logo
Plus   Neg
Share
Email

Shell Cuts Q1 Upstream Production View On Texas Winter Storm; Lifts Integrated Gas Outlook

Royal Dutch Shell PLC (RDS-B,RDSB.L,RDSA.L,RDS-A) on Wednesday reduced first-quarter upstream production outlook, hurt by the Texas winter storm, but lifted integrated gas production view.

The company noted that the Texas winter storm had an impact on its operations and is expected to have an aggregate adverse impact of up to $200 million on adjusted earnings.

In the upstream segment, first-quarter production is now expected to be between 2,400 and 2,475 thousand barrels of oil equivalent per day or boe/d, including 10 to 20 thousand barrels per day lower production due to the Texas winter storm. The company previously expected upstream production to be approximately 2,400 - 2,600 thousand boe/d.

Upstream adjusted earnings are expected to be positive in the first quarter 2021, capturing the upside from the current commodity price environment. Total adjusted earnings are expected to be adversely impacted by up to $40 million due to operational impacts of the Texas winter storm.

Further, Integrated gas production is now expected to be between 920 and 960 thousand boe/d, higher than previous estimate of around 900 - 950 thousand boe/d.

Meanwhile, LNG liquefaction volumes are now expected to be between 7.8 and 8.4 million tonnes, down from earlier projected 8.0 - 8.6 million tonnes.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Walmart has dropped the requirement of masks for customers and members who are fully vaccinated against COVID-19 while they are at the store. This is based on the latest guidance issued by the Centers for Disease Control and Prevention late last week. The retail giant also announced a cash bonus for all fully vaccinated associates. Amazon announced the launch of WorkingWell, a new comprehensive program providing employees with physical and mental activities, wellness exercises, and healthy eating support, across its U.S. Operations. The program has a number of components covering training and conditioning, wellness services, and technology. Each of WorkingWell's components were developed in collaboration with employees. The U.S. Department of Agriculture's Food Safety and Inspection Service or FSIS has issued a public health alert for around 165 pounds of imported frozen Siluriformes products. The products were imported from Brazil, which is ineligible to export Siluriformes products to the United States.
Follow RTT