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Shell takes $22 billion hit as oil prices tank during coronavirus pandemic

Mark Shapland
Tim Exton/AFP/Getty Images

Oil giant Shell will take a $22 billion (£17.9 billion) hit for the current quarter after lowering its expectations for oil and gas prices.

The British-Dutch firm expects to book the charge after commodity prices were hit by coronavirus and the Saudi-Russia price war.

Shell also said that it expects oil production to be higher than previously predicted, saying it hopes to produce between 2.3 million and 2.4 million barrels of oil per day.

The company said: “Given the impact of Covid-19 and the ongoing challenging commodity price environment, Shell continues to adapt to ensure the business remains resilient.

“In light of this, Shell is announcing today a revised long-term commodity prices and margin outlook, which is expected to result in non-cash impairments in the second-quarter results.”