Shell: shares slip as production targets disappoint
(CercleFinance.com) - Shell shares slipped on Friday after its production outlook for the fourth quarter disappointed analysts.
In a statement issued this morning, the company said integrated gas production is expected to be between 920,000 and 970,000 barrels of oil equivalent per day in the quarter.
"This points to sequentially weaker earnings after the strong performance on trading in the third quarter," analysts at Berenberg reacted.
Downstream results also look set to be relatively weak, the brokerage noted, with refining margins impacted by the continued weak macro environment, it added.
Based on the current macro outlook, Shell also said that it expected post-tax impairment charges in the range of 1.7 billion to 2.3 billion dollars over the quarter.
"It does have a marginal negative impact on gearing, which might in turn lead the company to focus more on debt reduction at the margin than shareholder payouts in 2020," Berenberg warned.
Shell "A" shares are down over 0.5% in morning trading on the Euronext Amsterdam stock exchange.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
In a statement issued this morning, the company said integrated gas production is expected to be between 920,000 and 970,000 barrels of oil equivalent per day in the quarter.
"This points to sequentially weaker earnings after the strong performance on trading in the third quarter," analysts at Berenberg reacted.
Downstream results also look set to be relatively weak, the brokerage noted, with refining margins impacted by the continued weak macro environment, it added.
Based on the current macro outlook, Shell also said that it expected post-tax impairment charges in the range of 1.7 billion to 2.3 billion dollars over the quarter.
"It does have a marginal negative impact on gearing, which might in turn lead the company to focus more on debt reduction at the margin than shareholder payouts in 2020," Berenberg warned.
Shell "A" shares are down over 0.5% in morning trading on the Euronext Amsterdam stock exchange.
Copyright (c) 2019 CercleFinance.com. All rights reserved.