Shell PLC (LSE:SHEL, NYSE:SHEL) revealed that first-quarter gas production will fall from the previous quarter after disruption linked to the war in the Middle East.
Ahead of full first-quarter results early next month, the FTSE 100 oil and gas giant said integrated gas output is expected at 880,000 to 920,000 barrels of oil equivalent per day, down from 948,000 in the fourth quarter, reflecting the impact of fighting in the Gulf on volumes from its Qatar operations.
Liquefied natural gas volumes are expected at 7.6-8 million tonnes, broadly in line with the 7.8 million in the prior quarter.
Upstream production is also set to decline slightly to 1.76-1.86 million barrels of oil equivalent per day, compared with 1.89 million previously, partly reflecting portfolio changes.
Oil trading is expected to be "significantly" stronger than the previous quarter, while marketing earnings are also expected to be "significantly higher" than the same period last year, despite slightly lower volumes.
Refining margins have improved, with indicative margins rising to about $17 per barrel from $14 previously, supporting the chemicals and products division.