he giant Shell is to reverse previous write-offs of up to £3.8bn this quarter after energy prices rose.
The company said it expects to reverse after-tax impairments of between $3.5 billion (£2.9 billion) and $4.5 billion (£3.8 billion).
It came as the company revised what it thinks it will be paid for its oil and gas in the coming years.
It told shareholders on Thursday: “In the second quarter of 2022, Shell has revised its medium and long-term prices for oil and gas commodities, in line with the current macroeconomic environment and updated energy market demand and supply fundamentals.
“This resulted in an assessment of Shell’s upstream and integrated gas assets that were previously impaired.”
Shell also said it will produce more gas in the second quarter of the year than previously thought during the global energy crisis.
The company told investors it expects to extract between 930,000 and 980,000 barrels of oil equivalent per day from its integrated gas business.
It is an upgrade from the previous estimate of between 910,000 and 960,000, which Shell released in early May.
It also improved the production of its upstream operations. They were previously expected to decline from Q1 levels due to maintenance in the Gulf of Mexico.
The bandwidth was reduced from 1.75 million to 1.95 million barrels of oil equivalent per day to 1.85 million to 1.95 million on Thursday.
Shares in the company rose after markets opened on Thursday, rising 1.6%.
The price of oil, which has fallen in recent days, rose slightly on Thursday to USD 101.08 a barrel.
Shell is one of many oil and gas companies around the world that have benefited from rising energy prices over the past year.
The price of gas has broken previous records several times this year.
But the price hikes have also put pressure on customers, pushing energy bills up 54% in April to just under £2,000 for the average household.
This is expected to rise further to around £3,000 in October when the price cap on energy bills is again amended.