Written by Ron Bousso and Arunima Kumar
LONDON (Reuters) – Shell ( LON: ) revised its outlook for fourth-quarter liquids production on Wednesday and said oil and gas trading results were expected to be lower than in the third quarter.
In a trading review ahead of the full year results for Jan. 30, the British company also said it would take $1.5 billion to $3 billion in non-cash, after-tax impairment charges, including up to $1.2 billion in its renewables division.
Shell last month said it was pulling back on new offshore wind investments and splitting its power division following a broad business review, part of CEO Wael Sawan’s drive to focus on more profitable segments.
The world’s largest LNG trader said trading results for the sector in the fourth quarter will be significantly lower than the previous three months due to the expiry of hedging contracts.
Trading in its chemicals and oil products segment was expected to decline sharply quarter-on-quarter due to seasonally low demand.
Shell does not provide revenue figures for its trading activities.
The company revised its LNG production forecast for the quarter to 6.8-7.2 million tonnes, from an earlier forecast of 6.9-7.5 million tonnes, citing lower feed gas deliveries from liquefaction fields and fewer cargo deliveries.
