Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Shell flags $400m hurricane hit, but boost from soaring prices

    Shell flags $400m hurricane hit, but boost from soaring prices

    October 7, 2021
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Shell

    London — Royal Dutch Shell warned on Thursday of a $400 million hit to third-quarter earnings from the damage caused by August’s Hurricane Ida.

    However, in an update ahead of quarterly results this month, the oil major also flagged a boost to cashflows from soaring natural gas and electricity prices.

    Gas and power prices have been surging as tight gas supplies have collided with strong demand in economies recovering from the COVID-19 pandemic.

    Shell is the world’s top seller of liquefied natural gas (LNG), accounting for about 20% of global demand, though its sales have declined in recent months because of production problems.

    The company said third-quarter cashflow at its LNG division “is expected to be significantly impacted by large variation margin inflows on the back of the prevailing gas and electricity price environment”.

    Shell will be holding more cash from buyers as deposits in the face of the large fluctuations in gas prices. The cash will eventually flow back out as prices cool.

    Liquefaction in the quarter is expected to be between 7 and 7.5 million tonnes, the lowest since 2016, “reflecting feedgas constraints and additional maintenance”, Shell said.

    LNG earnings will, however, receive a boost from stronger trading results, it added.

    Shell’s upstream oil and gas production fell in the quarter to between 2.025 and 2.1 million barrels of oil equivalent per day (boed) owing to a prolonged outage of about 90,000 boed at some of its offshore fields in the Gulf of Mexico after Hurricane Ida.

    Shell, the world’s largest fuel retailer, said sales volumes were expected to be between 4.3 and 5.3 million barrels per day, the highest since the first quarter of 2020 but still well below pre-pandemic levels.

    Refinery utilization rates will be impacted by outages due to Hurricane Ida.

    Related News

    ‘OPEC oil output rises in May but compensation cuts limit hike’

    Chevron CEO warned staff of rising safety issues before fatal Angola platform fire

    Oil prices steady ahead of US-China trade talks

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    Shipping firms dodges $900m cost, as Nigeria hit by empty container glut

    June 9, 2025

    ‘OPEC oil output rises in May but compensation cuts limit hike’

    June 9, 2025

    Chevron CEO warned staff of rising safety issues before fatal Angola platform fire

    June 9, 2025

    Oil prices steady ahead of US-China trade talks

    June 9, 2025

    Kwairanga reiterates NGX’s commitment to deepening Nigeria’s capital market

    June 9, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.