By Joe Hoppe
Shell PLC said Thursday that it expects integrated gas trading and optimization results to fall on quarter, along with refining margins, but for market results to rise.
Shares at 0714 GMT /zigman2/quotes/206428183/delayed UK:SHEL -2.05% /zigman2/quotes/205095589/composite SHEL -2.19% were down 69.0 pence, or 2.9% at 2309.5 pence.
The energy group said production for the third quarter in Integrated Gas is anticipated to be between 890,000 and 940,000 barrels of equivalent oil per day. It said it expects a third-quarter pretax depreciation between $1.3 billion and $1.7 billion.
Trading and optimization results for its Integrated Gas segment are expected to be lower compared with the second quarter of 2022, as a result of seasonality and substantial differences between paper and physical realization in a volatile and dislocated market.
In the chemicals and products division, the indicative refining margin is $15 a barrel, compared with $28 a barrel in the prior quarter. The company expects the decreased margin to have a negative impact of between $1.0 billion and $1.4 billion on adjusted earnings for products.
The indicative chemical margin is expected to swing to negative $27 per ton, compared to positive $86 a ton; the swing is expected to hit third-quarter adjusted earnings in chemicals by between $300 million and $600 million.
Upstream production is expected to be between 1.75 million and 1.85 million barrels of oil equivalent a day, and it expects a pretax depreciation between $3.0 billion and $3.4 billion.
Marketing results are expected to be higher than in the second quarter, with oil products sales volumes expected to reach between 2.35 million and 2.75 million barrels of oil a day, the company said.
Write to Joe Hoppe at joseph.hoppe@wsj.com
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