- Shell plc (NYSE:SHEL) has issued a lower profit warning after lower refining & chemicals margins, and weaker gas trading weighed on third-quarter earnings.
- The energy giant reported a negative margin of $27 per metric tonne in its chemical unit versus a positive $86 in the second quarter after global demand for plastics slumped.
- Shell also reported a decline in its refining margins as oil prices eased back from their recent highs.
- Shell said fuel-refining costs would impact its third-quarter results by $1 billion to $1.4 billion compared with the second quarter. The company said its indicative refining margin fell 46% to $15.03 a barrel from $28.04 in Q2.
- Shell has cashed in on soaring prices mainly sparked by Russia’s invasion of Ukraine, posting record profits of $11.5 billion in the second quarter.
- Shell also expects cash generation to be impacted by a $2.5 billion working capital outflow due to large fluctuations in oil and gas prices in recent months.
- Shell’s third-quarter liquefied natural gas and gas trading results are expected to be “significantly lower” due to lower seasonal demand and “substantial differences between paper and physical realization in a volatile and dislocated market.”
- Price Action: SHEL shares are down 5.53% at $51.03 during the premarket session on the last check Thursday.
Why Is U-Haul Stock Trading Down Wednesday?
U-Haul Holding Company (NYSE: UHAL) shares are moving lower Wednesday on the heels of a disappointing earnings report.
