Shell announced on Friday its expectation of significantly lower results from its liquefied natural gas (LNG) trading business in the first quarter of 2024 compared to the previous three months. Conversely, the company anticipates significantly higher oil trading results for the same period.
As the world’s largest oil and gas trader, Shell foresees LNG volumes between 7.2 million and 7.6 million metric tons in the first three months of 2024, slightly up from 7.1 million tons in the previous quarter. However, the company expects a decrease in profits from LNG trading after a robust performance in the fourth quarter of 2023, where nearly a third of its profit was derived from LNG trading.
Additionally, Shell projects a smaller loss in its chemicals business due to improved profit margins, which are expected to rise from $125 to $151 per ton compared to the previous quarter.
Despite these fluctuations, Shell remains optimistic about its overall financial outlook, reporting a $28 billion profit for 2023. However, the company anticipates taking a write-off on exploration of approximately $600 million, primarily in Albania.
In other developments, Shell disclosed plans for the Rixos Baghdad luxury hotel, financed by Qatar, in the heavily fortified Green Zone of the Iraqi capital.
