Shell takes big writedown update#

The unprecedented volatility in commodity prices in recent months has pushed several traders to the brink as they scrambled to sharply increase downpayments for oil and LNG cargoes. Shell did not provide any guidance on the future of its stakes in Russian projects.īenchmark oil prices soared to an average of more than $100 a barrel in the quarter, their highest since 2014, while European gas prices hit a record high.

General view of a Shell petrol station sign, in Milton Keynes, Britain, January 5, 2022.

Shell said it will exit all its Russian operations, including a major liquefied natural gas plant in the Sakhalin peninsula in the eastern flank of the country. The start of 2022 marked one of the most turbulent periods in decades for the oil and gas industry as Western companies including Shell rapidly pulled out of Russia, severing trading ties and winding down joint ventures following Moscow's invasion of Ukraine. Shell shares were down 1.2% at the start of London trading. The increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses in Russia, a Shell spokesperson said. Shell, whose market capitalisation is around $210 billion, had previously said the Russia writedowns would reach around $3.4 billion.

Shell takes big writedown update#

The post-tax impairments of between $4 billion and $5 billion in the first quarter will not impact the company's earnings, Shell said in an update ahead of its earnings announcement on May 5. Peer Entain (ENT.L)dropped 4.1% as its online sales fell for a second straight quarter.LONDON, April 7 (Reuters) - Shell (SHEL.L) will write down up to $5 billion following its decision to exit Russia, more than previously disclosed, while soaring oil and gas prices boosted trading activities in the first quarter, the company said on Thursday. assets, allowing a smaller equity raise to fund the deal. If we do see a turndown in consumer confidence, that will impact housing and if actually consumer demand remains quite robust and allows the BoE to carry on raising rates, that's also going to be negative for house prices,' said Park.Ĩ88 Holdings (888.L) surged 16.8% after the gambling firm and U.S.-based Caesars Entertainment (CZR.O) cut the deal value of William Hill's non-U.S. 'We've got a fairly conservative view towards the housing sector. Overall, the sectoral index (.FTNMX402020) fell 3.5% after mortgage lender Halifax said British house prices grew strongly in March but the cost-of-living crisis clouded the outlook. Shares of the housebuilder tumbled 14.6% after it warned of lower annual profit following a business review of its operations. The domestically focused FTSE 250 midcap index (.FTMC) slipped 0.3%, dragged down by Countryside Partnerships (CSPC.L).

'The Fed minutes confirmed the feeling in markets, which was that 50 bp rate hikes were on the table and that quantitative tightening will begin in May even though the market believes economic growth will be impacted,' said Edward Park, chief investment officer at Brooks Macdonald Asset Management.Ī Bank of England survey showed that British companies' expectations for output price inflation in the coming 12 months had hit a new high of 5.9% last month, while 48.5% of companies thought the Russia-Ukraine conflict would lower sales. Federal Reserve and amid the war in Ukraine that has elevated inflation. read moreīroadly, economy-linked sectors such as oil and gas, miners, banks and insurers fell on concerns over slower economic growth following hawkish signals from the U.S. The blue-chip index (.FTSE) closed 0.5% lower, with Shell (SHEL.L) falling 2.1% as it raised its Russia writedown to as much as $5 billion, more than previously disclosed. April 7 (Reuters) - Britain's FTSE 100 slid on Thursday, weighed down by oil major Shell after it flagged a bigger writedown following its decision to exit Russia, while a jump in shares of gambling firm 888 Holdings helped limit some losses on the midcap index.