The energy major forecasts stronger integrated gas trading results despite a 30% quarterly decline in production due to Middle East conflict.
Shell expects its integrated gas trading and optimization business to deliver significantly better results in the second quarter, countering a sharp drop in production. Output is forecast at 610,000-650,000 barrels of oil equivalent per day, down from 909,000 boe/d in Q1, due to disruptions in Qatari volumes linked to regional conflict.
LNG liquefaction volumes are projected at 7.4-7.8 million tonnes, slightly below the prior quarter’s 7.9 million tonnes. Upstream production remains steady at 1.75 million-1.85 million boe/d, while refining margins improved to $20 per barrel from $17, and chemicals margins rose to $240 per tonne from $139.
The company anticipates a $1 billion-$6 billion working capital inflow, driven by commodity price volatility, supporting cash flow from operations.