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Shell Flags Q4 Chemicals Loss, Tightens Guidance as Shares Fall Premarket

The company highlighted stronger refining metrics with steady gas trading ahead of full results on February 5.

Overview

  • Integrated Gas production guidance is set at about 930–970 thousand boe/d, LNG liquefaction at 7.5–7.9 million metric tons, and Upstream at roughly 1.84–1.94 thousand boe/d.
  • Chemicals & Products adjusted earnings are now expected below break-even due to sharply lower Trading & Optimisation contributions, with the indicative chemicals margin at $140 per ton versus $160 in Q3.
  • Refinery utilization is guided to 93%–97% with an indicative refining margin of about $14 per barrel, up from roughly $12 per barrel in the prior quarter.
  • Marketing sales volumes are projected at 2.65–2.75 thousand b/d, and adjusted earnings are seen lower because of a non-cash deferred tax adjustment related to a joint venture.
  • Shell announced portfolio moves including merging U.K. offshore assets with Equinor into Adura and a 15-year deal by its trading unit with ADNOC, while shares were down about 2.75% in premarket trading.