Shell Flags Higher Q3 Gas Output, Refining Margins Jump to $42/bbl
SHEL sits 43% above its 52-week low of $68.625.
Summary
Shell's Q3 trading update shows a sharp recovery in refining margins to $42/bbl from $24/bbl in Q2, alongside higher integrated gas production of 740-780 kboe/d and LNG volumes of 7.2-7.6 Mt. Upstream production is guided at 1.735-1.835 million boe/d, with a $300M exploration write-off. The quarter also includes a ~$2.5B cash outflow for German emissions certificates and a $0.8B JV dividend inflow offset by working capital. This follows the completed ARC Resources acquisition in September, which added 370 kboe/d, and the LNG Canada Phase 2 FID. The margin rebound and volume growth suggest a strong quarter, though the write-off tempers the upside.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — Shell's Q3 outlook includes a ~$2.5B cash outflow for German emissions certificates and a $0.8B JV dividend inflow offset by working capital.
At the time of this announcement, SHEL was trading at $98.04 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $273.8B. The 52-week trading range was $68.63 to $99.16. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.