Shares in oil and gas giant Shell (LSE: SHEL) fell nearly 3% on Monday after the company said it expects to produce less oil and gas in the fourth quarter of 2023 than last year. It also warned of substantially higher impairment charges of $2.5-4.5 billion, driven partly by plans to sell some assets.
Shell narrowed its Q4 oil and gas production outlook across divisions. For integrated gas, it foresees 880,000-920,000 barrels of oil equivalent per day (boed) versus 917,000 boed a year earlier. Upstream production is estimated at 1.83-1.93 million boed, down from 1.86 million boed in Q4 2022.
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The update comes ahead of Shell’s full-year results on Feb 1. The company’s shares dropped to 2,496 pence on Monday on the downgraded production outlook and higher impairments related to portfolio changes.
