Earnings from Shell’s LNG trading operations to lift quarterly profits despite output drop

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Shell’s update ahead of its full-year results on Feb. 2 also flagged a $2-billion accounting hit in 2022 as a result of European Union and British windfall taxes on the energy sector

Earnings from Shell’s liquefied natural gas trading operations are likely to have been significantly higher in the fourth quarter of last year despite an output drop caused by plant outages, it said on Friday.

Fourth-quarter LNG liquefaction volumes are expected to be the lowest since the company acquired BG Group in 2016 for $53-billion, dropping to between 6.6 million and 7 million tonnes after prolonged outages at two major plants in Australia., the world’s top LNG trader, said its LNG trading results are set to be “significantly higher” than in the previous quarter.Shell’s third-quarter results were dented by weaker refining performance and a slump in LNG trading.

Yet Shell remained on track for record annual profit in 2022, having posted earnings of $30-billion in the first three quarters, just shy of the 2008 record profit of $31-billion. London-based Shell, whose Chief Executive Wael Sawan on Jan. 1 succeeded Ben van Beurden, who spent nine years in the job, said in October that it intends to increase its dividend by 15 per cent in the fourth quarter.

 

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