Oil giant Shell warns of £2bn hit as it struggles to close gap on US rivals

Shell warned of a £2bn hit after a weak finish to 2024, in a blow to the oil major as it “desperately” tries to close the gap on its US rivals.

Last year, boss Wael Sawan said he would consider moving the energy giant’s listing to New York if efforts to boost its valuation fail.

The FTSE 100 firm yesterday warned that profits and production at its gas business will be lower in the fourth quarter and said it was facing a £1bn charge at its renewables unit.

Russ Mould, chief investment officer at AJ Bell, said the upgrade was “disappointing for the market”.

Shell is bracing for an impairment of between £1.02bn and £2.4bn in the quarter, including up to £1bn at its renewables division, where it faces a charge “related to (the) timing of emissions certificate payments in Germany and the United States.

It comes after the company said last month it would step back from new investments in offshore wind and split its power division to boost the most profitable parts of the business, to catch up with US giants such as Exxon Mobil and Chevron, which They have doubled their commitment to fossil fuels. fuels.

Shell said trading results in its liquefied natural gas (LNG) division in the fourth quarter would be significantly lower than in the previous quarter due to the expiration of hedging contracts.

It is the world’s largest LNG trader and cut its forecast to between 6.8 and 7.2 million tonnes, from 7.5 million in the third quarter.

Trading in its chemicals and petroleum products division was expected to be significantly lower quarter-on-quarter due to lower demand.

Actions fell 1.4 per cent, or 37.5p, to 2,579.5p.