BAKU, Azerbaijan, June 30
By Leman Zeynalova – Trend:
Oil products sales volumes of Royal Dutch Shell are expected to be between 3,500 and 4,500 thousand barrels per day in the second quarter of 2020, driven by a significant drop in demand related to the impact of COVID-19, Trend reports citing the company.
Refinery utilization is expected to be between 67 percent and 71 percent, while realized gross refining margins are expected to be significantly lower compared with the first quarter 2020 and are expected to be offset by higher trading and optimization results, Shell said in its report.
Updates related to receivables provisions are expected to have a negative earnings impact in the range of $200 to $300 million. No cash impact is expected in the second quarter
Working capital in oil products are typically impacted by movements between the quarter opening and closing price of crude along with changes in inventory volumes. Inventory volumes are expected to be higher compared with the end of the first quarter 2020, impacting working capital negatively
Production in Upstream is expected to be between 2,300 and 2,400 thousand barrels of oil equivalent per day.
“Although this production range is higher compared with the outlook previously provided, it has had a limited impact on earnings in the current macro environment. Updates related to receivables and inventory provisions are expected to have a negative earnings impact in the range of $200 to $400 million compared with the second quarter 2019. No cash impact is expected in the second quarter,” said the company.
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