Royal Dutch Shell Q3 earnings: analyst expectations
What do analysts expect from the third quarter (Q3) earnings of Royal Dutch Shell and what are the moving parts to pay attention to?
Shell Q3 2021 earnings preview
On Thursday the 28th of October Royal Dutch Shell will publish its third quarter (Q3) earnings of 2021.
We don’t expect major surprises as Shell usually guides well and energy prices are highly public. We are optimistic regarding the LNG and trading activities of the company.
What do analysts expect from the Q3 earnings?
According to analyst consensus, the adjusted earnings in Q3 will be $5.3 billion, which is more than the company made in 2020. The cashflow from operating activities is expected to come in at around $12.1 billion.
That number is important, because that’s the money that can ultimately be used for new investments, debt reduction or rewarding shareholders.
From gas to LNG
The story of the last few months within the energy space has been natural gas. LNG especially attracts our attention. This is natural gas that is made liquid so it can be transported overseas.
It is not simple to liquify natural gas and it needs special facilities to do so, storage and specialised transport. Currently, LNG is ‘hot’ as the prices of natural gas in Europe and the US are diverging.
Businesses who own transport capacity can reap extraordinary arbitrage profits. The chart below shows the prices in continental Europe and the US.

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