Reuters logo
FACTBOX-Effect of hurricanes Harvey and Irma on key U.S. companies
September 14, 2017 / 5:10 PM / 7 days ago

FACTBOX-Effect of hurricanes Harvey and Irma on key U.S. companies

    Sept 14 (Reuters) - Hurricane Harvey, which tore through Corpus Christi in southern Texas on
Aug. 25 and drenched the Houston area with historic rains, killed over 60 people and displaced
more than 1 million people.
    The impact knocked out nearly a fifth of U.S. oil-refining capacity. Hundreds of companies,
including airlines, home builders, insurers, oil refiners and retailers were hit, and many of
them are struggling to get back on their feet.
    Harvey was the most powerful storm to hit Texas in more than 50 years, causing some $180
billion in damage.
    Two weeks later, Hurricane Irma swept through the Florida Keys, submerging about 25 percent
of all dwellings in the region and killing at least 36 people in the United States. Irma caused
about $25 billion in insured losses, including $7 billion in the Caribbean, catastrophe modeler
Karen Clark & Co estimated on Wednesday.
        
    The following table lists the effects of the two storms on some major U.S. companies:
    
    ENERGY & UTILITIES:
 COMPANY     IMPACT                                                                 FULL STORY
 Exxon       The world's largest publicly traded oil producer had to shut                       
 Mobil       operations at its 560,500-barrel-per-day refinery in Baytown, among    
             others, while allocating resources to supply impacted areas with       
             gasoline and diesel.                                                   
                 "It's very difficult to predict exactly when all those units will  
             be back up and we'll be back on our full load," Chief Executive        
             Darren Woods told CNBC earlier this month.                             
                 The company said it has not yet calculated Harvey's impact on      
             third-quarter earnings.                                                
 Phillips    Said its 247,000 barrels-per-day Sweeny, Texas refinery suffered                   
 66          minimum damage from Harvey and has resumed operations .                
 Valero      The company is restarting its crude distillation unit at its 335,000               
 Energy      barrel-per-day Port Arthur, Texas refinery, which it shut on Aug. 30.  
 Corp                                                                               
                                                                                    
 Florida     Florida's largest utility said it saw outages of more than 3.6         
 Power &     million on Sept. 11, a day after Irma made landfall.                   
 Light           The company said it expects to restore power to all customers on   
             the east coast by Sept. 17, and on the west coast, by Sept. 22.        
                 More on utility companies:                                         
 Hess Corp   Then company said downtime associated with Harvey resulted in lost                 
             production of several thousand barrels of oil equivalent per day in    
             the current quarter.                                                   
 Chesapeake  The oil company said production volumes would be restrained until                  
 Energy      refineries in Houston and the U.S. Gulf Coast come back online after   
 Corp        Harvey.                                                                
                 The company shut down drilling and completion of new wells in the  
             Eagle Ford shale region of Texas due to the storm.                     
                 The company will resume drilling and completions "as services      
             become available," spokesman Gordon Pennoyer said.                     
 
    INSURERS:
 COMPANY     IMPACT                                                                 FULL STORY
 Travelers   The company estimates losses related to Hurricane Harvey to be in                  
 Cos Inc     range of $375 million to $750 million pretax.                          
                                                                                    
 Federated   The company sees gross liabilities due to Hurricane Irma at about                  
 National    $300 million; losses, net of reinsurance, will not exceed first event  
 Holding Co  pretax retention of $18 million.                                       
                                                                                    
 Universal   The insurer said losses from Hurricane Irma were below limits of the               
 Insurance   catastrophe reinsurance program                                        
                                                                                    
 Assurant    Expects $134 million to $140 million pretax of reportable catastrophe             
 Inc         losses, net of reinsurance, and reinstatement premiums from Harvey.    
                 Gross losses from Irma will exceed retention of $125 million       
             pretax but will remain within company's comprehensive reinsurance      
             program.                                                               
 
    RETAILERS:
 COMPANY     IMPACT                                                                 FULL STORY
 Starbucks   The coffee chain closed more than 700 stores across the Southeast and  Company
             Puerto Rico, preceding Hurricane Irma.                                 statement to
                 It expects store closures, dislocations, extraordinary             Reuters
             hurricane-related expenses to have some impact on current-quarter      
             financial results.                                                     
 Dunkin      The company said about 900 franchised restaurants, primarily in        Company
 Brands      Florida, were forced to temporarily close during the peak of the       statement to
 Group       storm.                                                                 Reuters
                 The company did not say if the closures would affect results.      
 Target      The retailer said on Sept. 11 that 127 stores and 4 distribution                   
 Corp        facilities closed across Florida, Georgia, Alabama and South Carolina  bit.ly/2fddU0j
             due to Irma.                                                           
 Francesca'  The retailer said corporate headquarters, e-commerce fulfilment and                
 s Holdings  distribution centers, and about 40 boutiques located in Houston or     
 Corp        neighbouring areas were directly impacted by Harvey.                   
                 It forecast a third-quarter profit well below analysts' estimates  
             and said supply-chain disruptions were affecting all its boutiques.    
 Newell      Newell Brands' resin suppliers with facilities in Texas and Louisiana              
 Brands Inc  declared force majeure after Harvey's landfall.                        
                 Facilities in Texas and Louisiana shut down for more than a week.  
             The company also cut its adjusted profit forecast for 2017 to $2.95    
             to $3.05 per share, from its previous forecast of $3.00 to $3.20.      
                                                                                    
 
    AIRLINES:
 COMPANY     IMPACT                                                                FULL STORY
 American    The No. 1 U.S. airline cut its Q3 forecast for total unit revenue to              
 Airlines    about flat to up 1 percent, from up 0.5-2.5 percent, citing Irma.     
 Group           The airline cancelled more than 5,000 flights due to Irma, which  
             closed 40 airports in Florida and the Caribbean, including Miami      
             International Airport.                                                
 JetBlue     The airline reaffirmed its Q3 unit revenue forecast, excluding the                
 Airways     impact of Irma.                                                       
                 The airline expects third-quarter revenue per available seat      
             mile (RASM) range between a drop of 1 percent and an increase of 1    
             percent. RASM guidance does not include any impact of Irma.           
 Southwest   The company expects financial impact from Harvey to be about $40                  
 Airlines    million to $60 million. The airline expects a similar impact from     
             Irma.                                                                 
 
    HOMEBUILDERS:
 COMPANY     IMPACT                                                                FULL STORY
 Lennar      The company expects to delay hundreds of home deliveries in Florida,              
 Corp        Georgia and South Carolina - which account for about 40 percent of    
             its annual homebuilding revenue - due to Irma.                        
                 It expects deliveries of about 700 homes to be pushed from its    
             fiscal fourth quarter ending Nov. 30 to the next fiscal year.         
                 "We expect that the rebuilding effort will result in increased    
             economic activity and an increased demand for new homes which will    
             result in a broader spectrum of opportunity for us as we look         
             towards 2018," Lennar Chief Executive Stuart Miller said.             
 


 (Compiled by Bengaluru newsroom)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below