Shell Q3 preview: Weaker gasoline buying and selling, low refining margins to pull earnings

Shell (NYSE:SHEL) is scheduled to announce Q3 earnings outcomes on Thursday, Oct. 27, earlier than market open.

Consensus EPS estimate is $2.40 (+126.4% Y/Y) and consensus income estimate is $46.99B (-21.7% Y/Y).

Over the past 2 years, SHEL has crushed EPS estimates 75% of the time and income estimates 50% of the time.

Over the past 3 months, EPS estimates have seen 2 upward revisions and 4 downward. Income estimates have seen 1 downward revision.

Shares of the oil and gasoline big fell after it forecast an enormous hit to its Q3 earnings from weaker gasoline buying and selling and a pointy drop in refining margins.

Shell’s (SHEL) inventory was flat after it reported document income for a second straight quarter and introduced a $6B buyback.

SA contributor Christopher Hoeger stated Shell stands one of the best likelihood of capitalizing on the carbon seize market.

Current information:

• Shell (SHEL) stated it’s the second worldwide associate to select up a 9.375% stake in QatarEnergy’s 16M metric tons/yr North Discipline South LNG undertaking.
• CEO Ben van Beurden reportedly stated the agency ought to have pulled out sooner from the Groningen gasoline discipline as manufacturing was reduce to ranges the place it made little to no revenue. Manufacturing was reduce after the Dutch govt. and a Shell-Exxon JV realized the extraction of gasoline prompted earthquakes, with prosecutors saying they may pursue a air pollution case in opposition to the JV.
• Exxon Mobil (XOM) and Shell (SHEL) are reportedly seeking to promote sure offshore pure gasoline belongings within the southern U.Ok. and Dutch North Sea in an effort to dispose older oil and gasoline belongings.
• Shell (SHEL) resumed producing and transport LNG from its Prelude floating LNG facility, almost a month after reaching a wage take care of staff’ unions.
• CEO Beurden will step down on the finish of the yr and might be changed by Wael Sawan.

Shares of Shell (SHEL) gained 3.5% YTD, underperforming the Dow Jones Oil & Fuel Titans 30 Index.