Oct 6 (LNGJ) - UK major Shell issued a third-quarter earnings forecast update saying cash flow from operations was impacted at the end of August 2022 by working capital outflows of around $2.5 billion. “Prevailing volatility could lead to additional outflows in CFFO in September from the combined effect of price, changes in inventory volumes (including gas storage), margining effects on derivatives and movements in accounts payable and receivables balances,” said the company.
In Integrated Gas, one of four Shell divisions and including LNG, production was expected to be between 890,000 and 940,000 barrels of oil equivalent per day. In adjusted gas earnings, pre-tax depreciation is expected to be between $1.3Bln and $1.7Bln and taxation to be between $1.3Bln and $1.6Bln. “Trading and optimisation results for Integrated Gas are expected to be significantly lower compared to the second quarter 2022 as a result of seasonality and substantial differences between paper and physical realisation in a volatile and dislocated market,” said Shell.
