Booming gas and electricity prices boost Royal Dutch Shell revenues but Hurricane Ida costs the energy giant $400m
- Shell is responsible for fulfilling 20% of global liquefied natural gas demand
- LNG and electricity prices have soared in recent weeks on tight supply
The global energy crisis has not thrown up many winners so far but oil giant Royal Dutch Shell revealed today it expects its third quarter revenues to be boosted by soaring gas and electricity prices.
Shell is the world’s biggest seller of liquefied natural gas, accounting for around 20 per cent of global demand.
LNG and electricity prices have soared in recent weeks amid a clash between tight supply lines and booming demand as the global economy recovers from the Covid-19 pandemic.
Royal Dutch Shell has been boosted by booming energy prices
The cost of UK gas for November delivery shot up by nearly 40 per cent yesterday following a steep increase over the past month.
Shell’s upstream oil and gas production fell in the quarter to between 2.025 and 2.1 million barrels of oil equivalent per day, owing to a prolonged outage of about 90,000 barrels at some of its offshore fields in the Gulf of Mexico after Hurricane Ida.
Damage caused by August’s Hurricane Ida will dent earnings by $400million in the third quarter.
Within its chemicals division, Shell said margins are expected to be lower than the second quarter 2021 by $100million to $200million.
Chemicals manufacturing plant utilisation is also expected to be between 74 per cent and 78 per cent lower compared to second quarter, due to the impact of Hurricane Ida.
It follows a strong period for Shell’s share price, which last week hit an 18-month high.
Shell shares are up 0.6 per cent this morning to 1,662.4p, having risen by 71.4 per cent over the last year.