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Shell Estimates Losses From Texas Winter Storm at Up to $200Mln in Q1 2021

MOSCOW (Sputnik) – UK-Dutch oil and gas company Royal Dutch Shell estimates possible losses due to severe cold weather that hit the US state of Texas in February at up to $200 million in adjusted earnings for the first quarter of 2021, the company said on Wednesday.

“The Texas winter storm had an impact on our operations and is expected to have an aggregate adverse impact of up to $200 million on adjusted earnings,” the statement said.

In addition, the company released the forecast for its first quarter production performance. The production of gas is expected to be between 920,000 and 960,000 barrels of oil equivalent per day, while LNG liquefaction volumes are expected to be between 7.8 and 8.4 million tonnes.

Hydrocarbon production is expected to be between 2.4 and 2.475 million barrels of oil equivalent per day, including a reduction by 10,000-20,000 barrels per day due to the Texas winter storm. Chemicals sales volumes are expected to be between 3.5 and 3.7 million tonnes

A severe winter storm hit several US states in February, particularly affecting Texas. The storm caused power outages, food and water shortages for millions of residents amid the Arctic cold blast as well as disruptions in oil production and growth of prices for gasoline and electricity.

Royal Dutch Shell is engaged in the production and processing of hydrocarbons in more than 70 countries.

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