Earlier this week, the company said it will pause construction of a biofuels plant in Rotterdam in order to figure out the best way forward with the project. That will result in a non-cash post-tax impairment of US$600 million to US$1 billion, Shell said in a statement on Friday.
Shell expects as much as US$2 billion ($2.7 billion) of impairments in its second-quarter earnings related to a delayed biofuels plant under construction in the Netherlands and its chemicals facility in Singapore.
Since taking the job in January last year, Shell CEO Wael Sawan has pledged to be “ruthless” in improving the company’s performance and boosting investor returns. That process has included eliminating jobs, selling assets and changing the pace at which it seeks to cut its carbon emissions.
