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Shell announced this in its fourth-quarter update note on Wednesday.
“Trading and optimization results are expected to be significantly lower than Q3 2024, driven by the (non-cash) impact of expiring hedging contracts,” the UK-based firm said.
“Q4 2024 exploration well write-offs are expected to be $0.3 billion,” it said.
Shell’s integrated gas segment reported adjusted earnings of about $2.87 billion in the third quarter of 2024.
This compares to $2.53 billion in the same period in 2023 and $2.67 billion in the prior quarter.
Overall, Shell’s adjusted earnings reached $6.03 billion in the third quarter, down 3.1 compared to $6.22 billion in the comparable quarter last year, and down 4 percent compared to $6.29 billion in the prior quarter.
Lower liquefaction volumes
Shell also said in the quarterly update that it expects liquefaction volumes to reach about 6.8 – 7.2 million tonnes in the third quarter.
According to Shell, this is due to lower feedgas, and fewer cargos due to the timing of liftings.
The company previously expected liquefaction volumes to reach about 6.9 – 7.5 million tonnes in the fourth quarter of 2024.
Shell’s liquefaction volumes rose to 7.50 million tonnes in the third quarter of 2024, compared to 6.88 million tonnes in the comparable quarter and 6.95 million tonnes in the prior quarter.
The company’s liquefaction volumes increased by 8 percent compared to the prior quarter, mainly due to higher feedgas supply in Nigeria and Trinidad and Tobago.
Gas production
Shell expects integrated gas production to reach 880–920 kboe/d in the fourth quarter, while upstream production is expected to be at 1,790-1,850 kboe/d.
The new gas production outlook reflects scheduled maintenance at Pearl GTL in Qatar in the fourth quarter of 2024.
Shell previously expected gas production to be between 900 – 960 kboe/d and upstream production to be between 1,750 – 1,950 kboe/d.
The company also said in the update that net debt is expected to include “$4 – 6 billion of new lease liabilities recognized in Q4 2024, including the recognition of the LNG Canada pipeline liability.”
Shell’s results are scheduled to be published on January 30, 2025.