Shell (SHEL) stock fell about 3% in the pre-market trading session today. The decline came after the energy giant warned that weaker fourth‑quarter trading and fresh losses in its chemicals division would hurt upcoming earnings, due on February 5, 2026.
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The company said its trading results for the quarter would come in “notably below” the strong performance in the previous three months, particularly in oil and refined products trading. The softer outlook adds pressure as Shell is already dealing with a tough downstream environment.
Shell Warns of Q4 Weakness across Chemicals, LNG, and Trading
Shell noted that its chemicals and products unit will report an adjusted loss for the quarter, driven by weaker margins and a non‑cash deferred tax adjustment. Chemicals margins are expected to fall to about $140 per metric ton from $160 in the third quarter, reflecting ongoing softness in global demand and excess supply in the market.
Further, the company narrowed its liquefied natural gas (LNG) production outlook to 7.5 million to 7.9 million metric tons, compared with its earlier range of 7.4 million to 8 million tons.
Despite the weaker trading backdrop, Shell’s upstream operations remain broadly stable. The company expects production of 1.84 million to 1.94 million barrels of oil equivalent per day, roughly in line with the previous quarter’s output.
Further, refining margins were slightly positive, improving to $14 per barrel from $12, but still not enough to offset the weakness in chemicals and trading.
Is SHEL a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SHEL stock based on six Buys and four Holds assigned in the past three months. Further, the average Shell price target of $76.33 per share implies 6.7% upside potential.
