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
Patrizia Cosulich becomes first bunker tanker in Singapore to undertake its Mass Flow Meter extension test using the Master Mass Flow Meter, learns bunkering publication Manifold Times.
Bunker claims totalling SGD 628,000 for 88 deliveries of marine gas oil between the period of 7 February 2020 until 15 April 2020, according to documents obtained by Manifold Times.
Event welcomed over 1,100 attendees from 42 countries; delegates visited virtual booths about 4,800 times; while around 5,800 connections were made, according to data from organiser Informa.
Bunker suppliers and bunker craft operators may choose to carry out meter verification using either existing MIMO method OR with the use of a Master Meter.
Pai Kheng Pheng of Sentek Marine & Trading Pte Ltd on Thursday (8 October) was ordered remanded for a further week for investigations, AGC spokesperson informs Manifold Times.
INTERTANKO, BIMCO, SSA, IBIA Asia share what the technology brings to the waterfront, while operator Metcore International and manufacturer Endress+Hauser explain its benefits to the bunkering industry.