Shell's Shares Slump as Refining, Chemicals Show Signs of Slowdown
- Negative margin in chemicals points to slowing growth
- Company’s run of record quarterly profits looks set to end
A storage tank at the Shell Plc refinery at the Port of Rotterdam in Rotterdam, Netherlands.
Photographer: Peter Boer/BloombergThis article is for subscribers only.
Shell Plc shares dropped after the company pointed to a weaker third quarter performance, potentially ending a run of record earnings as several parts of its sprawling business fared worse.
In particular the company’s chemical unit -- often seen as an indicator of the strength of the wider economy -- had a negative margin of $27 per metric ton in the period, Shell said in a statement on Thursday. That could be a worrying sign for Europe’s economy, where major industries are buckling under the pressure of soaring natural gas prices.