Shell Warns of Gas Output Drop and Cash Squeeze, Cites Oil Trading Boost

Energy giant Shell has warned investors of a significant drop in its first-quarter liquefied natural gas (LNG) output. The company also expects a major hit to its cash flow. The primary cause is the ongoing conflict in the Red Sea region. Attacks on shipping have disrupted supplies and trapped the company's working capital. This is money used for daily operations. However, Shell said the market disruption has boosted its oil trading division. Stronger performance there is expected to partly offset the negative impacts from gas. The company did not provide specific financial figures. A full quarterly update is scheduled for May 2.