Shell plans $3.5-$4.5 billion writedown, raising yearly total to more than $22 billion

Shell plans $3.5-$4.5 billion writedown, raising yearly total to more than $22 billion

December 31, 2020 lejlgizx 0

first_img FacebookTwitterLinkedInEmailPrint分享Reuters:Royal Dutch Shell on Monday said it will write down the value of oil and gas assets by $3.5 billion to $4.5 billion following a string of impairments this year as it adjusts to a weaker outlook.In an update ahead of its fourth quarter results on February 4, Shell said the post-tax charge was due in part to impairments on its Appomattox field in the U.S. Gulf of Mexico, the closure of refineries and liquefied natural gas (LNG) contracts.In October, Shell, the world’s biggest LNG trader, wrote down the value of its LNG portfolio by just under $1 billion, focusing on its flagship Prelude project in Australia. That followed a $16.8 billion writedown in the second quarter which also included Prelude and a sharp cut in its price outlook.CEO Ben van Beurden on Feb. 11 will unveil Shell’s long-term strategy to sharply reduce its greenhouse gas emissions and expand its low-carbon energy and power businesses.In its update, the Anglo-Dutch company also said it expects oil and gas production in its upstream division to be around 2.275 to 2.350 million barrels of oil equivalent per day, slightly higher than in the third quarter.Oil refinery utilisation is expected to be between 72% and 76% of capacity in the quarter, reflecting continued weak demand due to the coronavirus pandemic.[Ron Bousso]More: Shell to write down assets again, taking cuts to more than $22 billion Shell plans $3.5-$4.5 billion writedown, raising yearly total to more than $22 billionlast_img

 

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