Azernews.Az

by Alimat Aliyeva

Shell plc has released its trading update for the second quarter of 2026, raising its production outlook for the integrated gas division despite disruptions caused by tensions in the Middle East, AzerNEWS reports, citing foreign media.

The company now expects integrated gas production to reach between 610,000 and 650,000 barrels of oil equivalent per day (boe/d), compared with its previous forecast of 580,000–640,000 boe/d. According to Shell, the revised guidance reflects the impact of the conflict in the Middle East on production volumes in Qatar. Even with the improved forecast, output is expected to remain around 30% lower than in the previous quarter.

Shell also increased its upstream production guidance to 1.75–1.85 million boe/d, up from the earlier estimate of 1.62–1.82 million boe/d, pointing to stronger-than-expected performance across its exploration and production business.

On the financial side, the energy giant expects a working capital inflow of between $1 billion and $6 billion during the second quarter. This marks a significant turnaround from the $11.2 billion working capital outflow reported in the first quarter, reflecting improved cash flow and operational performance.

Shell is scheduled to publish its full second-quarter financial results on July 30, when investors will receive a clearer picture of the company's earnings, cash generation, and the impact of volatile energy markets.

The update comes as global energy producers continue to navigate geopolitical uncertainty, fluctuating oil and gas prices, and shifting demand. Investors will also be watching for any comments from Shell on its long-term investment strategy and future production outlook amid ongoing changes in the global energy sector.