Shell flags Q4 earnings hit by impairments of up to $6.7b
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The news: Shell has announced that its Q4 earnings in 2023 were hit by impairment charges tied largely to macro developments and Singapore assets that it is looking to offload.
The numbers: The UK based firm said the impairment charges for the quarter would reach between USD2.5 - USD4.5 billion ($3.74 - $6.73 billion). It also expects its operations cash flow to be impacted by a USD900 million charge related to emissions permits in the US and Germany.
The context: While Shell stated that its gas trading earnings are set to be significantly higher in Q4 2023, a consequence of volatility in the space since Russia’s invasion of Ukraine, it expects to make a loss across its chemicals and oil products division for the period.
According to Capital IQ data, sellside equity research analysts expect Shell to earn USD6.8 billion in normalised earnings in Q4 2023.
The company will report full fourth-quarter results on 1 February.
The source: Shell Press Release
