Downstream Segment “Drags Behind”: Shell Issues Q4 Profit Warning, Upstream Gains Offset

Glonghui January 8th | JPMorgan analysts Matthew Lofting, Tianyu Wu, and Riddhi Agarwal pointed out in a report that Shell's fourth-quarter profits will be reduced due to weak performance in its downstream business. They stated that the British energy giant performed solidly in the first nine months, but its performance in the last quarter was mixed. They added that the performance of its upstream business will be offset by the downstream business, which will drag down overall profits. The analysts believe that the integrated gas division is a highlight, with its quarter-on-quarter performance exceeding seasonal expectations. Despite this outlook, the analysts still noted that in a generally bearish industry environment, Shell remains one of the best-performing companies. The stock is currently down 2.4%, trading at 2,591 pence.