Shell and BP Paint Divergent Pictures Ahead of Tough Second Quarter

Shell Plc said it expects second-quarter profit to be dented by a significantly weaker performance in its integrated gas trading arm and losses in its chemicals and products division. Unplanned maintenance at the Monaca polymer plant added to the pressure. The company, which reports on July 31, kept production guidance broadly unchanged but warned that trading conditions had been harder to navigate amid volatile crude and liquefied-natural-gas markets. BP Plc offered a contrasting update four days later, warning that lower realised prices for oil and gas will weigh on second-quarter earnings while signalling operational improvements. The London-based producer anticipates upstream output above first-quarter levels, stronger results from oil trading and a boost from wider refining margins. It also expects an asset impairment of between $500 million and $1.5 billion and said net debt should edge below the previous quarter’s $27 billion ahead of results on August 5. The mixed guidance highlights a challenging backdrop for the industry. Brent crude averaged roughly $68 a barrel in the period after OPEC+ eased production curbs, and Exxon Mobil has warned that the same price slide will cut its quarterly earnings by about $1.5 billion. Energy stocks have moved unevenly: Shell fell as much as 3.3% on its update, while BP gained up to 3.1% as investors focused on higher output and debt reduction.