Oil giant Shell is warning of a £2 billion hit as it struggles to close the gap with US rivals
Shell warned of a £2bn hit after a weak end to 2024 in a blow to the oil giant as it ‘desperately’ tries to close the gap with US rivals.
Boss Wael Sawan said last year he would consider moving the energy giant’s stock exchange to New York if efforts to boost its valuation fail to bear fruit.
The FTSE 100 company warned yesterday that profits and production in its gas business will be lower in the fourth quarter and said it was facing a £1 billion charge in its renewables unit.
Russ Mould, investment director at AJ Bell, said the update was “disappointing for the market”.
Shell is prepared for £1.02 billion to £2.4 billion of impairment charges in the quarter, including up to £1 billion in its renewable energy division, where it faces a charge ‘related to (the) timing of payments of emission certificates in Germany and the US’.
It comes after the company said last month it would abandon new investments in offshore wind and split its energy division to boost the most profitable parts of the business, to overtake US giants such as Exxon Mobil and Chevron, who have doubled down on fossil fuels. fuels.
Profit warning: Shell warned yesterday that profits and production in its gas business will be lower in the fourth quarter and said it faced a £1 billion charge in its renewables unit
Shell said its liquefied natural gas (LNG) division’s fourth-quarter trading results would be significantly lower than the previous quarter due to the expiry of hedging contracts.
It is the world’s largest LNG trader and cut its forecast to 6.8 to 7.2 million tonnes from 7.5 million tonnes in the third quarter.
Trade in the chemicals and oil products business was expected to be significantly lower on a quarterly basis due to lower demand.
Shares fell 1.4 percent, or 37.5p, to 2579.5p.
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