Shell announced plans to take an impairment charge of up to $2 billion following the suspension of construction at its Rotterdam biofuel plant and the sale of its Singapore refinery, the company disclosed on Friday.
Earlier this week, Shell revealed it would halt construction at its Rotterdam facility due to unfavorable market conditions. The biofuels plant, originally slated to produce 820,000 metric tons annually, was scheduled to commence operations next year.
According to Shell, these decisions will result in a non-cash impairment ranging between $600 million and $1 billion after taxes, which will be reflected in its second-quarter financial results set for release on August 1.
Additionally, Shell anticipates an impairment of $600 million to $800 million related to the Singapore refining and chemicals hub, which it agreed to sell in May.
