BITNEWS

Shell first quarter 2026 update note

The following is an update to the first quarter 2026 outlook and gives an overview of our current expectations for the first quarter. Outlooks presented may vary from the actual first quarter 2026 results and are subject to finalisation of those results, which are scheduled to be published on May 7, 2026. Unless otherwise indicated, all outlook statements exclude identified items. See appendix for the definition of the non-GAAP measure used and the most comparable GAAP measure. In light of the ongoing situation in the Middle East, the outlook provided is subject to increased uncertainty. For details see the impact of the conflict in the Middle East on Shell’s activities on shell.com. Integrated Gas $ billionsQ4’25 Q1’26 OutlookCommentProduction (kboe/d)948880 - 920Reflects the impact of the Middle East conflict on Qatari volumes.LNG liquefaction volumes (MT)7.87.6 - 8.0Reflects the ramp-up of LNG Canada, offset by Australia weather constraints and Qatar LNG outages.Underlying opex1.21.1 - 1.3 Pre-tax depreciation1.51.3 - 1.7 Taxation charge0.80.4 - 0.7 Other Considerations:Trading & Optimisation is expected to be in line with Q4’25. Note: Long‐term LNG contracts usually have a pricing lag (e.g. JCC‐3). Upstream$ billionsQ4’25Q1’26 OutlookCommentProduction (kboe/d)1,8921,760 - 1,860Includes reduced production following the Adura JV incorporation.Underlying opex2.42.0 - 2.4 Pre-tax depreciation2.72.4 - 3.0 Taxation charge1.71.6 - 2.4Reflects the Nigeria onshore and UK portfolio changes since Q1’25.Other Considerations:-Marketing$ billionsQ4’25Q1’26 OutlookCommentSales volumes (kb/d)2,7012,550 - 2,650 Underlying opex2.62.2 - 2.6 Pre-tax depreciation0.60.5 - 0.7 Taxation charge0.40.4 - 0.7 Other Considerations:Marketing adjusted earnings are expected to be significantly higher than Q1’25. Chemicals and Products$ billionsQ4’25Q1’26 OutlookCommentIndicative refining margin*$14/bbl$17/bbl Indicative chemicals margin*$140/tonne$139/tonneThe Chemicals sub-segment adjusted earnings are expected to be at a similar level as Q1’25. Refinery utilisation95%95% - 99% Chemicals utilisation76%81% - 85% Underlying opex2.21.7 - 2.1 Pre-tax depreciation0.90.8 - 1.0 Taxation charge / (credit)0.20.3 - 0.7 Other Considerations:Trading & Optimisation is expected to be significantly higher than Q4’25. *See appendix Renewables and Energy Solutions $ billionsQ4’25Q1’26 OutlookCommentAdjusted Earnings 0.10.2 - 0.7Trading & Optimisation is expected to be significantly higher than Q4’25.Corporate$ billionsQ4’25Q1’26 OutlookCommentAdjusted Earnings (0.6)(1.0) - (0.8) Shell Group $ billionsQ4’25Q1’26 OutlookCommentCFFO:Tax paid2.62.0 - 2.8 Financial Derivative Instruments movements(0.1)(1) - 4 Working capital 1.3(15) - (10)Reflects impact of unprecedented volatility in commodity prices on inventory and receivables.Other Shell Group Considerations:Non-cash net-debt expected to be impacted by $3-4 billion increase in variable components of long-term shipping leases in the current macro environment. Guidance The ‘Quarterly Databook’ contains guidance on Indicative Refining Margin, Indicative Chemicals Margin and full-year price and margin sensitivities. Consensus The company compiled consensus, managed by Vara Research, is expected to be published on April 29, 2026. Appendix Indicative Margins Chemicals & ProductsQ4’25Q1’26 Updated OutlookIndicative refining margin$14/bbl$17/bblIndicative chemicals margin$140/tonne$139/tonneVolume DataOperational MetricsQ4’25Q1’26 QPR OutlookQ1’26 Updated OutlookIntegrated Gas Production (kboe/d)948920 - 980880 - 920LNG liquefaction volumes (MT)7.87.4 - 8.07.6 - 8.0Upstream Production (kboe/d)1,8921,700 - 1.9001,760 - 1,860Marketing Sales volumes (kb/d)2,7012,550 - 2,7502,550 - 2,650Chemicals & Products Refinery utilisation95%90% - 98%95% - 99%Chemicals utilisation76%79% - 87%81% - 85%Underlying Opex Underlying operating