The impairments relate to a partial write-down of Appomattox in the Gulf of Mexico, its refineries and integrated gas contracts
PLC () said it will write down the value of its oil and gas assets by a further U$3.5bn to US$4.5bn due to the uncertain backdrop.
The Anglo-Dutch oil giant took a US$16.8bn write-down earlier this year but said this time the impairments relate to a partial write-down of Appomattox in the Gulf of Mexico, its refineries and integrated gas contracts.
Shell revealed the write-downs in a statement ahead of its fourth-quarter results and said higher underlying operating expenses would also affect adjusted earnings across all its businesses.
Upstream (oil production) businesses will show a loss in the fourth quarter with production to average around 2,275mln and 2,350mln barrels of oil per day and affected by warm weather in Northern Europe and hurricanes in the US Gulf.
Taxes of between US$600-900mln will affect results from the upstream operation, while cashflow will be affected by provisions set up previously.
Gas operations have also been affected by the link to oil prices with trading below average and earnings flat in spite of increased production.
Refinery margins have picked up since the third quarter though there has been a significant cash outflow this quarter Shell said while chemicals margins have also picked up.
Shares fell 6% to 1,280p.