LNG liquefaction volumes were slightly higher on the quarter, averaging 8 million tonnes. Royal Dutch Shell is writing down the value of its assets by up to 22 billion because of lower energy prices following the demand-sapping coronavirus pandemic. Shell's fuel sales averaged 4.3 million barrels per day in the quarter, down from 4.45 million bpd in the previous quarter, Shell said. Energy giants Shell and PetroChina have been hit with 500m in writedowns on their Queensland gas business partly due to a decision to cut their oil and gas price forecasts as a result of the long. Earnings from oil trading are set to be "significantly higher" in the quarter.Ĭashflow in the quarter would be negatively impacted by "very significant" outflows of around $7 billion as a result of changes in the value of oil and gas inventories. Shell, the world's largest liquefied natural gas trader, said earnings from LNG trading were expected to be higher in the quarter compared with the previous three months. A write-down typically occurs on a company's financial statement. The unprecedented volatility in commodity prices in recent months has pushed several traders to the brink as they scrambled to sharply increase downpayments for oil and LNG cargoes. Write-Down: A write-down is the reducing of the book value of an asset because it is overvalued compared to the market value. Shell did not provide any guidance on the future of its stakes in Russian projects.īenchmark oil prices soared to an average of more than $100 a barrel in the quarter, their highest since 2014, while European gas prices hit a record high. General view of a Shell petrol station sign, in Milton Keynes, Britain, January 5, 2022. Shell said it will exit all its Russian operations, including a major liquefied natural gas plant in the Sakhalin peninsula in the eastern flank of the country. The start of 2022 marked one of the most turbulent periods in decades for the oil and gas industry as Western companies including Shell rapidly pulled out of Russia, severing trading ties and winding down joint ventures following Moscow's invasion of Ukraine. Shell shares were down 1.2% at the start of London trading. April 7 (Reuters) - Britain's FTSE 100 slid on Thursday, weighed down by oil major Shell after it flagged a bigger writedown following its decision to exit Russia, while a jump in shares of. The increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses in Russia, a Shell spokesperson said. Shell, whose market capitalisation is around $210 billion, had previously said the Russia writedowns would reach around $3.4 billion. ![]() The post-tax impairments of between $4 billion and $5 billion in the first quarter will not impact the company's earnings, Shell said in an update ahead of its earnings announcement on May 5. Precision ended 2019 with 33,417 employees, and has shed 30% of its workforce.LONDON, April 7 (Reuters) - Shell (SHEL.L) will write down up to $5 billion following its decision to exit Russia, more than previously disclosed, while soaring oil and gas prices boosted trading activities in the first quarter, the company said on Thursday. "It's a recognition of what the market has long believed, that the purchase price was rich, and the integration not as smooth as many would have hoped."īerkshire, which paid $32.1 billion for Precision in 2016 in its largest acquisition, and which Buffett at the time called a steep price, said COVID-19 caused airlines to slash plane orders, significantly curbing demand for Precision's products.ī uffett himself soured on airlines during the quarter, selling $6 billion of their stock and telling shareholders on May 2 the industry's future had become "much less clear to me."īerkshire said Precision, which also makes industrial parts, saw revenue fall by one-third and plans an "aggressive restructuring" to shrink operations. "The writedown was prudent," said Cathy Seifert, an equity analyst at CFRA Research. ![]() Operating profit fell 10 %, cushioned by a temporary bump at the Geico auto insurer, as the pandemic caused "relatively minor to severe" damage to most of Berkshire's more than 90 operating businesses.
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