British energy giant Shell on Thursday said it expects to take a hit of up to $5 billion in the first quarter of 2022 following its decision to leave Russia, one of the first indications of the wider financial fallout of Vladimir Putin’s invasion of Ukraine for the sector as companies around the world cut ties with Moscow.

Shell said it expects a post-tax impairment of between $4 billion and $5 billion of assets and charges related to credit losses and contracts in Russia in the first quarter of 2022,, higher than its previous estimate of $3.4 billion.


The write-down will not impact the company’s earnings, which are set to be announced in early May, Shell said.

Shell shares fell more than 2% in London on Thursday.


Shell is not the only energy company to be impacted: BP faces a hit of up to $25 billion for leaving Russia, the company said, stemming primarily from foreign exchange losses and abandoning its shares in Russian oil giant Rosneft, which accounts for around one third of its oil and gas production.

ExxonMobil is also preparing for losses in Russia, which could be as high as $4 billion for exiting a drilling project.


France’s TotalEnergies has been criticized for not fully exiting Russia and its refusal to write off its assets like some of its rivals, something CEO Patrick Pouyanne defended, arguing doing so effectively meant giving them to Putin for “free.”

KEY BACKGROUND
Just weeks into Russia’s invasion of Ukraine, Shell purchased a discounted consignment of oil from Russia, justifying the decision on the need to keep European fuel supplies stable. The company was heavily criticized for the decision and shortly after, it backtracked and apologized, pledging to stop buying Russian oil and gas and unwind its operations there. While energy companies are facing billions in write-downs over assets in Russia, the spike in oil and gas prices has many companies expecting significant profits. Shell said oil trading earnings are expected to be “significantly higher” in the quarter and earnings from liquid natural gas higher than the last quarter. U.S. lawmakers have criticized the industry for alleged profiteering as Americans grapple with high fuel prices, with prices at the pump remaining high despite slipping crude prices.

TANGENT
The energy sector is not the only industry that is heavily exposed to Russia. Finance, for instance, stands to lose billions. JPMorgan CEO Jamie Dimon said the bank could lose around $1 billion over time due to the war and Citigroup warned it could lose nearly $5 billion.


https://www.google.com/amp/s/www.forbes.com/sites/roberthart/2022/04/07/shell-faces-5-billion-hit-for-leaving-russia-as-energy-sector-braces-for-fallout-of-putins-invasion-of-ukraine/amp/

small small, SENSE go enter their deluded brains...

See what Putin caused.A hit in energy is a very bad situation and will affect ordinary citizens.Putin must pay darely for his cowardice and cruelty.

Na una wan join people wey dey Sanction, forgetting say na una the sanction go affect pass.

They should start drilling for oil and gas in UK.
Even if una see oil for UK oil,I go be palm oil wey Nigerian man carry go to cook.
UK doesn't have anything.
They stole virtually all they've got.
This life too balance.
You can never have it all.
Because if you have everything, you won't need others.
Na the reason wey make Russia and America go bring world war 3.
The both can do without anybody.

They are not small companies

Plus, they are all insured

If you believe they wont get their money back, you dont know how international politics work

TotalEnergies and Renault get oil for their head well.

I wonder why you’d be angry at someone for not hating on another because you choose to. That’s the highest level of witchcraft.

sapientia:
They are not small companies

Plus, they are all insured

If you believe they wont get their money back, you dont know how international politics work

Getting back, closely 40 billion?
Where will the money come from.
Abi you think say Sapa no reach everywhere?

sapientia:
They are not small companies

Plus, they are all insured

If you believe they wont get their money back, you dont know how international politics work

Be speaking, grammar, 40 billion dollars na your mate?

It is in Russia's interest for this war to even go on, honestly think about it. Oil price is more than $100/barrel since the big inning of the war. Russia is receiving more than 5 times in cash more than they used to receive from the EU before the war started. As long as the war continues, oil prices is less likely to drop, rather it could even go higher. Russia has been sanctioned already. If they continue the war, they will continue receive huge pay from oil deals. If they stop the war, oil prices will go down. So it's in Russia's interest to continue for the cash. I pity Ukraine

Well, everyone is on the list
The list of losses.
Many French companies have refused to pulled out because it’s their lost also not only Russia.
India and China will increase their import of Russia gas and oil because Russia gave them discount and Pakistan government also want more too.
Japan facing high cost of oil and gas don’t want to pull out of Russia deal.

wittychap1:
British energy giant Shell on Thursday said it expects to take a hit of up to $5 billion in the first quarter of 2022 following its decision to leave Russia, one of the first indications of the wider financial fallout of Vladimir Putin’s invasion of Ukraine for the sector as companies around the world cut ties with Moscow.

Shell said it expects a post-tax impairment of between $4 billion and $5 billion of assets and charges related to credit losses and contracts in Russia in the first quarter of 2022,, higher than its previous estimate of $3.4 billion.


The write-down will not impact the company’s earnings, which are set to be announced in early May, Shell said.

Shell shares fell more than 2% in London on Thursday.


Shell is not the only energy company to be impacted: BP faces a hit of up to $25 billion for leaving Russia, the company said, stemming primarily from foreign exchange losses and abandoning its shares in Russian oil giant Rosneft, which accounts for around one third of its oil and gas production.

ExxonMobil is also preparing for losses in Russia, which could be as high as $4 billion for exiting a drilling project.


France’s TotalEnergies has been criticized for not fully exiting Russia and its refusal to write off its assets like some of its rivals, something CEO Patrick Pouyanne defended, arguing doing so effectively meant giving them to Putin for “free.”

KEY BACKGROUND
Just weeks into Russia’s invasion of Ukraine, Shell purchased a discounted consignment of oil from Russia, justifying the decision on the need to keep European fuel supplies stable. The company was heavily criticized for the decision and shortly after, it backtracked and apologized, pledging to stop buying Russian oil and gas and unwind its operations there. While energy companies are facing billions in write-downs over assets in Russia, the spike in oil and gas prices has many companies expecting significant profits. Shell said oil trading earnings are expected to be “significantly higher” in the quarter and earnings from liquid natural gas higher than the last quarter. U.S. lawmakers have criticized the industry for alleged profiteering as Americans grapple with high fuel prices, with prices at the pump remaining high despite slipping crude prices.

TANGENT
The energy sector is not the only industry that is heavily exposed to Russia. Finance, for instance, stands to lose billions. JPMorgan CEO Jamie Dimon said the bank could lose around $1 billion over time due to the war and Citigroup warned it could lose nearly $5 billion.


https://www.google.com/amp/s/www.forbes.com/sites/roberthart/2022/04/07/shell-faces-5-billion-hit-for-leaving-russia-as-energy-sector-braces-for-fallout-of-putins-invasion-of-ukraine/amp/

I said something like this would happen weeks back with the first sanction imposed
Common sense would tell you

I like the French company TOTAL OIL, business is business, put sentiment and emotions aside

International geopolitics is why the world in is a bad shape.

RichMelanin:


I said something like this would happen weeks back with the first sanction imposed
Common sense would tell you

I like the French company TOTAL OIL, business is business, put sentiment and emotions aside

Lol

seunny4lif:
Well, everyone is on the list
The list of losses.
Many French companies have refused to pulled out because it’s their lost also not only Russia.
India and China will increase their import of Russia gas and oil because Russia gave them discount and Pakistan government also want more too.
Japan facing high cost of oil and gas don’t want to pull out of Russia deal.