7th Oct 2026 08:30
(Alliance News) - Shell PLC on Wednesday said refining margins rocketed in the third quarter, and raised its production outlook, although margins in its chemicals fell back.
In a trading update ahead of third quarter results, the London-based oil major said the indicative refining margin for the quarter is USD42 a barrel, up from USD24 in the second quarter and rising markedly from USD11.6 on-year.
The indicative chemicals margin is down on-quarter at USD208 a tonne, from USD270. Year-on-year, however, it is up from USD160.
Shell said its third quarter Upstream output was between 1.735 million and 1.835 million barrels of oil equivalent per day, compared to 1.824 million in the second quarter, tightened from a prior view of 1.680 million to 1.880 million. It expects exploration well write-offs of around USD300 million.
In Integrated Gas, output between 740,000 and 780,000 boe per day is expected, up from 631,000 in the second quarter, and above prior guidance of 570,000 to 630,000 boe per day.
The new outlook includes volumes from the acquisition of ARC Resources, which completed in September, and Qatar, where production has been disrupted by the Middle East war.
In the Marketing unit, Shell said adjusted earnings will weaken on-quarter.
Elsewhere, it reported cash flow from operations will include a roughly USD2.5 billion outflow related to the timing of payments of emissions certificates linked to Germany's fuel emissions trading act. This sum is historically paid in the fourth quarter, Shell notes.
Non-cash post tax impairments of biogas assets in Marketing are expected to be largely offset by an impairment reversal in Integrated Gas. Both are reported as identified items.
Net debt will be impacted by ARC acquisition cash consideration and assumption of debt, and an increase in variable components of long-term shipping leases in the current macro environment, the firm added.
Shares in Shell rose 0.4% to 3,665.00 pence each in London on Wednesday.
Shell releases quarterly results on October 29.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Shell