Shell raises Q3 gas output and refining margin outlook
Shell upgraded its third‑quarter integrated gas production outlook to 740,000‑780,000 barrels of oil equivalent per day and lifted its indicative refining margin to $42 per barrel. The upgrades reflect the completion of the ARC Resources acquisition on 2 September and operational improvements. The company also flagged an outflow of about $2.5 billion linked to German emissions‑certificate payments. Full results are scheduled for 29 October.
Why it matters
RBC Capital analyst Biraj Borkhataria said the update should trigger consensus upgrades, while Jefferies analyst Mark Wilson noted the outlook could lift net‑income consensus by roughly 4 %. The $2.5 billion cash outflow may increase net debt in the quarter.
Key facts
- 1Integrated Gas production outlook raised to 740,000‑780,000 kboe/d. proactiveinvestors.co.uk
- 2Indicative refining margin raised to $42 per barrel. proactiveinvestors.co.uk
- 3ARC Resources acquisition completed on 2 September. proactiveinvestors.co.uk
- 4Approximately $2.5 billion outflow related to emissions‑certificate payments. proactiveinvestors.co.uk
- 5Upstream production forecast narrowed to 1,735,000‑1,835,000 kboe/d. proactiveinvestors.co.uk
- 6Refinery utilisation forecast at 93‑97% of capacity. proactiveinvestors.co.uk
Open questions
- Conflicting refinery utilisation figures: 93‑97% (material 1) versus ~95% (material 4).
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.