The Wall Street Journal: Shell Canada Achieves Record Quarterly Earnings

DOW JONES NEWSWIRES

April 22, 2004 1:11 p.m.

CALGARY -- Shell Canada Ltd. (SHC.T) recorded record first-quarter earnings, largely due to the positive contribution from the Athabasca Oil Sands Project, which was in start-up mode in the year-earlier period.

In a news release, the integrated oil and gas company said first-quarter net was C$368 million or C$1.34 a share, up from C$213 million or 77 Canadian cents a share a year earlier.

The company said first-quarter earnings also include a one-time gain of C$25 million from a future income tax revaluation following Alberta income tax changes.

The Thomson First Call mean estimate was for first-quarter net of C$1.04 a share.

Shell Canada said cash flow for the quarter was another record, at C$552 million, up from C$414 million a year earlier.

Revenues for the quarter were C$2.51 billion versus C$2.46 billion.

Capital and exploration expenditures were C$150 million in the quarter, compared with C$196 million a year earlier.

The company said positive earnings from Oil Sands, and strong commodity prices and refining margins contributed to the quarter's record earnings and cash flow.

Company Web Site: http://www.shell.ca

Shell Canada Ltd. (SHC.T) said oil sands achieved first-quarter earnings of C$96 million, compared with a loss of C$105 million a year earlier when the Athabasca Oil Sands Project was in start-up mode. It noted that earnings for the first quarter of 2004 include C$19 million related to an insurance settlement and a one-time gain of C$10 million from revaluation of future income taxes.

Shell Canada said oil sands production reached new daily and weekly highs. First-quarter 2004 production was 135,900 barrels a day (81,600 Shell 's share) of bitumen, 88% of the 155,000 barrels a day design rate.

Shell

 Canada Ltd. - Calgary

       1st Quar March 31:

       All figures in Canadian dollars

                         2004                2003

Revenues         C$2,514,000,000     C$2,457,000,000

Net income           368,000,000         213,000,000

Cash flow            552,000,000         414,000,000

Shr earns

 Net income                 1.33                 .77

 Cash flow                   n/a                 n/a

Basic net earnings were C$1.34 a share versus 77 Canadian cents.

Judy McKinnon, Dow Jones Newswires; 416-306-2100

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