Shell Flags Q4 Write-down of $4.5bn, Mainly on Singapore Assets

Shell (SHEL.L) on Monday flagged impairment charges of about $2.5 billion to $4.5 billion for the fourth quarter, mainly related to the Singapore refining and chemicals hub the oil major is looking to sell.

The assets include a 237,000 barrels per day (bpd) refinery and a one million metric ton per year (tpy) ethylene plant on Singapore’s Bukom and Jurong islands, for which it had announced a strategic review last year.

Ahead of fourth-quarter results on Feb. 1, the company also said gas trading would be significantly higher than the previous three-month period, while upstream production would come in at 1,830 – 1,930 thousand barrels of oil equivalent per day.

Meanwhile, its chemicals & products division is expected to post an adjusted earnings loss for the period, it added.