Shell bounces back to black in Q1 but cautions uncertain pace of recovery
29th April 2021 07:35 GMT

Shell on April 29 reported a return to positive earnings for the first quarter, lifted by stronger oil prices but cautioned about "significant uncertainty" over its key production and sales volumes as the global economy recovers from the pandemic.

In the first quarter of 2021, Shell's main upstream division produced 2.46 million boe/d, up from 2.37 million b/d in the previous quarter but down from 2.71 million boe/d in the year-earlier period, it said.

First-quarter earnings from the upstream unit were $1.1 billion, compared with losses of $2.1 billion and $863 million in the previous and year-earlier quarters helped by stronger prices.

“Shell has made a strong start to 2021, generating over $8 billion of cash in the quarter. Our integrated business model is ideally positioned to benefit from recovering demand," CEO Ben van Beurden said in a statement.

The company has recorded significant losses in its upstream division in the last year, including a $1.5 billion adjusted loss in the second quarter 2020.

Looking ahead, Shell said it sees its upstream production at between 2.15 million - 2.35 million boe/d in the second quarter reflecting lower seasonal gas demand and divestment impacts

Integrated gas production is expected to be approximately 880,000-940,000 boe/d in the current quarter while LNG liquefaction volumes are expected to around 7.6 million - 8.2 million mt.

Shell said it sees a potential improvement in its fuel sales volumes to between 4,000-5000 b/d, compared with 4,164 b/d in the first quarter and 4,781 b/d in the final quarter of 2020.

Second-quarter refinery utilization rates are expected to be approximately 73%-81%, Shell said.

Platts ,
29th April 2021 07:35 GMT