BusinessLine·2025-10-07 08:42Core Insights - Shell Plc's oil and gas trading operations have shown a recovery in performance after facing challenges due to geopolitical volatility in the second quarter [1][2] - The third quarter saw "significantly higher" performance for gas and "higher" performance for oil, indicating a rebound in trading earnings [1][2] Trading Performance - The trading division, a significant profit contributor for Shell, experienced a bounce back after the previous quarter's "significantly lower" earnings, which were attributed to geopolitical factors rather than supply and demand [2] - Brent crude futures remained stable, trading between $65 and $70 per barrel for most of the third quarter [2] Impairments and Project Developments - Shell wrote down $600 million from a Dutch biofuels plant, totaling $1.4 billion in impairments related to the site, which has been shelved pending a cost review [3] - The Rotterdam project was intended to be one of Europe's largest renewable diesel and sustainable aviation fuel plants, but Shell is shifting focus to enhance profitability by shedding low-carbon businesses [3] Industry Trends - Competitor BP Plc is also halting the construction of a biofuels plant in the Netherlands, opting to concentrate on oil and gas production [4] - Shell's chemicals division has been a consistent underperformer, prompting the company to explore partnerships in the US and consider selective closures in Europe [5] - Major chemical producers, including Dow Inc. and Exxon Mobil Corp., have announced capacity reductions in Europe due to high energy costs affecting competitiveness [6]