A Shell logo is displayed outside a petrol station in Radstock, Somerset, England on February 17, 2024.
Matt Cady | Getty Images News | Getty Images
energy giant shell It said on Friday it expected to record an after-tax impairment loss of up to $2 billion, mainly related to its Singapore and Rotterdam plants, while also saying trading at its main natural gas unit would fall in the current quarter.
This is after Shell announced on Tuesday In view of current market conditions, the company will temporarily suspend on-site construction of the 820,000 tons per year biofuels plant in Rotterdam. Shell said on Friday the decision led the oil company to expect to book a non-cash after-tax impairment of $600 million to $1 billion for the Rotterdam hub when it releases second-quarter results on Aug. 1.
The oil giant also expects a second non-cash after-tax impairment of $600 million to $800 million. agree to divest Singapore refinery and chemical plant in May.
Separately, the company said it now expects second-quarter trading and optimization results in its core natural gas segment to be in line with the same period last year but lower than in the first quarter of 2024 “due to seasonal factors.”
“This release is good for everyone,” analysts at RBC Capital Markets said in a note on Friday, adding that in core areas and operations, LNG production was “in line with expectations, while upstream production was strong.” The gains in oil trading came as a surprise given the previous guidance.
On the downside, RBC noted “neutral performance in the chemicals sector amid rising corporate costs.”
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