Shell’s Q3 guidance highlights exceptional performance in its Integrated Gas and Chemicals & Products divisions, driven by robust LNG trading and a sharp rebound in refining margins.
The company said Trading and Optimisation results in Integrated Gas will be “significantly higher” than Q2, supported by strong arbitrage execution in global LNG markets and rising liquefaction volumes of 7.0–7.4 million tonnes. Refining profitability also jumped, with indicative margins up 30% to $11.6 per barrel and utilization running between 94% and 98%, amplifying exposure to favorable market conditions.
However, management cautioned that results may be distorted by a potential $3 billion working capital outflow and high derivative volatility, ranging from a $2 billion outflow to a $2 billion inflow. Additional non-recurring impacts include a $0.6 billion impairment from the canceled Rotterdam HEFA (Sustainable Aviation Fuel) project and a $0.2–$0.4 billion earnings hit tied to Brazil’s Tupi field redetermination.
Despite these one-offs, Shell’s trading and refining engines remain the primary drivers of profitability heading into the October 30 results release.
Source: Material-Car261