Royal Dutch Shell PLC (RDSA.LN) said Wednesday that it expects a charge to its fourth-quarter earnings of $2 billion to $2.5 billion following the changes to U.S. tax reform, driven by a re-measurement of its deferred tax position to reflect the lower corporate income tax rate.
Shell also said that actual impact isn't complete, and has based its estimate on third-quarter earnings. It said the estimated charge will be a non-cash adjustment and will be reflected as an identified item in its accounts.
Continue Reading Below
It said the potential impact of the new tax reform will be favorable to the group and its U.S. operations.
The tax law passed by Congress last week and signed by President Trump on Friday includes a reduction of the corporate tax rate to 21% from the current 35% and limits on the deductibility of corporate interest payments, among other provisions that dramatically revamp corporate taxes.
Write to Ian Walker at firstname.lastname@example.org; @IanWalk40289749
(END) Dow Jones Newswires
December 27, 2017 02:42 ET (07:42 GMT)