MIRA INFORM REPORT

Report Date :

17.06.2008

IDENTIFICATION DETAILS

Name :	SHELL EASTERN PETROLEUM (PTE) LTD
Registered Office :	83 Clemenceau Avenue #04-00 Shell House, 239920
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^02.08.1960
Com. Reg. No.:	^196000089G
Legal Form :	^Pte Ltd
Line of Business :	Manufacturer and Marketer of a Complete Range of Petroleum Products including Gasoline, Lubricants and Bitumen

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Exists

Subject Company

SHELL EASTERN PETROLEUM (PTE) LTD

Line Of Business 

MANUFACTURER AND MARKETER OF A COMPLETE RANGE OF PETROLEUM

PRODUCTS INCLUDING GASOLINE, LUBRICANTS AND BITUMEN

Parent Company

SHELL PETROLEUM N. V.

(PERCENTAGE OF SHAREHOLDING: 98.30%)

Financial Elements

FY 2006

COMPANY

Sales : US$ 12,439,511,000

Networth : US$ 3,561,460,000

Paid-Up Capital : US$ 1,791,994,000

Net result : US$ 1,083,057,000

Net Margin(%) : 8.71

Return on Equity(%) : 30.41

Leverage Ratio : 0.73

COMPANY IDENTIFICATION

^{Subject Company : SHELL EASTERN PETROLEUM (PTE) LTD}

^{Former Name : SHELL EASTERN PETROLEUM (PTE.) LTD}

^{Business Address: 83 CLEMENCEAU AVENUE}

^{#04-00 SHELL HOUSE}

^{Town : SINGAPORE}

^{Postcode : 239920}

^{County : -}

^{Country : Singapore}

^{Telephone : 6384 8000}

^{Fax : 6384 8525}

^{ROC Number : 196000089G}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{SHELL EASTERN PETROLEUM (PTE.) LTD}

^{DATE OF CHANGE OF NAME: 09/05/1994}

SUMMARY

^{All amounts in this report are in: USD unless otherwise stated}

^{Legal Form : Pte Ltd}

^{Date Inc .: 02/08/1960}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 12,439,511,000}

^{Networth : 3,561,460,000}

^{Capital : -}

^{Paid-Up Capital : 1,791,994,000}

^{Employees : 1,380}

^{Net result : 1,083,057,000}

^{Share value : -}

^{AUDITOR: PRICEWATERHOUSECOOPERS}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 122,760,552 USD 1,227,605,520.00}

^{ISSUED PREFERENCE 25,915,905 USD 259,159,020.00}

^{PAID-UP ORDINARY - USD 1,227,605,520.00}

^{PAID-UP PREFERENCE - USD 259,159,020.00}

REFERENCES

^{Litigation : Yes}

^{Company status : TRADING}

^{Started : 02/08/1960}

PRINCIPAL(S)

^{LEE TZU YANG S0163771A Director}

DIRECTOR(S)

^{LEE TZU YANG S0163771A Director}

^{Appointed on : 27/07/2000}

^{Street : 1 ASCOT RISE}

^{Town: SINGAPORE}

^{Postcode: 289813}

^{Country: Singapore}

^{LALITA RAGBIR SINGH BAJWA S2005920F Company Secretary}

^{Appointed on : 01/07/1999}

^{Street : 86 BEDOK RIA CRESCENT}

^{Town: SINGAPORE}

^{Postcode: 489902}

^{Country: Singapore}

^{HO TZIN WEN S6841430Z Company Secretary}

^{Appointed on : 16/01/2006}

^{Street : 42 JALAN AMPANG}

^{Town: SINGAPORE}

^{Postcode: 268628}

^{Country: Singapore}

^{IAIN JOHN LO K18456947 Director}

^{Appointed on : 01/10/2006}

^{Street : 458 HOLLAND ROAD}

^{BAN GUAN PARK}

^{Town: SINGAPORE}

^{Postcode: 278648}

^{Country: Singapore}

^{MARTIN ARJEN VAN KOTEN NJ9047310 Director}

^{Appointed on : 01/10/2006}

^{Street : 57 HOLLAND GREEN}

^{HOLLAND GREEN}

^{Town: SINGAPORE}

^{Postcode: 276174}

^{Country: Singapore}

^{LIM JU MENG CHRISTOPHER S1250646E Director}

^{Appointed on : 16/10/2006}

^{Street : 43 HYTHE ROAD}

^{SERANGOON GARDEN ESTATE}

^{Town: SINGAPORE}

^{Postcode: 557524}

^{Country: Singapore}

^{SOH YEW CHIN KENNETH S1821437G Director}

^{Appointed on : 18/08/2006}

^{Street : 90 TANGLIN ROAD}

^#27-322

^{Town: SINGAPORE}

^{Postcode: 141090}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{TAN TECK LEE ALOYSIUS S0047654D}

