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COVID-19 is not expected to be significant at Shell Group level

Oil&Gas Materials 31 March 2020 15:42
COVID-19 is not expected to be significant at Shell Group level

Baku, Azerbaijan, Mar. 31

By Leman Zeynalova - Trend:

COVID-19 is not expected to be significant at Shell Group level, Trend reports citing the company.

Refinery utilisation is expected to be between 80 percent and 84 percent with availability expected to be between 93 percent and 96 percent in the first quarter of 2020, said the company.

“Refining margins are expected to be weaker compared with the fourth quarter 2019. Oil Products sales volumes are expected to be between 6,000 and 7,000 thousand barrels per day. Marketing margins in the first quarter are expected to remain strong, as the impact on demand from COVID-19 is not expected to be significant at the Shell Group level in the first quarter,” the company said in its report.

Shell said a material working capital release is expected largely driven by the change in quarter-end prices impacting inventory values.

“CFFO excluding working capital movements is expected to be impacted by the higher cash cost of sales. In February, we completed the divestment of the Martinez refinery,” said the company.

Chemicals manufacturing plant utilization is expected to be between 82 percent and 87 percent and availability is expected to be between 94 percent and 97 percent, said Shell.

“Chemicals sales volumes are expected to be between 3,700 and 4,000 thousand tonnes. Chemicals cracker and intermediate margins are expected to improve compared to the fourth quarter 2019.”

Shell is an international energy company that aims to meet the world’s growing need for more and cleaner energy solutions in ways that are economically, environmentally and socially responsible.

Shell is a global group of energy and petrochemical companies.

Its operations are divided into four businesses: Upstream, Integrated Gas and New Energies, Downstream.

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