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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