^{HO CHENG KWEE S0143497G}

^{LIM NGEOK YUEN S0160145H}

^{CHAN YORK LEE JOHNNIE S0336467D}

^{CHIA PING KHEONG S0349090D}

^{CHIU KUO KWONG S0889452C}

^{TAN ENG HIN RAYMOND S1116475G}

^{LAM CHUN KAI SIMON S1149034D}

^{FOK JUN HENG S1406662D}

^{PNG WEI CHING DEBORAH S1728444D}

^{MANICKAM SARAVANAMUTHU S1852592E}

^{TONG KOK PAU S1853008B}

^{CHEONG LEONG SENG S1285760H}

^{GEORGE ALLISTER LEFROY E7034097}

^{CHONG KENG CHEEN S1337400G}

^{RICHARD GLYN FORBES HALLIDAY 500084962}

^{REINIER WILLEMS Z01243192}

^{TOM DE JONG BA0015610}

^{TAN EK KIA K10717942}

^{ANDREW JAMES SMITH E1029811}

^{LEE PAK KHENG S0114186D}

ACTIVITY(IES)

^{PETROLEUM PRODUCTS Code: 16350}

^{IMPORTERS And EXPORTERS Code: 11760}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURE OF OTHER REFINED PETROLEUM PRODUCTS}

^{2) OTHER SUPPORT ACTIVITIES; TRADING & MARKETING OF PETROLEUM, PETROL}

CHARGES

^{No Charges On Premise/Property In Our Database}

PREMISES/PROPERTY INFORMATIONS

^{Date: 15/02/2007 Tax rate: 10}

^{Site Address : 61 SERAYA AVENUE}

^{Town: SINGAPORE Postcode: 627879}

^{Country: Singapore}

^{Annual Value: 17,587,000}

^{Date: 15/02/2007 Tax rate: 10}

^{Site Address : 31 PANDAN ROAD}

^{Town: SINGAPORE Postcode: 609278}

^{Country: Singapore}

^{Annual Value: 2,705,000}

*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY

RENTED OUT BY THE OWNER/OWNED BY COMPANY.

*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE

TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED

OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE

PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

ASSOCIATED COMPANY(IES)

^{THE POLYOLEFIN COMPANY (SINGAPORE)}

^Singapore

^{CHANGI AIRPORT FUEL HYDRANT}

^Singapore

^{INFINEUM SINGAPORE PTE. LTD.}

^Singapore

^{PETROCHEMICAL CORPORATION OF}

^Singapore

SHAREHOLDERS(S)

^{SHELL PETROLEUM N. V. 146,204,454 Company}

^{Street : P O BOX 162 2501}

^{AN THE HAGUE NETHERLANDS}

^{Town: NETHERLANDS}

^{Postcode: -}

^{Country: Netherlands}

^{NEDERLANDSE INTERNATIONALE 2,472,000 Company}

^{Street : P O BOX 162 2501}

^{AN THE HAGUE}

^NETHERLANDS

^{Town: NETHERLANDS}

^{Postcode: -}

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{ASIATIC PETROLEUM CO LTD THE 2}

^{SHELL OVERSEAS HOLDINGS LTD 2,472,000}

HOLDING COMPANY

^{SHELL PETROLEUM N. V. UF04299G % : 98.30}

SUBSIDIARY(IES)

^{SHELL CHEMICALS SERAYA PTE. LTD.}

Singapore

^{SHELL SINGAPORE TRUSTEES PTE LTD}

Singapore

^{SHELL TREASURY CENTRE EAST PTE LTD}

Singapore

^{SHELL SERAYA PIONEER (PTE) LTD}

Singapore

^{SHELL INTERNATIONAL SHIPPING SERVICES (PTE) LTD}

Singapore

^{SHELL INFORMATION TECHNOLOGY INTERNATIONAL PTE LTD}

Singapore

^{SHELL TANKERS (SINGAPORE) PRIVATE LIMITED}

Singapore

^{SHELL EASTERN TRADING (PTE) LTD}

Singapore

^{SHELL INTERNATIONAL TRADING MIDDLE EAST LIMITED}

^Bermuda

^{ETHYLENE GLYCOLS (SINGAPORE) PTE LTD}

Singapore

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : DOWNWARD}

^{Financial Situation : GOOD}

LITIGATION(S)

