Shell PLC (LSE:SHEL, NYSE:SHEL) has said it expects to fork out around US$2bn in additional taxes in the fourth quarter due to the windfall taxes imposed in the EU and the UK.
But, in a trading update, the FTSE 100 index heavyweight noted that these would be reported as identified items and therefore will not impact quarter-four adjusted earnings and will have only a limited cash impact in the quarter given the expected timing of payments.
Europe's largest oil and gas company said gas trading results are expected to be "significantly higher" than in the previous quarter but that its liquefied natural gas production in the quarter will be hit by prolonged outages at two major plants in Australia.
Marketing results are forecast to be lower in quarter four than in the previous quarter while Chemicals results are also expected to be lower than the previous in part due to the commencement of depreciation for Shell Polymers Monaca, its Pennsylvania Chemicals project.
Shell estimated a working capital inflow of around US$4 billion for the quarter although it stressed these forecasts are inherently uncertain and exacerbated by current market volatility.
The oil major gave a range of adjusted earnings forecasts for its various divisions, with Integrated Gas profits seen between US$1,200mln to US$1,600mln, Upstream earnings seen between US$3,100mln and US$3,500mln, Marketing earnings between US$300mln to US$500mln and Chemicals and Products profits between US$700mln to US$900mln.
In Renewables and Energy Solutions adjusted earnings range between -US$500mln to US$100mln, while a loss of between US$550mln to US$750mln is forecast in the company's Corporate unit.