Shell, which has a market value of $126.5 billion, said in an update ahead of second-quarter results due on July 30 that it would take an aggregate post-tax charge of $15 billion to $22 billion because of the writedowns.
The charges relate to large liquefied natural gas
(LNG) operations in Australia, including the Prelude floating LNG facility, the world's biggest, as well as oil and gas production assets in Brazil and US shale basins.
Shell’s shares traded in London were down 3.7 per cent by 1350 GMT. Credit Suisse analyst Thomas Adolff said the second quarter would be the toughest for many companies
and Shell had sent a "wake up call". Shell, the world's largest fuel retailer, said it expected a 40 per cent drop in sales in the second quarter from a year earlier to about 4 million barrels per day (bpd), although that was higher than its earlier forecast of 3.5 million bpd.
Its oil and gas production was expected to average 2.35 million bpd in the three months through June, down from 2.71 million in the first quarter of 2020.