^{Type Of Case: District Court - W/S}

^{Case Number: DCS00497/2007}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS030029/2006}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS002664/2006}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS002663/2006}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS002657/2006}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS016969/2006}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS11627/2005}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: High Court - W/S}

^{Case Number: HWS00118/97}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS05048/2003}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS03735/2003}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS42107/2003}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS26028/2003}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: High Court - W/S}

^{Case Number: HWS00689/2003}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS01328/2002}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS39105/2002}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: District Court - W/S}

^{Case Number: DCS03852/2001}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS39137/2001}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS09678/2000}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS04203/1999}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS15619/1998}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS19474/1997}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS12210/1997}

Defendant SHELL EASTERN PETROLEUM (PTE) LTD ROC # : 196000089G

FINANCIAL ELEMENTS

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 25/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 2,499,000 2,511,000 3,038,000}

^{Tangible Fixed Assets: 980,947,000 835,194,000 821,951,000}

^{Investments 2,836,267,000 2,826,514,000 2,826,514,000}

^{Total Fixed Assets: 3,819,713,000 3,664,219,000 3,651,503,000}

^{Inventories: 896,417,000 837,290,000 602,515,000}

^{Receivables: 1,091,233,000 831,803,000 781,630,000}

^{Cash,Banks, Securitis: 1,702,000 3,815,000 1,982,000}

^{Other current assets: 342,521,000 376,584,000 604,466,000}

^{Total Current Assets: 2,331,873,000 2,049,492,000 1,990,593,000}

^{TOTAL ASSETS: 6,151,586,000 5,713,711,000 5,642,096,000}

^{--- LIABILITIES ---}

^{Equity capital: 1,791,994,000 1,791,994,000 1,486,764,000}

^{Reserves: 526,189,000 518,439,000 511,154,000}

^{Reeval. Reserves: - 144,484,000 144,484,000}

^{Profit & loss Account: 1,243,277,000 1,180,599,000 1,003,624,000}

^{Surplus equity: - - 305,230,000}

^{Total Equity: 3,561,460,000 3,635,516,000 3,451,256,000}

^{Long Term Loans: 55,000,000 122,000,000 286,000,000}

^{Reserve for pensions: 8,054,000 16,066,000 17,103,000}

^{L/T deffered taxes: 217,665,000 213,299,000 230,829,000}

^{Other long term Liab.: 98,458,000 147,238,000 161,446,000}

^{Total L/T Liabilities: 379,177,000 498,603,000 695,378,000}

^{Trade Creditors: 909,639,000 581,593,000 663,783,000}

^{Prepay. & Def. charges: 92,145,000 45,652,000 42,627,000}

^{Due to Bank: 105,000 551,000 1,058,000}

^{Provisions: 106,269,000 242,984,000 52,677,000}

^{Other Short term Liab.: 1,102,791,000 709,451,000 735,317,000}

^{Total short term Liab.: 2,210,949,000 1,580,231,000 1,495,462,000}

^{TOTAL LIABILITIES: 2,590,126,000 2,078,834,000 2,190,840,000}

^{--- PROFIT & LOSS ACCOUNT ---}

^{Net Sales 12,439,511,000 10,967,974,000 8,001,569,000}

^{NET RESULT BEFORE TAX: 1,173,899,000 1,323,834,000 741,357,000}

^{Tax : 90,842,000 185,271,000 86,220,000}

^{Net income/loss year: 1,083,057,000 1,138,563,000 655,137,000}

^{Interest Paid: 26,094,000 11,895,000 12,378,000}

^{Depreciation: 91,030,000 88,229,000 83,305,000}

^{Dividends: 1,164,863,000 957,552,000 889,760,000}

^{Directors Emoluments: 3,388,000 2,589,000 -}

^{Wages and Salaries: 100,994,000 94,871,000 83,256,000}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per employee: 9014138.41 7947807.25 5798238.41}

