Shell shares weighed down by impairments in London
In a business update published this morning, the group said it expected to book impairment charges of between $2.5 and $4.5 billion in its results for the last three months of the year.
Shell explains that these provisions - which will have no cash impact - are mainly attributable to macroeconomic and external developments, but also to portfolio choices, linked in particular to its petrochemical assets in Singapore.
In a reaction note, UBS analysts refer to a "mixed" publication, with elements likely to weigh on cash flow (cash flow from operations or "CFFO"), an indicator closely watched by investors.
The energy giant said it expected a cash outflow of around $900 million for the quarter, linked to the implementation of the CO2 tax in Germany and the US biofuel standard program.
Following these announcements, Shell shares lost 1.9% in early trading on Monday, posting the second biggest drop in the FTSE 100 index.
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