Oil and gas company Shell sees considerable uncertainty in the oil market due to the corona crisis and the consequences of a price war. Particularly in March, this had an impact on results, with a relatively modest impact in the first two months of this year, the group said.
Oil prices have fallen sharply due to the corona crisis and the price war between Saudi Arabia and Russia. Shell therefore announced last week that it would cut costs and invest less. In addition, the Dutch-British company is scrapping an announced share buyback in order to strengthen the financial buffers.
Shell indicates that after-tax deduction is expected in the first quarter in a range of $ 400 million to $ 800 million. Oil product sales will range between 6 million to 7 million barrels per day. That was 6.5 million a day in the first quarter of 2019.
The company will release more news about the impact of the crisis on its results when it announces its first quarter results. The liquidity position remains strong, according to Shell.