×

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 http://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)