A detailed view of a Shell gas station sign showing the low price of $ 1.69 per gallon, the result of the outbreak of the coronavirus (COVID-19) on March 31, 2020 in Jacksonville, Florida.
David Rosenblum | Sportswire icon | Getty Images
Oil giant Royal Dutch Shell said Tuesday that it will announce the value of its assets up to $ 22 billion in the second quarter after revising its long-term forecasts for oil and gas prices downward.
It comes after the energy company announced in mid-April its ambition to reduce greenhouse gas emissions to net zero by 2050.
Shell said in a statement to investors that it had investigated a significant portion of its assets, taking into account the impact of the coronavirus pandemic and the “challenging challenger commodity price environment”
He said it would result in overall post-tax impairment charges of between $ 15 and $ 22 billion in the second quarter.
This resulted in a writedown of between $ 8 billion and $ 9 billion in its integrated gas unit, a $ 4 billion- $ 6 billion reduction in upstream operations and a $ 3 billion- $ 7 billion reduction in oil products through the its refining portfolio.
The shares of the Anglo-Dutch company were more than 2.4% lower during early morning operations.
Earlier this month, the UK-based British energy giant also said it would incur non-monetary charges and write-downs in the second quarter, estimated at an overall range of between 13 and 17.5 billion dollars net of taxes.
Forecast on oil and gas prices
Shell said it expected Brent’s international benchmark prices to reach an average of $ 35 a barrel in 2020, down from a previous forecast of $ 60.
The company also lowered its forecast on Brent prices to $ 40 in 2021 and $ 50 in 2022, having previously claimed to predict an average price of $ 60 per year.
Futures on Brent crude traded at $ 41.39 on Tuesday morning, down 0.7%, while US interim futures in western Texas came in at $ 39.35, down more than 0.8 %.
The energy giant also said it believes Henry Hub’s gas prices will average $ 1.75 per million British thermal units in 2020, before rising to $ 2.5 in 2021 and 2022 and $ 2. , 75 in 2023.
Henry Hub is a gas pipeline located in Louisiana and serves as the official delivery location for futures contracts on the New York Mercantile Exchange.