Shell has projected a significant decline in results from its liquefied natural gas (LNG) trading operations for the first quarter of 2024 compared to the previous quarter. Conversely, the company expects notably improved performance from its oil trading segment during the same period.
In a pre-earnings update released ahead of the quarterly financial results scheduled for May 2, Shell indicated that its LNG trading business is likely to see lower results, with LNG volumes estimated to range between 7.2 million and 7.6 million metric tons in Q1 2024, slightly higher than the 7.1 million tons recorded in the preceding quarter.
During the fourth quarter of 2023, Shell derived nearly a third of its profit from LNG trading, generating $2.4 billion as it capitalized on robust demand leading up to the winter season, as per information from sources familiar with the matter.
At the commencement of trading in London, Shell’s shares showed a 0.29% increase.
Furthermore, Shell foresees a reduced loss in its chemicals business, which has faced significant challenges due to subdued global demand. The company anticipates an uptick in chemical profit margins to $151 per ton from $125 per ton in the prior quarter.
Despite reporting a substantial $28 billion profit for 2023, Shell anticipates an exploration write-off of approximately $600 million, primarily related to activities in Albania.