The anticipated downturn follows a recent trading update where the energy major warned of lackluster oil trading performance and narrowed its production guidance for liquefied natural gas. Beyond the bottom line, cash flow from operating activities is forecast to hit $7.87 billion, a substantial decrease from the $12.21 billion generated in the preceding quarter. These headwinds have already triggered downward revisions to profit expectations across the sector.
In section Market Quotes
Shell Braces for Profit Slide as Downstream Weakness Bites
Shell is scheduled to release its fourth-quarter results this Thursday, with analysts projecting a notable decline in profitability. A consensus of 23 analysts polled by Vara Research expects adjusted earnings to fall to $3.51 billion, down from $5.43 billion in the third quarter and $3.66 billion during the same period last year.
Market performance has reflected these challenges. Shell shares have gained just 3% year-to-date, significantly trailing the 10% and 12% climbs seen by British peer BP and France's TotalEnergies, respectively. Investors are now looking for signs that the company can close this valuation gap as refining margins face ongoing pressure.
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