^{Net result / Turnover(%): 0.09 0.10 0.08}

^{Stock / Turnover(%): 0.07 0.08 0.08}

^{Net Margin(%): 8.71 10.38 8.19}

^{Return on Equity(%): 30.41 31.32 18.98}

^{Return on Assets(%): 17.61 19.93 11.61}

^{Dividends Coverage: 0.93 1.19 0.74}

^{Net Working capital: 120924000.00 469261000.00 495131000.00}

^{Quick Ratio: 0.49 0.53 0.52}

^{Current ratio: 1.05 1.30 1.33}

^{Receivables Turnover: 31.58 27.30 35.17}

^{Leverage Ratio: 0.73 0.57 0.63}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets - Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities + Receivables)/Total Short term Liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 02/08/1960 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "SHELL EASTERN PETROLEUM (PTE.) LIMITED".}

^{SUBSEQUENTLY ON 09/05/1994, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE AS "SHELL EASTERN PETROLEUM (PTE) LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 122,760,552 ORDINARY SHARES, OF A VALUE OF USD1,227,605,520, AND 25,915,902 PREFERENCE SHARES, OF A VALUE OF USD259,159,020.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY}

^{AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) MANUFACTURE OF OTHER REFINED PETROLEUM PRODUCTS}

^{2) OTHER SUPPORT ACTIVITIES; TRADING & MARKETING OF PETROLEUM, PETROL}

^{CHEMICALS AND ALLIED PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF}

^{THE COMPANY CONSISTS OF:}

^{1) REFINING, MANUFACTURING AND BLENDING OF PETROLEUM AND PETROCHEMICAL}

^PRODUCTS

^{2) TRADING AND MARKETING OF PETROLEUM, PETROCHEMICAL AND ALLIED}

^PRODUCTS

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF SHELL GROUP:}

^{SHELL IS A GLOBAL GROUP OF OIL, GAS AND PETROCHEMICAL COMPANIES WITH A BROAD PORTFOLIO OF HYDROGEN, BIOFUELS, WIND AND SOLAR POWER INTERESTS}

^{BACKGROUND OF SHELL IN SINGAPORE:}

^{SHELL WAS ESTABLISHED IN SINGAPORE MORE THAN A CENTURY AGO IN 1891. SINCE THEN, SHELL, WHICH EMPLOYS ABOUT 2000 STAFF, HAS BECOME ONE OF SINGAPORE'S LARGEST FOREIGN INVESTORS. ASSETS HELD BY SHELL COMPANIES IN SINGAPORE** IN PETROLEUM, PETROCHEMICALS AND OTHER ACTIVITIES ARE IN EXCESS OF US$6 BILLION. TOTAL PETROCHEMICALS INVESTMENTS ALONE AMOUNT TO US$2.5 BILLION.}

^{SHELL'S LONG-STANDING RELATIONSHIP WITH SINGAPORE INCLUDES THE SETTING UP OF SINGAPORE'S FIRST OIL REFINERY FOR WHICH THE COMPANY WAS AWARDED "PIONEER CERTIFICATE NO. 1" BY THE SINGAPORE GOVERNMENT IN 1961. ON ITS CENTENARY IN 1991, SHELL RECEIVED SINGAPORE'S FIRST "DISTINGUISHED PARTNER IN PROGRESS" AWARD IN RECOGNITION OF ITS CONTRIBUTIONS TO SINGAPORE.}

^{IN SEPTEMBER 2000, SHELL WAS AWARDED THE PRESTIGIOUS ONE-TIME MILLENNIUM TRADE AWARD IN RECOGNITION OF THE COMPANY'S SIGNIFICANT CONTRIBUTION TO THE NATION'S INTERNATIONAL TRADE DEVELOPMENT OVER THE YEARS.}

^{SHELL'S 500,000 BARRELS-PER-DAY BUKOM REFINERY IS TODAY THE LARGEST SHELL REFINERY IN THE WORLD IN TERMS OF CRUDE DISTILLATION CAPACITY, MAKING SINGAPORE A KEY REGIONAL SUPPLY AND TRADING CENTRE FOR THE GROUP IN THE EAST. SOME 90 PERCENT OF BUKOM'S PRODUCTS ARE EXPORTED TO COUNTRIES IN THE REGION AND BEYOND.}

