Shell sees bigger hit from Russia exit, LNG earnings rise

LNG giant Shell said it would write down $4 to $5 billion following its exit from Russia, while the firm expects LNG earnings to be higher in the first quarter of this year.

Shell said in an update on Thursday published ahead of its quarterly results that the post-tax impairments of up to $5 billion would not impact its adjusted earnings in the first quarter.

The company had previously expected the Russia writedowns would reach around $3.4 billion.

“Details of the accounting treatment and impact of ongoing developments will be provided at the first quarter 2022 results announcement,” Shell said.

Shell also plans to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and LNG in a phased manner.

LNG earnings up

Shell forecasts its liquefaction volumes to reach between 7.7 and 8.3 million tonnes in the January-March period.

This is in line with Shell’s forecast in the fourth-quarter results report.

Also, Shell expects trading and optimization results in its integrated gas segment to rise in the first quarter when compared to the previous quarter.

According to Shell, it expects underlying Opex for integrated gas, including renewables and energy solutions, to reach between $1.7 and $1.9 billion.

As of the first quarter, Shell would separately disclose results from its renewables and energy solutions segment, it said.

Most Popular

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

Shell’s LNG Canada expansion project to get boost from government

Canadian Prime Minister Mark Carney named the planned second phase of Shell's LNG Canada export project as one of the major projects the federal government would help fast-track.

More News Like This

Shell’s LNG Canada expansion project to get boost from government

Canadian Prime Minister Mark Carney named the planned second phase of Shell's LNG Canada export project as one of the major projects the federal government would help fast-track.

Shell seals Hungarian gas supply deal

UK-based LNG giant Shell has signed a deal with Hungarian gas trader MVM CEEnergy to supply the latter with natural gas for 10 years.

Shell, Hapag-Lloyd seal bio-LNG bunkering deal

A unit of UK-based LNG giant Shell has signed a deal with Germany's Hapag-Lloyd to supply the latter's dual-fuel container vessels with bio-LNG.

Peru LNG sent four cargoes in August

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped four liquefied natural gas cargoes in August, one less than in the previous month.