Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 29, 2021

Shell registers $447 loss as charge offsets surge in oil prices

Adjusted earnings and cash flow from operations in Q3 surged to $4.13bn and $17.5bn, respectively.

By Archana Rani

Royal Dutch Shell has reported a net loss of $447m in the third quarter of 2021 as it has written off $5.2bn in non-cash charges related to commodity derivatives.

The company posted gains of $489m in the third quarter of 2020.

The Dutch firm’s adjusted earnings in the three months ending September stood at $4.13bn, up from $955m in the same quarter a year ago.

Cash flow from operations, excluding working capital, surged to $17.5bn in Q3 from $14.17bn a year earlier.

This was driven by commodity derivatives and ‘outstanding’ cash generation across the firm’s businesses, the oil firm noted.

Shell reported a net debt of $57.5bn in the third quarter of 2021, compared to $73.5bn last year.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

Royal Dutch Shell CEO Ben van Beurden said: “This quarter we’ve generated record cash flow, maintained capital discipline and announced our intention to distribute $7bn to our shareholders from the sale of our Permian assets.”

Furthermore, the company has unveiled plans to cut 50% of absolute emissions by 2030, compared to 2016 levels on a net basis.

The new target, which will cover scope 1 and scope 2 emissions under the firm’s operational control, forms a wider plan for the company to become a net-zero emissions energy business by 2050.

Beurden added: “Today, we also set a new 2030 target to halve the absolute emissions from our operations, compared to 2016 levels on a net basis. Altogether, this is clear evidence of how we are accelerating our Powering Progress strategy, purposefully and profitably.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy