Shell plc (NYSE:SHEL) shares were trading higher premarket on Tuesday after the company revised its third-quarter outlook.
The oil giant trimmed the guidance for production at Integrated Gas to around 910 and 950 thousand boe/d (versus the prior outlook of 910 – 970 thousand boe/d).
The company expects Trading & Optimisation to be significantly higher than the second quarter of fiscal 2025 in the Integrated Gas segment.
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On the other hand, Shell raised the LNG liquefaction volumes forecast to 7.0 – 7.4 million metric tons from a previous guidance of 6.7 million – 7.3 million metric tons.
Shell tightened the outlook for the Upstream segment to about 1,790 – 1,890 thousand boe/d (versus the earlier outlook of 1,700 – 1,900 thousand boe/d) and expects adjusted earnings to take a $200 – $400 million hit from the rebalancing of participation interests in Brazil.
The company now anticipates refinery utilization of around 94% – 98% (versus prior outlook of 88% – 96%). It sees a refining margin of $11.6 per barrel in the quarter, higher than $8.9 per barrel in the second quarter.
On the other hand, Shell expects chemical manufacturing plant utilization of 79% – 83% (versus earlier guidance of 78% – 86%), with the chemicals sub-segment to witness an adjusted loss in the third quarter.
The company now projects Marketing sales volumes of around 2,650 – 3,050 thousand b/d (versus earlier guidance of 2,600 – 3,100 thousand b/d).
The company expects non-cash post-tax impairments & provisions of around $600 million in the Marketing segment in the third quarter, following the cancellation of its Rotterdam biofuels project.
Last month, Shell’s subsidiary opted to halt plans to resume construction of its biofuels facility at the Shell Energy and Chemicals Park in Rotterdam.
As per Reuters, this brings total impairments and provisions related to the venture to $1.4 billion.
Notably, in July, Shell had temporarily suspended on-site construction at its 820,000 tonnes per year biofuels facility in Shell Energy and Chemicals Park Rotterdam, Netherlands.
Investors can gain exposure to the stock via Precidian ETFs Trust Shell plc ADRhedged (BATS:SHEH) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (NYSE:EIPX).
Price Action: SHEL shares were trading higher by 0.92% to $74.95 premarket at last check Tuesday.
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