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Shell to incur up to $2 bln impairment charge following strategic changes

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Shell will take an impairment charge of up to $2 billion following the sale of its Singapore refinery and the halting of construction on one of Europe’s largest biofuel plants, the company announced on Friday.

Earlier this week, the British energy giant revealed its decision to pause construction at its Rotterdam plant in the Netherlands due to weak market conditions.

The biofuels facility was projected to have an annual capacity of 820,000 metric tons and was expected to commence operations next year.

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The construction halt will result in a non-cash, post-tax impairment of between $600 million and $1 billion, which Shell will disclose in its second-quarter results on August 1.

Additionally, Shell anticipates an impairment of $600 million to $800 million on its Singapore refining and chemicals hub, which it agreed to sell in May.

These strategic moves reflect Shell’s ongoing adjustments in response to market dynamics and underscore the financial impacts of its operational decisions. ~With Agency Report.

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