The Strategist

Shell to write off $ 15–22B of its assets

07/01/2020 - 03:34

The British-Dutch company Royal Dutch Shell said that in the second quarter it could write off the value of its assets in the amount of $ 15 billion to $ 22 billion.

Mike Mozart via flickr
Mike Mozart via flickr
The company attributed this decision to consequences of the COVID-19 coronavirus pandemic, a slowdown in economic activity, and lower energy prices.

The write-off of the value of assets will fall on three segments of Shell's operations: gas operations, mainly in Australia, at $ 8–9 billion; mining operations, mainly in Brazil and the shale deposits of North America, at $ 4-6 billion; petroleum product operations, at $ 3–7 billion

In this regard, the company believes that the write-offs for the second quarter will have negative consequences on the company's pre-tax figures in the amount of $ 20–27 billion.

After this warning, Shell shares at the Amsterdam Stock Exchange fell by 4%.