Shell Tweaks Q3 Production Outlook Ahead Of Results Next Month: What's Going On?

Shell PLC SHEL revised its Q3 FY23 operational outlook.

For Integrated Gas, the company updated the production outlook to be 880-920 thousand boe/d (vs. 870-930 thousand boe/d expected earlier), and LNG liquefaction volumes of 6.6 - 7.0 MT (vs. 6.3 - 6.9 MT expected earlier). 

The revised outlook reflects scheduled maintenance, which includes Prelude and Trinidad and Tobago.

For Upstream, Shell narrowed production guidance to 1,700-1,800 thousand boe/d (vs. 1,600-1,800 thousand boe/d earlier).

For marketing, the company lowered the higher end of the sales volume guidance to 2,450-2,850 thousand b/d (vs. 2,450-2,950 projected earlier).

Chemicals & Products: The company currently sees refinery utilization of 82% - 86% and Chemicals utilization of 68% - 72% (vs. 67% - 75% prior).

Shell projects Q3 chemicals sub-segment adjusted earnings to align with Q2 FY23.

The company expects to release Q3 FY23 results on November 2, 2023.

In July, the company reported Q2 2023 revenues of $74.6 billion, missing the consensus of $79.2 billion, and adjusted earnings per ADS of $1.50 missed the consensus of $1.61. 

Adjusted EBITDA declined 37% Y/Y to $14.4 billion in Q2 on a reduction in oil and gas prices, refining margins, volume decline, and lower LNG trading & optimization results.

Also Read: BP And Shell Dive Deep: New Exploration Deal With Trinidad And Tobago Following Complex Negotiations

Price Action: SHEL shares are trading higher by 1.45% at $63.57 premarket on the last check Friday.