July 08, 2025 [Oil Price]- Shell expects to have booked “significantly lower” trading and optimization results for the second quarter compared to the prior quarter, while it also slightly reduced the range of its natural gas and LNG production for the April-June period.

Trading and optimization in the integrated gas division is expected to be significantly lower than in the first quarter, Shell said on Monday in an update note on the Q2 results.

Marketing adjusted earnings are expected to be higher than in Q1, but trading and optimization in the chemicals and products division is expected to be significantly lower than the first quarter.

Moreover, the adjusted earnings of the Chemicals & Products segment is expected to be below break-even in the second quarter, Shell said.

LNG liquefaction volumes are expected at between 6.4 million and 6.8 million metric tons in the second quarter, slightly down from a previous guidance range of 6.3 million to 6.9 million tons. LNG output in the first quarter was 6.6 million tons.

Total natural gas output is seen at 900,000 to 940,000 barrels of oil equivalent per day (boed), compared to 890,000-950,000 boed in the prior guidance and 927,000 boed produced in the first quarter.

In the upstream, oil and gas production is expected to be lower than in Q1, due to scheduled maintenance and the completed sale of SPDC in Nigeria, Shell said in the update note.

The UK-based supermajor will publish full Q2 results on July 31, 2025.

Shell posted consensus-beating earnings for the first quarter, and launched another $3.5-billion buyback, keeping the pace of its share repurchases.

However, the second quarter saw a slump in oil prices in April and May due to the U.S. tariff blitz, as well as high volatility in June due to the Iran-Israel conflict and subsequent ceasefire. All these price swings are set to have weighed on Big Oil’s earnings in Q2.