Shell Q3 Trading Boost Offsets $600M Biofuel Plant Losses

Shell reported a $600 million non-cash impairment related to scrapping its biofuels plant construction in Rotterdam, adding to a previous $800 million charge, reflecting challenges in its low-carbon projects amid competitiveness concerns. Despite this setback, the company's oil and gas trading operations showed a strong recovery in the third quarter, with gas trading significantly higher and oil trading also improving, supported by stable Brent crude prices. Shell's integrated gas division is expected to deliver significantly higher earnings, and upstream oil and gas output increased due to ramped-up production at key assets. However, the company faces potential cash outflows from its participation interests in Brazil's Tupi oil field. These developments highlight Shell's strategic pivot from biofuels toward prioritizing profits in oil and gas amid industry-wide pressures on chemical production and energy costs. The company's financial outlook is being closely watched as it balances green ambitions with financial realities.