Shell PLC (LSE:SHEL, NYSE:SHEL), the global energy group, said refining margins strengthened sharply in the third quarter while integrated gas production increased following the acquisition of ARC Resources.
Shell expects its indicative refining margin to rise to $42 a barrel from $24 in the second quarter, although its indicative chemicals margin is forecast to fall to $208 a tonne from $270.
Integrated Gas production is expected at between 740,000 and 780,000 barrels of oil equivalent per day, up from 631,000 in the previous quarter, with the outlook including ARC Resources following completion of the acquisition on 2 September. Pasted text
Liquefied natural gas volumes are expected to be between 7.2 million and 7.6 million tonnes compared with 7.7 million tonnes previously.
Upstream production is forecast at between 1.735 million and 1.835 million barrels of oil equivalent per day, while exploration well write-offs are expected to total about $300 million.
Shell said Marketing adjusted earnings are expected to be lower than in the second quarter, with sales volumes forecast between 2.55 million and 2.65 million barrels per day.
Refinery utilisation is expected to be between 93% and 97%, down from 102%, partly because low Rhine water levels are affecting the Rheinland refinery.
Cash flow from operating activities excluding working capital is expected to include an approximately $2.5 billion outflow related to the timing of German emissions certificate payments.
Net debt will also reflect the ARC acquisition, assumed debt and higher variable components of long-term shipping leases.
Shell will publish its third-quarter results on 29 October.
Source: www.proactiveinvestors.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
