facilities, however, were running at full steam in recent months. New LNG supply has continued to come online globally, leading to a surplus and in turn pushing down prices. “Note that, as in previous quarters, cash flow from operations in Integrated Gas can be impacted by margining resulting from movements in the forward commodity curves.”ĭuring the third quarter conference call, CFO Jessica Uhl had highlighted the strength of the Integrated Gas unit, which she said showed “how the current weak spot LNG prices have little impact on profitability in our business, with the oil price the main macro driver for the Integrated Gas results.” LNG contract reviews, a normal feature of long-term contracting, differ from contract to contract, she noted. “As per previous disclosures, more than 80% of our term contracts for LNG sales in 2018 were oil price linked with a price-lag of typically three-to-six months,” Shell noted in the update. During 2018, Shell had about 20% of worldwide LNG sales, most matched with long-term sales agreements. LNG volumes are expected to be average in the final period, up year/year but down sequentially. 1 global gas seller said the Integrated Gas segment’s production is forecast to average 920,000-970,000 boe/d in the fourth quarter, with liquefied natural gas (LNG) volumes of 8.8-9.4 million metric tons. Additional well write-offs in the range of $100-200 million are expected in 4Q2019 from a year ago. Peer Entain (ENT.L)dropped 4.1% as its online sales fell for a second straight quarter.Shell’s upstream production in 4Q2019 is expected to average 2.775-2.825 million boe/d, nearly flat with year-ago output of 2.809 million boe/d. assets, allowing a smaller equity raise to fund the deal. If we do see a turndown in consumer confidence, that will impact housing and if actually consumer demand remains quite robust and allows the BoE to carry on raising rates, that's also going to be negative for house prices," said Park.Ĩ88 Holdings (888.L) surged 16.8% after the gambling firm and U.S.-based Caesars Entertainment (CZR.O) cut the deal value of William Hill's non-U.S. "We've got a fairly conservative view towards the housing sector. ![]() Overall, the sectoral index (.FTNMX402020) fell 3.5% after mortgage lender Halifax said British house prices grew strongly in March but the cost-of-living crisis clouded the outlook. Shares of the housebuilder tumbled 14.6% after it warned of lower annual profit following a business review of its operations. ![]() The domestically focused FTSE 250 midcap index (.FTMC) slipped 0.3%, dragged down by Countryside Partnerships (CSPC.L). "The Fed minutes confirmed the feeling in markets, which was that 50 bp rate hikes were on the table and that quantitative tightening will begin in May even though the market believes economic growth will be impacted," said Edward Park, chief investment officer at Brooks Macdonald Asset Management.Ī Bank of England survey showed that British companies' expectations for output price inflation in the coming 12 months had hit a new high of 5.9% last month, while 48.5% of companies thought the Russia-Ukraine conflict would lower sales. Federal Reserve and amid the war in Ukraine that has elevated inflation. read moreīroadly, economy-linked sectors such as oil and gas, miners, banks and insurers fell on concerns over slower economic growth following hawkish signals from the U.S. The blue-chip index (.FTSE) closed 0.5% lower, with Shell (SHEL.L) falling 2.1% as it raised its Russia writedown to as much as $5 billion, more than previously disclosed. April 7 (Reuters) - Britain's FTSE 100 slid on Thursday, weighed down by oil major Shell after it flagged a bigger writedown following its decision to exit Russia, while a jump in shares of gambling firm 888 Holdings helped limit some losses on the midcap index.
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