KUALA LUMPUR (Jan 9): Shell Refining Company (FOM) Bhd said it is proactively investigating long-term options for the company, which include the potential sale of assets or conversion of operations to a storage terminal, as it expects refining margins to remain depressed.
“Given the poor margin environment, the board is proactively investigating long-term options in the best interest of the company. These will include, but are not limited to, the potential sale of the assets, or conversion of operations to a storage terminal and/or other viable options,” it said in a filing with Bursa Malaysia today.
The company said its board has completed the structured review of the company’s resilience in the current poor margin environment, as announced in September 2014. “The board has concluded that refining margins are expected to remain depressed, due to overcapacity in the global refining industry,” it said.
It said the focus near-term is to secure and sustain the safe and reliable operation of the refinery, while long-term options are being pursued.
“Once the final option has been selected, the company will seek the necessary approval from shareholders, in compliance with regulatory requirements,” it added, citing further details on the selected option shall be disclosed in due course.
Shell Refining closed 15 sen or 3.11% higher at RM4.98 today, with a market capitalisation of RM1.45 billion.