742 |
Sales, retirements and other movements | (4,129) | (2,981) |
Currency translation differences | (1,819) | 107 |
Ending balance | (58,242) | (48,872) |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 17,452 | |
Ending balance | 19,669 | 17,452 |
Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 29,081 | 26,268 |
Additions | 3,460 | 3,145 |
Sales, retirements and other movements | 1,109 | 456 |
Currency translation differences | 970 | 124 |
Ending balance | 32,402 | 29,081 |
Other | Depreciation, depletion and amortisation, including impairments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (11,629) | (10,465) |
Charge for the year | 1,693 | 1,573 |
Sales, retirements and other movements | (1,091) | (437) |
Currency translation differences | (502) | (28) |
Ending balance | $ (12,733) | $ (11,629) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / bbl$ / MMBTUproject | Dec. 31, 2019USD ($)$ / MMBTU$ / bbl | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Carrying amount of assets under construction | $ 31,611 | $ 27,779 | |
Carrying amount of assets classified as held for sale | 1,159 | 1,401 | |
Carrying amount of rights and concessions in respect of proved and unproved properties | 11,485 | 14,355 | |
Pre-tax depreciation charge increment if no alternative reserve base was applied | 1,012 | 77 | $ 1,003 |
Contractual commitments for purchase and lease of property, plant and equipment | 5,699 | 4,599 | |
Impairment losses on property, plant and equipment | $ 26,676 | $ 3,639 | $ 1,515 |
Nominal pre-tax discount rate | 6.00% | 6.00% | 6.00% |
Downward revision of average long-term refining margins | 30.00% | ||
Percentage of assets tested for impairment | 53.00% | ||
Percentage of assets with partial of full impairments | 56.00% | ||
Exploration drilling costs capitalised | $ 82 | ||
Number of projects where drilling activities were underway | project | 2 | ||
Projects awaiting development concepts | $ 2,772 | ||
Number of projects awaiting further development concepts | project | 50 | ||
Integrated Gas | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Recoverable amount of assets | $ 17,200 | ||
Upstream | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Recoverable amount of assets | $ 39,100 | ||
Integrated Gas and Upstream | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Percentage decrease in commodity price assumptions | 10.00% | ||
Percentage increase in commodity price assumptions | 10.00% | ||
Integrated Gas and Upstream | Bottom of range | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment loss due to decrease in commodity price assumptions | $ 6,000 | ||
Impairment reversal due to increase in commodity price assumptions | 6,000 | ||
Integrated Gas and Upstream | Top of range | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment loss due to decrease in commodity price assumptions | 8,000 | ||
Impairment reversal due to increase in commodity price assumptions | 9,000 | ||
Oil Products | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Recoverable amount of assets | $ 1,800 | ||
Percentage decrease in long-term refining margin assumptions | (10.00%) | ||
Percentage increase in long-term refining margin assumptions | 10.00% | ||
Oil Products | Bottom of range | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment loss due to decrease in long-term refining margin assumptions | $ 1,500 | ||
Impairment loss due to increase in long-term refining margin assumptions | 1,700 | ||
Oil Products | Top of range | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment loss due to decrease in long-term refining margin assumptions | 2,500 | ||
Impairment loss due to increase in long-term refining margin assumptions | $ 2,700 | ||
Brent $ per barrel | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Commodity price after year 4 | $ / bbl | 60 | 60 | |
Henry Hub $/MMBtu | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Commodity price after year 4 | $ / MMBTU | 3 | 3 | |
Exploration and production | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Carrying amount of asset for which an alternative reserves base was applied in the calculation of depreciation charge | $ 1,707 | $ 173 | |
Impairment losses on property, plant and equipment | 20,155 | 2,983 | $ 1,066 |
Exploration and production | Integrated Gas | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment losses on property, plant and equipment | 11,539 | ||
Exploration and production | Upstream | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment losses on property, plant and equipment | 8,629 | ||
Manufacturing, supply and distribution | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment losses on property, plant and equipment | 6,490 | $ 654 | $ 441 |
Manufacturing, supply and distribution | Oil Products | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment losses on property, plant and equipment | $ 6,493 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Right-of-use Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | $ 24,690 | |
Ending balance | 22,552 | $ 24,690 |
Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 34,551 | 32,114 |
Additions | 3,652 | 4,710 |
Sales, retirements and other movements | 2,120 | 2,292 |
Currency translation differences | 272 | 19 |
Ending balance | 36,355 | 34,551 |
Depreciation, depletion and amortisation, including impairments | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | (9,861) | (6,908) |
Charge for the year | 5,333 | 4,190 |
Sales, retirements and other movements | (1,497) | (1,249) |
Currency translation differences | (106) | (12) |
Ending balance | (13,803) | (9,861) |
Exploration and evaluation | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 5 | |
Ending balance | 5 | 5 |
Exploration and evaluation | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 5 | 0 |
Additions | 0 | 5 |
Sales, retirements and other movements | 0 | 0 |
Currency translation differences | 0 | 0 |
Ending balance | 5 | 5 |
Exploration and evaluation | Depreciation, depletion and amortisation, including impairments | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 0 | 0 |
Charge for the year | 0 | 0 |
Sales, retirements and other movements | 0 | 0 |
Currency translation differences | 0 | 0 |
Ending balance | 0 | 0 |
Production | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 9,452 | |
Ending balance | 7,443 | 9,452 |
Production | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 15,213 | 16,379 |
Additions | 502 | 664 |
Sales, retirements and other movements | 1,370 | 1,867 |
Currency translation differences | 95 | 37 |
Ending balance | 14,440 | 15,213 |
Production | Depreciation, depletion and amortisation, including impairments | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | (5,761) | (5,209) |
Charge for the year | 1,898 | 1,632 |
Sales, retirements and other movements | (712) | (1,091) |
Currency translation differences | (50) | (11) |
Ending balance | (6,997) | (5,761) |
Manufacturing, supply and distribution | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 10,638 | |
Ending balance | 9,513 | 10,638 |
Manufacturing, supply and distribution | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 13,574 | 10,718 |
Additions | 1,570 | 3,124 |
Sales, retirements and other movements | 675 | 268 |
Currency translation differences | 57 | 0 |
Ending balance | 14,526 | 13,574 |
Manufacturing, supply and distribution | Depreciation, depletion and amortisation, including impairments | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | (2,936) | (1,110) |
Charge for the year | 2,675 | 1,855 |
Sales, retirements and other movements | (627) | (30) |
Currency translation differences | (29) | (1) |
Ending balance | (5,013) | (2,936) |
Other | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 4,595 | |
Ending balance | 5,591 | 4,595 |
Other | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 5,759 | 5,017 |
Additions | 1,580 | 917 |
Sales, retirements and other movements | 75 | 157 |
Currency translation differences | 120 | (18) |
Ending balance | 7,384 | 5,759 |
Other | Depreciation, depletion and amortisation, including impairments | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | (1,164) | (589) |
Charge for the year | 760 | 703 |
Sales, retirements and other movements | (158) | (128) |
Currency translation differences | (27) | 0 |
Ending balance | $ (1,793) | $ (1,164) |
Property, Plant and Equipment_4
Property, Plant and Equipment - Summary of Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment losses | |||
Impairments losses | $ 26,676 | $ 3,639 | $ 1,515 |
Impairment reversals | |||
Impairment reversals | 0 | 190 | 1,265 |
Exploration and production | |||
Impairment losses | |||
Impairments losses | 20,155 | 2,983 | 1,066 |
Impairment reversals | |||
Impairment reversals | 0 | 0 | 1,265 |
Manufacturing, supply and distribution | |||
Impairment losses | |||
Impairments losses | 6,490 | 654 | 441 |
Impairment reversals | |||
Impairment reversals | 0 | 190 | 0 |
Other | |||
Impairment losses | |||
Impairments losses | $ 31 | $ 2 | $ 8 |
Property, Plant and Equipment_5
Property, Plant and Equipment - Commodity Price Assumptions Applied in Impairment Testing (Details) | 12 Months Ended |
Dec. 31, 2020$ / MMBTU$ / bbl | |
Brent $ per barrel | |
Explanation Of Inputs Assumptions And Estimation Techniques Used To Apply Impairment Requirements Explanatory [Line Items] | |
2021 | $ / bbl | 40 |
2022 | $ / bbl | 50 |
2023 | $ / bbl | 60 |
2024 | $ / bbl | 63 |
Henry Hub $/MMBtu | |
Explanation Of Inputs Assumptions And Estimation Techniques Used To Apply Impairment Requirements Explanatory [Line Items] | |
2021 | $ / MMBTU | 2.50 |
2022 | $ / MMBTU | 2.50 |
2023 | $ / MMBTU | 2.75 |
2024 | $ / MMBTU | 3.03 |
Property, Plant and Equipment_6
Property, Plant and Equipment - Summary of Capitalised Exploration Drilling Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |||
Beginning balance | $ 5,668 | $ 6,629 | $ 6,981 |
Additions pending determination of proved reserves | 1,016 | 2,036 | 2,588 |
Amounts charged to expense | (815) | (1,218) | (449) |
Reclassifications to productive wells on determination of proved reserves | (1,385) | (1,655) | (2,461) |
Other movements | (830) | (124) | (30) |
Ending balance | 3,654 | 5,668 | 6,629 |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment losses on property, plant and equipment | 26,676 | $ 3,639 | $ 1,515 |
Capitalised exploration drilling costs | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment losses on property, plant and equipment | $ 750 |
Property, Plant and Equipment_7
Property, Plant and Equipment - Summary of Exploration Drilling Costs Capitalised for Periods Greater Than One Year (Details) $ in Millions | Dec. 31, 2020USD ($)projectwell |
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items] | |
Projects, Number | project | 52 |
Projects, Value | $ 2,854 |
Wells, Number | well | 151 |
Wells, Value | $ 2,854 |
Between 1 and 5 years | |
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items] | |
Projects, Number | project | 33 |
Projects, Value | $ 1,666 |
Wells, Number | well | 80 |
Wells, Value | $ 1,275 |
Between 6 and 10 years | |
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items] | |
Projects, Number | project | 12 |
Projects, Value | $ 975 |
Wells, Number | well | 47 |
Wells, Value | $ 1,309 |
Between 11 and 15 years | |
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items] | |
Projects, Number | project | 7 |
Projects, Value | $ 213 |
Wells, Number | well | 21 |
Wells, Value | $ 217 |
Between 16 and 20 years | |
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items] | |
