Shell share price: Group completes sale of LPG marketing business in Hong Kong and Macau

Anglo-Dutch oil major continues with disposal programme

Shell share price: Group completes sale of LPG marketing business in Hong Kong and Macau

Royal Dutch Shell (LON:RDSA) has wrapped up the sale of its liquefied petroleum gas (LPG) marketing business in Hong Kong and Macau, the blue-chip group has said. The move comes as the company looks to offload $30 billion of assets to shore up its balance sheet in the wake of BG Group’s acquisition.

Shell’s share price has advanced in London this morning, having added 0.75 percent to 2,494.00p as of 09:57 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,648.09 points, flat in percentage terms.

Shell wraps up sale

Shell announced in an emailed statement today that it had completed the sale of the first phase of its Hong Kong and Macau LPG marketing business to DCC on December 31. The Anglo-Dutch group, however, continues to operate the LPG plant in Hong Kong, which is part of the second phase of the transaction and is subject to conditions including regulatory approvals.

The sale of the entire LPG business in Hong Kong and Macau was announced in April last year for an agreed total transaction value of approximately $150 million. The Anglo-Dutch oil major has been looking to dispose of a string of assets in the wake of its tie-up with BG and yesterday reassured investors that it was on track to complete its massive divestment programme this year, despite suffering a setback in Denmark.

UBS upbeat on oil firms

In a separate development, Proactive Investors reported yesterday that UBS’ analyst Jon Rigby was arguing that integrated oil companies may be entering a ‘sweet spot’.

“The beginning of Shell's reset was painful (but necessary) as the market reacted negatively to the purchase of BG,” the analyst pointed out, adding that the Anglo-Dutch oil major’s recent Management Days had “highlighted the value that this deal has brought,” as well as “the catalyst it represented to wider restructuring of the group which is not fully appreciated by the market, in our view”.

As of 10:09 GMT, Wednesday, 03 January, Royal Dutch Shell Plc 'A' share price is 2,496.00p.

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