LNG giant Shell said it would write down $4 to $5 billion following its exit from Russia, while the firm expects LNG earnings to be higher in the first quarter of this year.
Shell said in an update on Thursday published ahead of its quarterly results that the post-tax impairments of up to $5 billion would not impact its adjusted earnings in the first quarter.
The company had previously expected the Russia writedowns would reach around $3.4 billion.
“Details of the accounting treatment and impact of ongoing developments will be provided at the first quarter 2022 results announcement,” Shell said.
Shell also plans to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and LNG in a phased manner.
LNG earnings up
Shell forecasts its liquefaction volumes to reach between 7.7 and 8.3 million tonnes in the January-March period.
This is in line with Shell’s forecast in the fourth-quarter results report.
Also, Shell expects trading and optimization results in its integrated gas segment to rise in the first quarter when compared to the previous quarter.
According to Shell, it expects underlying Opex for integrated gas, including renewables and energy solutions, to reach between $1.7 and $1.9 billion.
As of the first quarter, Shell would separately disclose results from its renewables and energy solutions segment, it said.
