Daily Management Review

Shell warns of write-downs of up to $4.5B in Q4


The large oil and gas corporation Shell has issued a forecast indicating that it expects to write down $4.5 billion in assets due to impairment in the fourth quarter of 2023.

The portfolio's individual holdings, such Singapore's petrochemical assets, as well as macroeconomic and outside developments are the main drivers of the write-downs, which amount to between $2.5 billion and $4.5 billion. This comprises write-downs of $1.5–2.1 billion linked to the chemicals and refining segment and $0.3–0.8 billion linked to the gas section.

The business reduced its output forecast for the quarter to 1.83-1.93 million bpd from a first, more expansive range of 1.75-1.95 million barrels of oil equivalent per day.

In contrast to 6.9 million tons in the third quarter of 2023, LNG output is expected to be 6.9–7.3 million tons (before, the lower end of the prediction was 6.7 million tons).

source: bloomberg.com