Shell warns of possible $500 million hit from Hurricane Ida
ABC News
Oil giant Royal Dutch Shell has warned that it will take an earnings hit of up to $500 million as a result of the disruptions caused by Hurricane Ida
LONDON -- Oil giant Royal Dutch Shell warned Thursday that it will take an earnings hit of up to $500 million as a result of the disruptions caused by Hurricane Ida, which hit the Gulf of Mexico in late August.
In an update to shareholders, the company said the hurricane, which prompted oil companies operating in the Gulf of Mexico to shut down operations and evacuate workers for a few days, has reduced oil production by around 90,000 barrels a day.
It said the total impact to earnings will be between $350 million and $500 million.
Shell said the main hit from Ida, estimated at between $200 million and $300 million, has been felt in the upstream division, which essentially is the oil production part of the business.
