Shell may incur a potential write-off of up to $2 billion for its facilities in Singapore and Rotterdam.
Shell announced on Friday that it will record an impairment charge of up to $2 billion due to the sale of its Singapore refinery and the suspension of construction of one of Europe’s largest biofuel plants.The British energy corporation announced on Tuesday that it
would suspend construction of its Rotterdam plant in the Netherlands due to
unfavorable market conditions. The biofuels facility was projected to have an
annual capacity of 820,000 metric tons and commence operations in the upcoming
year.
The decision will result in a non-cash, post-tax impairment
between $600 million and $1 billion, as announced by Shell. The impairment will
be reflected in the company’s second-quarter results, which will be published
on August 1.
Concurrently, Shell anticipates an impairment charge of $600
to $800 million related to the Singapore refining and chemicals hub divestment
agreed upon in May.