Projects, Number | project | 0 |
Projects, Value | $ 0 |
Wells, Number | well | 3 |
Wells, Value | $ 53 |
Joint Ventures and Associates -
Joint Ventures and Associates - Summary of Shell Share of Comprehensive Income of Joint Ventures and Associates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Income for the period | $ 1,783 | $ 3,604 | $ 4,106 |
Other comprehensive income/(loss) for the period | 77 | (74) | 183 |
Comprehensive income for the period | 1,860 | 3,530 | 4,289 |
Associates | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Income for the period | 1,154 | 2,483 | 2,799 |
Other comprehensive income/(loss) for the period | 1 | 8 | 11 |
Comprehensive income for the period | 1,155 | 2,491 | 2,810 |
Joint ventures | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Income for the period | 629 | 1,121 | 1,307 |
Other comprehensive income/(loss) for the period | 76 | (82) | 172 |
Comprehensive income for the period | 705 | $ 1,039 | $ 1,479 |
Impairment losses | $ 599 |
Joint Ventures and Associates_2
Joint Ventures and Associates - Summary of Carrying Amount of Interests in Joint Ventures and Associates (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Interests In Other Entities [Abstract] | ||
Investments in joint ventures | $ 14,406 | $ 13,426 |
Investments in associates | 8,045 | 9,382 |
Investments in joint ventures and associates | $ 22,451 | $ 22,808 |
Joint Ventures and Associates_3
Joint Ventures and Associates - Summary of Transactions With Joint Ventures and Associates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Sales and charges to joint ventures and associates | $ 5,426 | $ 7,748 | $ 8,270 |
Purchases and charges from joint ventures and associates | $ 8,262 | 11,581 | 13,758 |
Revision of Prior Period, Reclassification, Adjustment | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Purchases and charges from joint ventures and associates | $ 2,008 | $ 2,546 |
Joint Ventures and Associates_4
Joint Ventures and Associates - Summary of Other Arrangements in Respect of Joint Ventures and Associates (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Interests In Other Entities [Abstract] | ||
Commitments to make purchases from joint ventures and associates | $ 1,674 | $ 2,177 |
Commitments to provide debt or equity funding to joint ventures and associates | $ 900 | $ 897 |
Investments in Securities - Sum
Investments in Securities - Summary of Investments in Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | $ 3,222 | $ 2,989 |
At fair value | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | 3,210 | 2,978 |
At fair value | Measured by reference to prices in active markets for identical assets | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | 1,637 | 1,669 |
At fair value | Measured by reference to other observable inputs | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | 68 | 56 |
At fair value | Measured using predominantly unobservable inputs | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | 1,505 | 1,253 |
At cost | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | 12 | 11 |
Equity securities | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | 1,396 | 1,437 |
Securities at fair value through other comprehensive income | $ 1,396 | 1,437 |
Percentage of interest in investments | 5.00% | |
Debt securities | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities | $ 1,826 | 1,552 |
Securities at fair value through other comprehensive income | 1,165 | 1,086 |
Debt securities at amortised cost | 12 | 11 |
Debt securities at fair value through profit or loss | $ 649 | $ 455 |
Investments in Securities - Sch
Investments in Securities - Schedule of Investments in Securities Using Predominantly Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities, at beginning of period | $ 404,336 | |
Investments in securities, at end of period | 379,268 | $ 404,336 |
Measured using predominantly unobservable inputs | Debt And Equity Securities | ||
Disclosure Of Investments In Securities [Line Items] | ||
Investments in securities, at beginning of period | 1,253 | 1,193 |
Gains/(losses) recognised in other comprehensive income | 45 | (42) |
Purchases | 329 | 340 |
Sales | (60) | (237) |
Other movements | (62) | (1) |
Investments in securities, at end of period | $ 1,505 | $ 1,253 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade receivables | $ 21,781 | $ 30,216 |
Lease receivables, current | 186 | 213 |
Other receivables, current | 7,251 | 7,791 |
Amounts due from joint ventures and associates, current | 726 | 912 |
Prepayments and deferred charges, current | 3,681 | 4,282 |
Total, current | 33,625 | 43,414 |
Lease receivables, non-current | 1,380 | 1,528 |
Other receivables, non-current | 4,109 | 4,039 |
Amounts due from joint ventures and associates, non-current | 829 | 1,078 |
Prepayments and deferred charges, non-current | 1,323 | 1,440 |
Total, non-current | $ 7,641 | $ 8,085 |
Trade and Other Receivables - N
Trade and Other Receivables - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of provision matrix [line items] | ||
Provisions for impairments deducted from trade and other receivables | $ 968 | $ 649 |
Loss allowance provisions, trade receivables | 349 | 193 |
Contractual payments under operating leases | $ 248 | $ 344 |
Bottom of range | ||
Disclosure of provision matrix [line items] | ||
Expected credit loss rate | 0.27% | 0.08% |
Top of range | ||
Disclosure of provision matrix [line items] | ||
Expected credit loss rate | 0.51% | 0.27% |
Loans to government | ||
Disclosure of provision matrix [line items] | ||
Other receivables | $ 1,357 | $ 1,209 |
Trade receivables | ||
Disclosure of provision matrix [line items] | ||
Allowance account for credit losses of financial assets | $ 112 | $ 83 |
Trade and Other Receivables - M
Trade and Other Receivables - Maturity Analysis of Finance Lease Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease payments receivable | $ 1,973 | $ 2,277 |
Unearned finance income | 407 | 536 |
Net investment in leases | 1,566 | 1,741 |
Less than one year | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease payments receivable | 262 | 305 |
Between 1 and 5 years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease payments receivable | 859 | 953 |
5 years and later | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total undiscounted lease payments receivable | $ 852 | $ 1,019 |
Inventories - Summary of Detail
Inventories - Summary of Detailed Information of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of reclassifications or changes in presentation [line items] | ||
Oil, gas and chemicals | $ 16,949 | $ 21,653 |
Other including materials | 2,508 | 2,418 |
Total | $ 19,457 | 24,071 |
Revision of Prior Period, Reclassification, Adjustment | ||
Disclosure of reclassifications or changes in presentation [line items] | ||
Oil, gas and chemicals | (1,001) | |
Other including materials | $ 1,001 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Inventory write-downs | $ 239 | $ 546 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Cash | $ 4,831 | $ 4,168 | ||
Short-term bank deposits | 2,220 | 2,665 | ||
Money market funds, reverse repos and other cash equivalents | 24,779 | 11,222 | ||
Total | $ 31,830 | $ 18,055 | $ 26,741 | $ 20,312 |
Cash and Cash Equivalents - Nar
Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Restricted cash and cash equivalents | $ 65 | $ 431 |
Debt and Lease Arrangements - S
Debt and Lease Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Debt [Line Items] | ||
Short-term debt | $ 7,535 | $ 3,962 |
Long-term debt due within 1 year | 9,364 | 11,102 |
Current debt | 16,899 | 15,064 |
Non-current debt | 91,115 | 81,360 |
Total | 108,014 | 96,424 |
Debt (excluding lease liabilities) | ||
Disclosure Of Debt [Line Items] | ||
Short-term debt | 7,535 | 3,962 |
Long-term debt due within 1 year | 5,221 | 6,146 |
Current debt | 12,756 | 10,108 |
Non-current debt | 66,838 | 55,779 |
Total | 79,594 | 65,887 |
Lease liabilities | ||
Disclosure Of Debt [Line Items] | ||
Short-term debt | 0 | 0 |
Long-term debt due within 1 year | 4,143 | 4,956 |
Current debt | 4,143 | 4,956 |
Non-current debt | 24,277 | 25,581 |
Total | $ 28,420 | $ 30,537 |
Debt and Lease Arrangements -_2
Debt and Lease Arrangements - Schedule of Net Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Net Debt [Line Items] | ||
Beginning balance | $ (79,093) | $ (67,465) |
Cash flow | 6,861 | (5,395) |
Lease additions | (3,138) | (4,518) |
Other movements | 498 | (1,821) |
Currency translation differences and foreign exchange gains/(losses) | (514) | 106 |
Beginning balance | (75,386) | (79,093) |
Current debt | ||
Disclosure Of Net Debt [Line Items] | ||
Beginning balance | (15,064) | (13,046) |
Cash flow | 7,536 | 10,333 |
Lease additions | (870) | (971) |
Other movements | (8,380) | (11,453) |
Currency translation differences and foreign exchange gains/(losses) | (121) | 73 |
Beginning balance | (16,899) | (15,064) |
Non-current debt | ||
Disclosure Of Net Debt [Line Items] | ||
Beginning balance | (81,360) | (79,815) |
Cash flow | (13,121) | (7,269) |
Lease additions | (2,268) | (3,547) |
Other movements | 8,354 | 9,179 |
Currency translation differences and foreign exchange gains/(losses) | (2,720) | 92 |
Beginning balance | (91,115) | (81,360) |
Derivative financial instruments | ||
Disclosure Of Net Debt [Line Items] | ||
Beginning balance | (724) | (1,345) |
Cash flow | (1,157) | 351 |
Other movements | 524 | 453 |
Currency translation differences and foreign exchange gains/(losses) | 2,155 | (183) |
Beginning balance | 798 | (724) |
Cash and cash equivalents (see Note 13) | ||
Disclosure Of Net Debt [Line Items] | ||
Beginning balance | 18,055 | 26,741 |
Cash flow | 13,603 | (8,810) |
Other movements | 0 | 0 |
Currency translation differences and foreign exchange gains/(losses) | 172 | 124 |
Beginning balance | $ 31,830 | $ 18,055 |
Debt and Lease Arrangements - N
Debt and Lease Arrangements - Narrative (Details) | Dec. 13, 2019USD ($) | Apr. 30, 2020USD ($)extension_option | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 30, 2020EUR (€) |
Disclosure of detailed information about borrowings [line items] | |||||
Management milestone one, net debt | $ 65,000,000,000 | ||||
Debt issued | 108,014,000,000 | $ 96,424,000,000 | |||
Fair value of debt excluding finance lease liabilities | 88,294,000,000 | 71,163,000,000 | |||
Cash outflow for leases | 6,891,000,000 | 7,866,000,000 | |||
Subsidiaries | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Amount undrawn | 3,115,000,000 | 2,784,000,000 | |||
CP programmes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum issuance of debt, short-term | $ 10,000,000,000 | ||||
Debt maturity period, short term debt | 270 days | ||||
Maximum issuance of debt, long-term | $ 10,000,000,000 | ||||
Debt maturity period, long-term debt | 397 days | ||||
Amount undrawn | $ 13,254,000,000 | 16,610,000,000 | |||
EMTN programme | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt issued | 6,734,000,000 | 3,322,000,000 | |||
US shelf registration | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt issued | $ 6,250,000,000 | $ 4,000,000,000 | |||
Committed credit facilities, due in 2021 and 2025 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum borrowing capacity | $ 10,000,000,000 | ||||
Committed credit facility, due in 2021 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum borrowing capacity | $ 2,000,000,000 | ||||
Extension period | 1 year | ||||
Committed credit facility, due in 2025 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum borrowing capacity | $ 8,000,000,000 | ||||
