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

MOL gets OK for two LNG carrier designs with sails

Japan’s shipping giant MOL has secured approval from classification society Lloyd's Register (LR) for two liquefied natural gas (LNG) carrier designs equipped with four Wind Challenger sails.

NFE logs $557 million net loss, continues Puerto Rico supply deal talks

US LNG player New Fortress Energy reported a net loss of $557 million in the second quarter of 2025, while it continues to negotiate a long-term gas sale agreement with PREPA to provide gas island-wide in Puerto Rico.

Jera in Montenegro LNG terminal move

Japan's power firm and LNG trader Jera and the government of Montenegro plan to sign a memorandum of understanding on the development of a liquefied natural gas (LNG) terminal and an associated gas-fired power plant.

More News Like This

Shell eyes NWS LNG stake sale

UK-based LNG giant Shell is considering selling its stake in the Woodside-led North West Shelf LNG project in Western Australia.

UK’s Dragon LNG terminal launches market consulation for regas capacity

The UK’s Dragon LNG terminal in Milford Haven, owned by Shell and VTTI, has launched a market consultation for the auction of 9 billion cubic meters per year of regasification capacity, available from August 2029.

LNG Canada sends tenth cargo

Shell-led LNG Canada has shipped the tenth cargo of liquefied natural gas from its Kitimat facility on the west coast of Canada.

H2G Green forms LNG unit

Singapore's H2G Green has formed a new unit which will focus on the supply and trading of liquefied natural gas (LNG) and hydrogen-related products to users across the region.