Shell's profit impacted by weak oil and gas trading, CEO focused on cost-cutting and reliability

Shell Plc announces weaker contributions from its oil and gas trading operation will impact second-quarter results. Shares fell as much as 3.3% in London. CEO focused on cost-cutting and boosting reliability. Analysts expect a near-term impact on shares, but longer-term thesis remains intact.

Second-quarter volatility affected trading contributions, eroding margin increases from refining and chemicals. Oil prices fluctuated due to geopolitical factors. Output decreased by nearly 100,000 barrels a day. Shell remains optimistic about LNG demand growth and has new projects coming online.

Earnings also face headwinds from higher costs. Shell confirms no intention to make an offer for BP Plc. Second-quarter results to be reported on July 31. Analysts express disappointment but believe in the longer-term outlook for the company.

Read more at Yahoo Finance: Shell Says Weak Oil and Gas Trade Hit Second Quarter Profit