Shell Lowers Q2'25 Guidance for Integrated Gas & Chemicals Divisions

Shell plc SHEL, the British oil and gas giant, has provided an update on the second-quarter outlook for its integrated gas division and liquefied natural gas (LNG) production ahead of releasing its second-quarter results.

Shell’s integrated gas division has lowered its production guidance from the previously announced range of 890,000-950,000 barrels of oil equivalent per day (boe/d), issued with its first-quarter results, to 900,000-940,000 boe/d. SHEL has also revised its LNG production guidance from the previously announced range of 6.3-6.9 million tons. The company expects LNG production to be in the range of 6.4-6.8 million metric tons in the second quarter. SHEL also expects weaker gas trading results compared with the first quarter.

In its marketing division, Shell expects second-quarter sales volumes to increase compared to the previous quarter. The company anticipates sales volumes to be in the range of 2.6-3 million barrels per day (bpd), slightly lower than its prior expectations of 2.6-3.1 million bpd.

Shell’s chemical division, however, is anticipated to generate a loss in the second quarter. The chemical utilization rate in the second quarter is expected to be between 68% and 72%, significantly down from 81% in the first quarter of 2025. The company mentioned that unplanned maintenance at its Monaca plant affected chemical utilization in the to-be-reported quarter. Additionally, trading results from its Chemicals & Products division and the Renewables and Energy Solutions unit are expected to be weaker than in the first quarter of 2025.

Shell is scheduled to release full second-quarter results on July 31, 2025. The update provided by the company indicates that it expects weaker results compared qith the previous quarter, especially in the Integrated Gas and Chemicals & Products divisions. Additionally, in the upstream division, the company expects exploration well write-offs in the second quarter to be approximately $200 million. 

SHEL’s Zacks Rank & Key Picks

SHEL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, EQT Corporation EQT, and Oceaneering International OII. While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, EQT and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. The company develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

EQT is the largest natural gas producer in the United States. EQT holds numerous premium natural gas drilling locations in the core Appalachian Basin, securing a solid production outlook. EQT is poised to benefit from the rising demand for natural gas as a cleaner-burning fuel. The recent rise in natural gas prices is also anticipated to positively impact its profitability.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

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