Shell Sees Sequential Growth in Integrated Gas Production

Shell Plc projects higher Integrated Gas Production for Q1. With an expected range of 910-950 kboe/d, this suggests improved operational efficiency. Investors should note the potential impacts on stock price given these positive operational forecasts.

Date: 07-04-2025

AI Rating: 7

Production Metrics Point to Positive Outlook
Shell Plc's production outlook indicates a sequential rise in Integrated Gas Production, expected to reach between 910 and 950 kboe/d compared to the previous quarter's level of 905 kboe/d. This growth suggests a positive trend and reflects operational efficiency, likely enhancing investor confidence.

Regarding its upstream production forecast of 1,790 kboe/d to 1,890 kboe/d, there’s a slight decreasing pressure compared to Q4’s figure of 1,859 kboe/d. However, given the relative size of these numbers, it does not suggest a significant negative impact on the stock.

In terms of Marketing Sales Volumes, the anticipated range of 2,500 kb/d to 2,900 kb/d suggests a lower production level compared to the last quarter’s 2,795 kb/d. It demonstrates some concern regarding the market's contribution, particularly from Sectors & Decarbonisation; however, this does not overshadow the overall robust production metrics.

Overall, while the expectation of consistent results from Trading & Optimisation and Mobility & Lubricants is stable, potential impacts from expiring hedge contracts may diminish profitability slightly in this domain. Nonetheless, these elements indicate that while challenges are present, the overall outlook appears strong, which can positively influence the stock price in the short term.

Stocks: SHEL