Shell Raises Gas Production Forecast After ARC Resources Acquisition

Shell PLC raised its third-quarter integrated gas production forecast to between 740,000 and 780,000 barrels of oil equivalent per day, an increase from its previous estimate of 570,000 to 630,000. This adjustment follows the company's acquisition of Canadian energy firm ARC Resources in early September.

The company also expects its refining margin to rise to $42 a barrel, up from $24 in the second quarter. This growth is driven by high plant utilization and global fuel supply shortages resulting from a conflict involving Iran that began in February. These disruptions affected crude oil supplies through the Strait of Hormuz and damaged output from Qatar, contributing to record diesel prices of £2 per litre in the United Kingdom.

Despite these gains, Shell warned that results could be impacted by higher cash outflows and a decline in chemicals margins, which are expected to fall to $208 a tonne from $270 a tonne. The company is scheduled to report its full third-quarter results on October 29.