Shell raises Russia writedown to as a lot as US$5bil

LONDON: Shell will write all the way down to $5 billion following its resolution to exit Russia, larger than beforehand disclosed, whereas hovering oil and fuel costs boosted buying and selling actions within the first quarter, the corporate mentioned on Thursday.

The post-tax impairments of between $4 billion and $5 billion within the first quarter won’t impression the corporate’s earnings, Shell mentioned in an replace forward of its earnings announcement on Could 5.

It had beforehand mentioned the Russia write-downs would attain round $3.4 billion.

The beginning of 2022 marked one of the turbulent intervals in a long time for the oil and fuel trade as Western firms together with Shell quickly pulled out of Russia, severing buying and selling ties and winding down joint ventures following Moscow’s invasion of Ukraine.

Shell mentioned it’s going to exit all its Russian operations, together with a serious liquefied pure fuel plant within the Sakhalin peninsula within the jap flank of the nation. It would additionally wind down oil buying and selling actions.

Benchmark oil costs soared to a median of over $100 a barrel within the quarter, their highest since 2014, whereas European fuel costs hit a report excessive.

Shell, the world’s largest liquefied pure fuel dealer, mentioned earnings from LNG buying and selling have been anticipated to be larger within the quarter from the earlier three months. Earnings from oil buying and selling are set to be “considerably larger” within the quarter.

Cashflow within the quarter can be negatively impacted by “very important” outflows of round $7 billion on account of modifications within the worth of oil and fuel inventories. – Reuters


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