Shell Plc has forecasted a surge in earnings from gas trading for the fourth quarter of 2023. This positive trajectory is attributed to seasonal market dynamics and heightened production of liquefied natural gas (LNG), a pivotal factor in recent profit gains.
Conversely, the company foresees diminished profits from its chemicals and oil products division during the same period, projecting a loss for this segment. This highlights a notable shift in the earnings composition for the quarter.
According to a Bloomberg report, it is noteworthy that Shell’s overall earnings in the previous quarter met market expectations, despite mixed results for the entire oil major sector.
This consistent performance aligns with Shell’s accelerated share buyback program and CEO Wael Sawan’s commitment to prioritizing shareholder returns.
The comprehensive Q4 results are scheduled for release on February 1st, 2024, offering further insights into Shell’s financial performance and strategic direction.
Shell’s gas trading division has proven to be a significant revenue generator since the increased volatility in fuel prices following Russia’s invasion of Ukraine.
The company has narrowed its production range for gas to 880,000 to 920,000 barrels equivalent of oil a day and increased the lower end of its liquefaction forecasts to 6.9 million tons from the previously stated 6.7 million.
The report also highlighted that trading and optimization from Shell’s chemicals and oil products division “is expected to be significantly lower” than in the previous quarter. Additionally, the company has narrowed its forecast range for upstream production volumes to 1.83 million to 1.93 million barrels a day.