(Alliance News) - Royal Dutch Shell PLC on Monday said it expects charges of up to USD4.5 billion due to impairments, asset restructuring and onerous contracts in the fourth quarter.
For Integrated Gas, production is expected to be between 900,000 and 940,000 barrels of oil equivalent per day in the fourth quarter. LNG liquefaction volumes are expected to be between 8.0 and 8.6 million tonnes.
In Upstream, production is expected to be between 2.3 million and 2.4 million barrels of oil equivalent per day. The unit is expected to post an adjusted loss in the current price environment, the firm said.
Post-tax charges, in total, between USD3.5 billion to USD4.5 billion in relation to impairments, asset restructuring and onerous contracts are expected in the fourth quarter.
"These expected charges, reported as identified items, relate to Upstream (including partial impairment of Appomattox asset in the US Gulf of Mexico due to subsurface updates), Oil Products (including charges related to announced transformation of the refinery portfolio) and Integrated Gas (onerous contracts)," said Shell.
Shell 'A' shares were down 5.1% at 1,272.20 pence in London on Monday, while 'B' shares were down 5.2% at 1,271.20p.
A barrel of Brent oil was trading at USD49.90 in London on Monday morning, down nearly a quarter in the year-to-date.
Shell said that cash flow from operations price sensitivity at a group level is estimated to be USD6 billion per year for each USD10 per barrel Brent price movement.
Earlier on Monday, Shell said it has agreed to the sale of a 26% interest in the Queensland Curtis Liquefied Natural Gas common facilities to Sydney-based infrastructure fund manager Global Infrastructure Partners Australia for USD2.5 billion.
By Lucy Heming; lucyheming@alliancenews.com
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