All articles tagged with #impairments
Shell reported a fourth-quarter earnings hit of up to $4.5 billion from impairments, offset by higher gas trading, with production volumes on track to meet targets. The impairments were attributed to macro developments and portfolio choices, including efforts to sell its Singapore chemicals and products assets.
Bank of England Deputy Governor Sam Woods has stated that impairments are increasing among UK lenders due to rising inflation and subsequent interest rate hikes. Despite the resilience of the economy, regulators are closely monitoring potential stresses in the banking sector. The Prudential Regulation Authority estimates that just over 1% of mortgages are in arrears, a relatively low figure compared to previous years.
Orsted, the world's largest offshore wind farm developer, has seen its share price plummet by 20% due to the risk of $2.3 billion in impairments in its US operations. The company cited supply chain problems, soaring interest rates, and a lack of new tax credits as the main factors contributing to the impairments. Delays from suppliers could result in impairments of up to 5 billion crowns, while the failure to secure additional tax credits may lead to impairments of another 6 billion crowns. The increase in long-dated interest rates in the US will also cause impairments of around 5 billion crowns. Orsted's announcement has further dampened investor sentiment towards the stock.