Shell signals stronger third-quarter refining margins and higher gas output
Shell's third-quarter update points to a sharp increase in refining profitability and higher Integrated Gas production after its ARC Resources acquisition. The company forecasts an indicative refining margin of $42 a barrel, versus $24 in the preceding quarter, while Integrated Gas output is expected at 740,000 to 780,000 barrels of oil equivalent per day. LNG volumes are set to decline from the prior quarter, and Shell expects lower Marketing adjusted earnings.
Why it matters
The update indicates that stronger refining conditions and higher gas volumes could support third-quarter operating performance. Shell also expects cash flow excluding working capital to be reduced by German emissions certificate payments, while net debt will reflect the ARC Resources transaction and vessel-lease costs.
Key facts
- 1Shell expects its indicative refining margin to reach $42 a barrel in the third quarter, compared with $24 in the second quarter. finance.yahoo.com
- 2Integrated Gas production is forecast at 740,000 to 780,000 barrels of oil equivalent per day, after 631,000 in the prior quarter. finance.yahoo.com
- 3Shell expects LNG volumes of 7.2 million to 7.6 million tonnes, compared with 7.7 million tonnes previously. finance.yahoo.com
- 4The company projects Upstream production of 1.735 million to 1.835 million barrels of oil equivalent per day. finance.yahoo.com
- 5Refinery utilisation is expected to be between 93% and 97%, with low Rhine water levels affecting the Rheinland refinery. finance.yahoo.com
- 6Shell has scheduled publication of its third-quarter results for 29 October. finance.yahoo.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.