Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict.
The company decided to exit its Russian operations in response to the country’s invasion of Ukraine, including the divestment of stakes in joint ventures with Russian state energy firm Gazprom, and related entities.
The British energy giant also warned investors that extreme price volatility in the first quarter may also adversely impact its cash flow.
“Reflecting the unprecedented volatility in commodity prices prevailing up to the end of the quarter, material additional movements could be seen in cash flow from operations,” the statement read.
The London-listed company also noted that it would honour the pre-conflict contracts to purchase fuel from Russia, as it is ‘legally obliged’ to take the delivery.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Shell tendered an apology last month after receiving intense criticism for not halting Russian oil and gas purchases.
In its preview of its first-quarter results, Shell also said it expects its indicative refining margin to rise to approximately $10.23 per barrel, compared to $6.55 per barrel in the fourth quarter of 2021.
The company expects refinery utilisation to be between 70% and 74%, which is more than the fourth quarter of 2021.
Sales volumes from products could come in between 1.5 million and 2.3 million barrels, while marketing sales volumes are expected to be in the 2.2 million to 2.6 million barrels range.
Reports also emerged stating that Shell plans to exit from the $11.2bn Nord Stream 2 pipeline, which runs between Russia and Germany.