(Bloomberg) -- Royal Dutch Shell Plc said it will write down between $15 billion and $22 billion in the second quarter, as the company gave investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil.The pandemic left no part of the energy giant’s sprawling business unscathed. Shell lost money from pumping oil, fuel sales fell and shipments of everything from liquefied natural gas to petrochemicals suffered.The lockdown-induced slump has permeated through the entire industry, which is reassessing both the value of its assets and longer-term business models. Shell’s large LNG business, which is central to its vision of the future of energy, is seen taking the biggest hit.“We see material downside for second-quarter earnings,” Banco Santander SA analyst Jason Kenney said. Despite a possible weaker performance relative to its peers, the Spanish bank still sees potential upside in the stock, as the bad news was largely...
Norwegian Air said it cancelled orders for 97 Boeing Co. (BA) aircraft and has filed compensation claims related to the grounding of the plane maker’s 737 MAX and the 787 engine issues.Shares dropped 3.1% to $188.50 in Tuesday’s pre-market trading. The Oslo-based air carrier terminated its purchase agreements of 5 Boeing 787 aircraft, 92 Boeing 737 MAX aircraft and the so-called GoldCare service agreements (BSG) related to the 787 and MAX aircraft.In addition, Norwegian said it filed a legal claim seeking the return of pre-delivery payments (PDP) and compensation for losses it incurred due to the grounding of the 737 MAX jets and the engine issues on the 787. Boeing’s 737 MAX aircraft have been grounded since March 2019 following a second crash. The plane maker on Monday started flight tests of the 737 MAX to try and receive regulatory approval for it to return to fly.Furthermore, Norwegian’s Rolls-Royce Trent 1000-powered...
(Bloomberg) -- Imports from China have been piling up at Indian ports pending government clearances, causing concern that a recent border standoff between the two nations could have an economic fallout that will disrupt supply chains.From active pharmaceutical ingredients that go into the world’s most-consumed drugs to the innards of popular mobile phones, Indian companies purchase Chinese raw materials that feed their finished products. These consignments are now being delayed and firms aren’t sure why.“Customs authorities have not been clearing consignments coming from China, and they haven’t been offering any reasons,” Dinesh Dua, chairman of India’s Pharmaceutical Export Promotion Council, said by phone. “It has been five days now. We have no source apart from China.”Dua, who’s also chief executive officer of Nectar Lifesciences Ltd., said he has written to the ministries responsible for pharmaceuticals and trade to seek help as companies are spending about 350,000 rupees ($4,630) a day in...
(Bloomberg) -- Royal Dutch Shell Plc will write down between $15 billion and $22 billion in the second quarter, as the company gave investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil.The pandemic left no part of the energy giant’s sprawling business unscathed. Oil production slowed, fuel sales fell and shipments of everything from liquefied natural gas to petrochemicals suffered.The dire second quarter also threatened to have a lasting legacy, as reductions in long-term price forecasts will force writedowns on the value of assets all over the world, with its integrated gas business taking the biggest hit.While the results show the impact of the pandemic, the guidance for the quarter “is all much better than the guidance given at the end of April,” said RBC analyst Biraj Borkhataria. Upstream and integrated gas volumes as well as refining and chemicals utilization are higher than the company...
Micron Technology Inc (MU) beat third-quarter sales estimates lifting shares up by almost 6% in Monday’s after-market trading as work-from-home and online learning trends boost demand for cloud data center and notebooks services.The stock rose to $51.95 in after-market trading after the U.S. memory chipmaker said that sales are also expected to remain strong in the second half of its fiscal year.In the third quarter ended May 28, Micron earned 82 cents per share on a diluted basis, which is above the 77 cents per share estimate by analysts. Revenue during the same comparative period rose 13.6% to $5.44 billion, beating analysts’ estimates of $5.31 billion.In the current fourth quarter, Micron forecasts revenue to be between $5.75 billion and $6.25 billion versus analysts’ consensus of $5.51 billion.During the coronavirus pandemic, consumers are continuing to significantly increase online activity, including e-commerce, gaming and video streaming all of which drive additional data center...
