Shell (NYSE: SHEL), Europe’s largest oil and gas company announced on Friday that it will have to pay about $2 billion in additional taxes in Q4 in the European Union and the UK.
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The company stated in its press release, “The Q4’22 earnings impact of recently announced additional taxes in the EU (the solidarity contribution) and the deferred tax impact from the increased UK Energy Profits Levy is expected to be around $2 billion.”
However, SHEL stated that these taxes are unlikely to impact its adjusted earnings in Q4 and will have limited cash impact in the fourth quarter. SHEL is expected to announce its Q4 earnings on February 2.
In its fourth-quarter update, SHEL expects strong earnings from natural gas trading versus Q3.
Analysts are bullish about SHEL with a Strong Buy consensus rating based on four Buys and one Hold.
