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SHELL CANADA LTD. ANNNOUNCES 1991 ANNUAL REPORT

 SHELL CANADA LTD. ANNNOUNCES 1991 ANNUAL REPORT
 CALGARY, Alberta, March 25 /PRNewswire/ -- Shell Canada Ltd.'s


(Toronto, Montreal: SHC) earnings and profitability are expected to improve significantly in 1992 and beyond, J.M. MacLeod, president and chief executive officer, says in the company's 1991 annual report released today.
 MacLeod noted that by the end of 1992, Shell will be operating with some 1,200 fewer full-time employees and with the benefit of some $160 million in cost improvements annually, compared with the end of 1990. The magnitude of restructuring benefits will increase over the next few years, he says.
 Shell does not expect any sustained improvement in the real price of crude oil for several years. The company expects a modest decrease in natural gas prices and a significantly lower sulphur price in 1992, followed by several years of flat real prices for these commodities, as well as a continuing strong dollar.
 Offsetting these factors, the company does expect modest economic growth to resume in 1992. This should relieve some of the competitive pressure on domestic oil products markets and signal commencement of an upturn in international chemicals markets.
 The company plans capital and exploration expenditures of about $835 million in 1992. This is a decrease of $153 million from the 1991 level. Some $590 million is allocated to resources, $215 million to oil products, $10 million to chemicals and $20 million to corporate departments. Within resources, $420 million is for natural gas exploration and development, including $265 million for continuing construction of the Caroline project. Allocations for oil exploration and development projects and acquisition of producing properties total $70 million and $100 million, respectively. The oil products segment will invest $140 million in retail and commercial facilities related to market restructuring and will allocate $60 million to projects that will improve operating, environmental and safety performance.
 The company underperformed in 1991, as did the petroleum and petrochemical industries in general, MacLeod says. As reported earlier, Shell's consolidated earnings from continuing operations were $12 million and return on average capital employed 1.5 percent. The comparable results for 1990 were $317 million and 7.6 percent.
 Performance was impaired by significantly reduced prices for resources commodities, weak chemicals commodities markets, intensely competitive oil products markets driven primarily by the recession, and of greatest significance, the inability to fully recover high product inventory costs in those weak markets.
 Cost reductions, proceeds from asset sales and sales increases for oil and chemical products, natural gas and natural gas liquids contributed positively to 1991 results.
 -0- 3/25/92
 /CONTACT: Gary Sherkey (investors) of Shell Canada Ltd., 403-691-2175/
 (SHC.) CO: Shell Canada Ltd. ST: Alberta IN: OIL SU:


AL -- LA025 -- 1658 03/25/92 16:22 EST
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Date:Mar 25, 1992
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