Oil giant Shell announces charge up to $4.5 billion in Q4

Royal Dutch Shell on Monday said it expects charges of up to $4.5 billion in the fourth quarter after a turbulent year for oil prices in the fallout from the coronavirus pandemic.

“Post-tax charges… between $3.5 to $4.5 billion in relation to impairments, asset restructuring and onerous contracts are expected in the fourth quarter,” the Anglo-Dutch group said in a statement.

Shell will present full-year earnings in early 2021.

As Covid-19 slammed the brakes on the global economy, benchmark oil prices briefly turned negative in April — before shooting back up to current levels of around $50 per barrel.

The market also crashed on the back of a vicious price war between key producers Saudi Arabia and Russia.