Posted by John Donovan: 9 July 2024
In the latest edition of “What the F***, Shell?”, our favourite oil behemoth is bracing for a second-quarter faceplant of up to $2 billion in impairments. Yes, that’s billion with a “B.” This colossal write-down is primarily due to Shell’s decision to hit the snooze button on a major biofuels project in Rotterdam and additional blunders in Singapore.
Dutch Disaster:
Let’s start with the Rotterdam fiasco. Shell had big dreams of producing 820,000 tonnes of “sustainable aviation fuel” and “renewable diesel” from waste. Sounds green and shiny, right? But instead of following through, Shell decided to put the project on ice, without bothering to mention when—or if—it might thaw. This brilliant move alone is costing them between $0.6 and $1 billion. Way to go, team!