8/3/2023 0 Comments Shell takes big writedown![]() ![]() ![]() LNG liquefaction volumes were slightly higher on the quarter, averaging 8 million tonnes. Shell's fuel sales averaged 4.3 million barrels per day in the quarter, down from 4.45 million bpd in the previous quarter, Shell said. Earnings from oil trading are set to be "significantly higher" in the quarter.Ĭashflow in the quarter would be negatively impacted by "very significant" outflows of around $7 billion as a result of changes in the value of oil and gas inventories. Shell, the world's largest liquefied natural gas trader, said earnings from LNG trading were expected to be higher in the quarter compared with the previous three months. The unprecedented volatility in commodity prices in recent months has pushed several traders to the brink as they scrambled to sharply increase downpayments for oil and LNG cargoes. Shell did not provide any guidance on the future of its stakes in Russian projects.īenchmark oil prices soared to an average of more than $100 a barrel in the quarter, their highest since 2014, while European gas prices hit a record high. General view of a Shell petrol station sign, in Milton Keynes, Britain, January 5, 2022. Shell said it will exit all its Russian operations, including a major liquefied natural gas plant in the Sakhalin peninsula in the eastern flank of the country. The start of 2022 marked one of the most turbulent periods in decades for the oil and gas industry as Western companies including Shell rapidly pulled out of Russia, severing trading ties and winding down joint ventures following Moscow's invasion of Ukraine. Shell shares were down 1.2% at the start of London trading. The increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses in Russia, a Shell spokesperson said. Shell, whose market capitalisation is around $210 billion, had previously said the Russia writedowns would reach around $3.4 billion. L) will write down up to 5 billion following its decision to exit Russia, more than previously disclosed, while soaring oil and gas prices boosted trading activities in the first quarter, the company said on Thursday. The post-tax impairments of between $4 billion and $5 billion in the first quarter will not impact the company's earnings, Shell said in an update ahead of its earnings announcement on May 5. The results were a rare bright spot for Shell shareholders in 2020 after the company reported an $18bn loss for the second quarter of the year, announced it would cut 9,000 roles and slashed the dividend for the first time since the second world war.LONDON, April 7 (Reuters) - Shell (SHEL.L) will write down up to $5 billion following its decision to exit Russia, more than previously disclosed, while soaring oil and gas prices boosted trading activities in the first quarter, the company said on Thursday. Shell revealed a modest return to profit in the third quarter after reporting better than expected financial results, and promised investors a “new era of dividend growth” as it switches its focus from fossil fuels to clean energy alternatives. In total it will spend $20bn this year, after cutting its planned capital expenditure from $25bn in March. wider glimpse of just how severely the coronavirus crisis has hit Big Oil. The company intends to invest by to $2bn a year on “new energies” such as offshore windfarms, electric vehicles and electric car charging. Royal Dutch Shell Plc said it will write down between 15 billion and 22 billion. Shell plans to use its deepwater oil and gas assets as a “cash engine” to generate free cashflow that can be reinvested in renewable energy. The write-down includes Shell’s Appomattox oil and gas project in the Gulf of Mexico, which began production in April last year and plans to pump the equivalent of 175,000 barrels of oil a day at its peak.īorkhataria said the partial impairment on Appomattox was particularly disappointing for Shell because it was one of its largest producing deepwater assets. ![]() Biraj Borkhataria, an analyst at RBC Capital, said Shell’s profit warning was “disappointing, particularly in the context of the strong run Shell has had in recent weeks”. ![]()
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