Shell shares rose as much as 2.7% in London trading on Tuesday after the company said its second-quarter gas trading result was significantly higher than the first quarter, while oil trading stayed in line with a strong first quarter. The update gave investors an early look at how Shell's trading desks may have helped support earnings in a quarter marked by major disruption across oil and gas supply, including Brent crude rising above $126 a barrel before falling more than 40% to around $72. Shell's natural gas production was pressured by offline output in Qatar, which accounts for about 10% of the company's global oil and gas volumes, but the company now expects a slightly higher second-quarter natural gas production range than previously guided because of its broader global portfolio. Barclays analyst Lydia Rainforth said the strong trading result was offsetting weaker performance from the Qatar disruption, while Shell also reported improved refining and chemicals margins.
Shell plcShell reported significantly stronger second-quarter gas trading results, indicating higher end-customer demand for its gas products.
Barclays PLC