Shell records nearly $8-B Q1 profit on the back of refining, chemicals/products and LNG divisions
Shell reported first-quarter profit of $7.7 B, exceeding expectations as disruption to Red Sea shipping and Russian refining boosted oil trading and LNG production rose.
Shell's cashflow rose by 6% from the previous quarter to $13.3 B reflecting strong operational performance, particularly in its LNG division, which together with trading helped to offset a decline in natural gas prices.
Shell's chemicals and products divisions, which include refining and oil trading, registered a more than threefold rise in adjusted earnings from the previous quarter to $2.8 B. Refined oil product trading was boosted by disruptions to shipping in the Red Sea as well as outages at Russian refineries because of Ukrainian drone attacks in recent months, finance chief Sinead Gorman told reporters.
Shell also timed refinery maintenance for the last quarter of 2023 while most of its peers opted for the first quarter of the year, giving Shell a further advantage in supplying oil products such as gasoline and diesel, Gorman said.
Strong LNG. Shell's shares have gained about 14% this year, buoyed by Sawan's efforts to cut costs and focus the company on its most profitable operations. Shell's LNG production rose in the quarter by 7% from the previous three months to 7.58 MMt, while sales dropped by 7% to 16.87 MMt. The growth was driven by higher output from the giant Prelude FLNG facility off the western coast of Australia.
The company's overall oil and gas production rose by 3% in the quarter to 2.91 MMbpd.
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