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Energy

Shell shares production show volumes down but margins up

Shell PLC (LSE:SHEL, NYSE:SHEL) said it expects slightly higher gas production but that oil production could be lower in the first quarter compared to the final three months of last year.

The supermajor shared some details on production, depreciation and opex for each of its divisions for the first quarter of 2025, ahead of the full quarterly results announcement scheduled for 2 May.

Production for the Integrated Gas division is expected to be slightly higher than last year at between 910 and 950 thousand barrels of oil equivalent per day versus 905kboep/d; and LNG liquefaction volumes are forecast to fall to between 6.4-6.8 million tonnes, from 7.1 million tonnes due to unplanned maintenance and weather-related disruptions in Australia.

Upstream oil production is projected at 1.79-1.89 million barrels of oil equivalent per day, versus 1,859 million last time

In the Marketing segment, sales volumes are forecast at 2.50-2.90 million barrels per day, compared to 2.80 million in the prior quarter, while in Chemicals and Products, Shell expects an improvement in refining margins to $6.20 per barrel, up from $5.50, and that trading and optimisation contributions in this segment are projected to be significantly higher than in the prior quarter.

In Renewables and Energy Solutions, adjusted earnings are expected to range between a loss of $0.30 billion and break-even, consistent with the last quarter.

Shell anticipates a $1.5 billion increase in net debt.

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