Shell (SHEL, Financial) experienced a significant stock price drop of over 5% following the release of its first-quarter operational guidance, which indicated a downgrade in several key metrics.
In the Integrated Gas segment, production expectations have been lowered to 910,000-950,000 barrels of oil equivalent per day, down from the previous estimate of 930,000-990,000 barrels. This adjustment is primarily due to unexpected maintenance at facilities in Australia.
The Upstream segment's production forecast has been revised to 1.79-1.89 million barrels per day, reflecting the impact of the divestment of Nigeria's SPDC assets, expected to be completed by March 2025.
In the Downstream segment, marketing sales volume expectations have been narrowed to 2.5-2.9 million barrels per day, as the industry's decarbonization efforts reduce contributions from traditional businesses.
Shell anticipates a modest $200 million profit from its Upstream joint ventures, which includes an approximate $100 million write-down of exploration well assets. Refinery utilization is slightly adjusted to 83%-87%, and chemical plant utilization is revised to 79%-83%.
