TUE, JUN 30 2020-theG&BJournal-Royal Dutch Shell (NYSE: RDS.A) said it would write down impairment charges in the range of $15 to $22 billion in the second quarter, as it revised down its assumed oil price in the years to come.
The write down included an $8-$9 billion impairment in its integrated gas unit, $4-$6 billion in upstream, and $3-$7 billion in its refining portfolio.
‘’These impairments are expected to have a pre-tax impact in the range of $20 to $27 billion. No impairment charge on Goodwill is expected to be recorded in the second quarter,’’ Shell said.
Gearing is expected to increase by up to 3% due to the impairments.
CFFO price sensitivity at Shell Group level is still estimated to be $6 billion per annum for each $10 per barrel Brent price movement.
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