Royal Dutch Shell Plc on Tuesday (30 June) said it expects a write down of between USD 15 billion and USD 22 billion in its second quarter 2020 update note to its investors.
In the update, the company has significantly revised its mid and long-term price and refining margin outlook reflecting the expected effects of the COVID-19 pandemic and related macroeconomic as well as energy market demand and supply fundamentals.
This has resulted in the review of a sizable portion of Shell’s Upstream, Integrated Gas and Refining tangible and intangible assets, amounting to the USD 15 billion write down as a conservative estimate.
In the upstream unit, traditionally the foundation of Shell’s business, production is expected to be between 2,300 and 2,400 thousand barrels of oil equivalent per day.
Although this production range is higher compared with the outlook previously provided, it has had a limited impact on earnings in the current macro environment, noted the company.
The report also forecasted Brent crude prices to average of USD 35 a barrel for the rest of 2020, rising to USD 40 in 2021 and only reaching USD 50 in 2022, with a long term forecast of USD 60 per barrel.
Shell noted that Oil Products sales volumes are expected to be between 3,500 and 4,500 thousand barrels per day, driven by a significant drop in demand related to the impact of COVID-19- a noticeable contrast to the previously forecasted 7,000 thousand barrels per day in the first quarter.
The full update note by Royal Dutch Shell Plc is available here.
Photo credit: stevepb
Published: 1 July, 2020
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.
3,490 mt of LSFO from Itochu Enex was lifted at Universal Terminal; the same bunker stem was bought by Global Marine Logistics and delivered by bunker tanker Juma to receiving vessel Kirana Nawa.
Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.