British energy giant Shell on Wednesday said first-quarter earnings were set for a “significant” boost from oil prices soaring during the Middle East war, which nevertheless lowered its production.
Despite world crude futures tumbling Wednesday following the announcement of a two-week ceasefire between the United States and Iran, they remain considerably higher compared with the start of the conflict on February 28.
First-quarter adjusted earnings in Shell’s marketing division, which includes its global network of service stations, “are expected to be significantly higher” compared with the same January-March period last year, the company said ahead of its full results due May 7.
It added in a statement that gas production is expected to be lower than at the end of 2025, which “reflects the impact of the Middle East conflict on Qatari volumes”.
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Qatar has long-term liquefied natural gas agreements with Shell and international rivals including ENI, TotalEnergies, Petronet, and Sinopec.
Ras Laffan in northern Qatar, the world’s largest LNG hub, has suffered significant damage in the war.
Shell’s net profit rose 11 per cent last year to nearly $18 billion as higher sales volumes and lower costs offset falling oil and gas prices.
After oil and gas prices plunged Wednesday, Shell’s share price slid 6.4 per cent, and peer BP shed seven percent in afternoon deals on London’s benchmark FTSE 100 index.
AFP