Extension period | 1 year | ||||
Dual currency revolving credit facility, due in April 2021 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum borrowing capacity | $ 7,200,000,000 | € 4,432,000,000 | |||
Extension period | 6 months | ||||
Number of extension options | extension_option | 2 | ||||
Bottom of range | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Management milestone two, percentage distribution of cash flow from operations to shareholders | 20.00% | ||||
Top of range | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Management milestone two, percentage distribution of cash flow from operations to shareholders | 30.00% |
Debt and Lease Arrangements -_3
Debt and Lease Arrangements - Schedule of Gearing (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments [Abstract] | ||||
Net debt | $ 75,386 | $ 79,093 | $ 67,465 | |
Total equity | 158,537 | 190,463 | $ 202,534 | $ 197,762 |
Total capital | $ 233,923 | $ 269,556 | ||
Gearing | 32.20% | 29.30% |
Debt and Lease Arrangements -_4
Debt and Lease Arrangements - Schedule of Borrowing Facilities and Amounts Undrawn (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
CP programmes | ||
Borrowing Facilities [Line Items] | ||
Facility | $ 20,000 | $ 20,000 |
Amount undrawn | 13,254 | 16,610 |
US shelf registration | ||
Borrowing Facilities [Line Items] | ||
Facility | 0 | |
Committed credit facilities | ||
Borrowing Facilities [Line Items] | ||
Facility | 22,651 | 10,000 |
Amount undrawn | $ 22,651 | $ 10,000 |
Debt and Lease Arrangements -_5
Debt and Lease Arrangements - Schedule of Difference in Contractual Cash Flows for Debt Excluding Finance Lease Liabilities with the Carrying Amount (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | $ 6,746 | $ 3,390 |
Bonds | 69,737 | 60,003 |
Bank and other borrowings | 1,818 | 1,838 |
Total (excluding interest) | 78,301 | 65,231 |
Interest | 24,095 | 21,892 |
Carrying amount | 108,014 | 96,424 |
Commercial paper | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Difference from carrying amount | (15) | (38) |
Carrying amount | 6,731 | 3,352 |
Bonds | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Difference from carrying amount | 1,308 | 694 |
Carrying amount | 71,045 | 60,697 |
Bank and other borrowings | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Difference from carrying amount | 0 | 0 |
Carrying amount | 1,818 | 1,838 |
Total (excluding interest) | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Difference from carrying amount | 1,293 | 656 |
Carrying amount | 79,594 | 65,887 |
Less than one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | 6,746 | 3,390 |
Bonds | 5,080 | 5,900 |
Bank and other borrowings | 944 | 859 |
Total (excluding interest) | 12,770 | 10,149 |
Interest | 1,834 | 1,665 |
Between 1 and 2 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | 0 | 0 |
Bonds | 4,720 | 4,971 |
Bank and other borrowings | 162 | 425 |
Total (excluding interest) | 4,882 | 5,396 |
Interest | 1,707 | 1,559 |
Between 2 and 3 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | 0 | 0 |
Bonds | 5,408 | 4,392 |
Bank and other borrowings | 33 | 56 |
Total (excluding interest) | 5,441 | 4,448 |
Interest | 1,630 | 1,430 |
Between 3 and 4 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | 0 | 0 |
Bonds | 4,633 | 4,326 |
Bank and other borrowings | 215 | 71 |
Total (excluding interest) | 4,848 | 4,397 |
Interest | 1,527 | 1,357 |
Between 4 and 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | 0 | 0 |
Bonds | 8,043 | 2,091 |
Bank and other borrowings | 47 | 15 |
Total (excluding interest) | 8,090 | 2,106 |
Interest | 1,412 | 1,263 |
5 years and later | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Commercial paper | 0 | 0 |
Bonds | 41,853 | 38,323 |
Bank and other borrowings | 417 | 412 |
Total (excluding interest) | 42,270 | 38,735 |
Interest | $ 15,985 | $ 14,618 |
Debt and Lease Arrangements - L
Debt and Lease Arrangements - Lease Expenses not Included in the Measurement of Lease Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments [Abstract] | ||
Expense relating to short-term leases | $ 1,156 | $ 834 |
Expense relating to variable lease payments not included in the lease liabilities | $ 1,209 | $ 1,091 |
Debt and Lease Arrangements -_6
Debt and Lease Arrangements - Schedule of Future Lease Payments Under Lease Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Contractual lease payments | $ 42,739 | $ 46,112 |
Interest | 14,319 | 15,575 |
Lease liabilities | 28,420 | 30,537 |
Less than one year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Contractual lease payments | 6,059 | 7,337 |
Interest | 1,916 | 2,381 |
Lease liabilities | 4,143 | 4,956 |
Between 1 and 5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Contractual lease payments | 16,681 | 17,435 |
Interest | 5,617 | 6,141 |
Lease liabilities | 11,064 | 11,294 |
5 years and later | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Contractual lease payments | 19,999 | 21,340 |
Interest | 6,786 | 7,053 |
Lease liabilities | $ 13,213 | $ 14,287 |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Detailed Information About Trade and Other Payables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables, current | $ 22,664 | $ 29,497 |
Other payables, current | 6,941 | 6,356 |
Amounts due to joint ventures and associates, current | 3,281 | 3,312 |
Accruals and deferred income, current | 8,791 | 10,043 |
Total, current | 41,677 | 49,208 |
Trade payables, non-current | 0 | 0 |
Other payables, non-current | 1,843 | 2,060 |
Amounts due to joint ventures and associates, non-current | 39 | 40 |
Accruals and deferred income, non-current | 422 | 242 |
Total, non-current | 2,304 | $ 2,342 |
Total | ||
Subclassifications of assets, liabilities and equities [abstract] | ||
Other payables, current | 1,993 | |
Other payables, non-current | 60 | |
Disclosure Of Emissions And Related Environmental Schemes [Line Items] | ||
Obligation under both environmental schemes | $ 2,053 |
Taxation - Summary of Taxation
Taxation - Summary of Taxation Charge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax: | |||
Charge in respect of current period | $ 3,272 | $ 7,597 | $ 10,415 |
Adjustments in respect of prior periods | (56) | (1) | 60 |
Total | 3,216 | 7,596 | 10,475 |
Deferred tax: | |||
Relating to the origination and reversal of temporary differences, tax losses and credits | (9,063) | 1,377 | 1,438 |
Relating to changes in tax rates and legislation | (16) | (67) | (157) |
Adjustments in respect of prior periods | 430 | 147 | (41) |
Total | (8,649) | 1,457 | 1,240 |
Total taxation (credit)/charge | $ (5,433) | $ 9,053 | $ 11,715 |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation of Applicable Tax Charge Credit at Statutory Tax Rates to Taxation Charge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
(Loss)/income before taxation | $ (26,967) | $ 25,485 | $ 35,621 |
Less: share of profit of joint ventures and associates | (1,783) | (3,604) | (4,106) |
(Loss)/income before taxation and share of profit of joint ventures and associates | (28,750) | 21,881 | 31,515 |
Applicable tax (credit)/charge at standard statutory tax rates | (8,330) | 7,214 | 11,641 |
Adjustments in respect of prior periods | 374 | 146 | 19 |
Tax effects of: | |||
Derecognition/(recognition) of deferred tax assets | 1,458 | 846 | (381) |
Expenses not deductible for tax purposes | 1,239 | 1,493 | 1,176 |
Incentives for investment and development | (557) | (757) | (557) |
Exchange rate differences | 339 | (34) | 623 |
Disposals | (34) | (235) | (524) |
Changes in tax rates and legislation | (16) | (67) | (157) |
Income/(loss) not subject to tax at standard statutory rates | 6 | 159 | (286) |
Other reconciling items | 88 | 288 | 161 |
Total taxation (credit)/charge | $ (5,433) | $ 9,053 | $ 11,715 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Of Income Taxes [Line Items] | |||||
Weighted average of statutory tax rates | 29.00% | 33.00% | 37.00% | ||
Income tax recoverable | $ 1,293 | $ 1,328 | |||
Deferred tax asset | $ 16,311 | 10,524 | |||
Planning horizon | 10 years | ||||
Deferred tax assets dependent on future taxable profits | $ 12,759 | 8,773 | |||
Unrecognised taxable temporary differences associated with undistributed retained earnings of investments in subsidiaries, joint ventures and associates | 6,705 | 6,356 | |||
Unrecognised deductible temporary differences, unused tax losses and credits carried forward | 42,836 | 33,068 | |||
Unrecognised deductible temporary differences, unused tax losses and credits carried forward that are subject to time limits for utilisation of five years or later or are not time limited | 31,873 | 24,295 | |||
Oil Products | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Deferred tax asset | $ 778 | $ 1,194 | |||
Planning Horizon, additional period | 10 years | ||||
Australia | |||||
Disclosure Of Income Taxes [Line Items] | |||||
Unused tax losses for which no deferred tax asset recognised | $ 39,402 | $ 36,905 |
Taxation - Summary of Taxes Pay
Taxation - Summary of Taxes Payable (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Income taxes | $ 3,111 | $ 3,478 |
Sales taxes, excise duties and similar levies | 2,895 | 3,215 |
Total | $ 6,006 | $ 6,693 |
Taxation - Summary of Deferred
Taxation - Summary of Deferred Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, Beginning balance | $ 28,044 | $ 29,330 |
Credit/(charge) to income | 4,072 | (1,219) |
Currency translation differences | 769 | 109 |
Other | 268 | (176) |
Deferred tax asset, Ending balance | 33,153 | 28,044 |
Deferred tax liability, Beginning Balance | (32,042) | (32,070) |
Credit to income | 4,577 | (238) |
Currency translation differences | (184) | (140) |
Other | 344 | 406 |
Deferred tax liability, Ending Balance | (27,305) | (32,042) |
Net deferred tax asset | 5,848 | |
Net deferred tax liability | (3,998) | |
Deferred tax asset | 16,311 | 10,524 |
Deferred tax liability | (10,463) | (14,522) |
Decommissioning and other provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, Beginning balance | 5,380 | 5,859 |
Credit/(charge) to income | 1,057 | 15 |
Currency translation differences | 140 | 56 |
Other | (10) | (550) |
Deferred tax asset, Ending balance | 6,567 | 5,380 |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, Beginning balance | 3,014 | 3,718 |
Credit/(charge) to income | 1,975 | (521) |
Currency translation differences | 163 | 6 |
Other | 80 | (189) |
Deferred tax asset, Ending balance | 5,232 | 3,014 |
Deferred tax liability, Beginning Balance | (28,040) | (27,627) |
Credit to income | 4,355 | (227) |
Currency translation differences | (143) | (129) |
Other | 27 | (57) |
Deferred tax liability, Ending Balance | (23,801) | (28,040) |
Tax losses and credits carried forward | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, Beginning balance | 11,629 | 12,167 |
Credit/(charge) to income | 685 | (647) |
Currency translation differences | 286 | 57 |
Other | (104) | 52 |
Deferred tax asset, Ending balance | 12,496 | 11,629 |
Retirement benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, Beginning balance | 3,660 | 3,310 |
Credit/(charge) to income | (250) | (76) |
Currency translation differences | 122 | (8) |
Other | 242 | 434 |
Deferred tax asset, Ending balance | 3,774 | 3,660 |
Deferred tax liability, Beginning Balance | (1,093) | (1,674) |
Credit to income | 4 | 46 |
Currency translation differences | (2) | (6) |
Other | 418 | 541 |
Deferred tax liability, Ending Balance | (673) | (1,093) |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, Beginning balance | 4,361 | 4,276 |
