Shell Petroleum Company Limited, a branch of Shell plc, has confirmed the sale of its 77.42% interest in Shell Pakistan Limited (SPL) to Saudi Arabia’s Wafi Energy LLC. The announcement came through an official statement released on Wednesday.
The divestment aligns with Shell’s objective to refine its mobility network; a plan initially made public on Capital Markets Day in June 2023. The transaction is forecasted to conclude by the end of the fourth quarter in 2024, pending regulatory clearances. Notably, even post-sale, the Shell trademark will still be visible in Pakistan due to branding licensing agreements. Consequently, consumers will retain access to Shell’s distinguished range of fuel and lubricants. The assurance from SPL stands firm: “SPL remains dedicated to ensuring safe, consistent operations.”
Wafi Energy LLC: A Brief Overview
Wafi Energy LLC is a top-tier fuel station corporation in Saudi Arabia. With its rapid expansion in the retail gas sector, it holds the exclusive license for the Shell Retail Network within Saudi Arabia. Founded in 2012, its authorized and settled capital is 3 million Saudi Riyal.
The recent sale follows the notification from Shell Pakistan’s umbrella company, Shell Petroleum Company Limited (SPCo), of its decision to offload its stake in the Pakistani segment in June. As of the year-end on December 31, 2022, SPCo possessed a 77.42% share in Shell Pakistan, as detailed in that year’s annual report. Shell Pakistan reassured that this divestiture would not influence its ongoing business functions, which would progress routinely. The company witnessed considerable intrigue from global investors during this period.
Shell Pakistan, recognized as a prominent oil marketing entity in Pakistan, oversees more than 800 retail stations nationwide. Recent financial reports reveal a profit after tax of Rs6,450 million for the nine months, culminating on September 30, 2023, a substantial rise from Rs2,864 million during the equivalent duration of the preceding year.
