Shell nyse Shel to Write off Billion Due to Singapore Refinery Sale Biofuel Plant Pause

Shell (NYSE: SHEL) to Write Off $2 Billion Due to Singapore Refinery Sale, Biofuel Plant Pause

LONDON – Shell (NYSE: SHEL) will take an impairment charge of up to $2 billion after its Singapore refinery sale and construction suspension of one of Europe’s largest biofuel plants, it said on Friday.

The British energy company announced on Tuesday that it would halt construction at its Rotterdam plant in the Netherlands because of weak market conditions. The biofuels plant was slated to have an annual capacity of 820,000 metric tons a year and begin operations next year.

Shell said the decision will lead to a non-cash, post-tax impairment of between $600 million and $1 billion when it publishes second-quarter results on Aug. 1.

At the same time, Shell expects to take an impairment of $600 to $800 million on the Singapore refining and chemicals hub that it agreed to sell in May.

(Source: Reuters)