Monday, June 5, 2023
  • Login
Upgrade
The Southern African Times
  • Home
  • Southern Africa
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
    • Lifestyle
      • Health
      • Culture
      • Food and Drink
      • Entertainment
  • Opinion
  • Sports
  • Events
  • SAT Jobs
  • About Us
    • Advertise with Us
    • Contact Us
No Result
View All Result
  • Home
  • Southern Africa
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
    • Lifestyle
      • Health
      • Culture
      • Food and Drink
      • Entertainment
  • Opinion
  • Sports
  • Events
  • SAT Jobs
  • About Us
    • Advertise with Us
    • Contact Us
No Result
View All Result
The Southern African Times
No Result
View All Result
Home Markets

Oil Major Shell to Write Off up to $5bn in Assets after Exiting Russia

by SAT Reporter
April 8, 2022
in Markets
0
Oil Major Shell to Write Off up to $5bn in Assets after Exiting Russia
0
VIEWS

Shell has announced that it will write off between $4 and $5 billion in the value of its assets after pulling out of Russia following the country’s unprecedented invasion of Ukraine.

Thursday’s announcement offers a first glimpse at the potential financial impact to Western oil majors of exiting Russia.

“For the first quarter 2022 results, the post-tax impact from impairment of non-current assets and additional charges (e.g. write-downs of receivable, expected credit losses, and onerous contracts) relating to Russia activities are expected to be $4 to $5 billion,” Shell said in a statement Thursday.

“These charges are expected to be identified and therefore will not impact Adjusted Earnings.”

Shell had previously estimated that Russia write-downs would reach $3.4 billion.

Further details of the impact of ongoing developments in Ukraine will be set out in Shell’s first-quarter earnings report on May 5, the company said.

Shell was forced to apologize on March 8 for buying a heavily discounted consignment of Russian oil two weeks after Russia’s invasion. It subsequently announced that it was withdrawing from its involvement in all Russian hydrocarbons.

The company said it would no longer purchase Russian crude oil and would shut its service stations, aviation fuels and lubricants operations in Russia. The company had already vowed to exit its joint ventures with Russian gas giant Gazprom and its related entities.

In Thursday’s update, Shell also said its cashflow is expected to be hit by “very significant working capital outflows as price increases impacting inventory have led to a cash outflow of around $7 billion.”

Divestment ‘outweighs reputational damage’
Shell’s share price fell 1.8% in early trade, along with that of fellow oil giant BP.

“Despite the eye watering costs, the share price should continue to stay reasonably resilient given the divestment far outweighs the reputational damage which could be caused had it not pulled out,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Russ Mould, investment director at British digital stockbroker AJ Bell, said the modest fall for Shell “reflects the fact that the company is also pointing to a big benefit from surging energy prices.”

He added that BP’s fall came “likely on a read-across as investors looked at what it might imply for its much larger Russian footprint.”

Shortly after Russia invaded Ukraine, BP announced that it would offload its 19.75% stake in Russian state-controlled oil company Rosneft, after 30 years of operations in the country.

Western oil companies have faced pressure from shareholders and governments to sever ties with Russia, but TotalEnergies CEO Patrick Pouyanne told CNBC in late March that the French company would not write off its assets in Russia as it would effectively mean giving them to Putin “for free.”

Previous Post

Kenya rooting for industry partnership to boost cybersecurity

Next Post

Over 80% of Central Banks Considering Launch of Digital Currencies, PwC Says

SAT Reporter

Related Posts

South African business activity falls to almost two-year low – PMI
Markets

South African business activity falls to almost two-year low – PMI

by SAT Reporter
June 5, 2023
Zimbabwe Gains Access to Chinese Market as Citrus Exports Begin
Markets

Zimbabwe Gains Access to Chinese Market as Citrus Exports Begin

by SAT Reporter
June 4, 2023
Angola Gradually Removes Fuel Subsidies to Spur Economic Growth
Markets

Angola Gradually Removes Fuel Subsidies to Spur Economic Growth

by SAT Reporter
June 2, 2023
J.S. Held Expands Reach in Africa with Acquisition of Africa Matters Limited
Markets

J.S. Held Expands Reach in Africa with Acquisition of Africa Matters Limited

by SAT Reporter
June 1, 2023
Boosting Avocado Exports: Kenya Focuses on China at Africa Avocado Congress
Markets

Boosting Avocado Exports: Kenya Focuses on China at Africa Avocado Congress

by SAT Reporter
June 1, 2023
Next Post
Over 80% of Central Banks Considering Launch of Digital Currencies, PwC Says

Over 80% of Central Banks Considering Launch of Digital Currencies, PwC Says

Browse by Category

  • African Continental Free Trade Area
  • African Debt
  • African Start ups
  • Algeria
  • Analysis
  • Angola
  • Asia
  • Botswana
  • BOTSWANA
  • BRICS
  • Burkina Faso
  • Burundi
  • Business
  • Business
  • Cameroon
  • Central Africa
  • China
  • Climate Change
  • Climate Changev
  • Congo Republic
  • COVID 19
  • Culture
  • Democratic Republic of Congo
  • Eastern Africa
  • Education
  • Egypt
  • Energy
  • Entertainment
  • Environment
  • Ethiopia
  • Europe
  • Fashion
  • Feature
  • Finance
  • Food
  • Food and Drink
  • Foods
  • Ghana
  • Global
  • Guinea
  • Health
  • Immigration
  • in Southern Africa
  • International news
  • Just In
  • Kenya
  • Lesotho
  • Libya
  • Life Style
  • Lifestyle
  • Malawi
  • Malawi
  • Mali
  • Markets
  • Middle East
  • Mozambique
  • Namibia
  • Nigeria
  • North Africa
  • North-Eastern Africa
  • Opinion
  • Politics
  • Racism
  • Rwanda
  • SAT Jobs
  • Senegal
  • Seychelles
  • South Africa
  • South Sudan
  • Sports
  • Startup Africa
  • STOCK EXCHANGE
  • Sustainablity
  • Tanzania
  • Tech
  • Togo
  • Travel
  • Travel
  • Tunisia
  • Uganda
  • Uncategorized
  • West Africa
  • World
  • World
  • ZAMBIA
  • Zambia
  • ZIMBABWE
  • Zimbabwe

Browse by Tags

africa African business news Africa News african footballer African investments African news African start-up Agriculture banking Business China Classic Climate change Content currency economy Explore Bali Finance football Health Investment Kenya Life Style Markets Market Stories Nigeria oil and gas Opinion Pandemic Politics Premium Russia South Africa Southern African News sports Stay Home technology Travel United Kingdom United Stated Vaccine Work From Home Wuhan Zambia Zimbabwe

WHO WE ARE

The Southern African Times is a regional bloc digital newspaper that covers Southern African and the world news. The paper also gives a nuanced analysis on news and covers a wide range of reporting which include sports, entertainment, foreign affairs, arts and culture.

Facebook Twitter Youtube Instagram Rss

Copyright © 2022 The Southern African Times | Powered by The Southern African Times

Privacy Policy

Terms and Conditions

  • Home
  • Southern Africa
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
    • Lifestyle
      • Health
      • Culture
      • Food and Drink
      • Entertainment
  • Opinion
  • Sports
  • Events
  • SAT Jobs
  • About Us
    • Advertise with Us
    • Contact Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?