Shell has slimmed its expectations on its fourth-quarter LNG production.
In an update note, it said trading and optimisation results for its integrated gas segment are expected to be “significantly lower” than in the third quarter.
The energy major is forecasting LNG volumes of 6.8m to 7.2m tonnes, compared with 7.5m tonnes in the third quarter.
It blamed the drop on lower feedgas volumes and fewer cargoes due to the timing of liftings.
The company said the expected lower results for its gas business have been affected by expiring hedging contracts.
It also expects trading and optimisation in its chemicals and oil products business to be “significantly lower” than in the previous quarter, reflecting demand seasonality.
Shell, which has reviewed and reconfigured its business under chief executive Wael Sawan, also said it would take $1.5bn to $3bn of non-cash, post-tax impairments, including up to $1.2bn in its renewables division.
The company is due to announce its fourth-quarter results on 30 January.
