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Royal Dutch Shell PLC says Texas freeze will knock US200mln off first quarter results

Oil production was hit by about 10,000-20,000 barrels per day due to the weather in Texas

PLC ) said the impact of the severe Texas winter storm will offset the recent boost from the higher crude price in its first-quarter numbers.

Texas recorded its lowest temperatures for 40 years in February and Shell said the impact would mean an aggregate cost of US$200mln in the quarter to end March 2021 across its operations.

 

PLC ) said the impact of the severe Texas winter storm will offset the recent boost from the higher crude price in its first-quarter numbers.

Texas recorded its lowest temperatures for 40 years in February and Shell said the impact would mean an aggregate cost of US$200mln in the quarter to end March 2021 across its operations.

Oil production was hit by about 10,000-20,000 barrels per day, but Shell said it still expects output to average between 2,400 and 2,475 thousand barrels per day and for the division to swing back into profit after a fourth-quarter loss.

Crude prices rose from US$48 per barrel to around US$59.5 and every US$10 per barrel rise adds US$3bn to Shell’s earnings.

Integrated gas production will be between 920-960, 000 thousand barrels per day equivalent, up slightly on previous estimates but LNG volumes will be lower at 7.8-8.4mln tonnes.

This division was the least affected by Texas weather though Shell added that trading and optimisation results had been significantly below average.

Refinery utilisation was lower than expected in the last update at 71-75% while oil product sales and chemical plant throughput also undershot.

Corporate segment expenses for the first quarter are forecast at US$600 to US$700mln. 

Crude prices rose from US$48 per barrel to around US$59.5 and every US$10 per barrel rise adds US$3bn to Shell’s earnings.

Integrated gas production will be between 920-960, 000 thousand barrels per day equivalent, up slightly on previous estimates but LNG volumes will be lower at 7.8-8.4mln tonnes.

This division was the least affected by Texas weather though Shell added that trading and optimisation results had been significantly below average.

Refinery utilisation was lower than expected in the last update at 71-75% while oil product sales and chemical plant throughput also undershot.

Corporate segment expenses for the first quarter are forecast at US$600 to US$700mln. 

Read More: Royal Dutch Shell PLC says Texas freeze will knock US200mln off first quarter results

2021-04-07 01:41:00

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