Shell Adjusts LNG Production Forecast for First Quarter
LONDON (Reuters) - Shell lowered its first-quarter liquefied natural gas (LNG) production outlook in a trading update on Monday, citing the impact of bad weather in Australia, before it publishes results on May 2.
The British company guided for LNG output to reach between 6.4 million and 6.8 million metric tons, down from a previous forecast of 6.6 million to 7.2 million tons. It produced 7.1 million tons of LNG in the fourth quarter of last year.
The downward revision was because of cyclones and unplanned maintenance in Australia, the company said, adding that its gas division trading results are expected to be in line with the previous quarter.
Shell said in February that it had to postpone some loading from its Prelude floating LNG facility in Western Australia because of challenging weather conditions.
Shell also said it expects to book a $100 million exploration write-off in the quarter. A spokesperson declined to give more detail.
In its marketing business, Shell expects results in the quarter to be dented by a lower contribution from its speciality products and services business, which includes low-carbon energy solutions for the aviation and marine industries among others.
The company also narrowed its overall oil and gas output forecast to between 1.79 million and 1.89 million barrels of oil equivalent per day (boed) in the first quarter, down from a previous projection of 1.75 million to 1.95 million boed.
(Reporting by Shadia Nasralla; Editing by David Goodman)
