Shell Plc’s first quarter earnings forecast has been trimmed by analysts at UBS, due to unexpected disruption to its liquefied natural gas operations.
The Swiss bank now expects Shell to report net income of US$5 billion, down 1% from a prior estimate, and 4% below broader market consensus.
The adjustment follows indications of lower production and sales volumes from Shell’s Integrated Gas segment, affected by weather-related maintenance in Australia, at the Prelude LNG facility.
UBS also reduced its forecast for cash flow from operations, excluding working capital, by 1% to US$12.2 billion.
Analysts retain a ‘Buy’ rating, and also repeated a 12-month price target of 3,150p – versus today’s market price of 2,425p.
Shell on Monday, in a trading update ahead of results scheduled for May, also told investors 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.
Investors will meanwhile keep an eye on crude markets, where prices have receded to around $60 per barrel as the demand outlook has been trimmed amid macroeconomic turmoil and certain price cuts among certain OPEC members.