Earnings and Revenue Estimates - Shell plc (SHEL) is expected to report Q4 earnings of $1.78 per share on revenues of $80.1 billion [1] - The Zacks Consensus Estimate for Q3 earnings remained unchanged, indicating a 19.8% YoY drop, while revenue estimates suggest no significant change from the year-ago period [5] Previous Quarter Performance - In Q3, Shell reported earnings per ADS of $1.92, beating the Zacks Consensus Estimate of $1.72, driven by strong production and higher LNG sales [3] - Q3 revenues of $72.5 billion were 14.3% below the Zacks Consensus Estimate due to weaker commodity prices and a significant drop in Chemicals and Products' performance [3] - Shell has beaten the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average earnings surprise of 15.4% [4] Factors Influencing Q4 Performance - Shell flagged significant hurdles in its integrated gas, renewables, and oil trading divisions, which are expected to impact overall Q4 performance [6] - Earnings from the Integrated Gas division are expected to decline sharply compared to Q3 2024's $2.87 billion, primarily due to the expiry of hedging contracts [7] - Natural gas production is projected to fall to 880,000-920,000 barrels of oil equivalent per day from 941,000 in the previous quarter due to maintenance at Qatar's Pearl GTL plant [7] - LNG volumes are expected to decline to 6.8-7.2 million metric tons from 7.5 million, reflecting reduced feedgas deliveries and fewer cargoes [8] Impairments and Cash Flow Challenges - Shell plans to record a non-cash, post-tax impairment of $1.5 billion to $3 billion, with up to $1.2 billion stemming from its renewables division [9] - The company anticipates a $1.3 billion hit to cash flow from operations due to emission-permit payments in Germany and the United States [9] Trading and Seasonal Weakness - Shell's trading operations in both the Integrated Gas and Oil Products divisions are expected to post significantly weaker results than in Q3 [10] - Seasonal declines in demand and the expiration of hedging contracts have weighed on performance, while chemicals margins have remained depressed [10] Earnings ESP and Zacks Rank - Shell's Earnings ESP is -18.69%, and it currently carries a Zacks Rank 3 (Hold) [12] Alternative Energy Stocks - Energy Transfer (ET) has an Earnings ESP of +9.09% and a Zacks Rank 3, with a Zacks Consensus Estimate indicating 6.1% YoY growth for 2025 earnings per share [13][14] - Helmerich & Payne (HP) has an Earnings ESP of +4.57% and a Zacks Rank 3, with an average earnings surprise of 14.9% over the last four quarters [14][15] - MPLX LP (MPLX) has an Earnings ESP of +0.78% and a Zacks Rank 3, with a Zacks Consensus Estimate indicating 3.5% YoY growth for 2025 earnings per share [15]

Executive Changes - Huibert Vigeveno, Downstream, Renewables and Energy Solutions Director, will step down effective 31 March 2025 after 30 years of service [1] - Wael Sawan, CEO, praised Vigeveno for his leadership in transforming Downstream, Renewables and Energy Solutions, and for successfully integrating BG [2] - Andrew Smith will be appointed Director, Trading and Supply, and Machteld de Haan will be appointed Director, Downstream, Renewables and Energy Solutions, both joining the Executive Committee from 1 April 2025 [2] New Appointments Background - Andrew Smith has been with Shell since 1986, holding various leadership roles including Executive Vice President, Trading and Supply, and leading Shell's LNG and Onshore Gas businesses in Australia [6] - Machteld de Haan joined Shell in 1998, with experience in Lubricants, Chemicals and Products, and was previously CEO of Pennzoil Quaker State Company [6] Company Strategy and Transformation - Shell continues to evolve its structure to deliver more value with less emissions, aligning with its ongoing transformation strategy [2] - The company's financial reporting segments remain unchanged: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate [6] Net Carbon Intensity and Emissions Targets - Shell's Net Carbon Intensity (NCI) includes emissions from production, suppliers, and customers, as well as emissions from energy products purchased for resale [9] - Shell's operating plans reflect Scope 1, Scope 2, and NCI targets for the next ten years but do not yet incorporate the 2050 net-zero emissions target due to its current planning period limitations [10][11]

Shell plc (SHEL) recently announced that CNOOC and Shell Petrochemicals Company Limited (CSPC) have jointly taken a final investment decision to expand its petrochemical complex in Daya Bay, Huizhou, China. The expansion is driven by constructing a third ethylene cracker with an impressive capacity of 1.6 million tons annually. Ethylene isthe key component in making plastics, and downstream derivatives units produce chemicals, including linear alpha olefins.The final investment decision will also include bu ...

Shell plc (NYSE: SHEL ) is a multinational oil and gas company based out of the UK. Because of the company's market cap of roughly $200 billion, it qualifies the company as a "supermajor" and is one of the biggest oil companies inI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate ...

