此外，该公司预计其液化天然气部门在第四季度的交易结果将显著低于前三个月，主要是因为在2022年到期的对冲合约未能继续保护壳牌免受俄乌冲突升级后产量可能带来的损失。Shell has lowered its production expectations for liquefied natural gas in the fourth quarter and expects its Oil & Gas trade results to be significantly lower than in the previous quarter.
According to Zhikong Finance APP, Shell (SHEL.US) released a trading update on Wednesday, lowering its production forecast for liquefied natural gas in the fourth quarter and expecting its Oil & Gas trading results to be significantly lower than in the previous quarter, while also planning to recognize a non-cash after-tax impairment provision of 1.5 billion to 3 billion dollars.
Specifically, Shell has reduced its fourth-quarter liquefied natural gas output forecast from a previous range of 6.9 million to 7.5 million tons to 6.8-7.2 million tons, attributing this to a decrease in the supply of feed gas delivered to liquefaction facilities and a reduction in cargo shipments.
Additionally, the company expects its liquefied natural gas sector's trading results in the fourth quarter to be significantly lower than in the previous three months, mainly due to the expiration of hedging contracts in 2022 that failed to continue protecting Shell from potential losses in production due to the escalation of the Russia-Ukraine conflict.
At the same time, due to seasonal demand decrease, Shell's Chemicals and Oil Products division trading performance is also expected to decline significantly compared to the previous quarter.
Financially, Shell plans to recognize an impairment provision of up to 1.2 billion dollars for its renewable energy sector related to assets in Europe and North America before releasing its annual performance, with total non-cash after-tax impairment provisions ranging between 1.5 billion and 3 billion dollars.
It is worth noting that last month, Shell announced a halt to new offshore wind power investments and a split of its Electrical Utilities department to focus on more profitable Business areas.
Biraj Borkhataria, an Analyst at Royal Bank of Canada Capital Markets, pointed out that Shell's report overall presents a negative trend, showing poor performance in several sectors, with Trade in Oil & Gas and Electrical Utilities also being sluggish. However, he anticipates that this will not affect Shareholder returns.