^{IN 1998, THE BUKOM REFINERY BECAME THE FIRST REFINERY IN SOUTHEAST ASIA TO RECEIVE ISO 14001 CERTIFICATION, UNDERLINING THE STRONG EMPHASIS WHICH SHELL PLACES ON ENVIRONMENTAL CARE AND RESPONSIBILITY. IN 2002, BUKOM WAS ALSO RECOGNISED FOR ITS OCCUPATIONAL HEALTH AND SAFETY ACHIEVEMENTS AND EFFORTS WHEN IT WAS AWARDED OHSAS 18001 CERTIFICATION. MORE RECENTLY, IN 2005, BUKOM RECIEVED ISO 9001:2000 CERTIFICATION FOR ITS REFINERY QUALITY MANAGEMENT SYSTEM.}

^{THE LARGEST SINGLE-BRANDED RETAIL NETWORK, PROVIDING CUSTOMERS WITH A WIDE RANGE OF QUALITY PRODUCTS AND SERVICES. SINCE 1998, SHELL HAS BEEN THE ONLY RETAIL NETWORK TO OFFER FOUR SUPERIOR GRADES OF PETROL PRODUCTS AS WELL AS DIESEL.}

^{SHELL'S LARGEST PETROCHEMICAL PRODUCTION AND EXPORT CENTRE IN THE ASIA PACIFIC REGION. SHELL'S INVESTMENTS IN THE SINGAPORE PETROCHEMICALS INDUSTRY INCLUDE A POLYOLS PLANT, A JOINT-VENTURE STYRENE MONOMER AND PROPYLENE OXIDE PLANT, AND OTHER JOINT VENTURES.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* MANUFACTURER AND MARKETER OF A COMPLETE RANGE OF PETROLEUM PRODUCTS}

^{INCLUDING GASOLINE, LUBRICANTS AND BITUMEN FOR INDUSTRIAL,}

^{AUTOMOTIVE, AVIATION AND MARINE USES.}

^{PRODUCTS DEALINGS:}

^{* INDUSTRIAL LUBRICANTS}

^{* SHELL HYDRAULIC OILS}

^{* SHELL TACTIC EMV}

^{* SHELL MORLINA}

^{* SHELL OMALA}

^{* SHELL CASSIDA}

^{* SHELL CORENA}

^{* SHELL CLAVUS}

^{INDUSTRIES SERVED:}

^{INDUSTRIAL CUSTOMERS}

^{* FOOD}

^{* POWER}

^{* GENERAL MANUFACTURING}

^{* STEEL}

^TRANSPORT

^{* FLEET}

^{* OWNER DRIVER}

^{* BUS & COACH}

^{* RAILROAD}

^{* CONSTRUCTION}

^{OTHER INDUSTRIES}

^{* BITUMEN}

^{* AVIATION}

^{* CHEMCALS}

^{* MARINE PRODUCTS}

^{* GAS & POWER}

^{* LIQUIFIED PETROLEUM GAG (LPG)}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{* AUSTRALIAN CHAMBER OF COMMERCE}

^{* SINGAPORE SHIPPING ASSOCIATION}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006/5: NOT AVAILABLE (2004: 1,380; 2003: 1,343;}

^{2002: 1,311)}

^{THE IMMEDIATE HOLDING CORPORATION IS SHELL PETROLEUM N.V.,}

^{INCORPORATED IN THE NETHERLANDS. THE ULTIMATE HOLDING CORPORATION IS}

^{ROYAL DUTCH SHELL P.L.C., INCORPORATED IN THE UNITED KINGDOM.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{83 CLEMENCEAU AVENUE}

^#04-00

^{SHELL HOUSE}

^{SINGAPORE 239920}

^{DATE OF CHANGE OF ADDRESS: 11/03/1998}

^{OTHER BUSINESS ADDRESS:}

^{31 PANDAN ROAD}

^{SHELL MARKETING CENTRE}

^{SINGAPORE 609278}

^{- OWNED PREMISE}

^{MAILING ADDRESS:}

^{ROBINSON ROAD POST OFFICE}

^{PO BOX 23 SINGAPORE 900023}

^{YOUR PROVIDED CONTACT NUMBERS:}

^{TEL: 6384 8721}

^{FAX: 6384 8232}

^{- CANNOT BE CONFIRMED}

^WEBSITE:

^{http://www.shell.com.sg}

^EMAIL:

^{shell-servicecentre@shell.com}

^{tell-shell@shell.com.sg}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1) PIETER LOUIS EIJSBERG, A DUTCH}

^{- BASED IN SINGAPORE.}

^{2) MARTIN ARJEN VAN KOTEN, A DUTCH}

^{- BASED IN SINGAPO0RE.}

^{3) LEE TZU YANG, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{SHELL SOLAR PTE. LTD.}

