Oil company Shell expects billions in burdens

D.he oil company Shell expects charges worth billions in the fourth quarter. After taxes, these would be 3.5 to 4.5 billion dollars due to impairment, restructuring of assets and onerous contracts, the oil company announced on Monday in The Hague. The costs in connection with the corporate restructuring are expected to be booked in 2021.

The company announced a tough austerity course in September. A total of up to 9,000 jobs are to be cut in the next two years. At the same time, savings are to be made in what has been the most important division to date, the extraction and production of oil and gas.

Shell also announced on Monday that it wanted to sell part of a liquefied natural gas export project in Australia for 2.5 billion dollars. The company will sell a 26.25 percent stake in Queensland Curtis LNG Common Facilities to Global Infrastructure Partners. The deal is expected to close in the first half of 2021. Common facilities include liquefied petroleum gas storage tanks, docks, and the infrastructure that power QCLNG’s liquid gas trains. The oil company remains the majority owner and operator of one of the largest liquefied gas plants in Australia.

Shell said that higher operating costs in the final quarter will affect adjusted earnings across all businesses. In the production of oil and gas, the company expects a loss in adjusted earnings due to the current price environment and tax burdens.

Production is expected to be between 2.28 and 2.35 million barrels of oil equivalent per day in the fourth quarter. This reflects the impact of the hurricanes in the American Gulf of Mexico and that of the mild weather in northern Europe in the first half of the fourth quarter, it said.

Shell shares, which are traded on the Amsterdam stock exchange, fell significantly on Monday and were down more than 4 percent in the first hours of trading.


Related Articles

Back to top button