Energy - Shell expects write-downs of up to two billion
The Oil and Gas conglomerate Shell expects write-downs of up to two billion US-Dollars (1.85 Mrd Euro) in the second quarter. Shell justified this, among other things, with delays in the construction of a Bioethanol plant in Rotterdam, as a statement published in London on Friday reveals. The construction pause is leading to revaluations of 600 Million to one Billion Dollars, according to the company. In addition, Shell is writing off 600 to 800 Million Dollars for a Chemical plant in Singapore.
Furthermore, Shell announced lower gas trading revenues for the second quarter. The results are expected to be at the level of the previous year, but below those of the first quarter. Shell attributed this to seasonal shifts. The gas trade was previously a significant earnings driver for Shell. The company will present the figures on August 1.
Shell, operating in Great Britain and Netherlands as part of the Gas group, is also experiencing challenges in other regions. The amortization of delays in a Bioethanol plant construction in Rotterdam, Netherlands, is estimated to cost Shell between 600 Million to one Billion US-Dollars. Shell's operations in London have also been impacted, as they revealed writedowns of up to two billion US-Dollars in the second quarter, due in part to these construction delays. Despite these challenges, Shell's operation in Rotterdam is not the only one facing adjustments; the company is also writing off 600 to 800 Million Dollars for a Chemical plant in Singapore.