Credit/(charge) to income | 605 | 10 |
Currency translation differences | 58 | (2) |
Other | 60 | 77 |
Deferred tax asset, Ending balance | 5,084 | 4,361 |
Deferred tax liability, Beginning Balance | (2,909) | (2,769) |
Credit to income | 218 | (57) |
Currency translation differences | (39) | (5) |
Other | (101) | (78) |
Deferred tax liability, Ending Balance | $ (2,831) | $ (2,909) |
Retirement Benefits - Summary o
Retirement Benefits - Summary of Retirement Benefits by Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of net defined benefit liability (asset) [line items] | |||
(Deficit) surplus | $ (13,131) | $ (8,719) | |
Non-current assets | 2,474 | 4,717 | |
Non-current liabilities | (15,168) | (13,017) | |
Current net defined benefit liability | (437) | (419) | |
Net defined benefit liability | (13,131) | (8,719) | |
Obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
(Deficit) surplus | (115,792) | (103,545) | $ (91,856) |
Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
(Deficit) surplus | 102,678 | $ 94,826 | $ 85,803 |
Asset ceilings | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
(Deficit) surplus | $ (17) |
Retirement Benefits - Summary_2
Retirement Benefits - Summary of Retirement Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined benefit plans: | |||
Interest expense on obligations | $ 1,828 | $ 2,364 | $ 2,282 |
Interest income on plan assets | (1,657) | (2,253) | (2,087) |
Current service cost, net of plan participants’ contributions | 1,431 | 1,188 | 1,494 |
Other | (174) | 26 | (221) |
Total | 1,428 | 1,325 | 1,468 |
Defined contribution plans | 423 | 428 | 410 |
Total retirement benefit expense | $ 1,851 | $ 1,753 | $ 1,878 |
Retirement Benefits - Summary_3
Retirement Benefits - Summary of Remeasurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Actuarial (losses)/gains on obligations: | |||
Due to changes in financial assumptions | $ (10,150) | $ (11,711) | $ 8,186 |
Due to experience adjustments | 804 | 232 | (268) |
Due to changes in demographic assumptions | 1,375 | (75) | (459) |
Total | (7,971) | (11,554) | 7,459 |
Return on plan assets in excess/(shortage) of interest income | 4,509 | 8,460 | (2,312) |
Other movements | 7 | (12) | 66 |
Total remeasurements | $ (3,455) | $ (3,106) | $ 5,213 |
Retirement Benefits - Summary_4
Retirement Benefits - Summary of Defined Benefit Plan Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | $ 8,719 | ||
Current service cost | 1,431 | $ 1,188 | $ 1,494 |
Actuarial losses | 7,971 | 11,554 | (7,459) |
Other movements | (7) | 12 | (66) |
Ending balance | 13,131 | 8,719 | |
Defined benefit plan obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 103,545 | 91,856 | |
Current service cost | 1,435 | 1,186 | |
Interest expense (income) | 1,828 | 2,364 | |
Actuarial losses | 7,971 | 11,554 | |
Benefit payments | (4,059) | (3,961) | |
Other movements | (444) | 194 | |
Currency translation differences | 5,516 | 352 | |
Ending balance | 115,792 | 103,545 | $ 91,856 |
Defined benefit plan obligation | Pension defined benefit plans | Funded pension plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 93,727 | ||
Ending balance | $ 105,338 | $ 93,727 | |
Duration of defined benefit obligation | 18 years | 17 years | |
Defined benefit plan obligation | Pension defined benefit plans | Unfunded pension plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | $ 4,793 | ||
Ending balance | $ 5,086 | $ 4,793 | |
Duration of defined benefit obligation | 13 years | 13 years | |
Defined benefit plan obligation | Other defined benefit plans | Unfunded pension plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | $ 5,025 | ||
Ending balance | $ 5,368 | $ 5,025 | |
Duration of defined benefit obligation | 15 years | 14 years |
Retirement Benefits - Summary_5
Retirement Benefits - Summary of Defined Benefit Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | $ (8,719) | ||
Return on plan assets in excess of interest income | 4,509 | $ 8,460 | $ (2,312) |
Other movements | 7 | (12) | 66 |
Ending balance | (13,131) | (8,719) | |
Defined benefit plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 94,826 | 85,803 | |
Return on plan assets in excess of interest income | 4,509 | 8,460 | |
Interest income | 1,657 | 2,253 | |
Employer contributions | 614 | 1,462 | |
Plan participants’ contributions | 42 | 42 | |
Benefit payments | (3,843) | (3,741) | |
Other movements | (281) | 160 | |
Currency translation differences | 5,154 | 387 | |
Ending balance | $ 102,678 | $ 94,826 | $ 85,803 |
Level 1 | Equities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 25.00% | 26.00% | |
Level 1 | Debt securities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 52.00% | 51.00% | |
Level 1 | Real estate | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 0.00% | 1.00% | |
Level 2 and 3 | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Percentage of cash in defined benefit plan assets | 1.00% | 1.00% | |
Level 2 and 3 | Equities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 8.00% | 8.00% | |
Level 2 and 3 | Debt securities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 5.00% | 4.00% | |
Level 2 and 3 | Real estate | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 6.00% | 6.00% | |
Level 2 and 3 | Investment funds | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Defined benefit plan asset allocation percentage | 3.00% | 3.00% |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Netherlands | |||
Disclosure of defined benefit plans [line items] | |||
Duration of defined benefit obligation | 19 years | 19 years | |
Percentage of defined benefit liability related to active members | 31.00% | 34.00% | |
UK | |||
Disclosure of defined benefit plans [line items] | |||
Duration of defined benefit obligation | 19 years | 18 years | |
Percentage of defined benefit liability related to active members | 21.00% | 21.00% | |
Actuarial funding valuation, frequency | 3 years | ||
Actuarial funding valuation, funding ratio | 108.00% | ||
USA | |||
Disclosure of defined benefit plans [line items] | |||
Duration of defined benefit obligation | 13 years | 13 years | |
USA | Funded pension plans | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liability related to active members | 25.00% | 31.00% | |
Pension defined benefit plans | |||
Disclosure of defined benefit plans [line items] | |||
Employer contributions to defined benefit pension plans | $ 1.6 | ||
Pension defined benefit plans | Netherlands | Top of range | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of average local funding requirement for additional payments | 105.00% |
Retirement Benefits - Summary_6
Retirement Benefits - Summary of Assumptions for Sensitivity Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Weighted average inflation rate used in the calculation of the defined benefit obligation | 1.70% | |
Rate of increase in pensionable remuneration | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage assumptions used | 3.80% | 4.10% |
Range of assumptions, possible decrease | 1.00% | |
Range of assumptions, possible increase | 1.00% | |
Rate of increase in pensionable remuneration | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (1,780) | $ (1,975) |
Rate of increase in pensionable remuneration | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 1,948 | $ 2,266 |
Rate of increase in pensions in payment | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage assumptions used | 1.60% | 1.60% |
Range of assumptions, possible decrease | 1.00% | |
Range of assumptions, possible increase | 1.00% | |
Rate of increase in pensions in payment | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (10,937) | $ (9,541) |
Rate of increase in pensions in payment | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 13,523 | $ 11,757 |
Rate of increase in health-care costs | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage assumptions used | 6.00% | 6.10% |
Range of assumptions, possible decrease | 1.00% | |
Range of assumptions, possible increase | 1.00% | |
Rate of increase in health-care costs | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (605) | $ (546) |
Rate of increase in health-care costs | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 751 | $ 675 |
Discount rate for pension plans | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage assumptions used | 1.50% | 2.10% |
Range of assumptions, possible decrease | 1.00% | |
Range of assumptions, possible increase | 1.00% | |
Discount rate for pension plans | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 21,463 | $ 18,431 |
Discount rate for pension plans | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (16,382) | $ (14,155) |
Discount rate for health-care plans | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage assumptions used | 2.60% | 3.20% |
Range of assumptions, possible decrease | 1.00% | |
Range of assumptions, possible increase | 1.00% | |
Discount rate for health-care plans | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 791 | $ 704 |
Discount rate for health-care plans | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (624) | $ (558) |
Men | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Expected age at death assumptions used | 87 years | 87 years |
Range of assumptions, expected age at death decrease | 1 year | |
Range of assumptions, expected age at death increase | 1 year | |
Men | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (2,022) | $ (1,717) |
Men | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 2,112 | $ 1,782 |
Women | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Expected age at death assumptions used | 88 years | 89 years |
Range of assumptions, expected age at death decrease | 1 year | |
Range of assumptions, expected age at death increase | 1 year | |
Women | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ (1,985) | $ (1,631) |
Women | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in defined benefit obligations | $ 2,070 | $ 1,694 |
Decommissioning and Other Pro_3
Decommissioning and Other Provisions - Summary of Decommissioning and Other Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in other provisions [abstract] | ||
Current beginning balance | $ 2,811 | $ 3,341 |
Non-current beginning balance | 21,799 | 21,186 |
Decommissioning and other provision beginning balance | 24,610 | 24,527 |
Additions | 5,770 | 2,264 |
Amounts charged against provisions | (1,856) | (2,102) |
Accretion expense | 497 | 716 |
Disposals | (179) | (1,260) |
Remeasurements and other movements | 1,452 | 316 |
Currency translation differences | 640 | 149 |
Change in decommissioning and other provisions | 6,324 | 83 |
Current ending balance | 3,624 | 2,811 |
Non-current ending balance | 27,310 | 21,799 |
Decommissioning and other provision ending balance | 30,934 | 24,610 |
Decommissioning and restoration | ||
Reconciliation of changes in other provisions [abstract] | ||
Current beginning balance | 755 | 876 |
Non-current beginning balance | 18,264 | 17,057 |
Decommissioning and other provision beginning balance | 19,019 | 17,933 |
Additions | 1,697 | 625 |
Amounts charged against provisions | (433) | (797) |
Accretion expense | 448 | 644 |
Disposals | (154) | (1,238) |
Remeasurements and other movements | 2,090 | 1,696 |
Currency translation differences | 508 | 156 |
Change in decommissioning and other provisions | 4,156 | 1,086 |
Current ending balance | 900 | 755 |
Non-current ending balance | 22,275 | 18,264 |
Decommissioning and other provision ending balance | 23,175 | 19,019 |
Decommissioning and restoration | Integrated gas and Upstream | ||
