By Jaime Llinares Taboada

 

Royal Dutch Shell PLC on Thursday reported lower adjusted earnings for the third quarter of the year, as Hurricane Ida hurt production in the period. Here is what the oil-and-gas giant had to say:

 

On 3Q group performance:

 

"Adjusted earnings for the quarter were $4.1 billion. Cost of supplies adjustment attributable to Royal Dutch Shell PLC shareholders for the third quarter 2021 was negative $0.5 billion. Hurricane Ida impacted our operations, with an aggregate adverse impact of around $0.4 billion on adjusted earnings."

 

"Compared with the second quarter 2021, current quarter adjusted earnings reflected comparative adverse one-off tax impacts, lower production volumes partly due to the impact of Hurricane Ida, and comparative lower contributions from trading and optimization. This was partly offset by higher oil, liquefied natural gas and gas prices."

 

On integrated gas:

 

"Compared with the second quarter 2021, integrated gas adjusted earnings primarily reflected higher realized prices for LNG, oil and gas."

 

"This was partly offset by comparative lower earnings contribution from the renewables & energy solutions business due to lower margins in North America and comparative adverse one-off tax impacts."

 

"Compared with the second quarter 2021, total oil-and-gas production remained at a similar level due to lower maintenance activities, offset by field decline and lower demand."

 

"LNG liquefaction volumes decreased by 1% due to feedgas constraints and cargo timing, partly offset by lower maintenance activities."

 

On upstream:

 

"Compared with the second quarter 2021, upstream adjusted earnings reflected the comparative adverse impact of a one-off release of a tax provision in Nigeria in the second quarter, higher well write-offs and lower volumes. These were partly offset by higher realized oil and gas prices."

 

"Compared with the second quarter 2021, total production decreased by 8%, mainly due to the effects of Hurricane Ida and unfavorable seasonal effects."

 

On oil products:

 

"Compared with the second quarter 2021, oil products adjusted earnings reflected lower contributions from trading and optimization, partly offset by favorable deferred tax movements."

 

"Oil products sales volumes increased due to favorable seasonal effects and continued demand recovery."

 

On chemicals:

 

"Compared with the second quarter 2021, chemicals adjusted earnings reflected the operational impact of Hurricane Ida, lower intermediate and base chemicals margins, as well as lower income from joint ventures and associates."

 

"Chemicals manufacturing plant utilization was 78% compared with 82% in the second quarter 2021, due to the impact of Hurricane Ida and higher planned maintenance."

 

On 4Q outlook:

 

"Cash capital expenditure was $13.2 billion for the first nine months 2021 and is expected to be around $20 billion for the full year 2021."

 

"Integrated gas production is expected to be approximately 940,000-980,000 barrels of oil equivalent a day and LNG liquefaction volumes are expected to benefit from lower maintenance activities and be approximately 8.0 million-8.6 million tons."

 

"Upstream production is expected to be approximately 2,100-2,350 thousand boe/d."

 

"Refinery utilization is expected to be approximately 68%-76%. Oil products sales volumes are expected to be approximately 4,200-5,200 thousand b/d."

 

"Chemicals manufacturing plant utilization is expected to be approximately 73%-81%. Chemicals sales volumes are expected to be approximately 3,500-3,900 thousand tons."

 

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

 

(END) Dow Jones Newswires

October 28, 2021 04:18 ET (08:18 GMT)

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