Royal Dutch Shell Warns of Hurricane Hit, Expects Cash Boost from Power Prices -- Update
October 07 2021 - 04:55AM
Dow Jones News
By Sabela Ojea
Royal Dutch Shell PLC said Thursday that Hurricane Ida's impact
in the Gulf of Mexico hit its operations but it expects a cash
boost from high global energy prices in the third quarter.
The Anglo-Dutch energy giant said Hurricane Ida is expected to
cause losses of around $400 million to its adjusted earnings and
clash flow from operations in the third quarter.
However, Shell said it expects its cash flow from Integrated Gas
operations will be boosted by "large variation margin inflows on
the back of the prevailing gas and electricity price
environment".
The London-listed company said that integrated gas production
for the third quarter is anticipated to be between 890,000 and
950,000 barrels of equivalent oil per day. Liquid natural gas
liquefaction volumes are expected to be between 7.0 and 7.5 million
metric tons, reflecting feedgas constraints and additional
maintenance.
Regarding its upstream performance, the company said that
production is expected to be between 2.03 billion and 2.10 billion
barrels of oil equivalent per day. This includes the loss of around
90,000 barrels daily due to Hurricane Ida. Upstream adjusted
earnings are not expected to be significantly affected by the
prevailing strong gas price environment, it said.
Oil products sales volumes are expected to reach between 4.3
million and 5.4 million barrels of oil per day, the company said,
noting that trading and optimization results are expected to be
similar to the second quarter.
Shares at 0818 GMT were down 17.40 pence, or 1.1%, at 1,635.20
pence a share.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
October 07, 2021 04:40 ET (08:40 GMT)
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