Shell Petroleum to sell its stake in Shell Pakistan

KARACHI: Global energy giant Shell Petroleum on Wednesday made the strategic decision to sell its shares and decided to exit the Pakistani market, ARY News reported. 

Board of Directors of Shell Pakistan Limited (SPL) held a meeting with its parent firm Shell Petroleum Company Limited (SPCo) where it was announced their intent to sell its shareholding in SPL.

“Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals. Shell is seeing strong interest from international buyers,” Shell Pakistan spokesperson said in a statement.

The spokesperson stated that the announcement of the sale of shares by the global petroleum giant company will not have any adverse effects on the business operations of the company.

Shell Pakistan Limited (SPL) is a subsidiary of Shell Petroleum Company Limited, United Kingdom, which is a subsidiary of Royal Dutch Shell Plc.

SPL, however, said that the development would have no impact on its current business operations, which will continue.

READ: Govt to increase petroleum levy to Rs 60 on IMF demand

Last month, Shell Pakistan Limited announced its financial performance for the first quarter of 2023, which was severely impacted by the ongoing economic crisis in the country.

The earnings of the company turned crimson in 1QFY23 versus a similar period last year – from a profit after tax of Rs2 billion, the company posted a loss of Rs4.6 billion.

The loss came on the back of an unprecedented devaluation of the Rupee, rising inflation and macroeconomic uncertainty.