20th Dec 2019 08:00
(Alliance News) - Royal Dutch Shell PLC on Friday guided for a potential major impairment based on "the macro outlook".
Shell is to book a post-tax impairment of USD1.7 billion to USD2.3 billion for the fourth-quarter of 2019, based on macroeconomic conditions, without giving any further details.
The oil major, London's largest listed company by market capitalisation, also guided for a number of other charges which are set to hit fourth-quarter earnings.
In the Upstream unit, Shell will book USD100 million to USD200 million charges related to well write-offs, as well as a USD500 million to USD600 million deferred tax charge.
Production in the segment for the last quarter of 2019 is guided between 2.78 million and 2.83 million barrels of oil equivalent per day. Production in all of 2018 was around 2.7 million barrels a day.
Shell said refining margins in the Downstream business are still weak, due to weak macroeconomic conditions, with marketing margins to be lower due to seasonal trends.
In Integrated Gas, Shell sees production between 920,000 and 970,000 barrels of oil equivalent per day. Trading performance in the last quarter is expected to be "average", and in line with 2019's second quarter.
On the capital expenditure front for the full year, Shell sees the figure at the lower end of its USD24 billion to USD29 billion guided range for 2019.
By George Collard; [email protected]
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