Shell Plc warned that second-quarter profit will be undermined by a “significantly lower” contribution from its flagship oil- and gas-trading arm and an expected loss in its chemicals and products division. The company narrowed guidance for liquefied-natural-gas output to 6.4–6.8 million tonnes and forecast integrated-gas production of 900,000–940,000 barrels of oil equivalent a day, while raising the lower end of upstream production to 1.66 million boe/d. It also flagged a US$200 million exploration write-off. The update sent Shell shares down almost 3 per cent to 2,552.5 pence in London, and analysts at RBC cut their quarterly profit estimate to US$3.6 billion. Shell is due to report full results on 31 July. The trading update highlights how volatile commodity markets have eroded earnings at the industry’s largest LNG trader. Although stronger refining margins offer some support, Shell said weakness in chemicals would offset that benefit. The group also rejected market speculation that it is pursuing a takeover of rival BP, reiterating its focus on cost cuts, portfolio pruning and shareholder returns. In a separate filing, Exxon Mobil Corp. said lower oil and gas prices are set to reduce its second-quarter earnings by about US$1.5 billion from the previous quarter. Benchmark Brent crude averaged US$66.71 a barrel in the period, 11 per cent below the first quarter, while U.S. natural-gas prices fell 9 per cent. Exxon reports results on 1 August, with analysts expecting adjusted earnings of roughly US$1.53 a share. The twin warnings from Shell and Exxon underscore the pressure that sliding commodity prices and trading volatility are exerting on the world’s largest energy producers.