Shell says will take up to US$22b hit from coronavirus

Shell said in a statement that it will face a charge of between US$15 billion and US$22 billion in the second quarter, after reviewing chronic fallout from the deadly Covid-19 outbreak that crashed global demand for energy. — Reuters pic
Shell said in a statement that it will face a charge of between US$15 billion and US$22 billion in the second quarter, after reviewing chronic fallout from the deadly Covid-19 outbreak that crashed global demand for energy. — Reuters pic

LONDON, June 30 — Anglo-Dutch energy giant Royal Dutch Shell will take a vast second-quarter charge of up to US$22 billion (RM94 billion) due to coronavirus and collapsing oil prices, it announced today.

The company said in a statement that it will face a charge of between US$15 billion and US$22 billion in the second quarter, after reviewing chronic fallout from the deadly Covid-19 outbreak that crashed global demand for energy.

“In the second quarter of 2020, Shell has revised its mid and long-term price and refining margin outlook reflecting the expected effects of the Covid-19 pandemic and related macroeconomic as well as energy market demand and supply fundamentals,” the London-listed firm said.

“This has resulted in the review of a significant portion of Shell’s upstream, integrated gas and refining assets.”

The energy major added that the move also reflected a planned reshaping of refining activities as it seeks to move towards becoming carbon neutral by 2050.

Shell’s announcement comes after rival BP revealed earlier this month that it was taking a hit of between US$13 billion and US$17.5 billion in the same period as a result of “sustained” coronavirus fallout that ravaged the world’s appetite for oil. — AFP

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