Royal Dutch Shell Plc said the events of a turbulent third quarter, from hurricanes to big swings in gas and power prices, will have a significant impact on its financials.
Hurricane Ida, which shut down a swathe of oil and gas production in the Gulf of Mexico, will have an aggregate adverse impact on adjusted earnings of $400 million, Shell said in a statement on Thursday. On the flip-side, cash flow from operations will be “significantly impacted” by higher margin inflows related to power and gas, the company said.
Shell’s outlook gives the first glimpse of what’s likely to be an unpredictable third quarter for the oil majors. From Europe to Asia, consumers are seeing an unprecedented surge in the prices of commodities from gas and coal to metals and food products.
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