^{SHELL EASTERN TRADING (PTE) LTD}

^{SHELL GLOBAL SOLUTIONS (MALAYSIA) SDN BHD}

^{4) LIM JU MENG CHRISTOPHER, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{CRI/CRITERION MARKETING ASIA PACIFIC PTE LTD}

^{5) SOH YEW CHIN KENNETH, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

MANUFACTURING SECTOR

PAST PERFORMANCE

THE MANUFACTURING SECTOR ROSE BY 0.2% IN 4Q 2007, SLOWER THAN THE 11.0% IN 3Q 2007. THE SMALL GROWTH WAS ATTRIBUTED TO A 28.0% CONTRACTION IN THE BIOMEDICAL MANUFACTURING CLUSTER. ON THE OTHER HAND, ELECTRONICS, CHEMICALS, PRECISION ENGINEERING AND TRANSPORT ENGINEERING CLUSTER PERFORMED BETTER. THE GENERAL MANUFACTURING INDUSTRIES CLUSTER SAW A MORE MODERATE PERFORMANCE.

OVERALL, THE MANUFACTURING SECTOR POSTED A 5.8% GROWTH IN 2007, DOWN FROM 12.0% IN 2006. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO GROW AT A ROBUST PACE WHILE THE ELECTRONICS, CHEMICALS AND GENERAL MANUFACTURING INDUSTRIES CLUSTERS REGISTERED MORE MODEST INCREASES. HOWEVER, THE BIOMEDICAL MANUFACTURING CLUSTER RECORDED A MARGINAL DECLINE.

THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO RECORD STRONG GROWTH OF 24.0% IN 2007 COMPARED TO 32.0% IN 2006. WITHIN THE SECTOR, THE MARINE AND OFFSHORE ENGINEERING SEGMENT GREW SUBSTANTIALLY BY 32.0% AS CONTRACTS INCREASED FOR SHIP BUILDING, SHIP CONVERSION, SHIP REPAIRING AND OIL RIG FABRICATION. THE AEROSPACE SEGMENT GREW BY 9.6% WHICH IS ATTRIBUTED TO A HIGHER VOLUME IN REPAIRS OF COMMERCIAL AIRCRAFT FUELLED BY THE BOOM IN LOW COST AIR TRAVEL. THE LAND TRANSPORT SEGMENT GREW 19.0% ON THE BACK OF HIGHER EXPORT ORDERS.

THE ELECTRONICS CLUSTER ROSE BY 4.0%, DOWN FROM 4.5% IN 2006. THE PRODUCTION OF

SEMICONDUCTORS GREW 16.0% WITH INCREASED PRODUCTION OF AND FLASH AND DRAMS WHILE THE PRODUCTION OF ELECTRONIC MODULES AND COMPONENTS GREW 7.0% AS COMPARED TO 2006.

ON THE OTHER HAND, LOWER OUTPUT WERE SEEN IN THE COMPUTER PERIPHERALS (-20.0%), INFOCOMMS AND CONSUMER ELECTRONICS (-7.7%) AND DATA STORAGE SEGMENTS (-1.6%). THE DECLINE IN THE DATA STORAGE SEGMENT MODERATED AS THE HIGHER OUTPUT OF DISK MEDIA OFFSET THE FALL IN DISK DRIVES PRODUCTION.

THE CHEMICALS CLUSTER EXPANDED BY 3.3% IN 2007, HIGHER THAN THE 1.7% IN 2006. THE PETROCHEMICALS AND SPECIALTY CHEMICALS SEGMENT ROSE BY 5.4% AND 6.5% RESPECTIVELY.

HOWEVER, THESE EXPANSIONS WERE MODERATED BY A 0.2% DIP IN OUTPUT OF REFINED PETROLEUM PRODUCTS, DUE TO SOME REFINERY PLANT MAINTENANCE SHUTDOWNS DURING THE YEAR.

THE PRECISION ENGINEERING CLUSTER REGISTERED FLAT OUTPUT GROWTH IN 2007. THE 6.5% GROWTH IN THE MACHINERY AND SYSTEMS SEGMENT WAS OFFSET BY A 4.3% DECLINE IN THE PRECISION MODULES AND COMPONENTS SEGMENT. PRODUCTION OF PRECISION COMPONENTS, SPRINGS, METAL STAMPINGS, DIES AND MOULDS FELL WHILE OUTPUT OF MACHINERY – SUCH AS HOISTS, LIFTING MACHINERY, REFRIGERATING MACHINERY, INDUSTRIAL PROCESS CONTROL EQUIPMENT, SWITCHGEAR AND SWITCHBOARDS ROSE.