Reconciliation of changes in other provisions [abstract] | ||
Additions | 798 | |
Decommissioning and restoration | Oil Products | ||
Reconciliation of changes in other provisions [abstract] | ||
Additions | 899 | |
Legal | ||
Reconciliation of changes in other provisions [abstract] | ||
Current beginning balance | 626 | 213 |
Non-current beginning balance | 1,185 | 1,247 |
Decommissioning and other provision beginning balance | 1,811 | 1,460 |
Additions | 502 | 585 |
Amounts charged against provisions | (522) | (216) |
Accretion expense | 17 | 28 |
Disposals | 0 | 0 |
Remeasurements and other movements | (59) | (45) |
Currency translation differences | 1 | (1) |
Change in decommissioning and other provisions | (61) | 351 |
Current ending balance | 521 | 626 |
Non-current ending balance | 1,229 | 1,185 |
Decommissioning and other provision ending balance | 1,750 | 1,811 |
Environmental | ||
Reconciliation of changes in other provisions [abstract] | ||
Current beginning balance | 263 | 264 |
Non-current beginning balance | 934 | 1,074 |
Decommissioning and other provision beginning balance | 1,197 | 1,338 |
Additions | 199 | 229 |
Amounts charged against provisions | (138) | (223) |
Accretion expense | 21 | 16 |
Disposals | (7) | (8) |
Remeasurements and other movements | (73) | (155) |
Currency translation differences | 26 | 0 |
Change in decommissioning and other provisions | 28 | (141) |
Current ending balance | 273 | 263 |
Non-current ending balance | 952 | 934 |
Decommissioning and other provision ending balance | 1,225 | 1,197 |
Redundancy | ||
Reconciliation of changes in other provisions [abstract] | ||
Current beginning balance | 295 | 441 |
Non-current beginning balance | 220 | 280 |
Decommissioning and other provision beginning balance | 515 | 721 |
Additions | 986 | 290 |
Amounts charged against provisions | (375) | (304) |
Accretion expense | 1 | 3 |
Disposals | 0 | 0 |
Remeasurements and other movements | (241) | (192) |
Currency translation differences | 52 | (3) |
Change in decommissioning and other provisions | 423 | (206) |
Current ending balance | 673 | 295 |
Non-current ending balance | 265 | 220 |
Decommissioning and other provision ending balance | 938 | 515 |
Other | ||
Reconciliation of changes in other provisions [abstract] | ||
Current beginning balance | 872 | 1,547 |
Non-current beginning balance | 1,196 | 1,528 |
Decommissioning and other provision beginning balance | 2,068 | 3,075 |
Additions | 2,386 | 535 |
Amounts charged against provisions | (388) | (562) |
Accretion expense | 10 | 25 |
Disposals | (18) | (14) |
Remeasurements and other movements | (265) | (988) |
Currency translation differences | 53 | (3) |
Change in decommissioning and other provisions | 1,778 | (1,007) |
Current ending balance | 1,257 | 872 |
Non-current ending balance | 2,589 | 1,196 |
Decommissioning and other provision ending balance | $ 3,846 | $ 2,068 |
Decommissioning and Other Pro_4
Decommissioning and Other Provisions - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | |||
Decommissioning and other provisions | $ 30,934 | $ 24,610 | $ 24,527 |
Decommissioning and restoration | |||
Disclosure of other provisions [line items] | |||
Discount rate applied to provision | 1.75% | 3.00% | |
Percentage increase in discount rate assumption | 0.50% | ||
Percentage decrease in discount rate assumption | 0.50% | ||
Decrease in provision due to increase in discount rate assumption | $ 1,700 | ||
Increase in provision due to decrease in discount rate assumption | 2,200 | ||
Increase in provision as a result of the change in discount rate | 3,999 | $ 2,241 | |
Decrease in provision as a result of the changes in cost estimates | 1,909 | 545 | |
Decommissioning and other provisions | 23,175 | 19,019 | $ 17,933 |
Decommissioning and restoration | Between 1 and 5 years | |||
Disclosure of other provisions [line items] | |||
Amount of provisions expected to be utilized | 3,921 | ||
Decommissioning and restoration | Between 6 and 10 years | |||
Disclosure of other provisions [line items] | |||
Amount of provisions expected to be utilized | $ 2,206 | ||
Onerous contracts provision | |||
Disclosure of other provisions [line items] | |||
Decommissioning and other provisions | $ 1,739 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Millions, € in Billions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Increase in interest rate risk | 1.00% | 1.00% | ||
Foreign exchange risk management | 10.00% | 10.00% | ||
Percentage of value at risk statistical assessment | 95.00% | |||
Net gains (losses) on derivative contracts excluding realized commodity contracts, before tax | $ 1,676 | $ (2,004) | $ (1,818) | |
Prior gains excluded that would have previously reversed at time of trade delivery | 597 | |||
Hedging instrument, asset | 8,588 | 7,838 | ||
Hedging instrument, liability | 5,728 | 6,638 | ||
Unrealized net gains related to assets and liabilities | 743 | 612 | ||
Cash flow hedges | Foreign exchange risk | Forward foreign exchange contracts | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Hedging instrument, asset | 556 | |||
Hedging instrument, liability | 167 | |||
Fair value hedges | Interest rate and currency swaps | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Hedging instrument, asset | 1,422 | |||
Hedging instrument, liability | 518 | |||
Hedges of net investment in foreign operations | Foreign exchange risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Hedging instrument, liability | € | € 3 | |||
Trade payables | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Carrying amount of collateral held | 1,675 | 718 | ||
Trade receivables | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities | 1,909 | 1,948 | ||
Floating interest rate | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Increase (decrease) in income before taxation if there were a 1% increase in interest rates | $ 62 | $ (98) |
Financial Instruments - Summary
Financial Instruments - Summary of 10% Appreciation Against the Dollar of Main Currencies (Details) - 10% percentage appreciation - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Euro | ||
Disclosure Of Foreign Exchange Risk [Line Items] | ||
Increase/(decrease) in income before taxation | $ (263) | $ 36 |
Increase in net assets | 451 | 1,227 |
Malaysian ringgit | ||
Disclosure Of Foreign Exchange Risk [Line Items] | ||
Increase/(decrease) in income before taxation | 255 | 243 |
Increase in net assets | 270 | 290 |
Australian dollar | ||
Disclosure Of Foreign Exchange Risk [Line Items] | ||
Increase/(decrease) in income before taxation | 179 | (55) |
Increase in net assets | 598 | 835 |
Sterling | ||
Disclosure Of Foreign Exchange Risk [Line Items] | ||
Increase/(decrease) in income before taxation | (166) | (58) |
Increase in net assets | 328 | 581 |
Canadian dollar | ||
Disclosure Of Foreign Exchange Risk [Line Items] | ||
Increase/(decrease) in income before taxation | 1 | (97) |
Increase in net assets | $ 1,299 | $ 1,380 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Value at Risk Pre-tax (Details) - Commodity price risk - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Global oil | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Value at risk | $ 24 | $ 22 |
North America gas and power | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Value at risk | 14 | 12 |
Europe gas and power | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Value at risk | 11 | 5 |
Carbon-emission rights | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Value at risk | $ 7 | $ 4 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Trade and Other Receivables, Other Payables and Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Trade payables | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts before offset | $ 10,580 | $ 13,335 |
Amounts offset | 6,467 | 9,029 |
Net amounts as presented | 4,113 | 4,306 |
Cash collateral received/pledged | 1 | 11 |
Other offsetting instruments | 79 | 101 |
Net amounts | 4,033 | 4,194 |
Derivative financial instruments | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts before offset | 10,502 | 12,355 |
Amounts offset | 5,893 | 7,253 |
Net amounts as presented | 4,609 | 5,102 |
Cash collateral received/pledged | 797 | 706 |
Other offsetting instruments | 1,761 | 2,262 |
Net amounts | 2,051 | 2,134 |
Trade receivables | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts before offset | 10,658 | 13,821 |
Amounts offset | 6,470 | 8,975 |
Net amounts as presented | 4,188 | 4,846 |
Cash collateral received/pledged | 14 | 54 |
Other offsetting instruments | 79 | 101 |
Net amounts | 4,095 | 4,691 |
Derivative financial instruments | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts before offset | 12,798 | 12,995 |
Amounts offset | 6,125 | 7,310 |
Net amounts as presented | 6,673 | 5,685 |
Cash collateral received/pledged | 1,573 | 531 |
Other offsetting instruments | 1,750 | 2,262 |
Net amounts | $ 3,350 | $ 2,892 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Carrying Amounts of Derivative Contracts Designated and Not Designated as Hedging Instruments for Hedge Accounting (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about hedging instruments [line items] | ||
Assets Designated | $ 2,341 | $ 324 |
Assets Not designated | 6,247 | 7,514 |
Assets, Total | 8,588 | 7,838 |
Liabilities Designated | 398 | 968 |
Liabilities Not designated | 5,330 | 5,670 |
Liabilities, Total | 5,728 | 6,638 |
Net | 2,860 | 1,200 |
Interest rate swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets Designated | 451 | 227 |
Assets Not designated | 0 | 8 |
Assets, Total | 451 | 235 |
Liabilities Designated | 26 | 34 |
Liabilities Not designated | 22 | 24 |
Liabilities, Total | 48 | 58 |
Net | 403 | 177 |
Forward foreign exchange contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets Designated | 0 | 7 |
Assets Not designated | 276 | 236 |
Assets, Total | 276 | 243 |
Liabilities Designated | 0 | 2 |
Liabilities Not designated | 651 | 309 |
Liabilities, Total | 651 | 311 |
Net | (375) | (68) |
Currency swaps and options | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets Designated | 1,890 | 90 |
Assets Not designated | 13 | 15 |
Assets, Total | 1,903 | 105 |
Liabilities Designated | 280 | 932 |
Liabilities Not designated | 63 | 56 |
Liabilities, Total | 343 | 988 |
Net | 1,560 | (883) |
Commodity derivatives | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets Designated | 0 | 0 |
Assets Not designated | 5,534 | 6,914 |
Assets, Total | 5,534 | 6,914 |
Liabilities Designated | 92 | 0 |
Liabilities Not designated | 4,565 | 5,281 |
Liabilities, Total | 4,657 | 5,281 |
Net | 877 | 1,633 |
Other contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets Designated | 0 | 0 |
Assets Not designated | 424 | 341 |
Assets, Total | 424 | 341 |
Liabilities Designated | 0 | 0 |
Liabilities Not designated | 29 | 0 |
Liabilities, Total | 29 | 0 |
Net | $ 395 | $ 341 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturities of Derivative Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | $ 5,728 | $ 6,638 |
Gross carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 5,751 | 9,196 |
Gross carrying amount | Less than one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 3,695 | 3,976 |
Gross carrying amount | Between 1 and 2 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 837 | 1,279 |
Gross carrying amount | Between 2 and 3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 324 | 805 |
Gross carrying amount | Between 3 and 4 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 219 | 394 |
Gross carrying amount | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 279 | 450 |
