Repsol has finalised the sale of liquefied natural gas (LNG) assets to Shell. Repsol handed over assets in Peru and Trinidad & Tobago to Shell after the relevant authorizations were obtained.
In October 2013, Repsol sold its stake in Bahía Bizkaia Electricidad (BBE) to BP, who exercised a purchase option over the asset.
The combined transactions represent total proceeds for Repsol of US$ 4.3 billion (US$ 4.1 billion from Shell and $0.2 billion from BP). Additionally, the company will shed financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets´ sale was agreed.
The sale, which includes the minority stakes in Atlantic LNG (Trinidad & Tobago), Peru LNG and BBE, as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately US$ 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 US$ 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.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02012014/repsol_sells_lng_assets_to_shell/