Shell anticipates $2 billion impairment for Rotterdam and Singapore plants in response to energy market challenges

Money | July 5, 2024, 5:34 a.m.

Energy giant Shell is facing a potential post-tax impairment of up to $2 billion due to challenges at its Singapore and Rotterdam plants, as well as a decline in its gas division trading. The company has announced a temporary suspension of construction at its biofuels facility in Rotterdam, which is expected to result in further impairment costs. Additionally, Shell is anticipating another non-cash impairment after divesting its Singapore plant. Despite some positive surprises in areas like LNG volumes and upstream production, the company is bracing for lower performance in the gas division due to seasonality. Analysts at RBC Capital Markets have noted a mixed bag of results in Shell's latest update, with higher corporate costs and neutral results from the chemicals division among the key concerns.