Energy giant Shell to take up to a $2 billion impairment hit on Rotterdam, Singapore plants
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 05 2024
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Source: CNBC
- Shell's Financial Impairment: Shell expects to incur a post-tax impairment hit of up to $2 billion related to its Singapore and Rotterdam plants due to market conditions.
- Temporary Suspension in Rotterdam: The company will temporarily suspend on-site construction at its biofuels facility in Rotterdam, leading to a projected non-cash post-tax impairment between $600 million and $1 billion for the Rotterdam hub.
- Divestment in Singapore: Shell anticipates a second non-cash post-tax impairment of $600-800 million after agreeing to divest its Singapore refining and chemicals plant.
- Gas Division Performance: Shell predicts that trading and optimization performance in the core gas division for the second quarter will be lower than the first quarter of 2024 due to seasonality.
- Analyst Insights: Analysts at RBC Capital Markets noted various aspects in Shell's release, including as expected LNG volumes, stronger upstream production, and surprising oil trading results, but also highlighted higher corporate costs and neutral results from the chemicals division.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
