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 to 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 950,000-990,000 BOE a day compared with 970,000 BOE a day in the first quarter, it said. The unit’s liquefied natural gas liquefaction volumes were 6.9 million-7.3 million metric tons, compared with 7.3 million tons, it said.
Trading in the unit is expected to be significantly lower compared with a strong preceding quarter due to seasonality and fewer optimization opportunities, Shell said.
In the market division, Shell said it expects to report sales volumes between 2.4 million and 2.8 million barrels per day, compared with 2.45 million in the first quarter.
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