Shell sees Q3 Integrated Gas production of 930-960K boepd
Royal Dutch Shell plc introduced earlier the publication of a quarterly update, starting with the third quarter. Jessica Uhl, CFO of Royal Dutch Shell said: "In response to feedback from our investor community we are introducing this new quarterly process. This is a further step in Shell's ongoing journey to enhance disclosures and increase transparency". In Integrated Gas, production is expected to be between 930 and 960 thousand barrels of oil equivalent per day. LNG liquefaction volumes are expected to be between 9.00 and 9.30 million tonnes. "For the third quarter, we expect to deliver strong trading and optimisation performance," Shell said. In Upstream, production is expected to be between 2,600 and 2,650 thousand barrels of oil equivalent per day. "During the third quarter there have been additional well write-offs in the range of $250-$350M compared to Q3 2018, for which no cash impact is expected," Shell said. In Downstream, refinery availability is expected to be between 90% and 92%. Oil Products sales volumes are expected to be between 6,700 and 7,350 thousand barrels per day. Chemicals manufacturing plant availability is expected to be between 90% and 92%. Chemicals sales volumes are expected to be between 3,900 and 4,000 thousand tonnes. "We expect chemicals cracker and intermediate margins to be materially unchanged from Q2 2019," Shell said. Corporate earnings excluding identified items are expected to be a net charge between $700M-$850M, which excludes the impact of currency exchange rate effects. Currency exchange rate movements, including a weakening of the Brazilian Real, is expected to have a negative earnings impact on top of the provided range. As per previous disclosures, price sensitivity at Shell group level is $6B per annum per $10 per barrel Brent price movement.