Shell announced that it will write off up to $5 billion after announcing its decision to exit Russia, Reuters reported.
This amount is more than previously disclosed, despite the fact that the increase in oil and gas prices boosted trading activities in Q1.
Reuters reported that the company stated that post-tax impairments, which will be between $4 billion to $5 billion during the Q1, will not impact the company’s earnings.
Shell planned to write off $3.4 billion, but it raised the value due to additional potential impacts around contracts, reduction of receivables, and credit losses in Russia, the spokesperson of Shell told Reuters.
However, the company expected higher earnings from liquified natural gas (LNG) trading during the quarter compared to the previous three months.