7th Jul 2025 09:02
(Alliance News) - Shell PLC on Monday set out a weaker top-end outlook range for Integrated Gas production and warned of a second quarter loss in Chemicals & Products.
In response, shares in the London-based oil major fell 2.7% to 2,557.50 pence in London on Monday morning. The wider FTSE 100 index was down just 0.2%.
In a pre-results update, Shell said it expects output between 900,000 and 940,000 barrels of oil equivalent per day in Integrated Gas, compared to a 890,000 to 950,000 boepd range given in its first quarter results.
Liquified natural gas liquefaction volumes of 6.4 million to 6.8 million metric tonnes are expected, the top end of the range trimmed from 6.9 million, but the bottom raised from 6.3 million.
Gas trading is expected to be significantly lower quarter-on-quarter, Shell said.
In Upstream, its second quarter output forecast range stands at 1.66 million to 1.76 million boepd, the bottom end lifted from the 1.56 million in the outlook range given in its first quarter results.
Shell expects USD200 million in exploration well write-offs in the quarter and a USD200 million loss from joint ventures and associates.
The Chemicals & Products segment is expected to be loss-making in the second quarter, impacted by unplanned maintenance at Monaca and weaker trading.
Last month, Shell suffered an explosion and fire at one of the seven furnaces at its Monaca ethane cracker in the US state of Pennsylvania.
Adjusted earnings in the Marketing division are expected to be higher than the first quarter.
Shell expects earnings in Renewables and Energy Solutions to be in the range of minus USD400 million to plus USD200 million.
In addition, Shell guided to a working capital move of minus USD1 billion to plus USD4 billion, with a derivative impact of minus USD1 billion to plus USD3 billion.
The group’s cash tax guidance for the quarter sits at USD2.8 billion to USD3.6 billion.
Shell second quarter results are scheduled for July 31.
By Jeremy Cutler, Alliance News reporter
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