Investing.com -- Shell PLC (LON:SHEL) has announced that it will take an impairment charge of up to $2 billion after the sale of its Singapore refienery and pausing of construction of one of Europe's biggest biofuel plants.
In a statement on Friday, the oil major said it would incur group-wide non-cash, post tax impairments of $1.5 billion to $2 billion in the second quarter.
The company had said earlier this week that it would stop construction at its Rotterdam plant in the Netherlands, citing weaker market conditions. The move is forecast to lead to an impairment of $600 million to $1 billion when its results are unveiled on Aug. 1.
Meanwhile, a separate impairment of $600 million to $800 million is seen coming from the Singapore refining and chemicals hub sale. Shell agreed to sell the site to a joint venture between Swiss miner Glencore (OTC:GLNCY) and Indonesian chemicals company Chandra Asri in May.
Reuters contributed to this report.