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Shell Stock Falls on Forecast of Q4 Integrated Gas Output Slump
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Main points
- Shell shares fell in premarket trading on Wednesday after the oil major said it expected a sharp sequential decline in production at its integrated natural gas division.
- The London-based energy company attributed the forecast to expiry of hedging contracts.
- Shell also said it expected write-offs in the unit to be about $300 million.
shell(SherShares of the oil giant fell 2% in premarket trading on Wednesday after the oil giant said it expects a sharp quarter-on-quarter decline in production from its integrated natural gas division due to the expiration of hedging contracts.
The company said it expects consolidated natural gas production to fall to 880,000 to 920,000 barrels of oil equivalent per day in the fourth quarter from 941,000 barrels of oil equivalent per day in the third quarter.
“Trading and optimization results are expected to be significantly lower than Q3’24 due to the (non-cash) impact of hedging contract expiry,” Shell said.
The London-based company also said it expected write-offs of about $300 million in its integrated gas division, as well as an outflow of $1.3 billion “related to the timing of emissions certificate payments.”
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