Shell writes down the value of its assets
The giant’s shares were down 2.3% following the announcement
Stocks impacted: Royal Dutch Shell Plc (RDSA)
The Anglo-Dutch company will write $22 billion off the value of its assets after sharply lowering its oil and gas price outlook in the wake of the coronavirus pandemic. Shell said that it will take an aggregate post-tax impairment charge in the range of $15 to $22 billion in the quarter. the company also expects a 40% fall in fuel sales in the second quarter due to a sharp fall in consumption as a result of coronavirus-related travel restrictions around the world. Shell reduced its expected average benchmark Brent crude oil price for 2020 to $35 a barrel, down from $60, and also cut its long-term refining profit margin outlook by 30%. The giant’s shares were down 2.3% following the announcement.
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