7th Jul 2023 08:50
(Alliance News) - Shell PLC on Friday said it expects to report broadly stable, but in some cases decreased production, as well as lower earnings for the second quarter of 2023.
The London-based major oil and gas company said it expects integrated gas production between 950,000 and 990,000 barrels of oil equivalent per day for the second quarter of 2023, compared with 970,000 barrels in the first quarter. Production reached 944,000 barrels in the second quarter of 2022.
Shell expects "Trading & Optimisation" to be "significantly lower" due to seasonality and fewer optimisation opportunities.
Shell also anticipates second-quarter upstream production between 1.7 million and 1.8 million barrels of oil equivalent per day, down from 1.9 million barrels both in the previous quarter and for the second quarter of 2022.
The company said this reflected scheduled maintenance on various assets, including projects in the Gulf of Mexico, Norway, Malaysia and Brazil. It expects well write-offs of around USD200 million.
For its Marketing division, Shell expects an underlying operating expense of between USD2.0 billion and USD2.4 billion, compared with USD2.1 billion in the first quarter.
Sales volumes should be between USD2.4 million and 2.8 million barrels per day, compared with 2.4 million in the previous quarter. This was down from 2.5 million for the same period last year. However, marketing results are generally expected to be in line with those of the first quarter.
It also expects to narrow its second-quarter Corporate adjusted loss to between USD800 million and USD600 million, down from USD1.0 billion the previous quarter. It reported a USD626 million loss in the second quarter of 2022.
In Renewables & Energy Solutions, Shell said it anticipates adjusted earnings to be somewhere between a USD300 million loss and a USD300 million profit. Regardless, this would be down from earnings of USD400 million in the previous quarter and down from USD700 million in the second quarter of last year.
Finally, in Chemicals & Products, Shell expects an indicative refining margin of USD9 per barrel, down from USD15 per barrel in the previous quarter and down from USD28 the year before.
However, it expects its indicative chemicals refining margin to increase to USD150 per tonne from USD138 per tonne, and from USD86 per tonne in 2022. Overall, the company expects trading & optimisation to be lower than in the first quarter.
Shell's stock was down 0.4% at 2,256.50 pence in London on Friday morning.
By Emma Curzon, Alliance News reporter
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