Shell plc (SHEL) , the British oil and gas major, has stated that it will record a financial write-down of nearly $400 million over an offshore oil discovery in Namibia. The company has found the oil discovery to be commercially infeasible for development.Per Reuters, SHEL cannot confirm the development of this resource under the current circumstances. The oil and gas find, located in the offshore block PEL 39, was discovered by Shell and its partners, QatarEnergy and the national oil company of Namibia, in ...

Shell plc (SHEL) , the British energy major, has announced that it plans to increase the sales of liquefied natural gas (LNG). This decision has faced criticism from a group of major shareholders, who filed a resolution questioning whether the expansion of LNG sales aligns with the company’s commitment to reduce carbon emissions related to its operations.Shell's LNG Expansion Plans Under ScrutinyBeing the largest trader of LNG globally, Shell is banking on the anticipated rise in demand for the commodity in ...

KEY TAKEAWAYSShell shares are falling in premarket trading Wednesday after the oil giant said it expects to post a large quarter-over-quarter production slump in its integrated gas division.The London-based energy firm attributed the forecast to the expiration of hedging contracts.Shell also said it expects write-offs of around $300 million in the division. Shell (SHEL) shares are falling 2% in premarket trading Wednesday after the oil giant said it expects to post a large quarter-over-quarter production sl ...

The following is an update to the fourth quarter 2024 outlook and gives an overview of our current expectations for the fourth quarter. Outlooks presented may vary from the actual fourth quarter 2024 results and are subject to finalisation of those results, which are scheduled to be published on January 30, 2025. Unless otherwise indicated, all outlook statements exclude identified items. See appendix for the definition of the non-GAAP measure used and the most comparable GAAP measure.      Integrated Gas ...

Incident Overview - Shell temporarily halted operations at its oil processing unit in Pulau Bukom, Singapore, due to a suspected leak [14] - A few tonnes of refined oil products leaked along with cooling water discharge during the standard cooling process [1] - The company notified the Maritime and Port Authority of Singapore (MPA) and the National Environment Agency (NEA) about the incident [14] Environmental and Operational Impact - Maritime traffic and bunkering operations at the Port of Singapore remain unaffected [2] - Shell deployed boats, absorbent booms, and dispersants to contain and clean up the oil sheens near the facility [17] - The leak does not pose a significant environmental threat, and the company is investigating the cause to prevent future incidents [19] Shell's Strategic Divestment - Shell announced the sale of its interest in the Singapore Energy and Chemicals Park to CAPGC, a joint venture of Chandra Asri Capital and Glencore Asian Holdings [3] - This move aligns with Shell's broader portfolio realignment to focus on core operations and future growth areas [3] - The divestment signals a significant shift in Shell's regional strategy, particularly in Singapore [15] Glencore's Growing Influence - Glencore is expected to play an increasingly active role in the physical oil market following the acquisition [4] - The company has begun procuring Middle Eastern crude for use at the Pulau Bukom refinery [4] - Glencore's expanded role in the refining sector will likely impact global oil trading dynamics [18] Industry Insights - TechnipFMC, valued at $12.35 billion, has seen its shares rise 44.1% in the past year [6] - Oceaneering International, valued at $2.55 billion, has experienced an 18.4% increase in its shares over the past year [16] - Ovintiv, valued at $10.07 billion, currently pays an annual dividend of $1.2 per share, or 3.1% [13]

Acquisition Overview - Touchstone Exploration is acquiring Shell Trinidad Central Block Ltd. for $23 million in cash from BG Overseas Holdings, aligning with its natural gas projects and providing access to global LNG prices [1] - The acquisition includes four wells in the Carapal Ridge, Baraka, and Baraka East natural gas pools, producing natural gas and natural gas liquids [2] Production and Infrastructure - Current production levels from the Central Block are 18 MMcf/d of natural gas and 200 bbls/d of natural gas liquids, equating to approximately 3,200 barrels of oil equivalent per day [3] - The block includes an 80 MMcf/d gas processing facility and a pipeline network, with plans for optimization, infill drilling, and exploration to maximize output [3] - The acquisition will increase Touchstone's net production by 2,080 boepd and enhance cash flow prospects [3] Ownership and Contracts - Post-acquisition, Touchstone will hold a 65% working interest in the Central Block exploration and production license, with Heritage Petroleum Company Ltd. retaining the remaining 35% [4] - The agreement includes three key gas marketing contracts, allowing Touchstone to leverage both local and global gas prices [5] Future Plans and Approvals - The acquisition is set to be effective from January 1, 2025, and is expected to close by the second quarter of 2025, pending necessary regulatory approvals [11] - Touchstone is in discussions with banks to secure financing for the acquisition [11] Strategic Impact - The acquisition will enhance processing capacity in the Herrera fairway and support the expansion of natural gas exports while strengthening local market supply [9]