7th Oct 2025 08:12
(Alliance News) - Shell PLC on Tuesday said it expects stronger trading results from its Integrated Gas division in the third quarter, alongside increased upstream output and stable refining margins, as the energy major updated guidance ahead of its results.
The London-based oil and gas company said trading and optimisation results in its Integrated Gas segment are expected to be "significantly higher" compared to the second quarter, driven by higher liquefied natural gas volumes and stronger market conditions.
LNG liquefaction volumes in the three months that ended September 30 are estimated at 7.0 million to 7.4 million tonnes, up from 6.7 million in the prior quarter, while production is seen between 910,000 and 950,000 barrels of oil equivalent per day, little changed from 913,000 in the second quarter.
In its Upstream division, Shell estimates that production rose to between 1.8 million and 1.9 million boe per day in the third quarter from 1.7 million in the second quarter.
Adjusted earnings will reflect a USD200 million to USD400 million impact linked to the rebalancing of participation interests in Brazil's Tupi field, following the redetermination proposal submitted to the Brazilian National Agency of Petroleum, Natural Gas & Biofuels.
The Marketing business is projected to deliver higher adjusted earnings versus the second quarter, with sales volumes forecast between 2.7 million and 3.1 million barrels per day, compared with 2.8 million previously.
In the Chemicals & Products segment, Shell said indicative refining margins have improved to USD11.60 per barrel from USD8.90 in the second quarter, while chemicals margins are estimated to have edged slightly lower to USD160 per tonne from USD166.
Refinery utilisation is expected to remain robust at 94% to 98%, while chemicals utilisation is guided by Shell between 79% and 83%. Trading and optimisation performance is also expected to be higher than in the prior quarter, though Shell said the chemicals sub-segment will likely post a loss.
The Renewables & Energy Solutions division is expected to post adjusted earnings in a range of negative USD200 million to positive USD400 million.
At the group level, Shell expects a corporate adjusted loss between USD500 million and USD300 million in the third quarter, narrowing from a USD500 million loss in the second quarter.
Non-cash, post-tax impairments and provisions of around USD600 million are anticipated in the Marketing segment following the cancellation of the Rotterdam HEFA biofuel project, which will be reported as separately identified items.
Shell also noted that an increase in gearing of 0.4 percentage point is expected in the third quarter due to new pension legislation in the Netherlands, though the non-cash adjustment will not affect net debt.
Tax payments are expected to total between USD2.1 billion and USD2.9 billion, compared with USD3.4 billion in the second quarter.
Shell said its final third-quarter results will be published on October 30, with consensus estimates compiled by Vara Research due to be released on October 22.
Shares in Shell were up 1.8% at 2,786.50 in London early Tuesday.
By Eva Castanedo, Alliance News reporter
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