By Joe Hoppe
Shell PLC said Thursday it will reverse previous aftertax impairments of up to $3.5 billion to $4.5 billion to its upstream and integrated gas assets in the second quarter.
The oil major /zigman2/quotes/201538663/delayed NL:SHELL +2.28% /zigman2/quotes/206428183/delayed UK:SHEL +2.25% said it had raised its mid- and long-term oil and gas commodity prices outlook in the second quarter to reflect the current macroeconomic environment as well as updated energy-market demand and supply fundamentals.
The company also said it expects its integrated gas production to be between 930,000 and 980,000 barrels of oil equivalent per day, and liquid natural gas liquefaction volumes to be between 7.4 million and 8.0 million metric tons. Trading and optimization results for integrated gas is expected to slip on-quarter in the second quarter.
Shell further expects one-off charges of around $200 million in the second quarter, including well write-offs, provisions and commercial settlements.
Second-quarter marketing earnings are expected to rise on-quarter, to be in-line compared with the second quarter of 2021.
The company expects its chemicals and products division’s trading and optimization results to be strong in the second quarter, though to be lower than the first quarter.
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