Core Insights - Shell plc has provided an update on its second-quarter outlook for its integrated gas division and LNG production, indicating expectations of weaker results compared to the previous quarter [1][5] Integrated Gas Division - Shell has lowered its production guidance for the integrated gas division to a range of 900,000-940,000 barrels of oil equivalent per day (boe/d), down from the previously announced range of 890,000-950,000 boe/d [2][10] - LNG production guidance has also been revised to an expected range of 6.4-6.8 million metric tons, compared to the earlier range of 6.3-6.9 million tons [2][10] - Weaker gas trading results are anticipated compared to the first quarter [2][10] Marketing Division - In the marketing division, Shell expects second-quarter sales volumes to increase, with anticipated sales volumes in the range of 2.6-3 million barrels per day (bpd), slightly lower than prior expectations of 2.6-3.1 million bpd [3] Chemicals Division - The chemicals division is expected to incur a loss in the second quarter, with a utilization rate projected between 68% and 72%, significantly down from 81% in the first quarter [4] - Unplanned maintenance at the Monaca plant has negatively impacted chemical utilization [4] Overall Expectations - Shell anticipates weaker results in the second quarter, particularly in the Integrated Gas and Chemicals & Products divisions [5] - The company expects exploration well write-offs in the upstream division to be approximately $200 million [5]

Group 1 - Tesla's stock price fell by 7.6% in pre-market trading, marking the largest decline since early June, with a year-to-date drop of 22% [1] - Shell Plc anticipates a significant decrease in contributions from its oil and gas trading business for Q2 compared to Q1 [1] - Google faces antitrust complaints from independent publishers regarding its AI summaries [1] Group 2 - Huya Inc. saw a pre-market increase of 2.4% after acquiring broadcasting rights for the 2025 Esports World Cup in Riyadh, Saudi Arabia [1] - Honda has halted the development of a large SUV, which was part of its electric vehicle strategy [1] - Stellantis reported a 10% year-over-year decline in vehicle deliveries in the U.S. market for Q2, totaling 309,973 units [1] - Trump Media & Technology Group has launched a global television live streaming service [1]

Group 1 - Major stock indices are experiencing declines, with Dow futures down 0.20%, S&P 500 futures down 0.48%, and Nasdaq futures down 0.63% [1] - Tesla's stock dropped over 7% following Elon Musk's announcement to form a third political party, raising concerns among investors about potential impacts on the company's stock price [1] - Alibaba's stock fell over 1% amid a fierce competition in the food delivery market with Meituan, as both companies are offering substantial discounts to attract users [1] Group 2 - Shell's stock declined over 3% after the company reported weak second-quarter data, with lower-than-expected earnings from downstream operations [2] - Bank of America downgraded Stellantis' rating to neutral due to concerns over its European business and anticipated weak performance, projecting a 15% year-over-year decline in revenue for the first half [2] - JPMorgan expressed caution regarding the future of stablecoins, predicting the market size will only reach $500 billion by 2028, citing a lack of mainstream adoption [2] Group 3 - Retail investors in the U.S. achieved a record high in stock trading, with total transactions exceeding $6.6 trillion in the first half of 2025 [3] - Oracle is offering significant discounts on its licensed software and cloud services to U.S. government agencies, with a 75% discount on software [3]

Core Viewpoint - Shell warns that its second-quarter performance in natural gas and oil trading will be significantly lower than the previous three months [1] Group 1 - Shell's second-quarter trading performance is expected to decline compared to the first quarter [1]

Shell says its second-quarter trading results in both gas and oil will be significantly lower than the previous three months, in an indication of how major energy companies have navigated recent market volatility https://t.co/t8LuuOGxVE ...

