Dec 20, 2019
Shell expects impairment charges of up to $2.3bn in fourth quarter
Energy major Royal Dutch Shell said on Friday it expects impairment charges of up to $2.3bn in the fourth quarter, and "Materially lower" margins in its chemicals business amid a weaker global economy. Shell did not disclose details on the impairments but they come after oil and gas companies, including Chevron, BP, Repsol and Equinor, have written down billions of dollars worth of US shale assets in recent months. "Given the impact to earnings and hence to equity, this is likely to put pressure gearing and hence raise the risk that Shell will moderate its current pace of buybacks," said Colin Smith at Panmure Gordon. Shell said no impact on cash flows is expected from these charges. Shell is due to publish fourth-quarter results on January 30.
Make a complaint about Shell by viewing their customer service contacts.