Shell PLC on Wednesday said it forecasts weaker trading results in Integrated Gas in the fourth quarter after production in the unit dropped.
Shares in Shell were down 1.5% at 2,579.00 pence in London on Wednesday morning.
The London-based oil and gas exploration company said it expects Integrated Gas production to fall to between 880,000 to 920,000 barrels of oil equivalent per day in the fourth quarter, from 941,000 in the third quarter of 2024.
Trading and optimisation results in the unit ‘are expected to be significantly lower’ than in the third quarter, due to the non-cash hit from the expiration of hedging contracts.
It also expects well write-offs of around $300 million in Integrated Gas. Adjusted earnings pretax and depreciation in Integrated Gas between $1.2 billion and $1.6 billion are expected, compared to $1.4 billion in the third quarter.
The amount of liquefied natural gas produced is expected to drop to between 6.8 and 7.2 million tonnes, from 7.5 million tonnes in the third quarter.
The company said this is due to lower feedgas, the raw gas used in the LNG production process, and fewer cargos carrying the product.
It forecast earnings between $2.4 billion and $3.1 billion in Upstream, compared to $2.7 billion in the third quarter. Upstream exploration well write-offs of around $400 million are expected.
In the Marketing division, earnings between $400 million and $800 million are predicted after it achieved $600 million in the third quarter.
Shell forecasts an earnings outcome between $800 million and $1.0 billion in Chemicals & Products, compared to $900 million in the third quarter.
In Chemicals & Products, Shell forecasts an earnings outcome between $800 million and $1.0 billion, compared to $900 million in the third quarter - with the chemicals sub-segment alone expected to reflect a loss.
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