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Shell forecasts higher gas trading in second quarter

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Transport Reporter

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A pause on exporting liquefied natural gas (LNG) is facing backlash from some of the world's biggest energy giants, like Shell.
A pause on exporting liquefied natural gas (LNG) is facing backlash from some of the world's biggest energy giants, like Shell.

Shell has said that trading in its gas segment will be higher over the third quarter than in the second, bouncing back from a challenging set of results in July.

The energy giant also forecast that trading in its chemicals and products division would beat the second quarter.

The London-listed firm’s adjusted earnings more than halved in its second quarter results in the summer, dipping nearly £5bn year-on-year and at a a much greater loss than analysts had forecast.

Earnings in July were hit by falling oil and gas prices and tightening refining margins, alongside lower demand for liquefied natural gas in the summer months across Europe.

Shells gas business drives as much as a quarter of its profitability.

The company said today it produced 920,000 barrels of integrated gas per day between July and September, a drop off from 985,000 over the second quarter.

In mid-June, it announced plans to boost its production of natural gas as it continued a shift back to fossil fuels, a move which has stoked widespread condemnation from climate activists.

In a short note to shareholders, the group also revealed that it could pay £2.9bn in tax over the last quarter.

A number of energy majors have seen a downturn in profits this year, after last years record results, with Equinor also posting a fall in earnings in July.