Shell Sees Up To $2.3bn In Q4 Charges
Royal Dutch Shell said on Friday it expects impairment charges of up to $2.3 billion in the fourth quarter and trimmed its forecast for quarterly oil production sales, as the Anglo-Dutch oil company faces slowing demand for oil and gas.
The company warned in October that trade tensions between the United States and China, the world's two largest energy consumers, could hurt demand and take a toll on its performance.
Shell said it expects oil production sales of 6.5 million barrels of oil equivalent per day (boepd) to 7 million boepd for the fourth quarter, compared with its earlier estimate of 6.65 million boepd to 7.05 million boepd.
The company, which had beaten third-quarter profit expectations on strong oil and gas trading, also warned that higher taxes would hit earnings by about $500 million to $600 million in the fourth quarter.
Post-tax impairment charges are expected to range between $1.7 billion and $2.3 billion for the quarter, Shell said.
The company added that it expects additional well write-offs in the range of $100 million to $200 million in the period, while 2019 capital expenditure is expected to be at the lower end of its guidance range of $24 billion to $29 billion.
Shares were down 0.7% at 2,252.5 pence in early trading on the London Stock Exchange.