Shell expects impairments worth up to $3.0 billion in Q2

Shell PLC (LON: SHEL) expects scheduled maintenance to result in a sequential decline in its upstream production in the second quarter.

Shell will report Q2 results later this month

On Friday, the energy giant also warned of post-tax impairments worth up to $3.0 billion in Q2.

Upstream production, as per the update on its website, is likely to be in the range of 1.7 million to 1.8 million BOE (barrels of oil equivalent) per day this quarter versus 1.9 million in Q1.

Shell PLC expects sales volumes in its marketing division to come in at 2.4 million to 2.8 million barrels per day. In the prior quarter, the number printed at 2.45 million.

The oil and gas behemoth is scheduled to report its financial results for the second quarter in the final week of July. Last month, the London-listed firm raised its dividend and stock buybacks as Invezz reported here.

Shell’s expectations for its integrated gas division

Trading in its integrated gas division, Shell announced today, is expected to see a significant sequential decline in the second quarter due to seasonality. It also cited fewer optimization opportunities for the anticipated weakness.

The British multinational forecasts production between 950,000 and 990,000 barrels of oil equivalent per day – the mid-point of that range matched 970,000 BOE that it produced in Q1.

Lastly, it expects to report LNG liquefaction volumes in the range of 6.9 million metric tons to 7.3 million metric tons. The top end of that range matches the prior quarter figure.  

A day earlier, Shell CEO Wael Sawan reiterated that it’ll be irresponsible on the company’s part to cut production considering the global economy still relies heavily on oil and gas.