Shell PLC (LSE:SHEL, NYSE:SHEL) has already flagged a sharp decline in refining profit margins for the third quarter due to weaker global demand, even though it so upgraded its LNG and upstream oil forecasts.
Jefferies expects the Anglo-Dutch giant, which will release its results on October 31, to post a net income of $5.4 billion for the third quarter. This is a drop from the $6.3 billion reported in the same period last year.
The decline reflects weaker trading in refined products and a seasonal reduction in liquefied natural gas volumes, but JP Morgan analysts suggest Shell remains a resilient performer.
The company’s robust cash flow, forecast at $12.5 billion, will likely support ongoing share buybacks of $3.5 billion and an attractive dividend yield of 11.1%.
Management will certainly be asked about its commitment to its London listing, especially now with a government that has made North Sea oil and gas production one of its main targets.