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](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg_traders_306299467.jpg/jcr:content/renditions/original-size.webp)
Shell told investors on Friday that it expects to write down up to $2.3 billion in its fourth quarter (Q4) due to a weaker economic outlook.
The oil and gas major made the announcement in a trading update ahead of its FY 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 (YTD) 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.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/Shares global component NA banner.jpg/jcr:content/renditions/original-size.webp)
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
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only