Shell's LNG Trading Update Reveals Surprising Shifts: Details

Shell plc SHEL updated its first quarter FY24 operational outlook, reflecting lower results from its liquefied natural gas (LNG) trading business.

For Integrated Gas, the company updated the production outlook to be 960 – 1,000 thousand boe/d (vs. 930 – 990 thousand boe/d expected earlier) and LNG liquefaction volumes to 7.2 – 7.6 MT (vs. 7.0 – 7.6 MT prior).

The outlook reflects Trading & Optimisation results are expected to be strong but significantly lower Q/Q.

For Upstream, Shell narrowed production guidance to 1,820-1,920 thousand boe/d (vs. 1,730-1,930 thousand boe/d earlier), with shares of profit / (loss) of joint ventures and associates expected to be ~$0.5 billion and exploration well-write offs projected to be ~$0.6 billion, mainly in Albania.

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For marketing, the company lowered the top end of the sales volume guidance to 2,150-2,550 thousand b/d (vs. 2,150-2,650 projected earlier).

For Chemicals & Products, Shell currently sees refinery utilization of 89% – 93% (vs. 83% – 91% earlier), reflecting planned maintenance activities in North America and Chemicals utilization of 71% – 75% (vs. 68% – 76% prior).

In February, SHEL reported a fourth-quarter FY23 revenue of $78.73 billion, missing the consensus of $84.71 billion. Adjusted earnings per ADS for the quarter was $2.22, above the consensus of $0.97.

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Price Action: SHEL shares are up 0.41% at $70.54 premarket on the last check Friday.

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