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SHELL CANADA LIMITED ANNOUNCES RESULTS

 SHELL CANADA LIMITED ANNOUNCES RESULTS
 CALGARY, Alberta, July 29 /PRNewswire/ -- Shell Canada's (TSE: SCH)


consolidated loss for the first half of 1992 was $7 million or 6 cents per Class "A" Common Share, compared with a loss from continuing operations for the first half of 1991 of $95 million or 84 cents per share. 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 loss would have been $17 million or 15 cents per share. Most of the change between LIFO and FIFO results is attributable to the Oil Products business. The 1991 results reflect the inventory losses incurred when the Oil Products business was unable to recover the cost of high-priced product, purchased before the Arabian Gulf war.
 A loss of $12 million or 11 cents per Class "A" Common Share was recorded for the second quarter of 1992, compared with a loss from continuing operations of $62 million or 55 cents per share for 1991.
 Shell's results reflect the continuation of low commodity prices, weak product demand in a sluggish economy and strong competition, notably in the retail gasoline market. The company has intensified cost management, revenue enhancement and capital asset management activities to improve performance in adverse market conditions. As well, capital and exploration expenditures for 1992 will be reduced by approximately $90 million from the previously announced $835 million level. However, it is now evident that the company will not attain significant progress toward targeted acceptable earnings in 1992.
 Cash flow from continuing operations for the first half of 1992 was $202 million, compared with $110 million for 1991. The increase was attributable to lower losses in 1992.
 Capital and exploration expenditures for the first six months of 1992 were $345 million, compared with $469 million for 1991. 1991 expenditures included the purchase of Gulf Canada Resources' Caroline interest at a cost in excess of $100 million. Resources 1992 expenditures included approximately $150 million for Caroline development, which is expected to be completed by early 1993. Oil Products expenditures of $64 million reflect the ongoing network rationalization and redevelopment.
 Resources earnings increased to $47 million for the first six months of 1992, compared with $38 million for 1991. Significantly reduced operating costs, resulting from cost management activities, have been offset by lower prices for natural gas, crude oil and sulphur. Gains from the sale of assets contributed approximately $20 million after tax to earnings.
 Oil Products first-half loss was reduced in 1992 to $11 million from $90 million in 1991. Continuing poor results reflect ongoing intense competition in weak markets, offset by prudent cost management to reduce operating costs. First-quarter 1991 results were impaired by inventory losses. Earnings in Oil Products are not expected to reach acceptable levels until the Canadian economy shows a significant recovery, industry supply/demand balance is restored and the impact of our present cost reduction and restructuring efforts is more fully realized.
 The $6 million loss recorded by Chemicals is comparable to the first half of 1991. Commodity prices in domestic and international markets remained low as a result of excess world supply.
 Corporate expenses were $37 million for the first six months of 1992, compared with $38 million for 1991. Cost savings and reduced interest expense more than offset the decrease in investment income arising from lower cash balances during the period.
 SHELL CANADA LIMITED AND SUBSIDIARY COMPANIES
 Financial and Operating Highlights
 (unaudited)
 SECOND QUARTER FIRST HALF
 FINANCIAL HIGHLIGHTS 1992 1991 1992 1991
 ($ millions) (restated)(A) (restated)(A)
 Revenues 1,051 1,150 2,044 2,450
 Cash flow from
 continuing operations 76 33 202 110
 Cash from
 operating activities 90 311 229 358
 Loss from
 continuing operations (12) (62) (7) (95)
 Loss (12) (184) (7) (219)
 Per Class "A" Common Share (dollars)
 Loss from cont. operations (0.11) (0.55) (0.06) (0.84)
 Loss (0.11) (1.64) (0.06) (1.95)
 RESULTS BY SEGMENT
 Revenues (excluding inter-segment sales)
 Resources 125 143 268 300
 Oil Products 779 839 1,494 1,790
 Chemicals 145 157 279 337
 Corporate 2 11 3 23
 Total 1,051 1,150 2,044 2,450
 Earnings
 Resources 32 2 47 38
 Oil Products (20) (34) (11) (90)
 Chemicals (5) (8) (6) (5)
 Corporate (19) (22) (37) (38)
 Total (12) (62) (7) (95)
 Capital and
 exploration expenditures
 Resources 112 262 275 352
 Oil Products 29 69 64 105
 Chemicals 2 1 3 2
 Corporate 2 3 3 10
 Total 145 335 345 469
 SECOND QUARTER FIRST HALF
 OPERATING HIGHLIGHTS 1992 CHANGE 1992 CHANGE
 (Percent) (Percent)
 Crude oil and natural gas
 liquids produced - gross
 (m3/d) 9,354 -4 10,000 -3
 Natural gas sales from own
 production - gross
 (thousands of m3/d) 17,200 -3 18,800 -4
 Sulphur produced - gross
 (tonnes/d) 3,296 +7 3,475 -1
 Sulphur sales from own
 production - gross
 (tonnes/d) 4,939 -16 4,528 +22
 Crude oil processed by
 Shell refineries
 (m3/d) 35,500 -6 38,700 -1
 Petroleum product sales
 (m3/d) 35,300 -2 33,900 -5
 Chemical sales
 (tonnes/d) 2,668 +1 2,596 +1
 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 site restoration expenditures consistent with the presentation adopted in the 1991 Annual Report.
 -0- 7/29/92
 /CONTACT: Gary Sherkey of Shell Canada Limited, 403-691-2175/
 (SHC) CO: Shell Canada Limited ST: Alberta IN: OIL SU: ERN


SH -- NY011 -- 4443 07/29/92 09:06 EDT
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