Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Shell’s shares up 3% after it backtracks on billions of pounds of write-offs

Post Thumbnail

Shares in energy giant jumped 3% after it said it will reverse previous write-offs worth up to £3.8 billion this quarter.

The decision was prompted by soaring commodity prices, with global benchmark Brent oil reaching $133.18 per barrel earlier this year.

Shell expects to reverse post-tax impairments of between £2.9 billion and £3.8bn, based on what it thinks it will be paid for its oil and gas over the coming years.

The FTSE 100 company told shareholders: “Shell has revised its mid and long-term oil and gas commodity prices, reflecting the current macroeconomic environment as well as updated energy market demand and supply fundamentals.

“This resulted in a review of Shell’s upstream and integrated gas previously impaired assets.”

Better-than-expected output

Shell – whose shares were worth £20.39 at the London market close – also said it will likely report it produced more gas than expected in the second quarter of this year.

It told investors in a trading update it expects Q2 results later this month to show output of between 930,000 and 980,000 barrels of oil equivalent (boe) per day from its integrated gas operations.

Shell’s previous estimate – released in May – was for between 910,000 and 960,000 boe per day.

Shell’s Shearwater platform in the North Sea.

The company also upgraded production from its upstream operations.

It was previously expected this would fall from the levels seen in the first quarter due to maintenance in the Gulf of Mexico.

The likely range has narrowed from between 1.75 million and 1.95m boe per day to 1.85m-1.95m.

High commodity prices have sent household fuel bills soaring.

Shell is one of many energy companies around the world that has benefited from rising energy prices over the past year.

The price of gas has beaten previous records several times this year.

But commodity price rises have put pressure on customers, pushing up UK household energy bills by 54% in April to just under £2,000 for the typical home.

This is expected to jump further to around £3,000 in October when the price cap on energy bills is changed again.

Meanwhile, Shell confirmed a share buyback programme worth more than £7bn announced for the first half of 2022 was completed on Tuesday.

Already a subscriber? Sign in

[[title]]

[[text]]

Conversation

[[title_reg]]

Please enter the name you would like to appear on your comments. (It doesn’t have to be your real name - but nothing rude please, we are a polite bunch!) Use a combination of eight or more characters that includes an upper and lower case character, and a number.

By registering with [[site_name]] you agree to our Terms and Conditions and our Privacy Policy

Or sign up with

Facebook Google

[[content_reg_complete]]

[[title_login]]

Or login with

Forgotten your password? Reset it

[[title]]