Clear. 81.3   F New York
AI-Powered News Summarizer
Top Stories

Shell warns of $22 billion hit from coronavirus price slump

June 30, 2020. Summarized by summa-bot.

General view of fuel pump stands at the Royal Dutch Shell gas station in Brussels, Belgium 30 April 2020. Following the collapse in global oil demand due to the coronavirus pandemic, Shell slashed its dividend for the first time since 1945, chief executive Ben van Beurden said in a statement on Thursday. Oil companies have clung on to dividend payouts as demand plummets with government lockdowns. (Photo by Jonathan Raa/NurPhoto)

Royal Dutch Shell is writing down the value of its assets by as much as $22 billion as lower oil prices push the Anglo-Dutch company to accelerate a shift away from fossil fuels.

London (CNN Business)Royal Dutch Shell is writing down the value of its assets by as much as $22 billion as lower oil prices push the Anglo-Dutch company to accelerate a shift away from fossil fuels.

Shell (RDSA) slashed its outlook for energy prices Tuesday, saying in a statement that it expects Brent crude to cost $40 per barrel in 2021 and $50 per barrel in 2022.

Prices are forecast to rise to $60 per barrel in 2023.

The company said the changes to its price forecast reflect the economic trauma caused by the coronavirus pandemic, which has plunged countries around the world into recession and sharply reduced demand for energy.

They've staged a comeback to trade above $41 per barrel, but that's still well below where prices started the year.

Shell said Tuesday that it expects to take a charge of between $15 billion and $22 billion in the second quarter as a result of the shifting market conditions.

The company said in a statement that it would continue to "adapt to ensure the business remains resilient. " Shell cut its dividend in April for the first time since World War II in an effort to conserve cash.

The huge slump in demand for oil and gas this year is pushing many of the industry's biggest companies to accelerate a shift to cleaner fuels.

BP (BP) agreed to sell its petrochemicals business for $5 billion on Monday, saying the company's resources would be better deployed elsewhere as it tries to achieve net zero emissions by 2050 or sooner.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions