Shell predicts profit decline. The giant cited two reasons for this situation

Shell's chemicals division reported unplanned maintenance at its Monaca polymers plant in the United States, along with significant declines in sales across its chemicals and products business, Reuters reported.

The company has previously said it wants to explore strategic and partnership opportunities for its chemical assets in the United States and may close some chemical businesses in Europe.

“ The weaker trading results were probably to be expected , but the trading update points to significantly worse-than-expected downstream results,” RBC analyst Biraj Borkhataria told Reuters.

At its oil-focused upstream division, Shell raised the lower end of its production forecast to 1.66 million to 1.76 million barrels of oil equivalent per day (boed) from a previously forecast 1.56 million to 1.76 million boed.

The company expects a $200 million exploration write-down , Reuters reports.

For its integrated gas business, Shell provided production guidance of 900,000 to 940,000 boed, compared with the company's previous forecast of 890,000 to 950,000 boed.

LNG production by the world's largest LNG trader is expected to be between 6.4 million and 6.8 million metric tons in the second quarter, compared with a previous range of 6.3 million to 6.9 million metric tons, it said .

Although the integrated gas division’s trading results are expected to be significantly lower than in the first quarter , Shell is forecasting 4-5% annual growth in LNG sales over the next five years and 1% annual growth in production.