Royal Dutch Shell expects to benefit from US tax changes
Source - SMW
Oil producer Royal Dutch Shell says it should benefit from US tax changes primarily due to the reduction in the US corporate income tax rate from 35% to 21%.
The changes are effective from 1 January 2018 and will impact the company's fourth quarter results.
The company says it too early to say the full impact on earnings. Shell says it will announce the full impact as part of its fourth quarter results.
On the basis of the third quarter earnings, it would have incurred an estimated charge to earnings of $2bn to $2.5bn primarily driven by a re-measurement of its deferred tax position to reflect the lower corporate income tax rate.