LONDON, United Kingdom (AFP) – Shares in energy giant Shell slid Thursday after revealing that third-quarter profit would be hit by a slump in refining margins.
The British group’s stock lost 3.9 percent to around £23 ($26) as it forecast a hit of up to $1.4 billion in the three months to the end of September compared with the second quarter.
“Shell enjoyed record profits in the first and second quarter spurred by a surge in underlying oil and gas prices following Russia’s invasion of Ukraine,” noted Victoria Scholar, head of investment at Interactive Investor.
“However, since June, oil has posted four consecutive months of declines, with Brent crude down by around 25 percent.”
Scholar said Shell was “grappling with a dysfunctional and volatile gas market as well as expectations of softening oil demand, particularly from China as the global economy cools”.
Shell, one of the biggest companies on London’s benchmark FTSE 100 index, publishes full third-quarter results on October 27.
The FTSE was flat in morning deals Thursday.
© Agence France-Presse