Shell forecasts sharp rise in third-quarter refining margin
Shell said its indicative refining margin for the July-to-September quarter is expected to reach $42 per barrel, compared with $24 per barrel in the prior quarter. Higher prices for diesel and other refined fuels are supporting the products business, while low Rhine water levels constrained operations at its Rheinland refinery. The company also lifted its integrated gas production range after acquiring ARC Resources.
Why it matters
Raymond James chief investment commentator Garry White said Shell's update points to a strong third-quarter result and that another earnings outperformance is possible. White also said Shell's integrated structure can benefit during volatile energy markets, although chemicals remain weak and the group has one-off costs.
Key facts
- 1Shell forecast an indicative refining margin of $42 per barrel for the July-to-September period. aol.co.uk
- 2The company reported an indicative refining margin of $24 per barrel in the second quarter. cityam.com
- 3Shell said refinery utilisation would be between 93 per cent and 97 per cent, versus 102 per cent in the second quarter. cityam.com
- 4Shell projected integrated gas output of 740,000–780,000 barrels of oil equivalent per day after the ARC Resources acquisition. cityam.com
- 5Garry White of Raymond James said Shell is due to report its full figures on 29 October. finance.yahoo.com
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.