By Christian Moess Laursen
Shell third-quarter trading gains were driven by higher refining margins, realized oil prices, liquefied natural gas trading, and higher upstream production, partly offset by lower integrated gas volumes. Quarterly output across segments came in line with its expectations released last month. Here's what the British energy major had to say.
On integrated gas:
"3Q Production 900 kboe/d "
"3Q liquefied natural gas liquefaction volumes 6.9 million metric tons."
"LNG liquefaction volumes decreased by 4% mainly due to higher maintenance at Prelude."
"Total oil and gas production, compared with the first nine months 2022, increased by 3% mainly due to lower maintenance in Pearl GTL [plant in Qatar], Trinidad and Tobago, and ramp-up of new fields in Oman and Canada, partly offset by derecognition of Sakhalin, Russia-related volumes, and production-sharing contract effects in Pearl GTL."
"[4Q] integrated gas production is expected to be approximately 870-930 thousand boe/d. LNG liquefaction volumes are expected to be approximately 6.7-7.3 million tons."
"Outlook reflects ongoing maintenance at Prelude [platform offshore Australia] and lower expected liquefaction volumes from Egypt."
On upstream:
"Total 3Q production 1,753 kboe/d"
"Adjusted earnings higher in 3Q 2023 due to higher oil prices and higher production volumes. Production was higher, with strong performance in Deep Water."
"[4Q] upstream production is expected to be approximately 1,750-1,950 thousand boe/d.
"Production outlook reflects the closure of the Groningen gas field [in the Netherlands]."
On chemicals & products:
"3Q refinery utilization 84%, 4Q 2023 outlook 75%-83%"
"3Q chemicals manufacturing plant utilization 70%, 4Q 2023 outlook 62%-70%"
"Higher refining margins in 3Q 2023 driven by lower global product supply combined with higher demand. Chemicals margins continue to be impacted by weak demand. Trading and optimization margins are higher than in 2Q 2023."
"[4Q] refinery utilization is expected to be approximately 75%-83%, due to planned maintenance activities in North America."
"[4Q] chemicals manufacturing plant utilization is expected to be approximately 62%-70%."
On renewables & energy solutions:
"Adjusted earnings are lower than in 2Q 2023 mainly driven by lower margins due to seasonal impacts, primarily in Europe, and lower trading and optimization results."
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
11-02-23 0519ET
