Shell Plc (NYSE:SHEL) will write down up to $5 billion following its decision to exit Russia, more than previously disclosed. The post-tax impairments of between $4 billion and $5 billion in the first quarter will not impact its earnings, Shell said in an update ahead of its earnings announcement on May 5.
Shell had previously said the Russia writedowns would reach around $3.4 billion. A Shell spokesperson said that the increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses in Russia.
Last month, Shell announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas, and liquefied natural gas (LNG). The Company said it would also shut its service stations, aviation fuels, and lubricants operations in Russia.
Cash flow in the quarter would be negatively impacted by "very significant" outflows of around $7 billion due to changes in the value of oil and gas inventories.
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. LNG liquefaction volumes were slightly higher in the quarter, averaging 8 million tonnes.
Price Action: SHEL shares are down 0.43% at $55.06 during the premarket session on the last check Thursday.
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