Gross carrying amount | 5 years and later | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 397 | 2,292 |
Difference from carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (23) | (2,558) |
Interest rate swaps | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 48 | 58 |
Interest rate swaps | Gross carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 49 | 60 |
Interest rate swaps | Gross carrying amount | Less than one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 12 | 35 |
Interest rate swaps | Gross carrying amount | Between 1 and 2 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 10 | 8 |
Interest rate swaps | Gross carrying amount | Between 2 and 3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 9 | 4 |
Interest rate swaps | Gross carrying amount | Between 3 and 4 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 7 | 4 |
Interest rate swaps | Gross carrying amount | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 5 | 5 |
Interest rate swaps | Gross carrying amount | 5 years and later | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 6 | 4 |
Interest rate swaps | Difference from carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (1) | (2) |
Forward foreign exchange contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 651 | 311 |
Forward foreign exchange contracts | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 118 | |
Forward foreign exchange contracts | Gross carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 620 | 380 |
Forward foreign exchange contracts | Gross carrying amount | Less than one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 504 | 214 |
Forward foreign exchange contracts | Gross carrying amount | Between 1 and 2 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 56 | 40 |
Forward foreign exchange contracts | Gross carrying amount | Between 2 and 3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 22 | 8 |
Forward foreign exchange contracts | Gross carrying amount | Between 3 and 4 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 38 | 0 |
Forward foreign exchange contracts | Gross carrying amount | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | |
Forward foreign exchange contracts | Gross carrying amount | 5 years and later | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 0 |
Forward foreign exchange contracts | Difference from carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 31 | (69) |
Currency swaps and options | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 343 | 988 |
Currency swaps and options | Gross carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 374 | 3,356 |
Currency swaps and options | Gross carrying amount | Less than one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 174 | 255 |
Currency swaps and options | Gross carrying amount | Between 1 and 2 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 13 | 475 |
Currency swaps and options | Gross carrying amount | Between 2 and 3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 28 | 444 |
Currency swaps and options | Gross carrying amount | Between 3 and 4 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 201 |
Currency swaps and options | Gross carrying amount | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 159 | 204 |
Currency swaps and options | Gross carrying amount | 5 years and later | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 1,777 |
Currency swaps and options | Difference from carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (31) | (2,368) |
Commodity derivatives | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 4,657 | 5,281 |
Commodity derivatives | Gross carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 4,678 | 5,400 |
Commodity derivatives | Gross carrying amount | Less than one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 2,990 | 3,472 |
Commodity derivatives | Gross carrying amount | Between 1 and 2 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 743 | 756 |
Commodity derivatives | Gross carrying amount | Between 2 and 3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 265 | 349 |
Commodity derivatives | Gross carrying amount | Between 3 and 4 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 174 | 189 |
Commodity derivatives | Gross carrying amount | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 115 | 123 |
Commodity derivatives | Gross carrying amount | 5 years and later | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 391 | 511 |
Commodity derivatives | Difference from carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (21) | (119) |
Other contracts | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 29 | 0 |
Other contracts | Gross carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 30 | 0 |
Other contracts | Gross carrying amount | Less than one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 15 | 0 |
Other contracts | Gross carrying amount | Between 1 and 2 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 15 | 0 |
Other contracts | Gross carrying amount | Between 2 and 3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 0 |
Other contracts | Gross carrying amount | Between 3 and 4 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 0 |
Other contracts | Gross carrying amount | Between 4 and 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 0 |
Other contracts | Gross carrying amount | 5 years and later | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | 0 | 0 |
Other contracts | Difference from carrying amount | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | $ (1) | $ 0 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Net Carrying Amounts of Derivative Contracts Held (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | $ 2,860 | $ 1,200 | |
Interest rate swaps | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 403 | 177 | |
Forward foreign exchange contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | (375) | (68) | |
Currency swaps and options | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 1,560 | (883) | |
Commodity derivatives | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 877 | 1,633 | |
Other contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 395 | 341 | |
Prices in active markets for identical assets/liabilities | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 57 | 21 | |
Prices in active markets for identical assets/liabilities | Interest rate swaps | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 0 | 0 | |
Prices in active markets for identical assets/liabilities | Forward foreign exchange contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 0 | 0 | |
Prices in active markets for identical assets/liabilities | Currency swaps and options | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 0 | 0 | |
Prices in active markets for identical assets/liabilities | Commodity derivatives | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 37 | (6) | |
Prices in active markets for identical assets/liabilities | Other contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 20 | 27 | |
Other observable inputs | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 1,726 | 425 | |
Other observable inputs | Interest rate swaps | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 403 | 177 | |
Other observable inputs | Forward foreign exchange contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | (375) | (68) | |
Other observable inputs | Currency swaps and options | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 1,560 | (883) | |
Other observable inputs | Commodity derivatives | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | (237) | 895 | |
Other observable inputs | Other contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 375 | 304 | |
Unobservable inputs | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 1,077 | 754 | $ (27) |
Unobservable inputs | Interest rate swaps | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 0 | 0 | |
Unobservable inputs | Forward foreign exchange contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 0 | 0 | |
Unobservable inputs | Currency swaps and options | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 0 | 0 | |
Unobservable inputs | Commodity derivatives | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | 1,077 | 744 | |
Unobservable inputs | Other contracts | |||
Disclosure Of Fair Value Measurement Of Net Carrying Amount Of Derivative Contracts [Line Items] | |||
Total | $ 0 | $ 10 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Net Carrying Amounts of Derivative Contracts Measured Using Predominantly Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Beginning balance | $ 1,200 | |
Ending balance | 2,860 | $ 1,200 |
Unobservable inputs | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Beginning balance | 754 | (27) |
Net gains recognised in revenue | 564 | 1,085 |
Purchases | 217 | 453 |
Sales | (450) | (633) |
Settlements | (9) | 0 |
Recategorisations (net) | (12) | (125) |
Currency translation differences | 13 | 1 |
Ending balance | $ 1,077 | $ 754 |
Financial Instruments - Unrecog
Financial Instruments - Unrecognised Day One Gains or Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of aggregate difference between fair value at initial recognition and transaction price yet to be recognised in profit or loss [abstract] | ||
Beginning balance | $ 929 | $ 388 |
Movements | 39 | 541 |
Ending balance | $ 968 | $ 929 |
Share capital - Summary of Issu
Share capital - Summary of Issued and Fully Paid Ordinary Shares (Details) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020USD ($)shares | Dec. 31, 2020€ / shares£ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019£ / sharesshares | Dec. 31, 2018USD ($)shares | |||
Disclosure of classes of share capital [line items] | |||||||
Repurchases of shares | $ (1,214) | $ (10,286) | [1] | $ (4,519) | [1] | ||
Share capital | |||||||
Disclosure of classes of share capital [line items] | |||||||
Beginning balance | 657 | 685 | |||||
Repurchases of shares | (6) | (28) | [1] | (11) | [1] | ||
Ending balance | $ 651 | $ 657 | $ 685 | ||||
Class A Shares | Share capital | |||||||
Disclosure of classes of share capital [line items] | |||||||
Par value per share (in eur per share) | € / shares | € 0.07 | ||||||
Beginning balance (in shares) | shares | 4,151,787,517 | 4,471,889,296 | |||||
Repurchases of shares (in shares) | shares | (50,548,018) | (320,101,779) | |||||
Ending balance (in shares) | shares | 4,101,239,499 | 4,151,787,517 | 4,471,889,296 | ||||
Beginning balance | $ 349 | $ 376 | |||||
Repurchases of shares | (4) | (27) | |||||
Ending balance | $ 345 | $ 349 | $ 376 | ||||
Class B Shares | Share capital | |||||||
Disclosure of classes of share capital [line items] | |||||||
Par value per share (in eur per share) | € / shares | € 0.07 | ||||||
Beginning balance (in shares) | shares | 3,729,407,107 | 3,745,486,731 | |||||
Repurchases of shares (in shares) | shares | (23,223,271) | (16,079,624) | |||||
Ending balance (in shares) | shares | 3,706,183,836 | 3,729,407,107 | 3,745,486,731 | ||||
Beginning balance | $ 308 | $ 309 | |||||
Repurchases of shares | (2) | (1) | |||||
Ending balance | $ 306 | $ 308 | $ 309 | ||||
Ordinary Shares A | Share capital | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued and fully paid ordinary shares (in shares) | shares | 50,000 | 50,000 | 50,000 | ||||
Deferred share (in usd per share) | £ / shares | € 1 | £ 1 | |||||