Core Insights - The company provides an updated outlook for Q2 2025, with expectations subject to finalization of results to be published on July 31, 2025 [1] Integrated Gas - Adjusted EBITDA production is expected to be between 900 - 940 kboe/d, down from 927 kboe/d in Q1 2025 [2] - LNG liquefaction volumes are projected to be between 6.4 - 6.8 million tonnes, slightly lower than 6.6 million tonnes in Q1 2025 [2] - Underlying operating expenses (opex) are expected to remain stable at 1.0 - 1.2 billion [2] - The taxation charge is anticipated to decrease to between 0.3 - 0.6 billion from 0.8 billion in Q1 2025 [2] Upstream - Production is forecasted to decline to between 1,660 - 1,760 kboe/d, down from 1,855 kboe/d in Q1 2025, due to scheduled maintenance and the sale of SPDC in Nigeria [4] - Underlying opex is expected to range from 1.9 - 2.5 billion [4] - The taxation charge is projected to decrease to between 1.6 - 2.4 billion from 2.6 billion in Q1 2025 [4] - Joint ventures and associates are expected to contribute approximately 0.2 billion in profit/loss, with exploration well write-offs estimated at 0.2 billion [4] Marketing - Sales volumes are expected to be between 2,600 - 3,000 kb/d, down from 2,674 kb/d in Q1 2025 [5] - Underlying opex is projected to be between 2.3 - 2.7 billion [5] - The taxation charge is expected to decrease to between 0.2 - 0.6 billion from 0.4 billion in Q1 2025 [5] - Adjusted earnings are anticipated to be higher than Q1 2025 [6] Chemicals and Products - The indicative refining margin is expected to increase to $8.9/bbl from $6.2/bbl in Q1 2025 [8][14] - The indicative chemicals margin is projected to rise to $166/tonne from $126/tonne in Q1 2025, although adjusted earnings are expected to be a loss [8][14] - Refinery utilization is expected to improve to between 92% - 96% from 85% in Q1 2025, while chemicals utilization is expected to decline to between 68% - 72% due to unplanned maintenance [8] Renewables and Energy Solutions - Adjusted earnings are expected to range from (0.4) - 0.2 billion, indicating a potential loss [9] Corporate - Adjusted earnings are projected to be between (0.6) - (0.4) billion, slightly worse than (0.5) billion in Q1 2025 [10] Shell Group - Cash flow from operations (CFFO) is expected to see tax payments between 2.8 - 3.6 billion, slightly lower than 2.9 billion in Q1 2025 [11] - Working capital movements are projected to range from (1) - 4 billion, compared to (2.7) billion in Q1 2025 [11] Guidance and Consensus - The company will publish consensus managed by Vara Research on July 23, 2025 [13]

Group 1 - Ernst & Young LLP (EY) informed Shell plc that it was not in compliance with SEC auditor independence rules for the audits of the years ended December 31, 2023 and 2024, leading to the need for amended Form 20-Fs [1][2] - The financial statements for 2023 and 2024 remain unchanged despite the amendment, and EY's audit opinions are still unqualified [1][5] - EY determined that the lead audit partner for the applicable years had exceeded the allowed period under SEC audit partner rotation rules, making them ineligible for the role [3] Group 2 - A different partner has been assigned by EY to lead the audit, and it has been concluded that no changes to the previously issued financial statements are necessary [4] - The appropriate remediation has been completed, allowing EY to exercise objective and impartial judgment regarding the US audit opinions in the amended Form 20-Fs [4] - The time limitations under the UK Financial Reporting Council's Revised Ethical Standard regarding partner rotation were also exceeded, but no amended filings are required in the UK [7]

