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Shares in Shell (SHEL.L, SHELL.AS) rose in early Tuesday morning trading after the energy giant upgraded its second-quarter integrated gas and upstream production guidance.
In its quarterly trading update, Shell said it expects integrated gas production of 610,000 to 650,000 barrels of oil equivalent per day, up from a previous range of 580,000 to 640,000 boepd. Production is expected to be down sharply from the first quarter’s 909,000 boepd due to the impact of the Middle East conflict on Qatari volumes.
The forecast for second-quarter LNG liquefaction volumes was also raised to a range of 7.4 million tonnes to 7.8 million tonnes, up from prior guidance of 6.8 million tonnes to 7.4 million tonnes. The business produced 7.9 million tonnes in the first quarter.
Shell said it expects trading and optimization at its integrated gas segment to be “significantly higher” in the second quarter compared with the previous three months.
Meanwhile, upstream production is now expected between 1.8 million boepd and 1.9 million boepd, compared with previous guidance of 1.6 million boepd to 1.8 million boepd. Upstream production was 1.8 million boepd in the first quarter.
The company also expects a working capital inflow of $1 billion to $6 billion in the second quarter, compared with an $11.2 billion outflow in the previous quarter, reflecting the “unprecedented volatility in commodity prices.”
Shell’s shares were up more than 2% in London and Amsterdam. The company will release final numbers when it reports its second-quarter earnings July 30.