Posted - January 2, 2014 - Hellenic Shipping News Worldwide
Royal Dutch Shell plc ("Shell") today announces the successful
completion of the acquisition of Repsol S.A.'s ("Repsol") liquefied
natural gas (LNG) portfolio outside North America for a headline cash
consideration of $4.1 billion. As part of the transaction, Shell will
also assume $1.6 billion of balance sheet liabilities relating to
existing leases for LNG ship charters, substantially increasing the
shipping capacity available to Shell's world-class LNG marketing
business.
The deal gives Shell an additional 7.2 million tonnes per annum (mtpa)
of directly managed LNG volumes. The company's already diverse and
flexible portfolio will be boosted with LNG supply in the Atlantic from
Trinidad & Tobago, and in the Pacific from Peru. In addition, it
immediately contributes additional cash flow, while requiring limited
on-going capital expenditure.
Since the announcement of the transaction in February 2013, certain
value adjustments have been made in accordance with the terms of the
sales and purchase agreement. These are expected to lead to a net cash
purchase price of $3.8 billion (subject to post closing adjustments),
compared to purchase price of $4.4 billion announced in February 2013,
and balance sheet liabilities of $1.6 billion, compared to $1.8 billion
at the initial announcement. This includes the exercise of pre-emption
rights of the BBE power plant in Spain by an existing partner as well as
other adjustments such as the financial performance of the portfolio
and working capital movements since the effective date of 1st October
2012.
The deal closed in 2014. Shell's capital investment in Q4 2013 will
reflect $3.4 billion for this transaction with the remainder of $2.0
billion booked in 2014 of which $1.6 billion is a non cash item relating
to finance ship leases.
Source: Shell
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