(MENAFN- Trend News Agency)
Shell said on Thursday its third-quarter profits would be
pressured by a near halving of oil refining margins, crumbling
chemical margins and weaker natural gas trading, reports with reference
The British energy giant reported two consecutive quarters of
record profits in the first half of the year amid soaring oil and
gas prices, and stellar earnings from its trading operations, the
But in the third quarter, indicative refining margins dropped to
$15 a barrel compared with $28 a barrel in the previous three
months, Shell said in an update ahead of its results on Oct. 27,
amid growing concerns over a global economic slowdown.
And indicative margins for chemicals dropped to negative $27 per
tonne versus a positive $86 in the second quarter after global
demand for plastics slumped.
The drop in refining margins will have a negative impact of
between $1 and $1.4 billion on the segment's adjusted earnings
before interest, taxes, depreciation and amortization (EBITDA),
Shell's third quarter liquefied natural gas (LNG) and gas
trading results are expected to be 'significantly lower' due to
lower seasonal demand as well as 'substantial differences between
paper and physical realisation in a volatile and dislocated
Oil trading is expected to be in line with the previous
U.S. rival Exxon Mobil on Tuesday signalled strong third quarter
operating profits as earnings from natural gas offset weaker
refining and chemicals.
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