8th Jan 2025 09:05
(Alliance News) - 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 USD300 million in Integrated Gas. Adjusted earnings pretax and depreciation in Integrated Gas between USD1.2 billion and USD1.6 billion are expected, compared to USD1.4 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 USD2.4 billion and USD3.1 billion in Upstream, compared to USD2.7 billion in the third quarter. Upstream exploration well write-offs of around USD400 million are expected.
In the Marketing division, earnings between USD400 million and USD800 million are predicted after it achieved USD600 million in the third quarter.
Shell forecasts an earnings outcome between USD800 million and USD1.0 billion in Chemicals & Products, compared to USD900 million in the third quarter.
In Chemicals & Products, Shell forecasts an earnings outcome between USD800 million and USD1.0 billion, compared to USD900 million in the third quarter - with the chemicals sub-segment alone expected to reflect a loss.
By Michael Hennessey, Alliance News reporter
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