The British energy giant Shell expects significantly lower earnings in its core division Integrated Gas in the fourth quarter.

Additionally, Shell will record a non-cash impairment of between $1.5 billion and $3.0 billion after taxes, attributable to macroeconomic and operational changes. Up to $1.2 billion of this amount relates to the Renewables and Energy Solutions division.

The cash flow from operating activities is also burdened by emissions certificate payments in Germany and the USA by 1.3 billion USD, as Shell further explained. These payments usually occur in the fourth quarter.

Shell also lowered the production forecast for the Integrated Gas division in the fourth quarter to 880,000 to 920,000 barrels of oil equivalent per day. Originally, production of 900,000 to 960,000 barrels per day had been expected. The volumes of liquefied natural gas (LNG) are now expected to be between 6.8 and 7.2 million tons – a decrease from the 7.5 million tons in the third quarter.

For upstream production, Shell expects 1.79 to 1.89 million barrels of oil equivalent per day, slightly below the previous range of 1.75 to 1.95 million barrels.

RBC Capital Markets analysts anticipate that the results will not affect shareholder returns in 2025 but lowered their earnings forecast for the fourth quarter from $5.1 billion to $3.9 billion.

In the Chemicals and Products segment, Shell expects unchanged refining margins of $5.50 per barrel, but significantly lower earnings due to seasonal effects. Similar burdens are anticipated by the company in the Marketing segment.

Shell shares fell 1.4 percent in European trading on Wednesday to 2,580.50 pence but are up 0.4 percent year-to-date.