Shell Gas Trading Division Reports Significant Downturn in Q2 2025

In a surprising turn of events, Shell has announced a significant weakening in its gas trading business during the second quarter, citing geopolitical uncertainties as the primary factor. The FTSE 100 energy giant has revised its integrated gas division production guidance, reducing the upper limit to 940,000 barrels of oil equivalent per day from the previously projected 950,000 boe/d.

The company’s liquefied natural gas (LNG) business outlook has been adjusted to range between 6.4 million and 6.8 million tonnes, marking a shift from the earlier forecast of 6.3 mt to 6.9 mt. This downward revision has prompted RBC Capital to reduce its net profit forecast for Shell’s second quarter to £3.6 billion from £4.8 billion.

The news triggered an immediate market response, with Shell’s shares declining by 75p, or 2.8 per cent, closing at £25.53 on Monday evening. The development represents a notable departure from the company’s recent streak of positive quarterly performances, which had enabled substantial share buybacks, including a £3.5 billion repurchase programme announced in May.

Despite these short-term challenges, Shell maintains ambitious long-term projections for its LNG operations, forecasting a 60 per cent increase in demand by 2040. Under the leadership of Chief Executive Wael Sawan, who assumed the role in early 2023, the company has strategically pivoted towards fossil fuels while reducing its green energy investments.

The announcement comes amid broader industry developments, with OPEC+ recently declaring an unexpected increase in output for August of 0.55 million barrels per day. Despite these industry-wide adjustments, Brent crude demonstrated resilience, rising by $0.82 to reach $69.1 per barrel in afternoon trading.