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Shell PLC on Tuesday nudged up second quarter guidance for integrated gas `production, and said gas trading results were ‘significantly higher’ than the first quarter amid the volatility caused by the Middle East war. The London-based oil and gas exploration company expects second-quarter integrated gas production of 610,000 to 650,000 barrels of oil equivalent per day, down from 909,000 boepd in the first quarter, but up from prior guidance of 580,000 to 640,000 boepd. The marked quarter-on-quarter decline in production reflects the impact of the conflict on Qatari volumes. In March, Shell warned it expects a year-long outage at one of two liquefied natural gas trains that make up the world’s largest gas-to-liquids plant in Qatar, following missile attacks. In a trading update ahead of second quarter results on July 30, the FTSE 100-listing said it expects trading and optimisation in the integrated gas division to be ‘significantly higher’ than in the first quarter. In Upstream, Shell guides for production of 1.75 million to 1.85 million boepd, lifted from 1.62 million to 1.82 million boepd before. In Marketing, Shell eyes sales volumes of 2.55 million to 2.65 million barrels per day, guidance tightened from 2.5 million to 2.7 million before, with adjusted earnings projected to be in line with the first quarter. In Chemicals & Products, Shell forecast a higher indicative refining margin of around $20 a barrel, up from $17 in the prior quarter, and increased chemicals margin of $240 per tonne, up from $139 per tonne in the prior quarter. Trading & optimisation is expected to be in line with the first quarter. Renewables & Energy Solutions adjusted earnings are forecast between a $300 million loss and $300 million profit, compared with a $300 million profit in the first quarter. Corporate adjusted earnings are expected to improve to a loss of between $500 million and $700 million, from a $900 million loss in the first quarter. The tax charge for the second quarter is projected between $2.6 billion to $3.4 billion, up on-quarter from $2.3 billion. Working capital inflows of $1 billion to $6 billion are forecast, compared to outflows of $11.2 billion in the prior three months reflecting the impact of ‘unprecedented’ volatility in commodity prices. Shares in Shell rose 2.7% to 2,990.00 pence each in London on Tuesday morning with the wider FTSE 100 up 0.3%. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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