Shell Boosts LNG Production Forecast As Refining Margins Surge

Core Insights - Shell plc has revised its third-quarter outlook, leading to a positive premarket trading response for its shares [1] Production and Earnings Outlook - The company has adjusted its Integrated Gas production guidance to approximately 910 to 950 thousand boe/d, down from a previous range of 910 to 970 thousand boe/d [1] - The Upstream segment outlook has been tightened to about 1,790 to 1,890 thousand boe/d, compared to the earlier forecast of 1,700 to 1,900 thousand boe/d [3] - Adjusted earnings are expected to incur a hit of $200 to $400 million due to the rebalancing of participation interests in Brazil [3] LNG and Refining Projections - Shell has increased its LNG liquefaction volumes forecast to 7.0 to 7.4 million metric tons, up from a previous estimate of 6.7 to 7.3 million metric tons [2] - Refinery utilization is projected to be around 94% to 98%, an increase from the prior outlook of 88% to 96% [3] - The refining margin is expected to be $11.6 per barrel, higher than the $8.9 per barrel recorded in the second quarter [3] Chemical and Marketing Segment Insights - Chemical manufacturing plant utilization is now expected to be 79% to 83%, slightly adjusted from the earlier guidance of 78% to 86% [4] - The chemicals sub-segment is anticipated to experience an adjusted loss in the third quarter [4] - Marketing sales volumes are projected to be around 2,650 to 3,050 thousand b/d, compared to the previous guidance of 2,600 to 3,100 thousand b/d [4] Impairments and Provisions - The company expects non-cash post-tax impairments and provisions of approximately $600 million in the Marketing segment due to the cancellation of its Rotterdam biofuels project [5] - Total impairments and provisions related to the biofuels venture have reached $1.4 billion [5] Stock Performance - Shell shares were trading higher by 0.92% to $74.95 in premarket trading [6]