After selling its Singapore refinery and suspending construction of one of Europe’s largest biofuel plants, Shell (SHEL.L), will take an impairment charge of up to $2 billion, the company stated on Friday.
Due to weak market conditions, the British energy company had announced on Tuesday that it would stop building at its Rotterdam plant in the Netherlands. The biofuels plant was expected to begin production next year and have a capacity of 820,000 metric tons per year.
When Shell announces its second-quarter results in August, it claims that the decision will result in a non-cash, post-tax impairment of between $600 million and $1 billion.
Shell also anticipates taking an impairment charge of $600 to $800 million on the Singapore chemicals and refining hub that it agreed to sell in May.