expenses is a measure aimed at facilitating a comparative understanding of performance from period to period by removing the effects of identified items, which, either individually or collectively, can cause volatility, in some cases driven by external factors. For further details see the 4th Quarter 2025 and full year unaudited results. $ billionsQ4’25Q4’25 AdjustedQ1’26 Updated OutlookProduction and manufacturing expenses5.8 Selling, distribution and administrative expenses3.4 Research and development0.3 Operating Expenses (Opex)9.69.6 Less: Identified Items 0.1 Underlying Opex 9.4 of which: Integrated Gas1.21.21.1 - 1.3 Upstream2.52.42.0 - 2.4 Marketing2.72.62.2 - 2.6 Chemicals and Products2.22.21.7 - 2.1 Renewables and Energy Solutions0.60.6 Depreciation, depletion and amortisation$ billionsQ4’25Q4’25 AdjustedQ1’26 Updated OutlookDepreciation, Depletion & Amortisation6.66.6 Less: Identified Items 0.8 Pre-tax depreciation (as Adjusted) 5.8 of which: Integrated Gas1.51.51.3 - 1.7 Upstream2.92.72.4 - 3.0 Marketing0.90.60.5 - 0.7 Chemicals and Products1.10.90.8 - 1.0 Renewables and Energy Solutions0.30.1 Taxation Charge$ billionsQ4’25Q4’25 AdjustedQ1’26 Updated OutlookTaxation Charge2.72.7 Less: Identified Items and Cost of supplies adjustment (0.2) Taxation Charge (as Adjusted) 2.9 of which: Integrated Gas0.90.80.4 - 0.7 Upstream1.71.71.6 - 2.4 Marketing0.30.40.4 - 0.7 Chemicals and Products-0.20.3 - 0.7 Renewables and Energy Solutions0.10.1 Adjusted Earnings The "Adjusted Earnings” measure aims to facilitate a comparative understanding of Shell’s financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. These items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shell’s financial results from period to period. This measure excludes earnings attributable to non-controlling interest. For further details see the 4th Quarter 2025 and full year unaudited results. $ billionsQ4’25Q4’25 AdjustedQ1’26 Updated OutlookIncome/(loss) attributable to Shell plc shareholders4.14.1 Add: Current cost of supplies adjustment attributable to Shell plc shareholders 0.3 Less: Identified items attributable to Shell plc shareholders 1.2 Adjusted Earnings 3.3 of which: Renewables and Energy Solutions(0.1)0.10.2 - 0.7 Corporate(0.6)(0.6)(1.0) - (0.8)Working Capital Working capital movements are defined as the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables. Enquiries Media International: +44 (0) 207 934 5550 Media U.S. and Canada: Contact form Cautionary Note The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement "Shell”, "Shell Group” and "Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words "we”, "us” and "our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, "Shell subsidiaries” and "Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The terms "joint venture”, "joint operations”, "joint arrangements”, and "associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term "Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest. The numbers presented in this announcement may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures due to rounding. Forward-Looking statements This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as "aim”; "ambition”; ‘‘anticipate’’; "aspire”; "aspiration”; ‘‘believe’’; "commit”; "commitment”; ‘‘could’’; "desire”; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; "milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; "schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; "vision”; ‘‘will’’; "would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks, including climate change; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including tariffs and regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entit

ONLY AVAILABLE IN PAID PLANS

Published by: manilatimes

Read full article here: https://www.manilatimes.net/2026/04/08/tmt-newswire/globenewswire/shell-first-quarter-2026-update-note/2316075