Shell PLC said that it expects integrated gas trading and optimization results to fall on quarter, along with refining margins, but for market results to rise, said the company.
Shares at 0714 GMT were down 69.0 pence, or 2.9% at 2309.5 pence. The energy group said production for the third quarter in Integrated Gas is anticipated to be between 890,000 and 940,000 barrels of equivalent oil per day. It said it expects a third-quarter pretax depreciation between USD1.3 billion and USD1.7 billion.
Trading and optimization results for its Integrated Gas segment are expected to be lower compared with the second quarter of 2022, as a result of seasonality and substantial differences between paper and physical realization in a volatile and dislocated market.
In the chemicals and products division, the indicative refining margin is USD15 a barrel, compared with USD28 a barrel in the prior quarter. The company expects the decreased margin to have a negative impact of between USD1.0 billion and USD1.4 billion on adjusted earnings for products.
The indicative chemical margin is expected to swing to negative USD27 per ton, compared to positive USD86 a ton; the swing is expected to hit third-quarter adjusted earnings in chemicals by between USD300 million and USD600 million.
Upstream production is expected to be between 1.75 million and 1.85 million barrels of oil equivalent a day, and it expects a pretax depreciation between USD3.0 billion and USD3.4 billion. Marketing results are expected to be higher than in the second quarter, with oil products sales volumes expected to reach between 2.35 million and 2.75 million barrels of oil a day, the company said.
We remind, Mitsui Chemicals has asked Shell Catalysts & Technologies for its Shell S-896 catalyst, which is expected to provide important economic benefits from raw material (ethylene) savings and also help the organization meet the decarbonization goals for their ethylene oxide (EO) refinery in Osaka, Japan.
mrchub.com