Shell expects “significantly lower” LNG trading results in Q3

LNG giant Shell is expecting “significantly lower” trading and optimization results for its integrated gas business in the third quarter of this year compared to the previous quarter.

Shell said in its third-quarter update note on Thursday this is due to “seasonality and substantial differences between paper and physical realization in a volatile and dislocated market”.

According to the firm, indicative refining margins dropped to $15 a barrel compared with $28 a barrel in the previous three months.

This drop would have a negative impact of between $1 and $1.4 billion on the chemical and product’s adjusted earnings before interest, taxes, depreciation and amortization, it said.

The company expects LNG liquefaction volumes to be between 6.9 and 7.5 million tonnes, in line with the previous forecast.

Shell posted record high adjusted earnings of $11.47 billion in the second quarter on the back of high oil and gas prices.

Also, the company’s integrated gas segment reported a jump in earnings. The segment earned $8.1 billion, compared to $965 million in the same period a year ago and $3.07 billion in the prior quarter.

Shell plans to release third-quarter results on October 27.

- Advertisements -

Most Popular

QatarEnergy, ExxonMobil expect first LNG from Golden Pass plant in H1 2025

Energy giants QatarEnergy and ExxonMobil are expecting to start LNG production at their Golden Pass LNG export terminal on...

VTTI and Hoegh LNG join forces on Dutch FSRU terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, is joining forces with FSRU player Hoegh LNG...

Charif Souki steps down as chairman of Tellurian

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

More News Like This

Third LNG Canada electric tug delivered

HaiSea Marine’s third and final electric tugboat which will serve the Shell-led LNG Canada project is on its way...

Trinidad seals Atlantic LNG restructuring deal with Shell and BP

Trinidad and Tobago has finally signed a restructuring deal with the shareholders of LNG producer Atlantic LNG, Shell, BP,...

Peru LNG terminal sent four cargoes in November

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped four liquefied natural gas cargoes in November, the same number...

Shell hits gas offshore Egypt

LNG giant Shell has discovered natural gas in Egypt's North East El-Amriya block, located in the Mediterranean Sea. Shell's unit...