LNG

Shell Plc has confirmed its shareholding with four other partners in the new LNG export plant being developed in the United Arab Emirates by Abu Dhabi National Oil Company’s (ADNOC) at Al Ruwais.

Shell reported a drop in fourth-quarter and annual profits as oil and gas prices declined from last year while the UK major’s LNG sales increased to over 67 million tonnes for the year.

UK major Shell expects to take non-cash impairment charges of between $2.5 billion to $4.5Bln for the fourth quarter, mainly related to the Singapore refining and chemicals hub that Shell is seeking to sell off, though quarterly income attributable to shareholders was expected to remain at around $7 billion.

UK major Shell reported much reduced third-quarter profits of $6.2 billion, lower than the $9.45Bln of profits returned in the same three months of 2022 as natural gas prices dropped, while quarterly sales of liquefied natural gas were still over 16 million tonnes.

The largest European energy major Shell posted a 47 percent drop in overall quarterly profits, reflecting lower LNG trading and optimisation results and a drop in oil and gas prices as well as refining margins.

July 7 (LNGJ) - Shell Plc, Europe’s largest energy company, has issued a second-quarter 2023 earnings forecast update. The Integrated Gas unit, one of six Shell divisions and including LNG, is set to maintain steady production levels. However, trading and optimisation is expected to be significantly lower compared with a strong first quarter of 2023 “due to seasonality” and fewer optimisation opportunities.

   Shell added that overall Upstream oil and gas output is expected to fall to between 1.650 million barrels of oil equivalent per day and 1.750M boe per day, down from 1.877M boe per day in the first quarter because of “scheduled maintenance, including assets in the Gulf of Mexico, Norway, Malaysia and Brazil”. The company’s refinery utilisation has declined in the second quarter from 91 percent to between 85 percent and 89 percent. Shell publishes its next earnings on July 27.

June 14 (LNGJ) - Shell Chief Executive Wael Sawan told investors in New York in a presentation that Europe’s largest oil and gas company would expand the activities of its leading Integrated Gas division and maintain leadership in the global liquefied natural gas market. Shell also planned to maintain an advantaged position in Upstream to achieve cash flow longevity by stabilising liquids production through 2030.

   “Shell will continue to invest in providing secure supplies of energy while actively working to reduce carbon emissions,” said Sawan. “We are investing to provide the secure energy customers need today and for a long time to come, while transforming Shell to win in a low-carbon future. Performance, discipline and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions while enabling the energy transition,” the CEO stated.

UK major Shell plc reported an increase in net profits for the first three months of the year as liquefied natural gas sales volumes rose by 6 percent on the previous quarter, though were slightly less than the same quarter of 2022.

Shell Plc, Europe’s largest energy company, has issued a first-quarter 2023 earnings forecast update with higher natural gas production and “higher uptime” at the Queensland Curtis LNG and Prelude FLNG plants in Australia.

UK major Shell plc posted the company’s highest ever annual profits helped by record natural gas prices as its LNG sales volumes also increased during the quarter and for the full year.