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SHELL CANADA REPORTS FIRST QUARTER EARNINGS

 SHELL CANADA REPORTS FIRST QUARTER EARNINGS
 CALGARY, April 29 /PRNewswire/ -- Shell Canada's


(Toronto, Montreal: SHC) consolidated earnings for the first quarter in 1992 were $5 million or 5 cents per Class "A" Common Share compared with a loss from continuing operations of $33 million or 29 cents per share for the first quarter in 1991. The 1992 results reflect the prospective adoption of the Last-In, First-Out (LIFO) method of inventory valuation, whereas the 1991 loss was based on the First-In, First-Out (FIFO) method. On a basis comparable to 1991, the 1992 first quarter results would have been a loss of $13 million or 12 cents per Class "A" Common Share. Substantially all of this change between LIFO and FIFO earnings is attributable to the Oil Products business.
 The recessionary conditions in North America, intensely competitive retail gasoline markets and low prices for all commodities continue to depress earnings. Shell's response to these difficult market conditions continues to be a concentration on core assets and the reduction of operating expenses. Progress on these initiatives has been more than offset by the lower market prices for all products. It is now evident that the company will not attain significant progress toward targeted acceptable earnings and profitability levels in 1992, unless the Canadian and global economies show a meaningful measure of recovery from recession by year end.
 Cash flow from continuing operations for the first quarter in 1992 was $126 million, compared with $77 million for the corresponding period in 1991. The increase was largely due to the improved earnings reported in 1992.
 Capital and exploration expenditures for the first three months in 1992 were $200 million, compared with $135 million for 1991. A significant portion of Resources expenditures were for the ongoing development at Caroline, while Oil Products expenditures were for the rationalization and rebuilding of the commercial and retail networks.
 Resources earnings from continuing operations for the first quarter in 1992 were $15 million, compared with $36 million for the same period in 1991. The primary causes of the decrease were lower prices for crude oil and the decline in prices for natural gas and sulphur, which are expected to continue to affect earnings throughout 1992. Partially offsetting this decrease was an increase in sulphur sales volumes, reduced expenses and gains from the sale of non-core properties. Natural gas sales volumes for the first three months were 20.5 million cubic metres a day, a 4 percent decrease from first quarter 1991 volumes. Gross production of crude oil and natural gas liquids decreased 2 percent to 10,600 cubic metres a day. Sulphur sales volumes were 4,117 tons a day, compared with 1,559 tons a day in 1991, when first quarter volumes were unusually low.
 Oil Products earnings were $9 million for the first quarter in 1992 compared with a loss of $56 million for the first quarter in 1991. 1991 results reflected the inability to recover the cost of high-priced crude inventories acquired late in 1990. Intense market competition experienced during 1991 has continued into 1992, severely impairing the corporation's profitability. Emphasis continues to be placed on cost control initiatives, in an effort to reduce the impact that industry oversupply and recessionary demand have had on prices for refined products. Petroleum product sales decreased 7 percent, to 32,500 cubic metres a day for the first quarter in 1992.
 Chemicals recorded a loss of $1 million for the first quarter in 1992, compared with earnings of $3 million for the corresponding period in 1991. Lower prices were experienced in all markets, resulting from excess world availability of chemicals in a generally recessionary environment. Chemical sales volumes increased slightly to 2,524 tons a day.
 Corporate expenses were $18 million for the first three months in 1992, compared with $16 million for 1991. Reduced interest expense, associated with a lower debt level, only partially offset the reduced investment income arising from lower cash balances.
 Dividend
 The directors of Shell Canada Ltd. today declared a semi-annual dividend of 45 cents per Class "A" Common Share. The dividend will be payable June 15, 1992, to shareholders of record May 15, 1992.
 Dividends to be payable in U.S. funds to shareholders with registered addresses in the United States will be converted into U.S. funds at the rate quoted for U.S. funds by the Bank of Canada at noon on the record date.
 SHELL CANADA LTD. AND SUBSIDIARY COMPANIES
 Financial and Operating Highlights
 (Unaudited)
 First Quarter
 Financial Highlights 1992 1991
 ($ millions) (restated)(a)
 Revenues 993 1,300
 Cash flow from continuing operations 126 77
 Cash from operating activities 139 47
 Earnings (loss) from continuing operations 5 (33)
 Earnings (loss) 5 (35)
 Per Class "A" Common Share (dollars)
 Earnings (loss) from continuing operations 0.05 (0.29)
 Earnings (loss) 0.05 (0.31)
 Results by Segment
 Revenues (excluding inter-segment sales)
 Resources 143 157
 Oil products 715 951
 Chemicals 134 180
 Corporate 1 12
 Total 993 1 300
 Earnings
 Resources 15 36
 Oil products 9 (56)
 Chemicals (1) 3
 Corporate (18) (16)
 Total 5 (33)
 Capital and exploration expenditures
 Resources 163 91
 Oil products 35 36
 Chemicals 1 1
 Corporate 1 7
 Total 200 135
 First Quarter
 Operating Highlights 1992 Change
 Crude oil and natural gas
 liquids produced - gross (m3/d) 10,600 -2 pct
 Natural gas sales from own production
 - gross (thousands of m3/d) 20,500 -4 pct
 Sulphur produced - gross (tonnes/d) 3,655 -7 pct
 Sulphur sales from own production - gross
 (tonnes/d) 4,117 +164 pct
 Crude oil processed by Shell refineries
 (m3/d) 41,800 +4 pct
 Petroleum product sales (m3/d) 32,500 -7 pct
 Chemical sales (tonnes/d) 2,524 +1 pct
 LIFO
 Effective Jan. 1, 1992, Shell adopted the Last-In, First-Out (LIFO) method of inventory valuation. Using this method, current revenues will be matched with the current cost of production, as the cost of purchased crude oil and petroleum products included in the determination of earnings is the most recent cost of these products. Comparative 1991 figures are stated on a First-In, First-Out (FIFO) basis.
 (a) 1991 Restatement
 1991 results have been restated to report coal as a discontinued operation and to restate site restoration expenditures consistent with the presentation adopted in the 1991 Annual Report.
 -0- 4/29/92
 /CONTACT: Gary Sherkey, manager-investor relations of Shell Canada, 403-691-2175/
 (SHC.) CO: Shell Canada Ltd. ST: Alberta IN: OIL SU: ERN


AL -- LA014 -- 4411 04/29/92 13:02 EDT
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