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Shell to write down assets again, taking cuts to more than $22 billion

Shell to write down assets again, taking cuts to more than $22 billion

In October, Shell, the world’s biggest LNG trader, wrote down the value of its LNG portfolio by just under $1 billion, focusing on its flagship Prelude project in Australia.

In its update, the Anglo-Dutch company also said it expects oil and gas production in its upstream division to be around 2.275 to 2.350 million barrels of oil equivalent per day, slightly higher than in the third quarter.

Production was impacted by the closure of platforms in the Gulf of Mexico due to hurricanes as well as mild weather in Northern Europe.

LNG liquefaction volumes are expected to be between 8 and 8.6 million tonnes.

Oil refinery utilisation is expected to be between 72% and 76% of capacity in the quarter, reflecting continued weak demand due to the coronavirus pandemic.

Shell, the world’s largest retailer, said its fuel sales were expected to be in a range of 4 to 5 million barrels per day, roughly similar to the third quarter.

Record profits from its marketing business, which includes over 45,000 petrol stations, strongly boosted Shell’s third-quarter results. The company said, however, that its fourth-quarter marketing results were expected to be “significantly lower” than the previous quarter.

Oil and gas trading profits were also set to decline sharply in the fourth quarter from the third quarter, it said.

Reporting by Ron Bousso; editing by Louise Heavens and Jason Neely

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