Shell posted record results, with a USD11.5 billion second-quarter profit smashing the mark it set only three months ago, lifted by strong gas trading and a tripling of refining profit, said the company.
Higher feedstock and utility costs and higher turnaround activities hit Shell’s chemicals earnings in the second quarter. Shell reported an loss attributable to shareholders for the business of USD158m.
Chemicals sales volumes in the quarter were down 8% year on year. Shell said the chemicals margin decrease after tax was USD160m from the prior year’s second quarter. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for chemicals in the latest quarter were USD2m.
Shell's combined chemicals and products business posted a 66.8% year-on-year increase in EBITDA because of higher realised margins, the energy major said. The dislocation in refined products markets, particularly middle distillates, pushed margins higher. Trading results were strong because demand outpaced supply below what Shell called “exceptional” results in Q1 2022.
We remind, Shell withdrew from the authorized capital of the Gydan Energy joint venture with Gazprom Neft on the Gydan Peninsula. On May 19, Gazprom Neft became the only participant in Gydan Energy with a 100% share. Previously, the partners each owned 50% in the authorized capital of the enterprise. Shell and Gazprom Neft set up a joint venture in November 2021 in the Yenisei project on the Gydan, which includes two license blocks, Leskinsky and Pukhutsyakhsky.
In addition, Shell in its reporting for the first quarter of 2022 recognized the cost of leaving Russian assets at USD 3.9 billion after taxes. Earlier, she informed that the losses could amount to USD 4-5 billion.
Shell is a British-Dutch oil and gas concern engaged in the extraction, processing and marketing of hydrocarbons in more than 70 countries.
mrchub.com