Shell has reported a "steady-as-she-goes" assessment of its Q3 trading, AJ Bell has stated, with outlook improvements in both integrated gas and upstream production.

The oil and gas giant said that production in its integrated gas division is set to be within the range of 910 and 950 thousand barrels of oil equivalent per day (kboe/d) in the third quarter, after reaching 913 koeb/d in Q2.

Furthermore, its upstream production is expected to land within the range of 1,790 and 1,890 kboe/d, compared to 1,732 kboe/d in the previous quarter.

Shell’s refining margin is also set to increase from $8.90 per barrel to $11.60 per barrel, despite oil prices falling by 12% in the year-to-date.

However, the firm’s renewables and energy division’s adjusted earnings are expected to be in the range of a loss of $200m to a profit of $400m.

Following the update, shares in Shell increased by 1.57%. In the year-to-date, the oil and gas firm’s share price has increased by almost 10%.

Investment director at AJ Bell, Russ Mould, said: "In its teaser ahead of third quarter results, Shell delivered a steady-as-she-goes assessment of trading. While this would not ordinarily be cause for too much excitement, to achieve an outcome broadly in-line with the second quarter despite a material decline in oil prices is a decent outcome.

"It has been driven by a strong showing from its integrated gas business, which encompasses its LNG business where volumes are notably higher quarter-on-quarter.

"Improving margins in its refining business are another bright spot and the renewables arm is expected to break into profit – although not a particularly meaningful one in the context of the wider group."

Shell is expected to publish its Q3 consensus on 22 October.

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