Shell: warns of 'uncertainty' in first-quarter update
(CercleFinance.com) - Royal Dutch Shell said it expects "significant uncertainty" in macro-economic conditions, in particular regarding the price of and demand for oil and gas, as a result of the COVID-19 outbreak.
Recent developments in oil supply have led to further volatility in commodity markets, the oil major warned in its first quarter update report on Tuesday.
Given changes in conditions regarding prices, Shell expects to book post-tax impairment charges of between 400 million dollars and 800 million dollars in the first quarter.
The price of US West Texas Intermediate (WTI) crude oil fell below the 20-dollar threshold per barrel on Monday. For the record, it was trading at over 60 dollars at the beginning of the year.
But analysts said Shell's update seems "positive" in the context of the highly challenging macro environment.
"Integrated gas profitability is largely expected to hold up, helped by lagged commodity price exposure," Berenberg said.
Indeed, the market reacted positively to the release this morning, with the shares rising almost 6% on the London Stock Exchange in early trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Recent developments in oil supply have led to further volatility in commodity markets, the oil major warned in its first quarter update report on Tuesday.
Given changes in conditions regarding prices, Shell expects to book post-tax impairment charges of between 400 million dollars and 800 million dollars in the first quarter.
The price of US West Texas Intermediate (WTI) crude oil fell below the 20-dollar threshold per barrel on Monday. For the record, it was trading at over 60 dollars at the beginning of the year.
But analysts said Shell's update seems "positive" in the context of the highly challenging macro environment.
"Integrated gas profitability is largely expected to hold up, helped by lagged commodity price exposure," Berenberg said.
Indeed, the market reacted positively to the release this morning, with the shares rising almost 6% on the London Stock Exchange in early trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.