THE BIOMEDICAL MANUFACTURING CLUSTER FELL BY 0.6%. ALTHOUGH THE MEDICAL TECHNOLOGY SEGMENT ROSE 15.0%, THE CLUSTER WAS DRAGGED DOWN BY A 2.5% DECLINE IN THE PHARMACEUTICALS SEGMENT. PLANT MAINTENANCE SHUTDOWNS AND CHANGES IN PRODUCT MIX RESULTED IN A SIGNIFICANT DECLINE IN ACTIVE PHARMACEUTICAL INGREDIENTS PRODUCTION IN 4Q 2007.

THE GENERAL MANUFACTURING INDUSTRIES GREW BY 6.3%, SIMILAR TO 2006. THE FOOD, BEVERAGES AND TOBACCO SEGMENT REGISTERED A STRONG 11% INCREASE IN OUTPUT, WHILE THE PRINTING SEGMENT GREW BY A MORE MODEST 2.4% OVER THE YEAR.

NEWS

SINGAPORE DRAWS S$3 BILLION OF MANUFACTURING INVESTMENTS

DESPITE CURRENT GLOBAL ECONOMIC JITTERS, INVESTMENT INFLOWS HERE REMAIN STRONG. IN THE FIRST FEW MONTHS OF 2008, SINGAPORE HAS ALREADY ATTRACTED MORE THAN S$3 BILLION OF MANUFACTURING INVESTMENTS.

ADDING A WHIFF OF FRESH AIR TO THE LIFESTYLE PRODUCTS AND SERVICES AREA – ANOTHER NEW CLUSTER SINGAPORE IS TRYING TO GROW – US CONSUMER GOODS GIANT PROCTER & GAMBLE HAS JUST OPENED ITS FIRST PERFUME PLANT IN ASIA AT TUAS, WHERE IT IS CAPITALISING ON THE HEIGHTENED “NOSES” OF ITS SINGAPORE TALENT TO HELP TAILOR-MAKE “ASIANISED” PRODUCTS.

EDB MANAGING DIRECTOR KO KHENG HWA SAID THAT SOME OF THE PROJECTS INJECT NEW CAPABILITIES AND STRENGTHEN THEIR EXISTING CLUSTERS – SUCH AS ROLLS-ROYCE’S AIRCRAFT ENGINE MANUFACTURING FACILITY, P&G’S SPECIALTY PERFUME PLANT AND LANXESS’S ADVANCED RUBBER FACILITY. OTHERS BUILD NEW GROWTH ENGINES FOR THE FUTURE – SUCH AS NORSUN’S HIGH-END SOLAR WAFER PLANT, UBISOFT’S 300-STRONG GAMES DEVELOPMENT STUDIO AND NESTE OIL’S NEXT-GENERATION BIODIESEL PLANT. THE NEW GROWTH SECTORS WILL ALSO DIVERSIFY SINGAPORE’S INDUSTRIAL BASE AND INCREASE SINGAPORE’S RESILIENCY TO WEATHER BUSINESS CYCLES.

LOOKING AHEAD, MR KO SAID THAT EDB IS ALSO MOUNTING A NEW INITIATIVE CALLED “FUTURE.SINGAPORE” TO BUILD ACTIVITY WITHIN SELECTED BUSINESS THEMES WHERE SINGAPORE WANTS GOOD SOLUTIONS. THESE THEMES INCLUDE URBAN SOLUTIONS,

WELLNESS, AGEING, AND HEALTHCARE AND LIFESTYLE PRODUCTS.

OUTLOOK

THE MANUFACTURING SECTOR IS CAUTIOUS ABOUT BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. A NET WEIGHTED BALANCE OF 2% OF MANUFACTURERS FORECAST BETTER BUSINESS, LOWER THAN THE 7% REGISTERED IN THE SAME PERIOD LAST YEAR AND THE 25% RECORDED IN THE PREVIOUS QUARTER.

