Shell Plc expects a charge ranging between $4 billion to $5 billion from the winding down of its oil and gas operations in Russia, according to a news release by Shell on Thursday.
- Volatility in commodity prices will cause wider ranges of guidance and affect the company’s cash flow.
- The post-tax impairments of between $4B and $5 in the first quarter will not affect the company’s earnings.
- Shell had initially indicated that the Russia writedowns could grow to nearly $3.4 billion. The increase was attributable to additional impacts around contracts, writedowns of receivables, and credit losses in Russia.
- Shell did not provide any financial guidance on the outlook of its investments in Russian projects.
Shell’s fuel sales averaged 4.3M barrels per day in the quarter, a slight decline from 4.45M bpd in the prior quarter. LNG liquefaction volumes increased slightly on quarter to average 8M tonnes. SHEL down -0.63%