Energy giant Shell on Thursday said it expected to book up to $5bn in post-tax write offs after its decision to exit Russia, adding that oil & gas earnings would be “significantly higher” on the back of surging prices.
The write offs are higher than the $3.4bn previously disclosed by the company, but would not impact adjusted earnings, Shell said in a trading update.
Indicative refining margins were forecast to be around $10.23 a barrel compared to $6.55 in the fourth quarter of 2021. Oil prices have soared as Western states consider an oil embargo on Russia, a major producer, after its invasion of Ukraine.
Liquefied natural gas (LNG) earnings were also expected to be higher quarter on quarter trader, said Shell, which is the world’s largest trader in the commodity, as customers look for alternatives to Russian gas.
