Mar 20 2006
Royal Dutch Shell has announced that it had completed the review of its global LPG marketing and distribution business and had taken the decision to retain this business within its downstream portfolio.
Shell had previously announced in September 2004 that, following an unsolicited offer from an interested buyer; it had decided to review its options with regard to its LPG business.
Some parts of Shell’s LPG business have meanwhile been sold, including Portugal, parts of the Caribbean, Brazil, Paraguay and Italy, for around US$350mln, as part of our downstream portfolio rationalisation in those markets. The remainder will remain within Shell’s global downstream portfolio.
Ron Blakely, Executive Vice President Finance Shell Downstream said “we made clear all along in this process that our LPG business is robust, and meets our portfolio criteria. We would only sell if the values and terms of the sale would offer greater value than we would assign to these assets ourselves.
“Having fully tested the market, we have concluded that there is better value for Shell shareholders in retaining these profitable businesses. This is a financial decision, and not a change in strategy. The decision to retain has no impact on the divestment plan as the Group achieved its target of $12-$15 billion by end 2005.
“LPG generates a competitive return on capital employed, and will continue to be run as part of our downstream portfolio in our markets of choice. It will be very much business as usual going forward.”
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