Shell's LNG Trading Update Reveals Surprising Shifts: Details
Portfolio Pulse from Lekha Gupta
Shell plc (NYSE:SHEL) updated its Q1 FY24 operational outlook, indicating lower LNG trading results but improved production and refinery utilization. Integrated Gas production is expected to be 960-1,000 thousand boe/d, with LNG liquefaction volumes at 7.2-7.6 MT. Upstream production guidance is narrowed to 1,820-1,920 thousand boe/d, with significant exploration write-offs in Albania. Marketing sales volume guidance is slightly reduced, while Chemicals & Products sees increased refinery and chemicals utilization. Q4 FY23 revenue was $78.73 billion, below consensus, but adjusted earnings per ADS exceeded expectations. SHEL shares rose 0.41% in premarket trading.
April 05, 2024 | 10:45 am
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Shell plc's Q1 FY24 outlook reveals lower LNG trading results but improvements in production, refinery, and chemicals utilization. Q4 FY23 revenue missed expectations, but earnings per ADS were higher than consensus. Shares rose 0.41% in premarket trading.
The mixed operational outlook with lower LNG trading results but improved production and refinery utilization suggests a nuanced impact on Shell's financial performance. The positive premarket share movement indicates investor optimism, potentially due to the better-than-expected earnings per ADS for Q4 FY23. However, the revenue miss for the same period introduces caution. Overall, the positive premarket price action suggests a short-term positive impact on SHEL's stock price.
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