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.

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.”