Shell sees significantly lower Q1 LNG trading results

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LONDON (Reuters) -Shell said on Friday it expects significantly lower results from its liquefied natural gas trading business in the first quarter of 2024 compared with the previous three months.

In an update ahead of quarterly results on May 2, Shell (LON:SHEL) also said its oil trading results are expected to be significantly higher than the last quarter of 2023.

Shell, the world’s largest oil and gas trader, said its LNG volumes are expected between 7.2 million and 7.6 million metric tons in the first three months of 2024, compared with 7.1 million tons in the previous quarter.

Nearly a third of Shell’s Q4 profit came from the $2.4 billion it made in LNG trading as it captured strong demand ahead of winter, three sources close to the company told Reuters in February.

Shell shares were up 0.29% at the start of trading in London.

Shell expects a smaller loss in its chemicals business, which has been under heavy pressure due to weak global demand. Chemicals profit margins are expected to rise to $151 a ton from $125 a ton in the previous quarter.

The British energy giant, which reported a $28 billion profit for 2023, expects to take a write-off on exploration of about $600 million, mainly in Albania.