Shell reduces its first-quarter LNG Production Outlook

Shell has lowered its outlook for first-quarter LNG production in a trading report on Monday. It cited the impact of bad Australian weather, before publishing results on May 2nd.

The British company forecasted that the LNG production would be between 6.4 and 6.8 millions metric tons. This is a decrease from its previous forecasts of 6.6 to 7.2 tons. In the fourth quarter last year, it produced 7.1 millions tons of LNG.

The company stated that the downward revision was due to cyclones in Australia and unplanned maintenance. It added that the trading results of its gas division are expected be similar to the previous quarter.

Shell announced in February that the weather was so bad, it had to delay some of its loading at its Prelude floating LNG facilities in Western Australia.

Shell said that it also expects to write off $100 million in exploration costs during the third quarter. A spokesperson refused to provide more details.

Shell's marketing business expects to see a decline in its results for the quarter due to a reduced contribution from its specialty products and services, including low-carbon solutions for aviation and maritime industries, among others.

The company has also lowered its forecast for oil and gas production to between 1,79 million and 1,89 million barrels equivalent per day (boed), down from an earlier projection of between 1.75 million and 1.95 million boed. (Reporting and editing by David Goodman.)

(source: Reuters)