Islamabad: Shell Pakistan Limited (SPL) announced on Wednesday that Shell Petroleum Company Limited, the Pakistani unit’s parent company, had informed the Pakistani unit of its intention to sell a portion of its shares.
“We hereby inform you that The Shell Petroleum Company Limited (SPCo) has informed The Board of Directors of Shell Pakistan Limited (SPL) of its intention to sell its shareholding in SPL at a meeting of its Board, held on June 14, 2023,” stated Shell Pakistan in a notice to the Pakistan Stock Exchange (PSX). The oil and gas company made it abundantly clear that any sale would have to pass through a focused sales procedure, sign legally binding documents, and receive the required regulatory approvals.
SPL, however, said that the development would have no impact on its current business operations, which will continue.
“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” it added.
It should be noted that the SPL is a subsidiary of Shell Petroleum Company Limited, United Kingdom, which is a subsidiary of Royal Dutch Shell Plc, one of the world’s largest energy and petrochemical companies.
A spokesperson of SPL said that it has been in the country for 75 years and has a substantial retail footprint and a strong lubricants business.
“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,” the statement read.
With 350+ employees, SPL markets petroleum products and compressed natural gas, and also blends and markets various kinds of lubricating oils.
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 loss came on the back of an unprecedented devaluation of the rupee, rising inflation and macroeconomic uncertainty.
Shortly after the announcement, at around 2:08pm, the share price of Shell Pakistan was hovering around Rs89.17, up by Rs6.22 with a volume of over four million.
