REUTERS
Exclusive-Shell’s Flagship LNG Trading Made Nearly $1 Billion Loss in Q3 -Sources
By Reuters Nov. 3, 2022, at 8:57 a.m.
By Ron Bousso, Marwa Rashad and Dmitry Zhdannikov
LONDON (Reuters) – Shell’s liquefied natural gas (LNG) trading division recorded a loss of nearly $1 billion in the third quarter of the year, three industry sources told Reuters, after traders were caught out by a sharp rally in European gas prices when Russia halted supplies.
Shell, the world’s top LNG trader, last week reported its second largest quarterly profit of $9.45 billion, but said it was impacted by weaker gas trading results.
Shell does not disclose its trading results and often uses general terms to describe trading conditions.
The pre-tax loss of around $900 million in its LNG trading offers rare insight into its trading operations that can also sharply boost the group’s earnings.
The loss was a result of a wrong bet on the difference between benchmark Asian and European gas prices over the summer months, according to the three sources.
Shell declined to comment.
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