Dramatische volumedalingen
OUTLOOK FOR THE SECOND QUARTER 2020
As a result of COVID-19, there is significant uncertainty in the expected macroeconomic conditions with an expected
negative impact on demand for oil, gas and related products. Furthermore, recent global developments and uncertainty in
oil supply have caused further volatility in commodity markets. The second quarter 2020 outlook provides ranges for
operational and financial metrics based on current expectations, but these are subject to change in the light of current
evolving market conditions. Due to demand or regulatory requirements and/or constraints in infrastructure, Shell may need
to take measures to curtail or reduce oil and/or gas production, LNG liquefaction as well as utilisation of refining and
chemicals plants and similarly sales volumes could be impacted. These measures would likely have negative impacts on
Shell's operational and financial metrics.
Integrated Gas production is expected to be approximately 840 - 890 thousand boe/d. LNG liquefaction volumes are
expected to be approximately 7.4 - 8.2 million tonnes. More than 90% of the term contracts for LNG sales are oil price
linked with a price lag of typically 3 - 6 months.
Upstream production is expected to be approximately 1,750 - 2,250 thousand boe/d.
Refinery utilisation is expected to be approximately 60% - 70%.
Oil Products sales volumes are expected to be approximately 3,000 - 4,000 thousand b/d.
Chemicals manufacturing plant utilisation is expected to be approximately 70% - 80%.
Chemicals sales volumes are expected to be approximately 3,500 - 4,100 thousand tonnes.
Corporate segment earnings excluding identified items are expected to be a net expense of approximately $800 - 875
million in the second quarter 2020 and a net expense of approximately $3,200 - 3,500 million for the full year 2020. This
excludes the impact of currency exchange rate effects.
Shell announced a series of operational and financial initiatives that are expected to result in reduction of underlying
operating expenses by $3-4 billion per annum over the next 12 months compared with 2019 levels; reduction of cash
capital expenditure to $20 billion or below for 2020 from a planned level of around $25 billion; and material reductions
in working capital. In addition, Shell has decided not to continue with the next tranche of the share buyback programme
following the completion of the most recent tranche.