Wednesday, April 17

Shell writes down up to $5bn after Russia exit; UK house price surge continues – business live | Business


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Quitting Russia is set to cost oil giant shell up to $5bn, but the surge in oil prices will cushion the blow.

Shell reported this morning that it will write off between $4bn and $5bn (£3bn-£3.8bn) post-tax in asset values ​​after deciding to exit Russia following its invasion of Ukraine.

The bill covers the “impairment of non-current assets” and additional charges such as writing down debts owed by customers and credit losses.

Last month, Shell announced it would withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas, stop importing Russian crude oil, and shut its service stations, aviation fuels and lubricants operations in Russia.

AFPNewsAgency
(@AFP)

#BREAKING Shell says to write off up to $5 billion on Russia exit pic.twitter.com/ZoYMfxzIgB


April 7, 2022

But, Shell has also reported that its oil and gas trading activities will get a boost from soaring energy prices, which jumped after the Ukraine war began.

It says that earnings from oil trading are expected to be “significantly higher” in the first quarter of 2022 than in the fourth quarter of 2021.


the indicative refining margin is around $10.23/bbl, compared to $6.55/bbl in the fourth quarter 2021.

Trading at its integrated gas division are also expected to be stronger than in the previous quarter.

Bousso Rum
(@ronbousso1)

Shell will write down up to $5 billion in the first quarter as a result of its decision to exit Russia, higher than previously disclosed, while oil and LNG trading are set to get a boost from soaring energy prices, @Shell said. #OOTT


April 7, 2022

Shell’s update comes as the UK government announces its long-awaited energy strategy to cut the country’s reliance on overseas energy.

Nuclear energy is at the heart of the strategy, with plans for up to eight new reactors, and a goal to lift offshore wind power capacity to make 95 per cent of the country’s electricity “low carbon” by 2030.

But there’s disappointment that ministers have vowed to continue the exploitation of North Sea oil and gas, and not announced plans to cut demand through a push on insulation.

As our news story explains:


The plans risk infuriating environmental campaigners, after the opportunity to remove barriers to more onshore wind farms appeared to fall victim to Tory in-fighting, new North Sea drilling won the government’s blessing, and ministers appeared to open the door to fracking.

Opposition parties were scathing about the strategy. Two former energy secretaries from Labor and the Liberal Democrats branded it “ludicrous” and “hopeless” for failing to expand onshore wind power or tackle energy efficiency.

agenda

  • 7am BST: Halifax house price index for March
  • 9.30am BST: ONS publishes latest business insights and economic activity surveys
  • 10am BST: Eurozone retail sales for February
  • 1.15pm BST: Bank of England chief economist Huw Pill speaks at the BoE’s 8th International Conference on Sovereign Bond Market
  • 1.30pm BST: US weekly jobless claims




www.theguardian.com

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