Shell announced on Friday that it will incur an impairment charge of up to $2 billion due to the sale of its Singapore refinery and the suspension of construction at one of Europe’s largest biofuel plants. The company had previously revealed on Tuesday that it would halt construction at its Rotterdam plant in the Netherlands due to unfavorable market conditions. The biofuels plant, which was scheduled to have an annual capacity of 820,000 metric tons, was set to commence operations next year. Shell anticipates that this decision will result in a non-cash, post-tax impairment ranging from $600 million to $1 billion, which will be reflected in its second-quarter results scheduled to be published on August 1. Additionally, Shell expects to incur an impairment of $600 to $800 million on the Singapore refining and chemicals hub, which it agreed to sell in May.
