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Royal Dutch Shell’s refinery utilization be 64-68%

Oil&Gas Materials 1 October 2020 10:13 (UTC +04:00)
Royal Dutch Shell’s refinery utilization be 64-68%

BAKU, Azerbaijan, Oct.1

By Leman Zeynalova – Trend:

Refinery utilization of Royal Dutch Shell is expected to be between 64 percent and 68 percent in the third quarter of 2020, Trend reports citing the company.

Realized gross Refining margins are expected to be significantly lower compared with the second quarter 2020, Shell said in a report.

Oil products’ sales volumes are expected to be between 4,000 and 5,000 thousand barrels per day.

“Trading and optimization results are expected to be lower than the historical average and significantly lower compared with the second quarter 2020. Marketing margins are expected to be significantly higher compared with the second quarter 2020. Compared with the second quarter 2020, Adjusted Earnings are expected to be negatively impacted by $200 to $400 million due to higher volume driven activity, phasing of maintenance activities and provisions,” reads the report.

A one-off deferred tax benefit is expected to have a positive impact on Adjusted Earnings of around $100 million, no cash impact is expected in the third quarter.

Working capital movements are typically impacted by movements between the quarter opening and closing price of crude along with changes in inventory volume. Inventory volumes are expected to be lower compared with the end of the second quarter 2020, impacting working capital positively.

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.

It 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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