![]() ![]() Precision ended 2019 with 33,417 employees, and has shed 30% of its workforce. "It's a recognition of what the market has long believed, that the purchase price was rich, and the integration not as smooth as many would have hoped."īerkshire, which paid $32.1 billion for Precision in 2016 in its largest acquisition, and which Buffett at the time called a steep price, said COVID-19 caused airlines to slash plane orders, significantly curbing demand for Precision's products.ī uffett himself soured on airlines during the quarter, selling $6 billion of their stock and telling shareholders on May 2 the industry's future had become "much less clear to me."īerkshire said Precision, which also makes industrial parts, saw revenue fall by one-third and plans an "aggressive restructuring" to shrink operations. "The writedown was prudent," said Cathy Seifert, an equity analyst at CFRA Research. Shell's larger rival Exxon Mobil signalled last week that skyrocketing margins from fuel and crude sales could generate a record quarterly profit.Operating profit fell 10 %, cushioned by a temporary bump at the Geico auto insurer, as the pandemic caused "relatively minor to severe" damage to most of Berkshire's more than 90 operating businesses. The figure reflects the removal of LNG volumes from the Sakhalin-2 plant in eastern Russia which Shell plans to exit. Shell, the world's largest trader of liquefied natural gas (LNG), said its quarterly LNG production was expected to be in a range of 7.4 million to 8 million tonnes. ![]() Shell's oil and gas production, expected to reach as much as 2.93 million barrels of oil equivalent per day, would be its lowest in at least seven years because of maintenance issues. Shell said it completed its $8.5 billion share buyback programme during the second quarter. Shell wrote down more than $22 billion in 2020 when the pandemic led to an oil price collapse. The upgrade will result in post-tax impairment reversals of $3.5 billion to $4.5 billion. The increase was due to additional potential impacts around. The long-term price was $65, compared with $63. Shell, whose market capitalization is around 210 billion, had previously said the Russia writedowns would reach around 3.4 billion. For 20, the Brent price was rose to $70 a barrel compared with $60. Shell increased its assumed price for Brent to $80 a barrel in 2023, up from $60 in its 2021 annual report. Oil and gas prices remained elevated in the quarter, with benchmark Brent crude averaging about $114 a barrel. "We see the statement as neutral given a number of offsetting impacts to results, with the main uncertainty being around the magnitude of working capital outflows," RBC Capital Markets analyst Biraj Borkhataria said in a note. It said current market volatility would hit cash flows. Shell, which posted a record quarterly profit of more than $9 billion in the first quarter, said its cash flow in the second quarter was hit by an outflow of about $6 billion. Shell shares were up 2.7% at 1040 GMT, lower than the 3.3% gains to the broader energy index (.SXEP). The increased refining margin is expected to boost the division's earnings by $800 million to $1.2 billion in the second quarter compared with the first quarter. Shell's indicative refining margin rose in the second quarter to $28.04 per barrel from $10.23 in the first quarter and $4.17 a year earlier, driven by a recovery in demand after the pandemic, limited global refining capacity and lower fuel exports from Russia to Western economies. ![]() In an update before second quarter results on July 28, Shell also said it would reverse up to $4.5 billion in writedowns on oil and gas assets after it raised its energy prices outlook following Russia's invasion of Ukraine.Įarnings from oil and refined products trading were expected to be strong in the quarter but lower than the first quarter of 2022, Shell said. LONDON, July 7 (Reuters) - Shell (SHEL.L) said on Thursday surging demand for oil products that had almost tripled refining profits in the second quarter would boost earnings by up to $1.2 billion. ![]()
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