[1] | [C] The repurchase of shares recognised through retained earnings includes the aggregate maximum consideration to which Shell was contractually bound to under the tranches of the buyback programme, plus associated stamp duty (see Note 20) . |
Share capital - Narrative (Deta
Share capital - Narrative (Details) - Ordinary shares issue mandate € / shares in Units, € in Millions, shares in Millions | May 19, 2020EUR (€)€ / sharesshares |
Disclosure of classes of share capital [line items] | |
Common stock, value authorised | € | € 182.7 |
Common stock, shares authorised (in shares) | 2,611 |
Issued and fully paid ordinary shares (in eur per share) | € / shares | € 0.07 |
Stock repurchase program, shares authorized (in shares) | 783 |
Bottom of range | |
Disclosure of classes of share capital [line items] | |
Percentage of average market value | 5.00% |
Share-based Compensation Plan_3
Share-based Compensation Plans and Shares Held in Trust - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Share Based Compensation Expense [Line Items] | |||
Share-based compensation expense | $ 359 | $ 537 | $ 531 |
Equity-settled | |||
Disclosure Of Share Based Compensation Expense [Line Items] | |||
Share-based compensation expense | $ 359 | $ 537 | $ 531 |
Share-based Compensation Plan_4
Share-based Compensation Plans and Shares Held in Trust - Narrative (Details) - USD ($) shares in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
A Class Shares | Shares held by employee share trusts | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding (in shares) | 14.3 | 17.4 |
B Class Shares | Shares held by employee share trusts | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding (in shares) | 5.2 | 6.5 |
A Class American Depositary Shares | Shares held by employee share trusts | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options outstanding (in shares) | 5.1 | 5.3 |
Share awards under PSP and LTIP | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period of share-based compensation | 3 years | |
Consideration paid upon award vesting in share-based payment arrangement | $ 0 | |
Bottom of range | Share awards under PSP and LTIP | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting percentage of share-based compensation | 0.00% | |
Top of range | Share awards under PSP and LTIP | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting percentage of share-based compensation | 200.00% |
Share-based Compensation Plan_5
Share-based Compensation Plans and Shares Held in Trust - Schedule of Share Awards Under the PSP and LTIP (Details) - Share awards under PSP and LTIP - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Share Based Compensation Expense [Line Items] | |||
Weighted Average remaining contractual life (years) | 1 year | 1 year | 1 year |
A Class Shares | |||
Disclosure Of Share Based Compensation Expense [Line Items] | |||
Beginning balance (in shares) | 29 | 30 | |
Granted (in shares) | 10 | 11 | |
Vested (in shares) | (9) | (11) | |
Forfeited (in shares) | (1) | (1) | |
Ending balance (in shares) | 29 | 29 | 30 |
B Class Shares | |||
Disclosure Of Share Based Compensation Expense [Line Items] | |||
Beginning balance (in shares) | 10 | 12 | |
Granted (in shares) | 4 | 3 | |
Vested (in shares) | (4) | (5) | |
Forfeited (in shares) | 0 | 0 | |
Ending balance (in shares) | 10 | 10 | 12 |
A Class American Depositary Shares | |||
Disclosure Of Share Based Compensation Expense [Line Items] | |||
Beginning balance (in shares) | 8 | 8 | |
Granted (in shares) | 3 | 3 | |
Vested (in shares) | (3) | (3) | |
Forfeited (in shares) | 0 | 0 | |
Ending balance (in shares) | 8 | 8 | 8 |
Other Reserves - Summary of Oth
Other Reserves - Summary of Other Reserves Attributable to Royal Dutch Shell plc Shareholders (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | $ 14,451 | ||||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | (23,512) | $ 13,773 | $ 24,475 | ||
Repurchases of shares | (1,214) | (10,286) | [1] | (4,519) | [1] |
Ending balance | 12,752 | 14,451 | |||
Total | |||||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 14,451 | 16,615 | 16,794 | ||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | (1,832) | (2,069) | 1,123 | ||
Transfer from other comprehensive income | 270 | (74) | (971) | ||
Repurchases of shares | 6 | 28 | [1] | 11 | [1] |
Share-based compensation | (143) | (49) | (342) | ||
Ending balance | 12,752 | 14,451 | 16,615 | ||
Merger reserve | |||||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 37,298 | 37,298 | 37,298 | ||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | 0 | 0 | 0 | ||
Transfer from other comprehensive income | 0 | 0 | 0 | ||
Repurchases of shares | 0 | 0 | 0 | ||
Share-based compensation | 0 | 0 | 0 | ||
Ending balance | 37,298 | 37,298 | 37,298 | ||
Share premium reserve | |||||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 154 | 154 | 154 | ||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | 0 | 0 | 0 | ||
Transfer from other comprehensive income | 0 | 0 | 0 | ||
Repurchases of shares | 0 | 0 | 0 | ||
Share-based compensation | 0 | 0 | 0 | ||
Ending balance | 154 | 154 | 154 | ||
Capital redemption reserve | |||||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 123 | 95 | 84 | ||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | 0 | 0 | 0 | ||
Transfer from other comprehensive income | 0 | 0 | 0 | ||
Repurchases of shares | 6 | 28 | 11 | ||
Share-based compensation | 0 | 0 | 0 | ||
Ending balance | 129 | 123 | 95 | ||
Share plan reserve | |||||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 1,049 | 1,098 | 1,440 | ||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | 0 | 0 | 0 | ||
Transfer from other comprehensive income | 0 | 0 | 0 | ||
Repurchases of shares | 0 | 0 | 0 | ||
Share-based compensation | (143) | (49) | (342) | ||
Ending balance | 906 | 1,049 | 1,098 | ||
Accumulated other comprehensive income | |||||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (24,173) | (22,030) | (22,182) | ||
Comprehensive (loss)/income attributable to Royal Dutch Shell plc shareholders | (1,832) | (2,069) | 1,123 | ||
Transfer from other comprehensive income | 270 | (74) | (971) | ||
Repurchases of shares | 0 | 0 | 0 | ||
Share-based compensation | 0 | 0 | 0 | ||
Ending balance | $ (25,735) | $ (24,173) | $ (22,030) | ||
[1] | [C] The repurchase of shares recognised through retained earnings includes the aggregate maximum consideration to which Shell was contractually bound to under the tranches of the buyback programme, plus associated stamp duty (see Note 20) . |
Other Reserves - Narrative (Det
Other Reserves - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||
Tax related to vested awards | $ 4 | $ 45 | $ 71 |
Other Reserves - Summary of Acc
Other Reserves - Summary of Accumulated Other Comprehensive Income Attributable to Royal Dutch Shell plc Shareholders (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Share of joint ventures and associates | $ 77 | $ (74) | $ 183 |
Other comprehensive (loss)/income for the period | (1,842) | (2,034) | 952 |
Less: non-controlling interest | 136 | 625 | 383 |
Total | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (24,173) | (22,030) | (22,182) |
Recognised in other comprehensive income | (2,567) | (3,367) | 945 |
Reclassified to income | (115) | 397 | 1,468 |
Reclassified to the balance sheet | 16 | 11 | (30) |
Reclassified to retained earnings | 270 | (74) | (971) |
Tax on amounts recognised/reclassified | 747 | 999 | (1,614) |
Total, net of tax | (1,649) | (2,034) | (202) |
Share of joint ventures and associates | 77 | (74) | 183 |
Other comprehensive (loss)/income for the period | (1,572) | (2,108) | (19) |
Less: non-controlling interest | 10 | (35) | 171 |
Attributable to Royal Dutch Shell plc shareholders | (1,562) | (2,143) | 152 |
Ending balance | (25,735) | (24,173) | (22,030) |
Currency translation differences | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (9,415) | (9,722) | (6,711) |
Recognised in other comprehensive income | 1,204 | 302 | (3,793) |
Reclassified to income | (28) | 38 | 651 |
Reclassified to the balance sheet | 0 | 0 | 0 |
Reclassified to retained earnings | 0 | 0 | 0 |
Tax on amounts recognised/reclassified | 3 | 4 | (29) |
Total, net of tax | 1,179 | 344 | (3,171) |
Share of joint ventures and associates | 51 | (2) | (25) |
Other comprehensive (loss)/income for the period | 1,230 | 342 | (3,196) |
Less: non-controlling interest | 10 | (35) | 185 |
Attributable to Royal Dutch Shell plc shareholders | 1,240 | 307 | (3,011) |
Ending balance | (8,175) | (9,415) | (9,722) |
Equity instruments remeasurements | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 793 | 906 | 1,975 |
Recognised in other comprehensive income | 68 | (17) | (147) |
Reclassified to income | 0 | 0 | 0 |
Reclassified to the balance sheet | 0 | 0 | 0 |
Reclassified to retained earnings | 169 | (85) | (1,108) |
Tax on amounts recognised/reclassified | (4) | (13) | (6) |
Total, net of tax | 233 | (115) | (1,261) |
Share of joint ventures and associates | 118 | 2 | 193 |
Other comprehensive (loss)/income for the period | 351 | (113) | (1,068) |
Less: non-controlling interest | 0 | 0 | (1) |
Attributable to Royal Dutch Shell plc shareholders | 351 | (113) | (1,069) |
Ending balance | 1,144 | 793 | 906 |
Debt instruments remeasurements | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 8 | (21) | (6) |
Recognised in other comprehensive income | 31 | 24 | (15) |
Reclassified to income | (8) | 5 | 0 |
Reclassified to the balance sheet | 0 | 0 | 0 |
Reclassified to retained earnings | 0 | 0 | 0 |
Tax on amounts recognised/reclassified | 0 | 0 | 0 |
Total, net of tax | 23 | 29 | (15) |
Share of joint ventures and associates | 0 | 0 | 0 |
Other comprehensive (loss)/income for the period | 23 | 29 | (15) |
Less: non-controlling interest | 0 | 0 | 0 |
Attributable to Royal Dutch Shell plc shareholders | 23 | 29 | (15) |
Ending balance | 31 | 8 | (21) |
Cash flow hedging (losses)/gains | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (233) | 117 | (627) |
Recognised in other comprehensive income | (9) | (592) | 50 |
Reclassified to income | (173) | 268 | 722 |
Reclassified to the balance sheet | 16 | 11 | (30) |
Reclassified to retained earnings | 0 | 0 | 0 |
Tax on amounts recognised/reclassified | 6 | 37 | (12) |
Total, net of tax | (160) | (276) | 730 |
Share of joint ventures and associates | (92) | (74) | 14 |
Other comprehensive (loss)/income for the period | (252) | (350) | 744 |
Less: non-controlling interest | 0 | 0 | 0 |
Attributable to Royal Dutch Shell plc shareholders | (252) | (350) | 744 |
Ending balance | (485) | (233) | 117 |
Net investment hedging (losses)/gains | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (2,016) | (2,025) | (2,024) |
Recognised in other comprehensive income | (423) | 13 | (1) |
Reclassified to income | 0 | 0 | 0 |
Tax on amounts recognised/reclassified | (4) | ||
Total, net of tax | (423) | 9 | (1) |
Other comprehensive (loss)/income for the period | (423) | 9 | (1) |
Attributable to Royal Dutch Shell plc shareholders | (423) | 9 | (1) |
Ending balance | (2,439) | (2,016) | (2,025) |
Deferred cost of hedging | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (287) | (353) | (144) |
Recognised in other comprehensive income | 17 | 9 | (362) |
Reclassified to income | 94 | 86 | 95 |
Reclassified to the balance sheet | 0 | 0 | 0 |
Reclassified to retained earnings | 0 | 0 | 0 |
Tax on amounts recognised/reclassified | (11) | (29) | 58 |
Total, net of tax | 100 | 66 | (209) |
Share of joint ventures and associates | 0 | 0 | 0 |
Other comprehensive (loss)/income for the period | 100 | 66 | (209) |
Less: non-controlling interest | 0 | 0 | 0 |
