British-Dutch Shell has cut its liquefied natural gas (LNG) production forecast for the fourth quarter of 2024 and warned that the trading division’s performance will be much worse than in the third quarter.
Shell also plans to record a write-down of between $1.5bn and $3bn in the fourth quarter due to asset impairments, including $1.2bn in its renewable energy division.
According to the company’s preliminary estimates, LNG production in October-December will be 6.8-7.2 million tonnes. The figure was previously expected to be 6.9-7.5 million tonnes.
Last quarter’s production at Integrated Gas is estimated at 880-920 thousand barrels of oil equivalent per day (Boe/d). In the third quarter, the figure was 941,000 boe/d, while the previous forecast was for 900-960,000 boe/d.
Shell estimates total upstream production in October-December at 1.79-1.89 million Boe/d, compared to 1.811 million Boe/d a quarter earlier.
Shell will release its fourth-quarter and full-year results on 30 January.
The company’s shares are down 1.8 per cent on Wednesday. Over the past 12 months, capitalisation has risen 5.1% to 159.3 billion pounds ($198.4 billion).