Weaker refining, gas trading to hit Shell's Q3 results


LONDON: Shell said on Thursday its third-quarter profits would be pressured by a sharp drop in refining margins and "significantly" weaker earnings from natural gas trading.

The British energy giant reported two consecutive quarters of record profits in the first half of the year amid soaring oil and gas prices, and stellar earnings from its trading operations, the world's biggest.

But in the third quarter, indicative refining margins dropped to $15 a barrel compared with $28 a barrel in the previous three months, Shell said in an update ahead of its results on Oct. 27, amid growing concerns over a global economic slowdown.

And indicative margins for chemicals dropped to negative $27 per tonne versus a positive $86 in the second quarter amid a slump in demand for plastics.

The drop in refining margins will have a negative impact of between $1 and $1.4 billion on the segment's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Shell said.

Shell's third quarter liquefied natural gas (LNG) and gas trading results are expected to be "significantly lower" due to lower seasonal demand as well as "substantial differences between paper and physical realisation in a volatile and dislocated market." - Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Shell , refining , natural gas , LNG

   

Next In Business News

World stocks push pause ahead of U.S. payrolls
Ringgit strengthens further to 4.38 against US dollar, highest since June
Bursa Malaysia extends after-hours trading session for selected derivatives contracts to 2.30 am
UEM Sunrise disposes 17 parcels of land for RM75.5mil
Reservoir Link wins five solar contracts worth RM12.05mil
FBM KLCI finishes lower despite positive market breadth
CIMB introduces enhanced security measures
Gold slips; set for best week in three on smaller Fed rate-hike bets
Harn Len shareholders approve bonus shares
Asian shares fall ahead of U.S. payrolls data, dollar nurses losses

Others Also Read