Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Shell records $200m depreciation in Q4 2020

    Shell records $200m depreciation in Q4 2020

    December 21, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp

    OpeOluwani Akintayo

    Lagos — The Royal Dutch Shell, in an update note released on Monday, said it recorded $200 million depreciation in its upstream asset in the fourth quarter of this year.

    It said the depreciation in the period is $100 to $200 million higher compared with the third quarter 2020.

    The international oil major gave the update ahead of its fourth-quarter results release date on February 4.

    Adjusted earnings are expected to show a loss in the current price environment, while production is expected to be between 2,275 and 2,350 thousand barrels of oil equivalent per day, reflecting hurricane impacts in the US Gulf of Mexico (between 60 and 70 thousand barrels of oil equivalent per day) and the effect of mild weather in Northern Europe in the first half of the fourth quarter.

    According to the note, tax charge in the range of $600 million and $900 million is expected to negatively impact adjusted earnings in the fourth quarter. This includes unfavourable movements in deferred tax positions.

    It expects refinery utilisation to be between 72% and 76%, while sales volumes are expected to be between 4,000 and 5,000 thousand barrels per day.

    On integrated gas, production is expected to be between 900 and 940 thousand barrels of oil equivalent per day.

    “Despite increased production compared with the third quarter 2020, earnings impact is limited due to PSC effects”.

    Its LNG liquefaction volumes are expected to be between 8.0 and 8.6 million tonnes.

    Approximately 80% of its term sales of LNG in 2020 has been oil price linked with a price-lag of up to 6 months.

    Shell to write down assets again, taking cuts to more than $22 billion

    The firm said its corporate segment adjusted earnings are expected to be a net expense of $900 to $975 million for the fourth quarter, impacted by unfavourable movements in deferred tax positions. This excludes the impact of currency exchange effects.

    Post-tax charges, in aggregate, between $3.5 to $4.5 billion in relation to impairments, asset restructuring, and onerous contracts are expected in the fourth quarter. These expected charges reported as identified items relate to upstream (including partial impairment of Appomattox asset in the US Gulf of Mexico due to subsurface updates), Oil Products (including charges related to the announced transformation of the refinery portfolio), and Integrated Gas (onerous contracts).

    “As per accounting standards, charges linked to Reshape organisational restructuring are expected to be recognised in 2021”.

    Shell will provide a strategy update on 11 February 2021

    Follow us on twitter

    Related News

    Crude oil rebound reflects optimism over the U.S.-China dialogue

    Stakeholders hail PINL’s achievements in protecting TNP

    Dangote, NNPCL boss pledge collaboration to boost energy security

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    Gold rose amid geopolitical risks, investors await trade developments

    May 9, 2025

    Despite NPA’s intervention, export cargoes still stock at EPTs for days

    May 9, 2025

    Nigeria recommits to fostering enabling environment for inclusive prosperity

    May 8, 2025

    Ogbe reiterates vision of NCDMB, as AMNI celebrates NOGICD Act

    May 8, 2025

    Ghana’s currency to extend gains, Nigeria’s and Uganda’s steady

    May 8, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.