Shell Takes $2 Billion Impairment Hit from Singapore and Rotterdam Plants

Friday, 05 July 2024Rotterdam, Netherlands Netherlands

Construction suspended at Shell's 820,000 metric tons a year biofuels facility in Rotterdam due to current market conditions

Impairment charge linked to Shell's Singapore and Rotterdam plants is up to $2 billion

Separately, Shell anticipates non-cash post-tax impairment of $600-$800 million after agreeing to divest Singapore refining and chemicals plant

Shell projects non-cash post-tax impairment of $600 million - $1 billion for Rotterdam hub in Q2 results

Shell takes $2 billion impairment hit from Singapore and Rotterdam plants

Trading in Shell's key gas division is expected to decline on the quarter

Shell Takes $2 Billion Impairment Hit from Singapore and Rotterdam Plants

In a significant financial blow, energy giant Shell is expected to take an impairment charge of up to $2 billion mainly linked to its Singapore and Rotterdam plants. This comes after the company temporarily suspended construction at its 820,000 metric tons a year biofuels facility in Rotterdam due to current market conditions. The decision has led Shell to project it will book a non-cash post-tax impairment between $600 million and $1 billion for the Rotterdam hub when it publishes second-quarter results on August 1. Separately, the company also anticipates a second non-cash post-tax impairment of $600-$800 million after agreeing to divest its Singapore refining and chemicals plant back in May. In addition to these impairments, Shell's trading in its key gas division is expected to decline on the quarter. This news comes as a major setback for the development of sustainable aviation fuel, which is seen by some as crucial if airlines are to cut their carbon emissions in line with global climate targets.

Confidence

85%

Doubts

Are there any other factors contributing to these impairments?
Is the full extent of the financial impact on Shell's Q2 results known?

Sources

99% The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as: (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20 A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand Energy giant Shell to take up to a $2 billion impairment hit on Rotterdam, Singapore plants CNBC News Ruxandra Iordache Friday, 05 July 2024 07:12 Unique Points Shell expects to record a post-tax impairment hit of up to $2 billion mainly linked to its Singapore and Rotterdam plants. , Accuracy ]Shell expects to record a post-tax impairment hit of up to $2 billion mainly linked to its Singapore and Rotterdam plants.[ Shell will take an impairment charge of up to $2bn in its next set of results due to halted work on a biofuel project in Rotterdam and the sale of a Singapore refinery. Shell expects to take a hit of between $600m and $1bn on the Rotterdam biofuel project Deception (100%) None Found At Time Of Publication Fallacies (100%) None Found At Time Of Publication Bias (100%) None Found At Time Of Publication Site Conflicts Of Interest (100%) None Found At Time Of Publication Author Conflicts Of Interest (100%) None Found At Time Of Publication
92% The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as: (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20 A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand Shell expects hit of up to $1bn on stalled biofuel plant Financial Times Friday, 05 July 2024 15:12 Unique Points Shell estimates up to $1bn financial impact from stalled biofuel plant Accuracy No Contradictions at Time Of Publication Deception (100%) None Found At Time Of Publication Fallacies (100%) None Found At Time Of Publication Bias (100%) None Found At Time Of Publication Site Conflicts Of Interest (100%) None Found At Time Of Publication Author Conflicts Of Interest (0%) None Found At Time Of Publication
92% The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as: (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20 A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand Shell to take hit of up to $2bn on Rotterdam and Singapore sites theguardian.com Article URL: https://www.theguardian.com/world/2024/feb/13/ pakistan-·coalition-·agrees-to-form-government Jillian Ambrose Friday, 05 July 2024 09:25 Unique Points Shell will take an impairment charge of up to $2bn in its next set of results due to halted work on a biofuel project in Rotterdam and the sale of a Singapore refinery. The Rotterdam biofuel project, which was expected to convert waste into green jet fuel and biodiesel by the end of the decade, has struggled with technical difficulties that have delayed its progress. Accuracy Shell expects to take a hit of between $600m and $1bn on the Rotterdam biofuel project Shell anticipates a second non-cash post-tax impairment of $600-800 million Deception (100%) None Found At Time Of Publication Fallacies (100%) None Found At Time Of Publication Bias (100%) None Found At Time Of Publication Site Conflicts Of Interest (100%) None Found At Time Of Publication Author Conflicts Of Interest (100%) None Found At Time Of Publication