(Corrects headline, paragraph 1,3 to oil product sales, not oil
production)
Dec 20 (Reuters) - Royal Dutch Shell said on Friday
it expects impairment charges of up to $2.3 billion in the
fourth quarter and trimmed its forecast for quarterly oil
product sales, as the Anglo-Dutch oil company faces slowing
demand for oil and gas.
The company warned in October that trade tensions between
the United States and China, the world's two largest energy
consumers, could hurt demand and take a toll on its performance.
Shell said it expects oil product sales of 6.5 million
barrels of oil equivalent per day (boepd) to 7 million boepd for
the fourth quarter, compared with its earlier estimate of 6.65
million boepd to 7.05 million boepd.
The company, which had beaten third-quarter profit
expectations on strong oil and gas trading, also warned that
higher taxes would hit earnings by about $500 million to $600
million in the fourth quarter.
Post-tax impairment charges are expected to range
between$1.7 billion and $2.3 billion for the quarter, Shell
said.
The company added that it expects additional well write-offs
in the range of $100 million to $200 million in the period,
while 2019 capital expenditure is expected to be at the lower
end of its guidance range of $24 billion to $29 billion.
Shares were down 0.7% at 2,252.5 pence in early trading on
the London Stock Exchange.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by
Subhranshu Sahu, Saumyadeb Chakrabarty and David Evans)
