17th Mar 2006 07:00
Shell takes decision to retain its LPG businessRoyal Dutch Shell plc (Shell) announced today, 17th March 2006, that it hadcompleted the review of its global LPG marketing and distribution business andhad taken the decision to retain this business within its downstream portfolio.Shell had previously announced in September 2004 that, following an unsolicitedoffer from an interested buyer; it had decided to review its options withregard to its LPG business.Some parts of Shell's LPG business have meanwhile been sold, includingPortugal, parts of the Caribbean, Brazil, Paraguay and Italy, for aroundUS$350mln, as part of our downstream portfolio rationalisation in thosemarkets. The remainder will remain within Shell's global downstream portfolio.Ron Blakely, Executive Vice President Finance Shell Downstream said "we madeclear all along in this process that our LPG business is robust, and meets ourportfolio criteria. We would only sell if the values and terms of the salewould offer greater value than we would assign to these assets ourselves."Having fully tested the market, we have concluded that there is better valuefor Shell shareholders in retaining these profitable businesses. This is afinancial decision, and not a change in strategy. The decision to retain has noimpact on the divestment plan as the Group achieved its target of $12-$15billion by end 2005."LPG generates a competitive return on capital employed, and will continue tobe run as part of our downstream portfolio in our markets of choice. It will bevery much business as usual going forward."Contact - Investor RelationsUK: Gerard Paulides +44 20 7934 6287Continental Europe: Tjerk Huysinga +31 70 377 3996USA: Harold Hatchett: +1 212 218 3112Contact - Media RelationsUK and International: +44 20 7934 6238/2914/2713/3453The Netherlands: +31 70 377 8750Disclaimer statementThis announcement contains forward-looking statements, that are subject to riskfactors associated with the oil, gas, power, chemicals and renewables business.It is believed that the expectations reflected in these statements arereasonable, but may be affected by a variety of variables which could causeactual results, trends or reserves replacement to differ materially, including,but not limited to: price fluctuations, actual demand, currency fluctuations,drilling and production results, recovery rates, reserve estimates, loss ofmarket, industry competition, environmental risks, physical risk, risksassociated with the identification of suitable potential acquisition propertiesand targets and the successful negotiation and consummation of transactions,the risk of doing business in developing countries, legislative, fiscal andregulatory developments including potential litigation and regulatory effectsarising from recategorisation of reserves, economic and financial marketconditions in various countries and regions, political risks, project delay oradvancement, approvals and cost estimates.Please refer to the Annual Report on Form 20-F for the year ended December 31,2005 for a description of certain important factors, risks and uncertaintiesthat may affect the Company's businesses. The Company does not undertake anyobligation to publicly update or revise any of these forward-lookingstatements, whether to reflect new information, future events or otherwise.Cautionary Note to US Investors:The United States Securities and Exchange Commission (`SEC') permits oil andgas companies, in their filings with the SEC, to disclose only proved reservesthat a company has demonstrated by actual production or conclusive formationtests to be economically and legally producible under existing economic andoperating conditions. We use certain terms in this presentation, such as"expected producible resources" and "amount of reserves we expect to produce",that the SEC's guidelines strictly prohibit us from including in filings withthe SEC.ENDROYAL DUTCH SHELL PLCRelated Shares:
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