Bumper gas production and trading give Shell a lift in fourth quarter
Oil giant Shell has issued a mixed production and trading update today ahead of its fourth-quarter results next month.
In the update, the company said it would report increased production and income at its gas division, but a downturn at its chemicals arm and a raft of financial impairments would eat into profit.
The FTSE 100-listed oil major forecast production of 880 to 920 kboe/d from its integrated gas arm with trading and optimisation income expected to be “significantly” higher than the third quarter thanks to seasonality and opportunities.
The upstream business is forecast to land a production of between 1,830 to 1,930 kboe/d in the fourth quarter with exploration well-write-offs expected to total $200m (£160m).
But the group’s chemicals unit is expected to drag on profit with the division set to make a loss in the fourth quarter on an adjusted basis.
Additionally, the firm says it will take non-cash post-tax impairments of between $2.5bn (£2bn) and $4.5bn (£3.6bn) driven by macroeconomic and external developments.
The company’s share price was down 1.9 per cent to 2,521p today following the news.
Shell is due to report fourth-quarter results on 1 February.