Shell Pakistan announced that its parent company, Shell, plans to divest its shares in the local entity.
Shell Petroleum Company (SPCo), holding a 77% stake in the Pakistan operations, experienced losses in 2022 attributed to exchange rate fluctuations, the devaluation of the Pakistani rupee, and delayed receivables.
During a Shell Pakistan Limited (SPL) board meeting on June 14, 2023, SPCo communicated its intention to offload its shares in SPL, per a notice submitted to the Pakistan Stock Exchange by SPL. The percentage of shares to be sold by SPCo remains undisclosed.
SPL clarified in the notice that this development wouldn’t interfere with its current business operations, which will continue as usual. Additionally, SPL stated in a separate press release that any potential sale would follow a targeted sales process, execution of binding agreements, and obtainment of necessary regulatory approvals.
The press release also mentioned that international buyers have keenly interested in the company. SPL had earlier reported a net loss of Rs72.3 million for the year ended December 31, 2022, a significant plunge from a profit of Rs4.4 billion in 2021.
Despite the downturn in profits, SPL’s sales escalated by 48.2% to Rs418.6bn in 2022, compared to the previous year. A press statement indicated that SPL had expanded its operations during the year, opening 31 new retail stations, 28 Generation-5 Select outlets, and 25 car wash facilities with tyre care.
The company did not declare a final cash dividend for the year, despite having distributed an interim cash dividend of Rs3 per share for the first nine months of 2022.
