SHELL CANADA <SHC.TO> SEES BETTER YEAR
Shell Canada Ltd said
performance in all business segments in the first quarter
showed improvement over last year and it expects "significantly
enhanced performance" in 1987.
    Shell Canada reported first quarter earnings of 103 mln
dlrs, or 90 cts per share, up from 40 mln dlrs, or 32 cts per
share.
    Oil products earnings were 38 mln dlrs, up 19 mln dlrs from
last year, when margins were impaired by lower oil prices.
    Shell Canada said chemical earnings were 17 mln dlrs in the
quarter, compared with a loss of five mln dlrs in 1986. The
styrene business saw significant improvement, stemming from an
increase in international demand.
    Resources earnings increased by six mln dlrs to 46 mln
dlrs. Lower prices for all commodities were offset by the
removal of the Petroleum and Gas Revenue Tax, the impact of
lower royalty rates and higher volumes.
    Gross production of crude oil and natural gas liquids
increased seven pct from the first quarter of last year to
11,200 cubic meters a day, Shell said.
    Shell Canada also said natural gas sales volumes of 19.6
mln cubic meters a day was up five pct from last year.
    Sulphur sales of 4,143 tonnes a day were up 70 pct.
    The company also recorded benefits of 10 mln dlrs from the
acquisition of Shell Explorer Ltd. Interest expense for the
quarter was lower than in the previous year, due to the early
retirement of a 200 mln U.S. dlr debenture and the impact of a
stronger Canadian dollar on U.S. dollar-denominated debt.
 Reuter
