Analyst Views: Will Shell’s mammoth write down prove to be a long-term issue?

 
Suzie Neuwirth

RICHARD CURR | PRIME MARKETS
“Shell is suffering a bit. The huge writedown is the main thing that has unsettled investors, as people did not expect it to be this size. At least they’ve been open about it so now they should be able to draw a line under it. I think a lot of the investment banks will make downgrades in the next few days.

MIKE VAN DULKEN | ACCENDO MARKETS
“Shell has a tough outlook at the moment. The writedown on US assets poses a risk, as it suggests a possibility of further writedowns in upcoming quarters. Consensus estimates could get knocked again. Shell is in a similar place to BP, which is also feeling the effects of higher costs and lower pricing.

CHRISTINE TISCARENO | STANDARD & POOR’S
“Shell has been the victim of bad timing, as the recession, the collapse of US gas prices and crude oil prices all hit. I think this writedown was the big one but it’s not going to be smooth sailing all of a sudden. It takes time to turn around such a big boat as Shell - I think it will take two to three years.