![Shell's Q3 Results Expected To Be Hit By Weaker Refining, And Gas Trading Shell's Q3 Results Expected To Be Hit By Weaker Refining, And Gas Trading](https://www.ideals.news/photo/art/default/67833865-47871900.jpg?v=1665065635)
The third-quarter profits of the energy giant Shell is expected by the company to be affected because of margins nearly being reduced by half for its oil refining business, as well as deteriorating chemical margins, and lower natural gas trading.
The British energy behemoth reported two consecutive quarters of record profits in the first half of the year, despite soaring oil and gas prices and stellar earnings from its world-leading trading operations.
However, indicative refining margins fell to $15 per barrel in the third quarter, compared to $28 per barrel in the previous three months, Shell said in an update ahead of its results on Oct. 27, amid growing concerns about a global economic slowdown.
Indicative chemical margins fell to negative $27 per tonne from positive $86 in the second quarter as global demand for plastics fell.
According to Shell, the drop in refining margins will have a negative impact on the segment's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $1 and $1.4 billion.
Shell expects its third-quarter LNG and gas trading results to be "significantly lower" due to lower seasonal demand and "substantial differences between paper and physical realisation in a volatile and dislocated market."
Oil trading is expected to be flat compared to the previous quarter.
Exxon Mobil reported strong third-quarter operating profits on Tuesday, as natural gas earnings offset weaker refining and chemicals earnings.
(Source:www.nasdaq.com)
The British energy behemoth reported two consecutive quarters of record profits in the first half of the year, despite soaring oil and gas prices and stellar earnings from its world-leading trading operations.
However, indicative refining margins fell to $15 per barrel in the third quarter, compared to $28 per barrel in the previous three months, Shell said in an update ahead of its results on Oct. 27, amid growing concerns about a global economic slowdown.
Indicative chemical margins fell to negative $27 per tonne from positive $86 in the second quarter as global demand for plastics fell.
According to Shell, the drop in refining margins will have a negative impact on the segment's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $1 and $1.4 billion.
Shell expects its third-quarter LNG and gas trading results to be "significantly lower" due to lower seasonal demand and "substantial differences between paper and physical realisation in a volatile and dislocated market."
Oil trading is expected to be flat compared to the previous quarter.
Exxon Mobil reported strong third-quarter operating profits on Tuesday, as natural gas earnings offset weaker refining and chemicals earnings.
(Source:www.nasdaq.com)