Shell to Book Up to $3 Billion of 2Q Impairments, Upstream Production Fell on Quarter

   By Christian Moess Laursen

Shell said Friday that it expects to book after-tax impairments of up to $3 billion for the second quarter of 2023, and that upstream production declined from the first three months of the year.

The energy major said it expects to pay post-tax impairments of up to $3 billion, largely due to a 1% increase in the discount rate used for impairment testing.

Shell said it expects to report that upstream production fell by between 1.7 million-1.8 million barrels of oil equivalent a day in the second quarter from 1.9 million BOE a day in the first quarter. The decline is a reflection of scheduled maintenance, including assets in the Gulf of Mexico, Norway, Malaysia and Brazil, it said.

In its integrated gas division, the company's production in the quarter was in the range of 950,000 to 990,000 BOE a day compared with 970,000 BOE in the first quarter, it said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 07, 2023 02:57 ET (06:57 GMT)

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