Shell disposals set to top $4bn

Disposals by oil giant Shell are likely to top $4bn (€3.21bn) this year – twice as much as first forecast, the company said today.

But Shell added it would take net charges of$ 820m (€659m) in addition to the previously announced $200m (€160m).

Analysts said the update – issued ahead of fourth quarter results on February 5 – had been in line with expectations.

Shares rose 3.25p to 410.25p.

The proceeds from disposals relate to a two-year programme to upgrade Shell’s portfolio of assets.

That has resulted in the sale of certain interests, including a stake in Germany’s gas importer Ruhrgas earlier this year.

Shell’s additional net charges come on top of the $200m (€160m) already booked for the closure of its Bakersfield refinery in California.

Shell added that upgrade activities were proceeding to plan.

“The net impact on full-year 2003 earnings of the overall upgrading programme, together with impairment charges, is relatively immaterial at group level,” it said.