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Texas freeze cost Shell $200m in Q1

Shell average output to be between 2,400,000 and 2,475,000 barrels per day

Royal Dutch Shell (LON:RDSB) today confirmed that the impact of the Texas winter storm will see the company lose out on $200m in the first quarter of 2021.

This is despite the crude oil price rising over the same period.

Shell’s production of oil was reduced by between 10,000 to 20,000 barrels per day, however the company is still anticipating average output to come in between 2,400,000 and 2,475,000 barrels per day. This would result in a swing to a profit following a prior Q4 loss.

Crude oil prices rose to $59.5 per barrel from $48, with every extra $10 adding $3bn to the company’s revenue.

Shell says its integrated gas production will be between 920,000 and 960,000 barrels per day, which is up on previous estimates, however LNG volumes will be lower at 7.8m-8.4m tonnes.

This division was relatively unimpacted by the weather in the Lone Star State although Shell did confirm that its results had come in below average.

Refinery utilisation was lower than expected in the last update at 71-75%, as was oil product sales and chemical plant throughput.

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