Shell shares rise slightly on third-quarter outlook
By Josh White
Date: Monday 07 Oct 2024
(Sharecast News) - Shell released its third-quarter 2024 outlook on Monday, reporting that in the integrated gas segment, it expected production to range between 920,000 and 960,000 barrels of oil equivalent per day, with LNG liquefaction volumes between 7.3 million and 7.7 million tonnes.
The FTSE 100 oil giant said the segment's operating expenses were projected to be between $1.1bn and $1.3bn, while adjusted earnings were expected to see pre-tax depreciation of $1.2bn to $1.6bn.
It said the taxation charge for the quarter was estimated between $800m and $1.1bn.
For the upstream division, Shell forecasted sales volumes between 2.75 million and 3.15 million barrels per day, with underlying operating expenses of $2.5bn to $2.9bn.
Pre-tax depreciation for the segment was expected to range from $400m to $800m, with taxation charges estimated between $200m and $500m.
In the chemicals and products segment, indicative refining margins were expected to average $5.50 per barrel, while chemicals margins were projected at $164 per tonne.
The company said it anticipated a marginal loss in the chemicals sub-segment for the quarter.
Refinery utilisation was forecast between 79% and 83%, while chemicals utilisation was expected to range from 73% to 77%.
The segment's adjusted earnings would be impacted by pre-tax depreciation of $800m to $1bn.
In the renewables and energy solutions division, Shell said it expected adjusted earnings to range between a loss of $400m and a gain of $200m, reflecting ongoing challenges in this growing segment.
At the corporate level, Shell anticipated adjusted losses of between $700m and $500m, with cash flow from operations impacted by tax payments ranging from $2.5bn to $3.3bn, and working capital movements estimated between $0 and $4bn.
Shell's consensus earnings expectations, managed by Vara Research, were scheduled to be published on 23 October, ahead of the company's full third-quarter results.
At 0849 BST, shares in Shell were up 0.54% at 2,591.5p.
Reporting by Josh White for Sharecast.com.
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