Shell To Pay $2B As Part Of Windfall Tax In European Union In Q4

Shell plc SHEL announced the Q4’22 earnings impact of recently announced additional taxes in the EU, and the deferred tax impact from the increased UK Energy Profits Levy is expected to be around $2 billion.
These impacts will be reported as identified items and, therefore, will not impact Q4’22 adjusted earnings and will have limited cash impact in Q4’22, given the expected timing of payments.
Shell Q4 FY adjusted loss of $(550)-$(750) million.
Related: Exxon Mobil Sues European Union In Efforts To Scrap New Windfall Tax On Oil Firms.
In its trading statement, Shell expects its liquefied natural gas (LNG) volumes to drop to 6.6 million-7 million metric tons in the fourth quarter, owing to longer-than-expected outages at two Australian facilities.
Despite this, the energy major said it anticipates its LNG trading results to be “significantly higher” than in the third quarter. In contrast, its fourth-quarter oil products trading results are expected to be “significantly lower” than in the previous quarter.
In September, the EU agreed that oil and gas companies would pay 33% as tax (solidarity contribution) of profits above their average taxable profits, CNBC wrote.
The levy ending in March 2028 is expected to raise over $40 billion over the next six years.
In November, Shell’s U.K. Country Chair, David Bunch, signaled that the company would evaluate each of its projects in the country on a case-by-case basis following the windfall tax announcement.
Price Action: SHEL shares are up 0.81% at $55.93 during the premarket session on the last check Friday.

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