Shell to Take $2 Billion Tax Hit for 4Q as Integrated Gas Trading Soared
January 06 2023 - 3:02AM
Dow Jones News
By Joe Hoppe
Shell PLC said Friday that it expects its fourth-quarter
earnings to take a $2 billion hit from additional taxes in the
European Union and the U.K. government's energy windfall tax as its
integrated gas trading and optimization results rose on
quarter.
Recently announced additional taxes in the European Union, and
the deferred tax hit from the increased U.K. government's energy
profits levy is expected to hit fourth quarter earnings by around
$2 billion.
The company said that the taxes and levies will be reported as
identified items, and therefore won't affect fourth quarter
adjusted earnings. They will have a limited cash hit in the fourth
quarter given the expected timing of payments.
The energy group said production for the fourth quarter in
Integrated Gas is anticipated to be between 900,000 and 940,000
barrels of equivalent oil per day. It said it expects
fourth-quarter pretax depreciation of between $1.2 billion and $1.6
billion.
Shell said it expects fourth-quarter upstream production of 1.8
million to 1.9 million barrels of oil equivalent a day, and
marketing sales of 2.4 million to 2.8 million barrels a day.
On a corporate level, the company expects to post an adjusted
earnings loss of $550 million to $750 million.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
January 06, 2023 02:47 ET (07:47 GMT)
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