{"id":79305,"date":"2026-07-08T18:23:21","date_gmt":"2026-07-08T18:23:21","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/79305\/"},"modified":"2026-07-08T18:23:21","modified_gmt":"2026-07-08T18:23:21","slug":"shell-flags-significantly-higher-gas-trading-and-sells-south-africa-business","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/79305\/","title":{"rendered":"Shell flags ‘significantly higher’ gas trading and sells South Africa business"},"content":{"rendered":"

\"Shell<\/a> Shell flags ‘significantly higher’ gas trading and sells South Africa business – UPDATE Proactive uses images sourced from Shutterstock <\/p>\n

Shell PLC (LSE:SHEL, NYSE:SHEL)<\/a>\u00a0shares jumped over 2% after it said stronger trading and improved refining margins should support second-quarter performance, although production has been hit by disruption to output from Qatar following the war in the Middle East. <\/p>\n

In a separate statement, it was revealed that the oil major had also struck a deal to sell its downstream business in South Africa to UAE’s ADNOC Distribution for an implied enterprise value of $1 billion. The deal includes 580 fuel stations, wholesale fuel, aviation and lubricants operations, with ADNOC planning to retain the Shell brand under a long-term licensing agreement. <\/p>\n

Ahead of second-quarter results on 30 July, the FTSE 100 company said integrated gas production is expected to be 610,000-650,000 barrels of oil equivalent a day in the second quarter, down from 909,000 in the first quarter, reflecting the impact on Qatari volumes. <\/p>\n

Liquid natural gas (LNG) liquefaction volumes are forecast at 7.4-7.8 million tonnes. <\/p>\n

Despite lower production, Shell said trading and optimisation earnings in integrated gas are expected to be “significantly higher” than in the first quarter. <\/p>\n

In chemicals and products, the indicative refining margin is expected to improve to about $20 a barrel from $17 a barrel in the first quarter, while the indicative chemicals margin is forecast to rise to about $240 a tonne from $139 a tonne. <\/p>\n

However, Shell cautioned that realised refining and chemicals margins remain below those benchmark levels because of market dislocations. <\/p>\n

Marketing adjusted earnings are expected to be in line with the first quarter, while upstream production is forecast at 1.75 million-1.85 million barrels of oil equivalent a day, broadly unchanged from the previous quarter’s 1.843 million. <\/p>\n

The FTSE 100 company also expects a positive working capital movement of $1-6 billion in the quarter, compared with a $11.2 billion outflow in the first quarter, reflecting what it described as unprecedented volatility in commodity prices. <\/p>\n

Shell shares climbed 2.3% to\u00a02,978.5p in the first half hour of trading on Tuesday. <\/p>\n

Analysts at Jefferies said the update was stronger than expected, pointing to higher integrated gas and upstream volumes than previous guidance, higher integrated gas trading earnings, improved marketing performance and a sharp reversal in working capital after the first quarter outflow. <\/p>\n

They said the changes could lift second-quarter net income forecasts by more than 10% ahead of results at the end of the month. <\/p>\n

\u00a0 ** UPDATE: Adds share price, South Africa deal\u00a0and broker comments ** <\/p>\n","protected":false},"excerpt":{"rendered":"Shell flags ‘significantly higher’ gas trading and sells South Africa business – UPDATE Proactive uses images sourced from…\n","protected":false},"author":2,"featured_media":79306,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20685],"tags":[34126,612,11507,35305,20905,1150,4496],"class_list":["post-79305","post","type-post","status-publish","format-standard","has-post-thumbnail","category-shell","tag-adnoc-distribution","tag-barrels-of-oil-equivalent","tag-gas-production","tag-gas-trading","tag-integrated-gas","tag-shell","tag-shell-plc"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116885756501902281","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/79305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=79305"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/79305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/79306"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=79305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=79305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=79305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}