Shell Faces Up to $2 Billion Writedown on Singapore and Rotterdam Projects

Shell Plc anticipates taking a writedown of up to $2 billion in its second-quarter earnings following the sale of its Singapore refinery and the suspension of construction at its Rotterdam biofuel plant. These decisions stem from weak market conditions impacting the company's operations. Specifically, Shell expects to record a non-cash, post-tax impairment of $600 million to $1 billion related to the halted biofuel plant in Rotterdam.

Additionally, Shell projects an impairment of $600 to $800 million for the Singapore refining and chemicals hub, which it agreed to sell in May. The combined impact of these impairments is expected to be reflected in Shell's second-quarter results, which will be published on August 1. The company also noted that its gas trading earnings are likely to be lower in the second quarter due to seasonal market shifts.