Repsol completes the sale of LNG assets to Shell
The combined transactions represent total proceeds for Repsol of $4.3 billion (of $4.1 billion from the sale of assets to Shell and $0.2 billion from the sale of BBE to BP), and the company additionally sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets' sale was agreed.
The sale, which includes the minority stakes in Atlantic LNG (Trinidad & Tobago) Peru LNG and BBE as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately $2.9 billion for Repsol in profit and capital gains after tax, slightly higher than the guidance given when the transaction was agreed in February.
As a consequence of the transferral of assets, and in line with the company’s policy of financial prudence, Repsol will adjust the book value of the North American assets with a provision of $1.5 billion after tax, in line with new fiscal regulations. The resulting capital gains yet to be booked will be included in the accounting of 2013 and 2014, in accordance with the transferral date of the assets included in the agreement.
Repsol and Shell have additionally signed an LNG supply agreement by the latter to the Canaport regasification terminal in Canada of approximately 1 million tons over a 10-year period. ■