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• Shares of the oil giant fell 1.9% in early trading in London
British oil giant Shell Plc said it expects accounting losses of around $5 billion in the first quarter due to the suspension of its operations in Russia.
This comes ahead of Shell’s quarterly earnings scheduled to be announced in May. The company said it still expects strong first-quarter earnings in its large liquefied-natural-gas business and from oil and gas trading.
The accounting charges also include the possibility of unpaid contracts and other credit losses, indicating the impact on companies due to suspending services in Russia.
Shares of the oil giant fell 1.9% in early trading in London.
As the West and the Europe imposed sanctions on Russia due to its invasion of Ukraine, the company had said it will start withdrawing itself from all Russian hydrocarbons. This includes crude oil, petroleum products, gas, and liquefied natural gas (LNG) ‘in a phased manner.’
Earlier in February, Shell had also announced ending the Nord Stream 2 natural-gas pipeline project financing.
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