January 9, 2024 [LNG Prime]- LNG giant Shell is expecting “significantly” higher trading and optimization results for its integrated gas business in the fourth quarter of 2023 compared to the previous quarter.

The UK-based firm revealed this in its fourth-quarter update note on Monday.

According to Shell, trading and optimization results for integrated gas are expected to be “significantly higher than Q3’23 due to seasonality and increased optimization opportunities.”

Shell’s adjusted earnings reached $6.22 billion in the third quarter, a drop of 34.2 percent compared to $9.45 billion in the year before, while the company’s integrated gas segment reported adjusted earnings of about $2.53 billion in the third quarter.

This compares to $2.32 billion in the same period a year ago and $2.5 billion in the prior quarter.

Shell sold 16.01 million tonnes of LNG in the July-September period, while its liquefaction volumes dropped to 6.88 million tonnes in the third quarter compared to 7.24 million tonnes in the same quarter last year.

The firm said in the update it expects liquefaction volumes to reach about 6.9-7.3 million tonnes in the fourth quarter.

Shell previously expected liquefaction volumes to reach about 6.7-7.3 million tonnes in the fourth quarter.

In December, Shell’s huge Prelude FLNG located offshore Western Australia shipped its first LNG cargo since August last year when it started scheduled maintenance.

Moreover, Shell expects integrated gas production to reach 880–920 kboe/d in the fourth quarter, while upstream production is expected to be at 1,830-1,930 kboe/d.

Shell also expects impairment charges of about $2.5 billion to $4.5 billion for the fourth quarter.

“Impairments are primarily driven by macro and external developments as well as portfolio choices, including the Singapore chemicals and products assets,” it said.

Shell plans to publish its results on February 1.

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