BAKU, Azerbaijan, May 5. Royal Dutch Shell’s total oil and gas production, compared with the fourth quarter 2021, decreased by 8 percent in Q1 2022, Trend reports with reference to the company.
The decrease was due to higher maintenance driven by Pearl GTL and Prelude, partly offset by lower maintenance in Trinidad and Tobago. LNG liquefaction volumes increased by 1 percent due to higher feedgas supply coupled with lower maintenance.
Segment earnings and Adjusted Earnings in Integrated Gas, compared with the fourth quarter 2021, mainly reflected higher realized prices (increase of $676 million), partly offset by lower total oil and gas production (reduction of $468 million).
Trading and optimization results for Integrated Gas were similar to the fourth quarter 2021, continuing to benefit from favorable conditions. Identified items: First quarter 2022 segment earnings included charges of $2,597 million related to the phased withdrawal from Russian oil and gas activities, partly offset by gains of $1,584 million due to the fair value accounting of commodity derivatives primarily due to gas price developments.
As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases and sales. As these commodity derivatives are fair value accounted for, this creates an accounting mismatch over periods. See Reference A for further details.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA and the positive impact of timing differences between cash flows of derivatives and physical transactions.
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