Attributable to Royal Dutch Shell plc shareholders | 100 | 66 | (209) |
Ending balance | (187) | (287) | (353) |
Retirement benefits remeasurements | |||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (13,023) | (10,932) | (14,645) |
Recognised in other comprehensive income | (3,455) | (3,106) | 5,213 |
Reclassified to income | 0 | 0 | 0 |
Reclassified to the balance sheet | 0 | 0 | 0 |
Reclassified to retained earnings | 101 | 11 | 137 |
Tax on amounts recognised/reclassified | 753 | 1,004 | (1,625) |
Total, net of tax | (2,601) | (2,091) | 3,725 |
Share of joint ventures and associates | 0 | 0 | 1 |
Other comprehensive (loss)/income for the period | (2,601) | (2,091) | 3,726 |
Less: non-controlling interest | 0 | 0 | (13) |
Attributable to Royal Dutch Shell plc shareholders | (2,601) | (2,091) | 3,713 |
Ending balance | $ (15,624) | $ (13,023) | $ (10,932) |
Dividends - Summary of Interim
Dividends - Summary of Interim Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Dividends [Line Items] | |||||||||||||||
Dividends paid | $ 7,270 | $ 15,198 | $ 15,675 | ||||||||||||
A shares | |||||||||||||||
Disclosure Of Dividends [Line Items] | |||||||||||||||
Dividends paid per share (in usd per share) | $ 0.1665 | $ 0.16 | $ 0.16 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.9565 | $ 1.88 | $ 1.88 |
Dividends paid | $ 691 | $ 654 | $ 653 | $ 1,862 | $ 1,978 | $ 2,007 | $ 2,062 | $ 2,100 | $ 2,124 | $ 2,165 | $ 2,140 | $ 2,176 | $ 3,860 | $ 8,147 | $ 8,605 |
B shares | |||||||||||||||
Disclosure Of Dividends [Line Items] | |||||||||||||||
Dividends paid per share (in usd per share) | $ 0.1665 | $ 0.16 | $ 0.16 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.9565 | $ 1.88 | $ 1.88 |
Dividends paid | $ 622 | $ 582 | $ 586 | $ 1,620 | $ 1,749 | $ 1,765 | $ 1,762 | $ 1,775 | $ 1,746 | $ 1,784 | $ 1,746 | $ 1,794 | $ 3,410 | $ 7,051 | $ 7,070 |
Dividends - Narrative (Details)
Dividends - Narrative (Details) - Major ordinary share transactions $ / shares in Units, $ in Millions | Feb. 04, 2021USD ($)$ / shares |
Disclosure Of Dividends [Line Items] | |
Dividend declared | $ | $ 1,300 |
A shares | |
Disclosure Of Dividends [Line Items] | |
Dividend declared per share (in usd per share) | $ 0.1665 |
B shares | |
Disclosure Of Dividends [Line Items] | |
Dividend declared per share (in usd per share) | $ 0.1665 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | |||
(Loss)/income attributable to Royal Dutch Shell plc shareholders | $ (21,680) | $ 15,842 | $ 23,352 |
Weighted average number of shares used as the basis for determining: | |||
Basic earnings per share (in shares) | 7,795.6 | 8,058.3 | 8,282.8 |
Diluted earnings per share (in shares) | 7,795.6 | 8,112.5 | 8,348.7 |
Potentially issuable shares excluded from the calculation (in shares) | 36 |
Legal Proceedings and Other C_2
Legal Proceedings and Other Contingencies (Details) claim in Thousands, $ in Millions | Dec. 12, 2018USD ($) | Mar. 31, 2017case | Dec. 31, 2020USD ($)claimcompanycase |
NAM | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Proportion of ownership interest in joint venture | 50.00% | ||
NAM | ExxonMobil | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Proportion of ownership interest in joint venture | 50.00% | ||
Pesticide Litigation | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Number of cases pending | 60 | ||
Brazil tax | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Number of cases with favorable injunctions | 2 | ||
Financing liabilities | $ | $ 5,473 | ||
Louisiana coast litigation | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Number of cases pending | 14 | ||
Number of cases filed against oil and gas companies | 43 | ||
Number of oil and gas companies | company | 200 | ||
NAM (Groningen gas field) Litigation | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Number of claims received (more than) | claim | 100 | ||
Number of claims pending for emotional damages and loss of living enjoyment | claim | 5 | ||
Nigerian litigation | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Number of cases pending | 2 | ||
Losses on litigation settlements in fraudulent and corrupt scheme | $ | $ 1,092 | ||
USA | Climate Change Litigation | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Number of cases pending | 18 | ||
Netherlands | Climate Change Litigation | |||
Disclosure of legal proceedings and other contingencies [Line Items] | |||
Percentage reduction of emissions by 2030, alternative one | 45.00% | ||
Percentage reduction of emissions by 2030, alternative two | 35.00% | ||
Percentage reduction of emissions by 2030, alternative three | 25.00% |
Employees - Summary of Employee
Employees - Summary of Employee Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Remuneration | $ 9,128 | $ 10,075 | $ 10,167 |
Social security contributions | 793 | 844 | 810 |
Retirement benefits (see Note 17) | 1,851 | 1,753 | 1,878 |
Share-based compensation (see Note 21) | 359 | 537 | 531 |
Total | $ 12,131 | $ 13,209 | $ 13,386 |
Employees - Summary of Average
Employees - Summary of Average Employee Numbers (Details) - employee employee in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of average number of employees [Line Items] | |||
Average employee numbers | 86 | 83 | 82 |
Average employee numbers seconded to joint ventures and associates | 2 | 3 | 3 |
Integrated Gas | |||
Disclosure of average number of employees [Line Items] | |||
Average employee numbers | 11 | 10 | 9 |
Upstream | |||
Disclosure of average number of employees [Line Items] | |||
Average employee numbers | 14 | 14 | 14 |
Oil Products | |||
Disclosure of average number of employees [Line Items] | |||
Average employee numbers | 34 | 32 | 35 |
Chemicals | |||
Disclosure of average number of employees [Line Items] | |||
Average employee numbers | 2 | 4 | 4 |
Corporate | |||
Disclosure of average number of employees [Line Items] | |||
Average employee numbers | 25 | 23 | 20 |
Directors and Senior Manageme_3
Directors and Senior Management - Summary of Remuneration of Directors of the Company (Details) - Directors - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Directors Remuneration [Line Items] | |||
Emoluments | $ 6 | $ 8 | $ 12 |
Value of released awards under long-term incentive plans | 6 | 12 | 20 |
Employer contributions to pension plans | $ 1 | $ 1 | $ 1 |
Directors and Senior Manageme_4
Directors and Senior Management - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020director | |
Related Party [Abstract] | |
Number of directors with retirement benefits accrued in respect of qualifying services under defined benefit plans | 2 |
Directors and Senior Manageme_5
Directors and Senior Management - Summary of Directors and Senior Management Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Directors And Senior Management Expense [Line Items] | |||
Share-based compensation | $ 359 | $ 537 | $ 531 |
Total | 12,131 | 13,209 | 13,386 |
Directors and Senior Management | |||
Disclosure Of Directors And Senior Management Expense [Line Items] | |||
Short-term benefits | 14 | 18 | 26 |
Retirement benefits | 3 | 3 | 3 |
Share-based compensation | 17 | 15 | 14 |
Termination and related amounts | 2 | 2 | 0 |
Total | $ 36 | $ 38 | $ 43 |
Auditor's Remuneration - Summar
Auditor's Remuneration - Summary of Auditor's Remuneration (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Fees in respect of the audit of the Consolidated and Parent Company Financial Statements, including audit of consolidation returns | $ 36 | $ 32 | $ 31 |
Other audit fees, principally in respect of audits of accounts of subsidiaries | 17 | 18 | 16 |
Total audit fees | 53 | 50 | 47 |
Audit-related fees | 3 | 4 | 5 |
Fees in respect of other non-audit services | 2 | 0 | 1 |
Total | $ 58 | $ 54 | $ 53 |
Auditor's Remuneration - Narrat
Auditor's Remuneration - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Remuneration for audit services to retirement benefit plans for employees of subsidiaries | $ 1 | $ 1 | $ 1 |
Emissions Schemes and Related_3
Emissions Schemes and Related Environmental Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Emissions And Related Environmental Schemes [Line Items] | ||
Short term | $ (6,941,000,000) | $ (6,356,000,000) |
Long term | (1,843,000,000) | $ (2,060,000,000) |
Total | ||
Disclosure Of Emissions And Related Environmental Schemes [Line Items] | ||
Emission and related cost recognised in the Income Statement | 1,651,000,000 | |
Purchased certificates presented under intangible assets | 1,013,000,000 | |
Obligation at the end of the period presented under other liabilities | (2,053,000,000) | |
Short term | (1,993,000,000) | |
Long term | (60,000,000) | |
Net asset/(liability) at the end of the period | (1,040,000,000) | |
ETS and related schemes | ||
Disclosure Of Emissions And Related Environmental Schemes [Line Items] | ||
Emission and related cost recognised in the Income Statement | 150,000,000 | |
Purchased certificates presented under intangible assets | 157,000,000 | |
Obligation at the end of the period presented under other liabilities | (154,000,000) | |
Short term | (154,000,000) | |
Long term | 0 | |
Net asset/(liability) at the end of the period | 3,000,000 | |
Equivalent fair value at grant date of emission certificates allocated free of charge, cost | 377,000,000 | |
Carrying value of emission certificates allocated free of charge | 0 | |
Equivalent fair value at grant date of emission certificates allocated free of charge, liability | 398,000,000 | |
Biofuels | ||
Disclosure Of Emissions And Related Environmental Schemes [Line Items] | ||
Emission and related cost recognised in the Income Statement | 1,137,000,000 | |
Purchased certificates presented under intangible assets | 780,000,000 | |
Obligation at the end of the period presented under other liabilities | (1,603,000,000) | |
Short term | (1,549,000,000) | |
Long term | (54,000,000) | |
Net asset/(liability) at the end of the period | (823,000,000) | |
Renewable power | ||
Disclosure Of Emissions And Related Environmental Schemes [Line Items] | ||
Emission and related cost recognised in the Income Statement | 364,000,000 | |
Purchased certificates presented under intangible assets | 76,000,000 | |
Obligation at the end of the period presented under other liabilities | (296,000,000) | |
Short term | (290,000,000) | |
Long term | (6,000,000) | |
Net asset/(liability) at the end of the period | $ (220,000,000) |
Post-Balance Sheet Events (Deta
Post-Balance Sheet Events (Details) shares in Millions, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 36 Months Ended | |
Apr. 30, 2021USD ($)shares | Apr. 30, 2021CAD ($)shares | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020employee | Dec. 31, 2022employee | |
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Number of people taking voluntary redundancy | employee | 1,500 | |||||
Reshape restructuring plan | Forecast | Bottom of range | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Number of job reductions expected | employee | 7,000 | |||||
Expense of restructuring activities | $ 650 | |||||
Reshape restructuring plan | Forecast | Top of range | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Number of job reductions expected | employee | 9,000 | |||||
Expense of restructuring activities | $ 850 | |||||
Other disposals of assets | Forecast | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Total consideration received | $ 707 | $ 900 | $ 646 | |||
Cash consideration received | $ 550 | |||||
Common stock consideration received (in shares) | shares | 50 | 50 | ||||
Common stock consideration received | $ 157 | |||||
Contingent consideration | $ 280 |