Shell Stock Falls on Forecast of Q4 Integrated Gas Output Slump

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Shell (

SHEL

) shares are falling 2% in premarket trading Wednesday after the oil giant said it expects to post a large quarter-over-quarter production slump in its integrated gas division as its hedging contracts expire.

The company said it expects integrated gas production to fall to between 880,000 to 920,000 barrels of oil equivalent per day in the fourth quarter, down from 941,000 in the third quarter.

“Trading & Optimisation results are expected to be significantly lower than Q3’24, driven by the (non-cash) impact of expiring hedging contracts,” Shell said.

The London-based firm also said it expects well write-offs of around $300 million in the integrated gas division and a $1.3 billion outflow “related to timing of payments of emissions certificates.”

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