Shell PLC (LSE:SHEL, NYSE:SHEL) expects oil production to fall in the second quarter due to scheduled maintenance and the sale of its onshore oil and gas joint venture in Nigeria.
Ahead of its second quarter results on July 31, the FTSE 100 oil giant said upstream production is likely to drop to between 1.66 million and 1.76 million barrels of oil equivalent per day, down from 1.86 million in the first quarter.
Also, lower contributions are expected from trading and optimisation across multiple segments, while integrated gas production is expected to range between 900,000 and 940,000 barrels of oil equivalent per day, versus 927,000 in the first quarter, and LNG liquefaction volumes are forecast between 6.4 million and 6.8 million tonnes, versus 6.6 million in Q1.
Marketing adjusted earnings are expected to be higher than in the first quarter, while sales volumes are forecast between 2.60 million and 3.00 million barrels per day.
The chemicals & products segment is expected to post adjusted earnings below break-even, with chemicals sub-segment earnings anticipated to be a loss.
Refining margins are projected to rise to $8.90 per barrel, and chemicals margins to $166.00 per tonne.
For the Renewables & Energy Solutions arm the expectation is between a loss of $0.40 billion and a profit of $0.20 billion.