Premarket London: Shell Raises Oil Output Forecast, Sees Write-Offs

Investing.com -- Here is a summary of the most important regulatory news releases from the London Stock Exchange on Friday, 20th December. Please refresh for updates.

Royal Dutch Shell (LON:RDSa) said it expected impairment charges of up to $2.3 billion in the current quarter, due to well write-offs and decommissioning costs, among other things. It trimmed its overall output forecast to 6.5 million barrels of oil equivalent a day but said oil output will be in a range between 2.775 million and 2.825 million barrels a day. The midpoint of that range is the very top end of the range it had forecast three months ago.

However, it said it expected between $100-$200 million in well write-offs and the same amount in other decommissioning costs to hit its fourth-quarter report. It also shaved its forecast for refinery availability to a range around 89.5% from a a midpoint of 92% previously. It reiterated that full-year capital expenditure will be at the lower end of its $24 to $29 billion range.

It also said it expected chemical cracker margins to be “materially lower” than the third quarter due to the weak macroeconomic backdrop. Gasoline marketing margins will be down due to seasonal effects and crude price movements.

AstraZeneca (LON:AZN) said it will sell the commercial rights to its breast and prostate cancer drugs Arimidex (anastrozole) and Casodex (bicalutamide) in a number of European, African and other countries1 to Juvisé Pharmaceuticals, for an up-front payment of $181 million. Juvise will pay up to an additional $17 million contingent on future sales of the drugs, which have lost their patent protection. “Today's agreement is part of a broader strategy of reducing our portfolio of mature medicines to reallocate resources towards developing our pipeline of new medicines," said oncology head Dave Fredrickson.

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