Shell prepares writedown as Asian market weakens
Energy group expects to suffer a fourth-quarter impairment charge for refining and chemicals facilities in Singapore
Vessels pass the Shell refinery in Bukom, Singapore: the group is carrying out a review of its operations
REUTERS
A weakening market in Asia is set to force Shell to slice up to $4.5 billion off the value of several assets, principally refining and chemicals facilities in Singapore.
The London-listed oil major is expected to suffer the impairment charge in its next set of quarterly accounts, for the final three months of last year.
Weaker economic conditions and a downturn in the ethylene market in Asia have pushed the company to write down the value of facilities on Jurong Island in Singapore, which it is looking to sell alongside those in Bukom. The business includes a refinery producing 270,000 barrels a day and a plant that produces a million metric tonnes of ethylene a year and which underwent a strategic review last year.
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