1. Shell reduced Q1 gas production estimate to 910,000-950,000 BOE/day. 2. Shares fell over 4% amid broader market decline. 3. First-quarter LNG liquefaction forecast cut to 6.4-6.8 million metric tons. 4. Moves reflect focus shift back to fossil fuels, away from renewable energy. 5. Shell aims for 1% annual growth in upstream gas by 2030.
The reduced production outlook signals potential lower revenues and affects market sentiment negatively. Historically, similar production cuts have led to stock price declines.
The article discusses significant operational challenges and production cuts, which are directly relevant to SHEL's performance.
The immediate market reaction was swift, leading to a significant share price drop. Short-term production challenges typically affect quarterly earnings impacts quickly.