Royal Dutch Shell plc said the potential impact of the U.S. tax reform would be favorable to Shell and its U.S. operations primarily due to the lower corporate tax rate, though the fourth-quarter results will take a hit.
The company did not quantify the expected fourth-quarter charge saying "the analysis of the actual impact is not yet complete." The company said it would publish the actual impact, including any fourth-quarter movements, as part of its fourth-quarter results.
However, on the basis of the third-quarter financial statements, Shell would have incurred an estimated charge of $2.0 billion to $2.5 billion, primarily due to a re-measurement of its deferred tax position to reflect the lower tax rate of 21%.
Earlier in the day, Barclays Plc said it expects to incur a one-off charge of about £1 billion to its 2017 group profit after tax resulting from the new U.S. Tax Cuts and Jobs Act, implemented Dec. 22.