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Shell share price drops

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Shell share price drops

After the firm announced a profit warning to the markets, the shares of Royal Dutch Shell stumbled 0.7% in trade Friday, according to CNBC.

The energy giant stated that it is looking forward to logging a fourth-quarter impairment charge spanning between $1.7 billion and $2.3 billion after tax.

However, details on the impairment were not revealed. According to Swiss bank UBS, the range is “relatively small,” and stated that after adding other charges, it would reduce the fourth-quarter earnings by around $3 billion in total.

Capital expenditure estimations is also being lowered and is now expected to be around $24 billion from October to the end of December.

According to CNBC, production of oil and gas is expected to soar from the third quarter whereas upstream oil production is forecast to rest between 2,775 and 2,825 thousand barrels of oil per day.

Shell emphasized “materially lower” margins in its chemicals division and also warned on returns from liquified natural gas and the firm is supposed to publish fourth-quarter results on January 30.

(Reference: CNBC)
(Image source: Daniel Acker | Bloomberg | Getty Images)