Wednesday, 1 July 2015

Shell Refining may embark on asset sale

Shell Refining Company (Federation of Malaya) Bhd is considering a change in business direction and may embark on an asset sale.

Its chairman Iain Lo said on Tuesday the company continued to be bogged down by high debt servicing requirements and it was aware of it; hence it was actively considering all options.

"The current environment of low margins and overcapacity is putting a strain on the company and we are further reviewing our current strategic options. All funding options are also being considered," he said when asked if the company would consider a rights issuance.

He however noted that the more recent uplift in refining margins had given it more time to consider all options.

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