![]() ![]() ![]() ![]() London-based BP and Shell will post earnings next week. TotalEnergies SE kicks off the reporting season on Thursday, followed the next day by Exxon and Chevron Corp. This should generally offset the negative impact of ceasing operations in Russia.” “Oil prices look likely to remain elevated in the near-term as supply tightness persists. “The exit from Russia shouldn’t throw the oil industry’s earnings far off track,” said Laura Hoy, an equity analyst at Hargreaves Lansdown. The outlook for the rest of the year is just as strong. An accounting loss doesn’t mean money going out of the door today and the figure that really matters for investors - free cash flow - is on track to hit a 14-year high. and Shell Plc quitting their Sakhalin oil and gas projects and BP Plc dumping shares in Kremlin-controlled Rosneft PJSC. That would be the highest since 2011, but could be matched by the combined writedowns resulting from Exxon Mobil Corp. The world’s five largest international oil companies are set to post total net income, excluding the one-time hit from exiting Russia, of $34 billion. The outcome will be a first-quarter earnings season full of contradictions - huge operational profits on one side, massive accounting losses on the other. LNG liquefaction volumes were slightly higher on the quarter, averaging 8 million tonnes.(Bloomberg) Big Oil is walking away from tens of billions of dollars of Russian assets, but $100 crude is easing the sting.The invasion of Ukraine forced the global supermajors to sever most of their ties with Moscow, while also sending oil and gas prices soaring. Shell's fuel sales averaged 4.3 million barrels per day in the quarter, down from 4.45 million bpd in the previous quarter, Shell said. Earnings from oil trading are set to be "significantly higher" in the quarter.Ĭashflow in the quarter would be negatively impacted by "very significant" outflows of around $7 billion as a result of changes in the value of oil and gas inventories. Shell, the world's largest liquefied natural gas trader, said earnings from LNG trading were expected to be higher in the quarter compared with the previous three months. The unprecedented volatility in commodity prices in recent months has pushed several traders to the brink as they scrambled to sharply increase downpayments for oil and LNG cargoes. Shell did not provide any guidance on the future of its stakes in Russian projects.īenchmark oil prices soared to an average of more than $100 a barrel in the quarter, their highest since 2014, while European gas prices hit a record high. General view of a Shell petrol station sign, in Milton Keynes, Britain, January 5, 2022. Shell said it will exit all its Russian operations, including a major liquefied natural gas plant in the Sakhalin peninsula in the eastern flank of the country. The start of 2022 marked one of the most turbulent periods in decades for the oil and gas industry as Western companies including Shell rapidly pulled out of Russia, severing trading ties and winding down joint ventures following Moscow's invasion of Ukraine. Shell shares were down 1.2% at the start of London trading. The increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses in Russia, a Shell spokesperson said. Shell, whose market capitalisation is around $210 billion, had previously said the Russia writedowns would reach around $3.4 billion. The post-tax impairments of between $4 billion and $5 billion in the first quarter will not impact the company's earnings, Shell said in an update ahead of its earnings announcement on May 5. ![]() LONDON, April 7 (Reuters) - Shell (SHEL.L) will write down up to $5 billion following its decision to exit Russia, more than previously disclosed, while soaring oil and gas prices boosted trading activities in the first quarter, the company said on Thursday. ![]()
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