Shell faces up to £3.5bn in impairments but gas trading improves
The impairment was partly driven by assets linked to the energy giant’s Singapore refining and chemicals hub.
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Your support makes all the difference.Energy giant Shell has said it saw earnings from its gas trading business jump in the latest quarter but this was partly offset by weakness in its chemicals arm.
It came as the company flagged that it is facing up to 4.5 billion US dollars (£3.5 billion) of impairment charges for the latest quarter.
This is partly driven by assets linked to its Singapore refining and chemicals hub, which the London-based firm is reportedly looking to sell.
On Monday, Shell told shareholders that gas trading for the final three months of 2023 is set to have been “significantly higher” than the third quarter due to seasonal shifts in the market.
It forecast production of between 880 and 920 kilo barrels of oil equivalent per day (kboe/d) in the integrated gas division.
Production in the firm’s upstream business, which includes its extraction of oil, is forecast to be between 1,830 and 1,930 kboe/d in the quarter.
Shell said it expects a 200 million dollar earnings gain from joint venture operations in the upstream arm, but said this will be offset by exploration well write-offs.
Meanwhile, it said its chemicals and products business is set to have recorded an adjusted earnings loss for the quarter.
Chemicals and products trading was “significantly lower” than during the previous quarter.