Shell to write down as much as $5 billion on Russia withdrawal

Source: Reuters

Shell Plc said its withdrawal from Russia will result in $4 billion to $5 billion of impairments, while also warning investors that extreme price volatility in the first quarter could hit cash flow.

The statement from the London-based giant shows that, despite a surge in oil and gas prices, Russia’s invasion of Ukraine has upended the supermajors’ plans and left them scrambling to adapt to historic shifts in energy markets.

“Reflecting the unprecedented volatility in commodity prices prevailing up to the end of the quarter, material additional movements could be seen in cash flow from operations,” Shell said in a statement on Thursday.

The company said first-quarter trading results from both oil and gas are likely to be higher than in the preceding period.