Shell to write down $2.3 billion in Q4, sending share price lower

The oil and gas major told investors that it expects to write down up to $2.3 billion in its fourth quarter due to a weaker economic outlook, sending its share price lower on Friday.

Shell told investors on Friday that it expects to write down up to $2.3 billion in its fourth quarter due to a weaker economic outlook.

The oil and gas major made the announcement in a trading update ahead of its full-year results, with the company also downgrading its oil products sales forecast.

The announcement led to Shell’s shares closing 1.5% lower on Friday, with the stock down more than 4% on a year-to-date basis.

Looking to trade Shell and other oil and gas stocks? Open a live or demo account with IG.

US-China trade war hurting oil demand

Earlier in the year, the company warned investors that trade tensions between the US and China could dampen demand for oil and impact its performance.

Shell said it expects impairment charges in a range between $1.7 billion and $2.3 billion for the quarter ‘based on the macro outlook’.

Shell is not the only company suffering as a result of the macroeconomic climate. Since October, Chevron, Equinor and Repsol have written down a total of approximately $20 billion due to lower long-term gas prices.

JP Morgan downgrades price target for Shell

Analysts at JP Morgan Cazenove reiterated their ‘overweight’ rating for Shell in December but downgraded their price target for the stock to £28.50.

Based on Shell closing at £22.32 a share on Friday, analysts at JP Morgan believe the stock has a potential upside of 27.6%.

You can go long or short Shell with IG using derivatives like CFDs and spread bets.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

See opportunity on a stock?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Trade a wide range of popular global stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform, when it matters

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.