Core Viewpoint - Shell has denied any intention to acquire BP, citing a UK law that prohibits such a move for six months, focusing instead on its internal performance [1][2]. Group 1: Shell's Position - Shell clarified that it is not actively considering a bid for BP and has not engaged in any discussions regarding a potential acquisition [2]. - The statement was made in accordance with UK takeover rules, ensuring that Shell cannot change its position without specific conditions being met [2]. - Shell's focus remains on its own strategic goals rather than pursuing a large, debt-laden acquisition [2]. Group 2: BP's Situation - BP is currently in a financial struggle and is seeking to restructure by cutting costs, increasing fossil fuel investments, and divesting renewable energy assets [1]. - There are no clear alternative buyers for BP, as it seeks a "hard reset" to improve its market position [1][3]. Group 3: Market Analysis - Analysts suggest that any potential acquisition of BP by Shell is unlikely to occur before 2026, given BP's underperformance compared to global peers [3]. - The market perception of BP remains weak, and Shell's withdrawal from the acquisition talks further complicates BP's recovery prospects [3][4]. Group 4: Acquisition Challenges - Only a few companies have the capacity to acquire BP, which has a market value of $80 billion but is underperforming [4]. - Other potential buyers like ExxonMobil and Chevron are currently engaged in their own large-scale acquisitions, making them less likely candidates [4]. - Regulatory challenges could hinder any acquisition attempts, especially from foreign entities, with Shell potentially being viewed as a more acceptable buyer from a UK regulatory perspective [6]. Group 5: Shareholder Expectations - There is a question of whether Shell's shareholders prioritize growth or capital discipline and returns, as the industry has not rewarded growth-seeking strategies in a long time [7]. - BP's shareholders may need to exercise patience as the company navigates its financial restructuring, which could take several years [8]. Group 6: Debt Concerns - BP's debt situation, particularly residual liabilities from the 2010 Deepwater Horizon incident, poses significant risks for any potential acquirer [9]. - Analysts believe that merging with BP could dilute Shell's key performance metrics and contradict its communicated strategic focus [9].

Key Takeaways Shell and partners launch subsea compression at Ormen Lange, raising gas recovery from 75% to 85%. The upgrade could add 30-50 BCM of gas, enhancing exports to the UK and EU amid high demand. SHEL leads this innovation to extend field life, ensure safety and support Europe's energy independence. Shell plc (SHEL) , a London-based integrated oil and gas company, and its consortium partners, including Equinor ASA (EQNR) , have made a breakthrough in natural gas production at the Ormen Lange fie ...

Core Insights - The Changbei International Cooperation Project has produced a cumulative natural gas output of 62.5 billion cubic meters and generated sales revenue of 65.1 billion yuan, with internal profits for the Chinese side reaching 26 billion yuan, showcasing a successful model for international cooperation in China's petroleum industry [2] Project Background and Integration Effects - The project was initiated in 1999 when China National Petroleum Corporation (CNPC) signed a 30-year product-sharing contract with Shell to develop the Changbei block in the Ordos Basin, marking a significant step in China's "going out" strategy [2] - The project is located in the northern part of the Yulin gas field, characterized by low permeability, low porosity, and low abundance, serving as a key gas supply source for Beijing [2] Technological Innovation and Management Breakthroughs - The Shaanxi 141 well, known as the "meritorious well," has established a foundation for large-scale development of ancient geological natural gas, contributing to the increase in annual natural gas production in the Ordos Basin from 10 billion to 50 billion cubic meters [3] - The project has adopted an integrated geological engineering model to tackle development challenges, utilizing advanced drilling techniques and optimizing the gathering and transportation system to enhance efficiency and reduce costs [3] Excellent Operational Management - The project has implemented an advanced operational management system that integrates people, processes, facilities, and production, achieving unified scheduling, cost accounting, and operational standards [4] - The use of SAP systems for data sharing and the implementation of an intelligent control system have significantly improved efficiency and safety [4] Cultural Leadership and Future Outlook - The project has integrated HSE (Health, Safety, and Environment) culture with CNPC's management philosophy, establishing a robust safety management system and promoting safety awareness through various initiatives [4] - As a training ground for international talent and a platform for learning advanced international experiences, the project has developed a multi-level international talent pool and fostered a unique cooperative culture [5] - The successful development of the Changbei project serves as a valuable practical example for CNPC in its pursuit of becoming a world-class integrated international energy company [5]