Shell plc (NYSE:SHEL) updated its first quarter FY24 operational outlook, reflecting lower results from its liquefied natural gas (LNG) trading business.
For Integrated Gas, the company updated the production outlook to be 960 – 1,000 thousand boe/d (vs. 930 – 990 thousand boe/d expected earlier) and LNG liquefaction volumes to 7.2 – 7.6 MT (vs. 7.0 – 7.6 MT prior).
The outlook reflects Trading & Optimisation results are expected to be strong but significantly lower Q/Q.
For Upstream, Shell narrowed production guidance to 1,820-1,920 thousand boe/d (vs. 1,730-1,930 thousand boe/d earlier), with shares of profit / (loss) of joint ventures and associates expected to be ~$0.5 billion and exploration well-write offs projected to be ~$0.6 billion, mainly in Albania.
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For marketing, the company lowered the top end of the sales volume guidance to 2,150-2,550 thousand b/d (vs. 2,150-2,650 projected earlier).
For Chemicals & Products, Shell currently sees refinery utilization of 89% – 93% (vs. 83% – 91% earlier), reflecting planned maintenance activities in North America and Chemicals utilization of 71% – 75% (vs. 68% – 76% prior).
In February, SHEL reported a fourth-quarter FY23 revenue of $78.73 billion, missing the consensus of $84.71 billion. Adjusted earnings per ADS for the quarter was $2.22, above the consensus of $0.97.
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Price Action: SHEL shares are up 0.41% at $70.54 premarket on the last check Friday.
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