Thursday 07 July 2022

Shell profits drop on write-offs on Asian and European refineries

Anglo-Dutch oil giant Shell beat market expectations in announcing a 3% drop in first quarter profit to $7.3bn on Wednesday, excluding one-offs.

However, the company also said it is writing off $2.9bn, mainly on refineries in Asia and Europe.

‘There are substantial pressures on the industry from excess capacity, changing product demand, and new oil supplies from liquids-rich shales,’ said chief executive Ben van Beurden.

According to the Financial Times, Shell is in the process of divesting refineries in four countries.

‘I am determined to improve our competitiveness, and to adapt the company to respond to changes in the industry landscape, particularly in Oil Products and North America resources play,’ Van Beurden said in a statement.

The oil company did not say if this includes its biggest European refinery Pernis near Rotterdam, the Financieele Dagblad reports.

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