Shell 3Q Adjusted Earnings Fell as Hurricane Ida Hurt Business

By Jaime Llinares Taboada

Royal Dutch Shell PLC on Thursday reported that its earnings fell 25% in the third quarter, as Hurricane Ida hurt its operations.

The Anglo-Dutch oil-and-gas major said its adjusted earnings were $4.13 billion in the period, down from $5.53 billion in the second quarter and below market expectations of $5.31 billion, provided by Vara Research and averaged from 22 analysts' estimates.

Shell said lower earnings reflected one-off tax impacts, lower production volumes partly due to the effect of Hurricane Ida, and lower contributions from trading and optimization. Overall, Shell estimates that the hurricane had an adverse effect of around $400 million on adjusted earnings.

The company reported a net loss of $447 million for the quarter, which included noncash charges of $5.2 billion due to the fair value accounting of commodity derivatives, swinging from a $3.43 billion net profit in the second quarter.

Shell declared a quarterly dividend of $0.24 a share, in line with $0.24 in the second quarter.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

October 28, 2021 02:37 ET (06:37 GMT)

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