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Shell warns of earnings hit from Hurricane Ida

By AFP
07 October 2021   |   11:11 am
Royal Dutch Shell on Thursday warned of a financial hit from the recent Hurricane Ida, but the energy giant said cash flows would profit from soaring gas and electricity prices.

(FILES) In this file photo taken on September 30, 2020 Logos are pictured at a Shell petrol station in Etlham, southeast London on September 30, 2020. – Anglo-Dutch energy major Royal Dutch Shell said on July 29, 2021 it had rebounded into profit in the second quarter as oil prices rose. (Photo by Ben STANSALL / AFP)

Royal Dutch Shell on Thursday warned of a financial hit from the recent Hurricane Ida, but the energy giant said cash flows would profit from soaring gas and electricity prices.

Third-quarter earnings and cash flow will be impacted by about $400 million (346 million euros) from the August hurricane in the Gulf of Mexico that impacted Shell operations in the region, the London-listed group said in a trading update.

Shell noted however that cash flows would win a boost from surging gas and electricity prices.

Natural gas prices are soaring to record peaks, energised by reopening economies and tight supplies ahead of the northern hemisphere winter.

Energy prices, in general, are jumping, with oil and electricity also experiencing strong gains in recent weeks.

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