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Storm Uri expected to have adverse effect on Shell's 1Q21 earnings

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Oilfield Technology,

Shell has provided an update to its 1Q21 outlook, and said that Storm Uri in Texas, US, earlier this year had an impact on its operations and is expected to have an aggregate adverse impact of up to US$200 million on adjusted earnings.

In the company's upstream segment, adjusted earnings are expected to be positive in 1Q21. Production is expected to be between 2.4 million and 2.47 million boe/d, including 10 to 20 000 bpd lower production due to Storm Uri. Total adjusted earnings are expected to be adversely impacted by up to US$40 million due to the operational impacts of Storm Uri.

Pre-tax depreciation is expected to be between US$3.1 and US$3.4 billion. Currency effects are expected to adversely impact adjusted earnings by up to US$200 million. Tax expenses are expected to be between US$700 and US$1100 million. Tax paid is expected to be between US$500 and US$750 million. Working capital outflows are as expected due to increased receivables reflecting the higher commodity price environment.

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