SHEL Shell Plc

By Jaime Llinares Taboada

Royal Dutch Shell PLC on Thursday reported better-than-expected profits for the first quarter of the year. Oil and gas production rose from the fourth quarter of 2020, but is expected to drop in April-June. Here's what the Anglo-Dutch energy major had to say:

On integrated gas and upstream:

"Compared with the fourth quarter 2020, integrated gas adjusted earnings primarily reflected higher realized prices for oil and LNG, partly offset by higher operating expenses related to credit provisions."

"Compared with the fourth quarter 2020, total oil and gas production increased by 3% mainly due to the restart of production at the Prelude floating LNG operations in Australia. LNG liquefaction volumes decreased by 1% due to cargo timing, partly offset by the restart of production at the Prelude floating LNG operations in Australia."

On oil products:

"Compared with the fourth quarter 2020, oil products adjusted earnings reflected higher contributions from trading and optimization, higher realized refining margins, and lower operating expenses. These were partly offset by the absence of the favorable deferred tax movements in the fourth quarter 2020."

"Oil products sales volumes decreased due to the impact of further lockdowns arising from Covid-19, and the Texas winter storm, compared with the fourth quarter 2020."

On chemicals:

"Compared with the fourth quarter 2020, chemicals adjusted earnings reflected higher realized margins in base chemicals and intermediates from a stronger price environment."

"Chemicals manufacturing plant utilization remained at 79% compared with the fourth quarter 2020, with the impact of the Texas winter storm at the Deer Park site offsetting comparatively fewer maintenance activities."

On second-quarter outlook:

"As a result of the Covid-19 pandemic, there continues to be significant uncertainty in the macroeconomic conditions with an expected negative impact on demand for oil, gas and related products."

"Integrated Gas production is expected to be approximately 880-940 thousand boe/d. LNG liquefaction volumes are expected to be approximately 7.6-8.2 million [metric tons]."

"Upstream production is expected to be approximately 2,150-2,350 thousand boe/d, reflecting lower seasonal gas demand and divestment impacts."

"Refinery utilization is expected to be approximately 73%-81%. Oil products sales volumes are expected to be approximately 4,000-5,000 thousand b/d."

"Chemicals manufacturing plant utilization is expected to be approximately 76%-84%. Chemicals sales volumes are expected to be approximately 3,500-3,800 thousand tons."

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

April 29, 2021 03:59 ET (07:59 GMT)

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