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Shell Sees Trading Profits Slide, Lowers Q2 Gas, LNG and Oil Guidance

Politically driven market swings battered Shell’s trading arm, causing its shares to slump by roughly 3.3%.

Overview

  • Shell forecast Q2 trading and optimization contributions to be significantly lower than in Q1 due to geopolitical volatility.
  • It trimmed integrated natural gas output guidance to 900,000–940,000 boe/d and cut its LNG forecast to 6.4–6.8 million metric tons for April to June.
  • Scheduled maintenance and the sale of its Nigerian subsidiary led to a revised upstream oil guidance of 1.66–1.76 million barrels per day.
  • The company formally ruled out any takeover bid for BP, activating a six-month prohibition under UK takeover rules.
  • CEO Wael Sawan’s strategy of cost cutting and asset sales now faces added pressure as volatile markets challenge the trading unit that has long underpinned profits.