London (Reuters)-Shell expects quarterly profits to be affected by poor performance in integrated gas division and losses in chemical and product operations, the company said on Monday, before the second quarter results, scheduled for July 31.
The energy group chemical business underwent an unplanned maintenance at its Monaca Polymer Factory in the United States, while sales in its chemicals and products business were significantly smaller than in the first quarter, he said.
Shell shares fell 2.9% to 25.52 pounds at 1133 GMT against a decline of 1.3% of the European energy sector.
RBC analysts lowered the forecast for Shell’s net income in the second quarter of $ 4.8 billion to $ 3.6 billion after the statement, while CITI analysts reduced their forecast from $ 6.3 billion to $ 4.1 billion.
Shell had said earlier that it wanted to explore strategic and partnership opportunities for its chemical assets in the United States, and that it could close some chemical businesses in Europe.
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Weaker commercial performance was probably expected, but the company could record a result in the “Downstream” segment significantly worse than expected, RBC analyst Biraj Borkhataria said.
In its UPStream division, focused on oil, shell raised the lower limit of the production target, projecting 1.66 million to 1.76 million barrels of oil equivalent per day (Boed), above the previous forecast of 1.56 million to 1.76 million boed.
The business is expected to record a low exploration accounting of $ 200 million, the company said without further details.
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For its integrated gas division, Shell gave a production guidance from 900,000 to 940,000 Boed compared to the previous projection of the company from 890,000 to 950,000 boed.
LNG production is expected to reach 6.4 million to 6.8 million metric tons in the second quarter, according to the company, compared to the previous range of 6.3 million to 6.9 million tons.
