Royal Dutch Shell expects to write down up to $800 million in the first quarter of 2020 following a slump in oil prices that has also slowed the energy giant's operations.
In an update ahead of its first-quarter results, Shell said that as a result of the coronavirus it has seen and expects "significant uncertainty" over oil and gas prices and demand.
Shell lowered its oil and gas price outlook for 2020, resulting in a post-tax impairment charge in the range of $400-$800 million, it said.
Benchmark Brent crude prices fell by around 65% in the first quarter and were trading at below $23 a barrel on Tuesday as a result of a sharp drop in global demand due to the coronavirus and pledges by Saudi Arabia and Russia to raise output.
Shell's oil production was expected to fall by 4.5% versus the fourth quarter of 2019 while liquefied natural gas (LNG) volumes were set to decline by 2.3%.
Published 31 March 2020, 07:20 IST