Royal Dutch Shell said it will write $22 billion off the value of its assets after sharply lowering its oil and gas price outlook in the wake of the coronavirus pandemic. The decision also comes as the company reviews its operations after CEO Ben van Beurden laid out plans in April to reduce greenhouse gas emissions to net zero by 2050.
Shell has a market value of $126.5 billion. It said it will take an aggregate post-tax impairment charge in the range of $15 to $22 billion in the quarter.
The world’s largest fuel retailer said it expects a 40 percent drop in fuel sales in the Q2 from a year earlier to 4 million bpd due to a sharp fall in consumption due to coronavirus-related travel restrictions. Down from 2.71 million bpd in the previous quarter, upstream oil and gas production is expected to average 2.35 million bpd in Q2.
