Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

TOP NEWS: Shell third quarter faces USD400 million Ida headwind

Thu, 07th Oct 2021 08:18

(Alliance News) - Royal Dutch Shell PLC on Thursday cautioned its third quarter earnings will take around a USD400 million hit from Hurricane Ida, which battered the oil asset-rich US Gulf of Mexico region.

The chunkiest hit, forecast between USD200 million and USD300 million, will be at the oil major's Upstream arm. Oil Products will see hurt of around USD50 million to USD100 million and Chemicals a USD100 million hit.

Hurricane Ida formed on August 26 and battered parts of America. Shell in September said roughly 60% of its producing assets in the Gulf of Mexico region were back online, however. It also in September noted its majority-owned West Delta-143 facility in the Gulf of Mexico suffered "significant structural damage" due to the hurricane.

Production in its Upstream arm is tipped to land between 2.0 million and 2.1 million barrels of oil equivalent per day in the third quarter, at best a 4.7% decline from a year earlier and an 18% drop from pre-virus levels in 2019.

In its Oil Products arm, sales volumes between 4.3 million and 5.3 million barrels per day are expected for the third quarter. Sales volumes in the third quarter of 2020 amounted to 4.7 million barrels per day, so Shell's forecast ranges from a 9.3% annual decline, to a 12% hike. At best, however, volumes would be down 22% from two years earlier.

Chemicals sales volumes are tipped to land between 3.4 million and 3.7 million tonnes, potentially a 3.2% yearly decline from 3.8 million barrels a year earlier.

In Integrated Gas, production of 890,000 to 950,000 boepd is expected, potentially an improvement of 13% year-on-year and 5.1% from 2019 levels.

It also noted the unit's fortunes could be boosted by high gas and electricity prices.

Shell added: "[Cash flow from operations] excluding working capital is expected to be significantly impacted by large variation margin inflows on the back of the prevailing gas and electricity price environment; these inflows are expected to be higher than the second quarter 2021."

The cost of natural gas prices in Europe has shot up in recent weeks and months, hitting consumers and smaller energy providers.

Shell releases third quarter results on October 28.

Shell 'A' shares were up 0.4% at 1,658.60 pence in London early Thursday, while 'B' shares were up 0.2% at 1,667.00p.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

More News
26 Nov 2021 09:02

LONDON MARKET OPEN: Stocks plunged into red as new Covid variant grips

LONDON MARKET OPEN: Stocks plunged into red as new Covid variant grips

Read more
25 Nov 2021 07:44

UPDATE 2-Oil trader Vitol snaps up UK's Vivo Energy in $2.3 bln deal

* Vitol to buy Vivo for $1.85 per share* Vivo shares jump 21%* Top investor Vitol to buyout Helios too (Adds shares, context, background)By Yadarisa ShabongNov 25 (Reuters) - Commodities trader Vitol will buy Britain's Vivo Energy in a deal valued ...

Read more
24 Nov 2021 16:58

LONDON MARKET CLOSE: FTSE 100 continues outperforming on oil strength

LONDON MARKET CLOSE: FTSE 100 continues outperforming on oil strength

Read more
24 Nov 2021 14:48

UPDATE 1-Dogger Bank in long-term wind power deal with Danske Commodities, Shell and Centrica

(Updates with other companies signing contracts)COPENHAGEN/LONDON, Nov 24 (Reuters) - Britain's Dogger Bank, which is expected to become the world's largest wind farm, has secured long-term deals with Danish energy trading company Danske Commoditi...

Read more
24 Nov 2021 12:37

Shell ponder biofuels plant to meet rising Asian aviation demand

By Florence TanSINGAPORE, Nov 24 (Reuters) - Global major Royal Dutch Shell may build a biofuels plant in Singapore to meet the region's rising demand for sustainable aviation fuels (SAF), the head of its downstream business said on Wednesday.The ...

Read more
24 Nov 2021 11:05

Shell lifts force majeure on Bonny Light crude loadings

LONDON, Nov 24 (Reuters) - The Nigerian subsidiary of Royal Dutch Shell, SPDC, lifted force majeure on Bonny Light crude oil loadings on Monday, a spokesperson said on Wednesday.Shell had declared force majeure on loadings at the end of October af...

Read more
24 Nov 2021 10:44

LONDON BROKER RATINGS: Barclays ups Hochschild Mining after price fall

LONDON BROKER RATINGS: Barclays ups Hochschild Mining after price fall

Read more
24 Nov 2021 09:13

LONDON MARKET OPEN: US President Biden unable to stop rising oil price

LONDON MARKET OPEN: US President Biden unable to stop rising oil price

Read more
23 Nov 2021 17:01

LONDON MARKET CLOSE: FTSE 100 avoids Europe malaise as oil prices jump

LONDON MARKET CLOSE: FTSE 100 avoids Europe malaise as oil prices jump

Read more
23 Nov 2021 10:50

Shell launches shareholder talks to win backing for HQ move, sources say

* Shell sets up dozens of meetings with investors* Proxy advisory Glass Lewis recommends support* Move will see Shell HQ and tax base shifting to UKBy Ron BoussoLONDON, Nov 23 (Reuters) - Royal Dutch Shell has launched talks with investors to secure...

Read more
23 Nov 2021 10:30

UPDATE 2-Shell halves Singapore refining capacity, to change chemical feedstock

* Pulau Bukom refinery capacity cut by half* Shell tests pyrolysis oil, bionaphtha feedstock* Company considers carbon capture, biofuels (Adds details)By Florence TanSINGAPORE, Nov 23 (Reuters) - Royal Dutch Shell has halved https://www.reuters.com...

Read more
23 Nov 2021 10:27

LONDON BROKER RATINGS: Hochschild Mining hit with three downgrades

LONDON BROKER RATINGS: Hochschild Mining hit with three downgrades

Read more
23 Nov 2021 09:34

UPDATE 2-Commodity-linked shares lift FTSE 100, AO World plummets on shortages warning

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* European stocks hit by renewed fears around COVID-19* River and Mercantile Group rises on two takeover approaches* FTSE 100 up 0.3%, FTSE ...

Read more
23 Nov 2021 09:30

Kremlin calls new U.S. sanctions linked to Nord Stream 2 illegal

MOSCOW, Nov 23 (Reuters) - The Kremlin on Tuesday said new sanctions imposed by the United States in connection with the Nord Stream 2 gas pipeline were illegal and wrong, especially at a time when Moscow and Washington are attempting to rebuild ...

Read more
23 Nov 2021 09:15

CORRECTED-UPDATE 1-Shell halves Singapore refining capacity, to change chemical feedstock

(Corrects to remove reference that suggests pyrolysis oil is not an oil-based hydrocarbon in paragraph 7)* Pulau Bukom refinery capacity cut by half* Shell tests pyrolysis oil, bionaphtha feedstock* Company considers carbon capture, biofuelsBy Flore...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.