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Shell to Book $15Bln-$22Bln Impairments After Lowering Price Forecasts

By Jaime Llinares Taboada

 

Royal Dutch Shell PLC said Tuesday that it expects to book post-tax impairments of between $15 billion and $22 billion in the second quarter after it revised lower its oil and gas mid- and long-term price expectations.

The British-Dutch oil giant said that the revised commodity prices and refining margin outlooks reflect the expected effects of the coronavirus pandemic and related macroeconomic, as well as energy market demand and supply fundamentals.

Shell now sees the long-term Brent oil price at $60 per barrel, and the Henry Hub gas price at $3.0 per million British thermal units. In addition, average long-term refining margins have been lowered by around 30%.

The company said that $8 billion to $9 billion impairments are related to its integrated gas division, whereas $4 billion-$6 billion relate to the upstream business, and $3 billion-$7 billion to the oil products unit.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

June 30, 2020 02:34 ET (06:34 GMT)

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