Shell PLC said it expects second-quarter trading at its gas division to be "significantly lower" compared with the previous quarter, due to seasonal factors.
In a trading update, the oil major also announced writedowns of up to US$3bn for the quarter, primarily driven by a 1% increase in the discount rate used for impairment testing.
Adjusted earnings in integrated gas are forecast between US$1.3bn to US$1.7bn compared to US$1.4bn in the previous quarter.
Shell said trading & optimisation in the division is expected to be "significantly lower" compared to a strong first quarter due to seasonality and fewer optimisation opportunities.
The company forecast second-quarter adjusted earnings of US$2.5bn to US$2.9bn in its upstream business compared to US$2.8bn in the first quarter with production in the division seen lower.
Upstream production is seen between 1,650-1,750kboe/day compared to 1,877kboe/day in the first quarter due to maintenance in the Gulf of Mexico, Norway, Malaysia and Brazil.
The firm said exploration well write-offs are expected to be around US$.2bn.
The second-quarter contribution is expected to be in line with the average contribution of quarter two in 2021 and 2022.
Marketing results are predicted to be in with the first quarter while adjusted earnings in the chemicals business are forecast between US$0.8bn to US$1.0bn compared to US$0.9bn in the first three months.
The company said it expects to post an adjusted corporate loss of between US$0.6bn to US$0.8bn for the period,