Shell said it expects to book a charge of around $600 million in the third quarter related to the cancellation of a project in Rotterdam, impacting its latest financial outlook.
The non-cash, post-tax impairment will be recorded in the company's Marketing segment, according to an update ahead of its full earnings report.
The update provided a mixed view of the company's performance for the quarter.
Shell forecast that results from its trading and optimization arm in the Integrated Gas division would be "significantly higher" than in the second quarter, with LNG liquefaction volumes also expected to rise.
In its Chemicals and Products unit, indicative refining margins improved to $11.60 per barrel from $8.90 in the prior quarter.
Despite the stronger refining margins, the company said it expects its Chemicals sub-segment to report an adjusted loss.
The company's Upstream business is also facing a headwind, with adjusted earnings expected to be reduced by $200 million to $400 million from the rebalancing of participation interests in Brazil.
Shell noted that the outlooks may vary from the actual results, which are scheduled to be published on October 30.
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