An update from Shell PLC (LSE:SHEL, NYSE:SHEL) was "sketchy" on details and provided further evidence that the oil titan is facing challenges, analysts said.
Consensus earnings could be cut by up to 10% from the current $5.4 billion, analysts at Jefferies said.
They noted that gas trading and oil trading would both be significantly lower in the fourth quarter versus the previous quarter, which was partly expected.
Production volumes guidance for the petroleum business was narrowed while for the Integrated Gas business was lower-than-expected, the Jefferies team said.
Market analyst Richard Hunter at Interactive Investor said: "Shell will continue to call on its exceptional financial firepower within a difficult trading environment.
"Accompanying comments are sketchy in this update, with the fine details expected to be announced at the full-year results at the end of the month.
"In the meantime, there is continuing evidence that Shell is facing challenges both as a trading company as well as a listed stock."
Mark Crouch, market analyst at eToro, noted that the update comes as oil and gas prices remain under pressure following a challenging year for fossil fuels.
Shell also announced that it is stepping back from new offshore wind investments, which Crouch said "raises questions about the long-term viability of windfarms as a practical investment for the company’s shareholders, especially under the leadership of CEO Wael Sawan".
Sawan's focus on only pursuing projects that generate immediate value for investors "seems to prioritise short-term returns over longer-term renewable energy commitments", he said.
But he said Shell investors would be no strangers to difficult times: "The energy sector is notoriously cyclical, and this downturn is no exception. With political figures like Donald Trump continuing to champion policies that favour increased oil drilling, investors may be bracing for further downward pressure on oil prices, potentially extending the current slump."