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Although
In the news:
- The chemicals and oil sectors are struggling, and
Shell is no different. Revenues for the oil and gas giant took a solid dive, with between$2.5 billion and$4.5 billion less in revenue. This was what was expected. -
According to
Shell , this decline has to do with a weak oil market and poor portfolio choices. Consequently, it wants to get rid of its chemical production arm inSingapore .Shell 's oil and chemical production units are therefore heading for a loss. -
But according to the company, the results are not so bad: it sees gas trading up significantly. It drove up production. Measured in oil barrels,
Shell produced 880,000 to 920,000 barrels a day.Shell also raised its prospects for liquefied natural gas (LNG) production: it adjusted the lower limit from 6.7 million to 6.9 million tons, while the upper limit remains at 7.3 tons.-
The good results for gas trading can be explained by the war in
Ukraine and the volatility in prices as a result.
-
The good results for gas trading can be explained by the war in
Quoted: "We see this statement as neutral."
- Analysts had been expecting this. Biraj Borkhatari, analyst for
Royal Bank of Canada inEurope , is neither blowing hot nor cold on the news, according to Bloomberg: "Overall, we see the statement as neutral, given the reasonable operating result. However, earnings continue to be impacted by weak performance of the chemicals division." -
Borkhatari also called
Shell 's lower oil trading results "typical" for this period due to "lower liquidity and volatility."
The stock market reaction: concerns after all?
- On the British stock market,
Shell 's shares did fall back for a while after opening: they first went down in a sharp line, before rising slightly again and stabilizing. The stock lost about 2 percent today as this article appeared. -
So investors still reacted somewhat shocked after hearing
Shell 's financial results, despite the analysts' neutral view. -
The price of a barrel of Brent crude oil currently stands at
$77.7 , down 1.35 percent.
Also note:
Shell further noted that it recently had to pay$900 million in costs due to emissions, something that did not benefit the company either.-
At the same time,
Shell showed itself to be a cool lover of carbon offsets. It conducted a project around that.
-
At the same time,
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