- shell plc SHEL paid less profit warning after lower refining and chemicals margins and weaker gas trading weighed on third-quarter results.
- The energy giant reported negative margin of $27 per tonne at its chemicals unit versus a positive $86 in the second quarter after global demand for plastics slumped.
- Shell also reported a fall in its refining margins as oil prices retreated from their recent highs.
- Shell said fuel refining costs would impact third-quarter results by $1 billion to $1.4 billion compared to the second quarter. The company said its indicative refining margin fell 46% to $15.03 per barrel from $28.04 in the second quarter.
- Shell has benefited from soaring prices, mainly driven by the Russian invasion of Ukraine, and record profits from $11.5 billion in the second quarter.
- Shell also expects cash generation to be impacted by a $2.5 billion working capital outflow due to sharp swings in oil and gas prices in recent months.
- Shell’s third-quarter LNG and natural gas trading results are expected to be “significantly lower” due to lower seasonal demand and “material disparity between paper and physical realization in a volatile and unsettled market.”
- Price promotion: SHEL shares are down 5.53% to $51.03 during the premarket session on the last check Thursday.
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