Shell takes $1.3bn emissions payments hit amid 'significantly lower' profits
Share:
Shell has warned of a $1.3billion cashflow impact for the fourth quarter of 2024 due to payments of emissions certificates. Europe's largest energy firm said the payments concerned biofuel programmes in the US and Germany's Fuel Emissions Trading Act. It came as the oil supermajor told shareholders profits would be 'significantly lower' in the fourth quarter, owing to the expiry of hedging contracts.
Shell's total gas output for the final three months of last year will also likely be lower owing to maintenance at a Qatari plant. The firm expects its integrated gas segment to have produced 880,000 to 920,000 barrels of oil equivalent per day during the period, compared to 941,000 Boe/d in the third quarter.
It said production was hit by 'scheduled maintenance' at its Pearl Gas to Liquids plant, the world's largest GTL facility, which Shell runs with QatarEnergy. Shell also cut its fourth-quarter liquefied natural gas production forecast to between 6.8 million and 7.2 million metric tons following a drop in cargoes and feed gas, having previously anticipated 6.9 million to 7.5 million tons.
Financial hit: Shell has warned of a $1.3billion cashflow impact in the fourth quarter. Meanwhile, the FTSE 100 group said oil refining margins stayed at around $5.5 (£4.41) per barrel after falling significantly last year. Brent crude futures ended 2024 around 3 per cent down at $74.64 per barrel, its second successive year of decline.
