Shell cuts forecast for production sales
The company expects impairment charges of up to $2.3 billion
Stocks impacted: Royal Dutch Shell Plc (RDSA)
Royal Dutch Shell expects impairment charges of up to $2.3 billion in the fourth quarter. The company also trimmed its forecast for quarterly oil production sales, citing slowing demand for oil and gas, and 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. Capital expenditure is expected to be at the lower end of its guidance range of $24 billion to $29 billion in 2019. Shell expects between $100-$200 million in well write-offs and the same amount in other decommissioning costs to hit its fourth-quarter report. Besides, the company expects chemical cracker margins to be materially lower than in the previous quarter due to the weak macroeconomic backdrop. Shares were down 0.7% on the report.
Make profit on it right now!