Shell Raises Q3 Upstream Production Outlook, Revises Integrated Gas Guidance

Shell plc SHEL shares are trading higher premarket today. The British energy company updated its operational outlook for the third quarter of FY24.

Outlook Revised: For Integrated Gas, the company updated the production outlook to 920 – 960 (from 920 – 980 thousand boe/d expected earlier) and LNG liquefaction volumes to 7.3 – 7.7 MT (vs. 6.8 – 7.4 MT prior).

The outlook reflects that Trading and optimization results are expected to be in line with the second-quarter FY24.

For Upstream, Shell raised production guidance to 1,740 – 1,840 thousand boe/d earlier (from 1,580 – 1,780 thousand boe/d earlier), with shares of profit / (loss) of joint ventures and associates expected to be ~$0.1 billion and exploration well-write offs projected to be ~$0.1 billion.

Also Read: Shell, TotalEnergies, Equinor Complete Carbon Storage Project: Exec Says Joint Venture Plays ‘Vital’ Environmental Role

For Marketing, the company tightened the outlook for sales volume guidance, with the revised range at 2,750 – 3,150 thousand b/d (vs. 2,700 – 3,200 projected earlier).

For Chemicals & Products, Shell currently sees refinery utilization of 79% – 83% (vs. 83% – 91% earlier) and Chemicals utilization of 73% – 77% (vs. 73% – 81% prior).

In August, Shell reported second-quarter FY24 revenue of $74.46 billion, beating consensus of $61.33 billion. Adjusted earnings per ADS of $1.98 beat the consensus of $1.82.

Investors can gain exposure to Shell via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF EIPX and VanEck Natural Resources ETF HAP.

Price Action: SHEL shares are up 1.01% at $69.20 premarket at the last check Monday.

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