Shell’s Upstream, Gas Divisions Drive Earnings — Energy Comment
By Christian Moess Laursen
Shell’s third-quarter earnings were driven by strong performance by its integrated gas and upstream units, partially offsetting the hit from lower refining demand and oil price. Here’s what the British energy giant had to say.
On integrated:
“Total oil and gas production, compared with the second quarter 2024, decreased by 4% mainly due to production sharing contract effects, and higher maintenance in Trinidad and Tobago.”
“Liquefied natural gas liquefaction volumes increased by 8% mainly due to higher feed gas supply in Nigeria, and Trinidad and Tobago.”
On earnings:
“Income attributable to Shell shareholders, compared with the second quarter 2024, reflected lower refining margins, lower realized oil prices and higher operating expenses partly offset by favorable tax movements, and higher Integrated Gas volumes.”
“Cash flow from operating activities for the third quarter 2024 was $14.7 billion, and primarily driven by adjusted earnings before interest, taxes, depreciation and amortization, and working capital inflows of $2.7 billion partly offset by tax payments of $3.0 billion.”
On upstream:
“Total production, compared with the second quarter 2024, increased mainly due to new oil production.”
On downstream:
“Marketing sales volumes (comprising hydrocarbon sales), compared with the second quarter 2024, increased mainly due to seasonality.”
“Chemicals manufacturing plant utilization was 76% compared with 80% in the second quarter 2024, due to higher planned and unplanned maintenance.”
“Refinery utilization was 81% compared with 92% in the second quarter 2024, due to higher planned and unplanned maintenance.”
On fourth-quarter outlook:
“Integrated Gas production is expected to be approximately 900,000-960,000 barrels of oil-equivalent a day, [reflecting] scheduled maintenance at Pearl GTL in Qatar.
“LNG liquefaction volumes are expected to be approximately 6.9 million-7.5 million metric tons.”
“Upstream production is expected to be approximately 1.75 million-1.95 million BOE a day.”
“Marketing sales volumes are expected to be approximately 2.55 million-3.05 million barrels a day.”
“Refinery utilization is expected to be approximately 75%-83%.”
“Chemicals manufacturing plant utilization is expected to be approximately 72%-80%.”
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
October 31, 2024 07:45 ET (11:45 GMT)
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