Shell sees refining margins hitting record high in third quarter
SHEL•Shell expects third-quarter refining margins to reach a record $42 per barrel, up from $24 in the second quarter. It raised its integrated gas production outlook and narrowed its upstream production forecast.
1. Refining margins rise
Shell expects third-quarter refining margins to reach $42 per barrel, compared with $24 per barrel in the second quarter. Results from its gas and oil products trading businesses are expected to be in line with the previous quarter, when they helped deliver the company’s second-highest quarterly profit on record.
2. Production outlook updated
Shell raised its third-quarter integrated gas production forecast to 740,000–780,000 barrels of oil equivalent per day, from 570,000–630,000 boed. The outlook includes its $16.4 billion acquisition of ARC Resources, completed on September 2. Shell narrowed its upstream production forecast to 1.74 million–1.84 million boed, from 1.68 million–1.88 million boed.
3. LNG and refinery details
Third-quarter liquefied natural gas production is expected to be 7.2 million–7.6 million metric tons, compared with 7.7 million tons in the second quarter. Refinery utilisation is expected to be lower than in the second quarter because low Rhine water levels are affecting operations at the Rheinland refinery.
