Shell to Return $5.5 Billion From Permian Sale via Buybacks -- Update

By Jaime Llinares Taboada

Royal Dutch Shell PLC said Friday that it will distribute the remaining $5.5 billion of proceeds from the sale of its Permian Basin assets in the U.S. through share buybacks.

The oil-and-gas major said this is in addition to the ordinary distributions of 20%-30% of cash flow from operations.

Meanwhile, Shell warned that production from its integrated gas division was hurt by unplanned maintenance in the fourth quarter of 2021. The company expects to report daily production of 910,000-950,000 barrels of oil equivalent and liquefied natural gas volumes of 7.7-8.3 million metric tons, which would be lower than guidance of 940,000-980,000 barrels and 8.0-8.6 million metric tons.

On the positive side, trading profits from Integrated Gas jumped quarter-on-quarter, as Shell benefited from soaring liquefied natural gas spot prices.

Upstream production is expected to have averaged between 2.15 and 2.25 million barrels of oil equivalent per day, within the guidance range.

In addition, oil products marketing results are expected to have worsened, with trading performance significantly below the third quarter. Sales volumes of between 4.0 and 5.0 million barrels a day would be below previous guidance of 4.2-5.2 million. Refinery utilization is within previous guidance.

Chemicals margins and manufacturing plant utilization also fell in the three months ended Dec. 31 compared with the previous quarter. Sales volumes are seen at 3.3-3.6 million metric tons, below previous expectations of 3.5-3.9 million.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

January 07, 2022 02:53 ET (07:53 GMT)

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