Shell PLC Sees Fall in 3Q Integrated Gas Trading, Rise in Marketing Results -- Update
October 06 2022 - 3:54AM
Dow Jones News
By Joe Hoppe
Shell PLC said Thursday that it expects integrated gas trading
and optimization results to fall on quarter, along with refining
margins, but for market results to rise.
Shares at 0714 GMT were down 69.0 pence, or 2.9% at 2309.5
pence.
The energy group said production for the third quarter in
Integrated Gas is anticipated to be between 890,000 and 940,000
barrels of equivalent oil per day. It said it expects a
third-quarter pretax depreciation between $1.3 billion and $1.7
billion.
Trading and optimization results for its Integrated Gas segment
are expected to be lower compared with the second quarter of 2022,
as a result of seasonality and substantial differences between
paper and physical realization in a volatile and dislocated
market.
In the chemicals and products division, the indicative refining
margin is $15 a barrel, compared with $28 a barrel in the prior
quarter. The company expects the decreased margin to have a
negative impact of between $1.0 billion and $1.4 billion on
adjusted earnings for products.
The indicative chemical margin is expected to swing to negative
$27 per ton, compared to positive $86 a ton; the swing is expected
to hit third-quarter adjusted earnings in chemicals by between $300
million and $600 million.
Upstream production is expected to be between 1.75 million and
1.85 million barrels of oil equivalent a day, and it expects a
pretax depreciation between $3.0 billion and $3.4 billion.
Marketing results are expected to be higher than in the second
quarter, with oil products sales volumes expected to reach between
2.35 million and 2.75 million barrels of oil a day, the company
said.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
October 06, 2022 03:39 ET (07:39 GMT)
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