Shell PLC on Monday said refining margins ebbed in the third quarter although it raised volume guidance across both upstream and liquefied natural gas businesses.

In a mixed third quarter trading update, Shell said Chemicals margins rose to $164 per tonne from $155/t in the second quarter, but noted the division is expected to revert to a loss again this quarter.

The company said the indicative refining margin for its Chemicals & Products arm amounted to $5.5 a barrel for the third-quarter of 2024, declining from $7.7 in the second-quarter.

Shell said trading & optimisation results in Integrated Gas are expected to be in line with the second quarter. Here, production is forecast between 920,000 to 960,000 barrels of oil per day compared to a UBS-cited consensus 954,000.

Trading results in the division are expected to be ‘in line’ with the second-quarter.

Upstream production is predicted between 1,740 to 1,840 kboe/d compared to a 1,717 kboe/d consensus. This was increased from 1,580 kboe/d to 1,780 kboe/d.

In Upstream, Shell expects adjusted earnings between $2.3 billion and $2.9 billion for the third-quarter, possibly a 24% rise from $2.34 billion in the second-quarter.

Marketing results are expected to be in line with the second quarter while adjusted earnings in the Chemicals unit are expected to reflect a marginal loss.

Elsewhere, Shell raised its liquefied natural gas production forecast to between 7.3 million and 7.7 million metric tons for the quarter, an increase from its previous estimate of 6.8 million to 7.4 million tons.

Texas-based energy company Exxon Mobil Corp said on Friday that lower oil prices and refining margins in the most recent quarter will likely hit its profits for the period.

The oil major expects the weaker oil price to hit Upstream earnings by $600 million to $1.0 billion.

Upstream earnings at Exxon Mobil totalled $7.07 billion in the second-quarter, picking up from $5.66 billion in the first.

Oil prices weakened in the third quarter, reflecting fears of slower global demand given slowdown concerns over China. Prices have recently perked up as the crisis in the Middle East intensifies.

Shell will publish third-quarter results on October 31.

Shares in Shell rose 0.4% to 2,588.00 pence each in London on Monday.

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