Shell warns of earnings hit from Hurricane Ida

AFP News Agency

07th Oct, 2021. 07:07 pm

LONDON: The 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.

The third-quarter earnings and cash flow will be impacted by around $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 the 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.

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

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