IN THE TRANSPORT ENGINEERING CLUSTER, A NET WEIGHTED BALANCE OF 11.0% OF FIRMS EXPECTS THE BUSINESS CLIMATE TO IMPROVE IN THE MONTHS ENDING JUNE 2008, LOWER THAN THE 33.0% OBSERVED IN THE PRECEDING QUARTER. THE MARINE AND OFFSHORE ENGINEERING SEGMENT FORESEES SUBSTAINED DEMAND FOR SHIPYARD AND CONVERSION SERVICES, AND A STRONG BACKLOG OF ORDERS. THE AEROSPACE SEGMENT FORECASTS MORE REPAIR AND SERVICING JOBS IN 1Q 2007 AS AIRLINES SEND IN THEIR PLANES FOR MAINTENANCE FOLLOWING THE PEAK TRAVELLING PERIOD IN DECEMBER.

IN THE CHEMICALS CLUSTER, MAJORITY OF FIRMS IN THE CHEMICALS CLUSTER EXPECT BUSINESS CONDITIONS TO REMAIN THE SAME FOR THE FIRST HALF OF 2008, COMPARED WITH THE PREVIOUS QUARTER. A NET WEIGHTED BALANCE OF 6.0% OF FIRMS EXPECTS THE BUSINESS CLIMATE TO IMPROVE, COMPARED WITH 22% RECORDED IN THE PRECEDING QUARTER. THE SPECIALTIES AND OTHER CHEMICALS SEGMENTS EXPECT OUTPUT TO RISE IN 1Q 2008 OVER THE PREVIOUS QUARTER, DUE TO AN EXPECTED RISE IN EXPORTS AND ORDERS. REFINERIES AND PETROCHEMICAL MANUFACTURERS EXPECT THROUGHPUT IN 1Q 2008 TO STAY AT LEVELS SIMILAR TO THOSE IN 4Q 2007.

THE ELECTRONICS CLUSTER IS MUTED WITH A NET WEIGHTED BALANCE OF 1.0% OF FIRMS EXPECTING BETTER BUSINESS AHEAD, SIGNIFICANTLY LOWER THAN THE 33.0% RECORDED IN THE PRECEDING QUARTER. SEASONAL DEMAND FOR ELECTRONIC GOODS IS EXPECTED TO SOFTEN AFTER THE YEAR END FESTIVE PEAK, AND A GENERAL DECELERATION IS NOT EXPECTED ALTHOUGH FIRMS FORECAST GLOBAL DYNAMICS TO CONTINUE EXERTING COMPETITIVE PRESSURES ON THE CLUSTER. NEVERTHELESS, A NET WEIGHTED BALANCE OF 5.0% OF FIRMS EXPECT PRODUCTION TO RISE IN 1Q 2008, OVER THE PREVIOUS QUARTER, IN TANDEM WITH THEIR FORECASTS FOR DIRECT EXPORTS AND ORDERS.

THE BIOMEDICAL MANUFACTURING CLUSTER IS EXPECTING BUSINESS OUTLOOK TO REMAIN THE SAME. A NET WEIGHTED BALANCE OF 0.0% OF FIRMS EXPECT BUSINESS TO IMPROVE IN THE COMING MONTHS, COMPARED TO 22.0% A QUARTER AGO. IN THE PHARMACEUTICALS SEGMENT,

OUTPUT IS FORECASTED TO RISE IN 1Q 2008, AFTER A LULL IN THE PREVIOUS QUARTER.

ACCORDINGLY, FINISHED GOODS STOCKS ARE EXPECTED TO RISE IN THE SAME PERIOD, FOR EXPORT LATER IN THE YEAR.

IN THE PRECISION ENGINEERING CLUSTER, A NET WEIGHTED BALANCE OF 8.0% OF FIRMS FORECASTS BUSINESS CONDITIONS TO DETERIORATE IN THE FIRST HALF OF 2008, COMPARED TO THE 11.0% PREDICTING BETTER BUSINESS CONDITIONS IN THE PRECEDING QUARTER.

THIS IS ATTRIBUTED TO A SEASONAL SLOWDOWN, AS WELL AS RISING PRODUCTION AND RAW MATERIAL COSTS AND FLUCTUATIONS IN THE US DOLLAR. WHILE THE OUTPUT OF THE CLUSTER IS EXPECTED TO DECLINE ON A QUARTER-TO-QUARTER BASIS, A NET WEIGHTED BALANCE OF 5.0% OF FIRMS IN THE MACHINERY AND SYSTEMS SEGMENT EXPECTS HIGHER PRODUCTION ON THE BACK OF A FORECASTED RISE IN EXPORT ORDERS AND SHIPMENTS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

THE BUSINESS TIMES

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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