LONDON (ShareCast) - (Sharecast News) - Energy giant Shell on Thursday said it expected to book up to $5bn in post-tax write offs after its decision to exit Russia, adding that oil & gas earnings would be "significantly higher" on the back of surging prices.
The write offs are higher than the $3.4bn previously disclosed by the company, but would not impact adjusted earnings, Shell said in a trading update.

Indicative refining margins were forecast to be around $10.23 a barrel compared to $6.55 in the fourth quarter of 2021. Oil prices have soared as Western states consider an oil embargo on Russia, a major producer, after its invasion of Ukraine.

Liquefied natural gas (LNG) earnings were also expected to be higher quarter on quarter trader, said Shell, which is the world's largest trader in the commodity, as customers look for alternatives to Russian gas.

Shell last month was forced to apologise for a buying a heavily discounted consignment of Russian oil as it announced its withdrawal from all Russian hydrocarbon activities.

"As an immediate first step, the company will stop all spot purchases of Russian crude oil. It will also shut its service stations, aviation fuels and lubricants operations in Russia," it said at the time.

The 100,000 metric tonne consignment of flagship crude from the Urals region was reportedly bought at a record discount, as other firms shunned Russian oil due to Moscow's unprovoked invasion of its neighbour. The purchase did not violate any Western sanctions.

On Thursday Shell said it had not renewed longer-term contracts for Russian oil adding that it would only do so "under explicit government direction, but we are legally obliged to take delivery of crude bought under contracts that were signed before the invasion".

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