Shell Expects Q4 2025 Loss in Chemicals Division Amidst Stable Oil and Gas Production
Shell forecasts a significant loss in its chemicals division for Q4 2025, with margins dropping to $140 per metric ton and adjusted earnings expected to fall below breakeven. Despite these challenges, the company's oil, gas, and LNG production remains stable, with upstream production projected between 1.84 million and 1.94 million barrels of oil equivalent per day. Ongoing issues at its Pennsylvania petrochemical plant, including rising costs and declining margins, contribute to a 43% revenue decline in the chemicals business from 2021 to 2024.
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Shell anticipates a significant loss in its chemicals and products division for Q4 2025, with indicative chemicals margins dropping to $140 per metric ton from $160. Adjusted earnings for the division are projected to fall below breakeven, a decline from a $550 million profit in Q3 2025.
The company also noted reduced trading and optimization performance for the quarter. Despite challenges in the chemicals sector, Shell's oil, gas, and LNG production forecasts remain stable, with oil-focused upstream production expected between 1.84 million and 1.94 million barrels of oil equivalent per day.
The company faces ongoing issues at its Pennsylvania petrochemical plant, which has seen rising costs and declining margins, with a reported $14 billion construction cost. Revenue from Shell's chemical business declined by 43% from 2021 to 2024.
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