Shell's Q3 Profit Soars on Strong Trading and Production

Core Viewpoint - Shell is expected to see a boost in its third-quarter earnings due to strong gas trading, higher upstream production, increased liquefaction volumes, and improved refining margins [1][2]. Group 1: Earnings Expectations - The Integrated Gas division's trading and optimization are anticipated to be "significantly higher" in Q3 compared to Q2 [2]. - Marketing adjusted earnings and trading in the chemicals and fuels divisions are also projected to increase relative to Q2 [2]. - Shell has raised its LNG volume outlook for Q3 to 7.0-7.4 million tons, up from the previous expectation of 6.7-7.3 million tons [3]. Group 2: Production and Margins - Upstream production is now estimated at 1.79–1.89 million barrels of oil equivalent per day (boepd), an increase from the earlier forecast of 1.7-1.9 million boepd [3]. - The refining margin for Shell is projected to be $11.60 per barrel for Q3, up from $8.90 per barrel in Q2 [3]. Group 3: Market Reaction - Following the update, Shell's shares rose by 2% in London, reflecting positive investor sentiment [4]. - Year-to-date, Shell's stock has gained approximately 10% despite a decline in oil prices [4].