Shell Says Oil Trade Profit Surged as Iran War Caused Chaos

Article content(Bloomberg) — Shell Plc said its first-quarter results were boosted by its oil trading operation, even as the company’s Middle East assets were battered by the Iran conflict.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentOil trading results were “significantly higher” than in the previous quarter, the oil giant said in a first-quarter trading update on Wednesday, ahead of earnings due next month. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentShell’s update is the first earnings guidance from Big Oil since the war in the Middle East sent energy prices from crude to jet fuel surging, as shipping through the crucial Strait of Hormuz chokepoint came to a near halt. Article contentArticle contentIran’s retaliation strikes across the Persian Gulf, triggered by US and Israeli attacks at the end of February, damaged refineries, oil fields, ports and gas plants. That includes key Shell assets at the massive Ras Laffan complex in Qatar. Shell also has joint ventures from Iraq to Oman and the United Arab Emirates.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentRas Laffan is home to the world’s largest LNG export terminal, which supplied about a fifth of global seaborne gas shipments before suffering “extensive damage,” and the biggest gas-to-liquids facility, which was also hit during a missile strike and will need roughly a year to repair. Shell is a key partner in both.Article contentOil plunged below $100 a barrel on Wednesday after the US and Iran agreed to a two-week ceasefire, but prices remain up by more than 50% this year.Article contentShell said refining margins rose to $17 per barrel in the first quarter, from $14 in the fourth quarter. Article contentIntegrated gas production — which includes LNG and the gas-to-liquids output in Qatar — fell to 880,000-920,000 barrels of oil equivalent a day, compared with 948,000 in the fourth quarter, reflecting the impact of the war on Qatar volumes, the company said. Shell had forecast first-quarter integrated gas production to be within a range of 920,000 to 980,000 barrels of oil equivalent a day.Article contentShell reported $10 billion to $15 billion of working capital, saying it reflects sales made in March to be paid in April or May. Working capital is the money Shell uses to run daily operations.Article content(Adds production and working capital in last paragraphs)Article contentTrending Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement William Watson: Open the highway, you crazy New Brunswickers! FP Comment Microsoft vows data centres will not hike Canadians' water and electricity bills Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement William Watson: Open the highway, you crazy New Brunswickers! FP Comment Microsoft vows data centres will not hike Canadians' water and electricity bills Innovation