Business
Shell Petroleum plans exit from Pakistani Market, shares to be sold
A spokesperson for Shell Pakistan confirms that any sale will be subject to a targeted sales process, binding documentation, and regulatory approvals.
Karachi: Shell Petroleum, a global energy giant, on Wednesday made the strategic decision to sell its shares and exit the Pakistani market.
The Board of Directors of Shell Pakistan Limited (SPL) convened a meeting with its parent company, Shell Petroleum Company Limited (SPCo), where the decision to sell its shareholding in SPL was announced.
A spokesperson for Shell Pakistan confirmed that any sale would be subject to a targeted sales process, binding documentation, and regulatory approvals. The company has received strong interest from international buyers, indicating potential opportunities for a smooth transition.
Despite the planned share sale by the global petroleum giant, the spokesperson emphasized that it would not have any adverse effects on the ongoing business operations of Shell Pakistan Limited.
SPL, which operates as a subsidiary of Shell Petroleum Company Limited, United Kingdom, clarified that the development would not impact its current business operations, which will continue as usual.
In a recent financial performance announcement for the first quarter of 2023, Shell Pakistan Limited reported significant losses due to the ongoing economic crisis in the country. The company experienced a stark decline, moving from a profit after tax of Rs2 billion during the same period last year to a loss of Rs4.6 billion. The unfavorable result was primarily attributed to the devaluation of the Rupee, increasing inflation, and macroeconomic uncertainty.
The decision by Shell Petroleum to divest from the Pakistani market comes amidst a challenging economic climate, prompting a reevaluation of their strategic priorities.