Shell lowers first-quarter LNG production outlook
Shell lowered its first-quarter LNG production outlook in a trading update, citing the impact of bad weather in Australia, before it publishes results on May 2.
The British company guided for LNG output to reach between 6.4 MM and 6.8 MM metric tons, down from a previous forecast of 6.6 MM to 7.2 MM tons. It produced 7.1 MM tons of LNG in the fourth quarter of last year.
The downward revision was because of cyclones and unplanned maintenance in Australia, the company said, adding that its gas division trading results are expected to be in line with the previous quarter.
Shell said in February that it had to postpone some loading from its Prelude floating LNG facility in Western Australia because of challenging weather conditions.
It lowered its production outlook for its integrated gas division to 910,000-950,000 barrels of oil equivalent from a previous 930,000-990,000 boed, "impacted by unplanned maintenance, including in Australia".
Shell also said it expects to book a $100 MM exploration write-off in the quarter. A spokesperson declined to give more detail.
In its marketing business, Shell expects results in the quarter to be dented by a lower contribution from its specialty products and services business, which includes low-carbon energy solutions for the aviation and marine industries among others.
The company also narrowed its upstream oil and gas output forecast to between 1.79 MM and 1.89 MM boed in the first quarter, down from a previous projection of 1.75 MM to 1.95 MM boed.
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