Strengthening the company’s balance sheet and reducing net debt by half
Repsol sells LNG assets to Shell for $6.7 billion
Press Release26/02/2013 00:00
Shell will acquire the assets for $4.4 billion in cash and will assume $2.3 billion in financial leases ($1.8 billion) and debt ($0.5 billion in non-consolidated investments.)
The agreement, which generates a $3.5 billion pre-tax capital gain for Repsol, includes the assets in Trinidad & Tobago (Atlantic LNG), Peru LNG and Bahia de Bizkaia Electricidad (BBE) as well as the LNG sale contracts and time charters.
With the agreement, the company surpasses the divestment commitments outlined in the 2012-2016 Strategic Plan.
The deal significantly strengthens the company’s balance sheet and its liquidity, and reduces net debt by more than half (excluding Gas Natural Fenosa) to 2.2 billion euros.
Repsol and Shell have also agreed a 10 year LNG supply contract to the Canaport regasification terminal, which remains within the Repsol Group.
Repsol will continue to boost its upstream organic growth strategy with the funds obtained from the transaction, building on the exploratory success of recent years.