Shell said Friday it expects to book impairment charges of between $1.5 and $2 billion for its second quarter, relating to facilities based in Singapore and Rotterdam.

In detail, the energy group intends to book a charge of between $600 and $800 million relating to the disposal of its Singapore chemical unit.

At the same time, Shell intends to book a provision of between $600 million and $1 billion due to the interruption in construction of its new biofuels site in Rotterdam.

The project, which was launched in 2021, aims to produce so-called sustainable fuels (SAF) for aviation, as well as diesel made from waste.

In its business update - published ahead of the release of its second-quarter results scheduled for August 1 - the Group indicates that it has revised upwards its quarterly production forecasts for its upstream activities.

This is expected to be between 1.72 and 1.82 million barrels of oil equivalent per day, compared with a previous forecast of between 1.63 and 1.83 million and the current consensus of 1.75 million.

On the disappointment front, analysts at Royal Bank of Canada point to a disappointing performance in renewable energies, rising corporate costs and lacklustre figures in chemicals.

We expect this publication to receive a neutral reception, especially in view of the stock's strong performance in recent days", says RBC.

On the London Stock Exchange, Shell shares were down 0.3% on Friday morning, but are still up more than 6% over the past three weeks.

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