Shell stock goes down because of weaker gas trading and refining, which hurt its Q3 results.

Shell stock


Shell stocks declined -5.4% in the pre-market on Thursday. The company announced a warning that it anticipates a “significantly lower” profit in its integrated gas trading business in Q3 compared to Q2 levels. Shell stock cited “seasonality and substantial differences between paper and physical realization in a volatile and dislocated market” and a sharp drop in refining margins as the reasons for this expectation.

Shell (NYSE:SHEL) provided an update to its Q3 outlook before the publication of full results, which are scheduled to take place on October 27. The company stated that it anticipates Integrated Gas production in the range of 890K-940K boe/day for the quarter and that it anticipates a Q3 pre-tax depreciation in the range of $1.3B-$1.7B.

Shell (NYSE:SHEL) reported that its indicative margins for chemicals fell to a negative $27/metric ton in the second quarter from a positive $86/ton in the first quarter as a result of a decrease in demand for plastic. Shell stock also reported that its indicative margins for refining fell to $15/bbl in the second quarter from $28/bbl in the first quarter.

Shell stock anticipates that the overall effect would reduce adjusted profits for Q3 by $1.3 billion to $2 billion, which is far worse than the reduction that the consensus thinks will be, which is $400 million.

Growth And Value Trading wrote an analysis that was just published on Seeking Alpha. They said that the Shell stock has “huge potential over the next several years, bolstered by its goal to achieving net zero by 2050.”

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Shell stock fell after the company reported poorer performance for gas trading and refining in the third quarter.

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