Shell Pakistan Limited (SPL) disclosed that its parent firm, Shell Petroleum Company Limited (SPCo), had informed SPL of its intention to sell a portion of its stock on Wednesday.
Shell Pakistan informed the Pakistan Stock Exchange (PSX) of the situation in a notice.
“We hereby inform you that the Board of Directors of Shell Pakistan Limited (SPL), in a meeting of its Board held on June 14, 2023, have been notified by The Shell Petroleum Company Limited (SPCo) of its intent to sell its shareholding in SPL,” read the notice.
The sale will be subject to a targeted sales process, the execution of legally binding documentation, and the acquisition of all necessary regulatory permissions, according to the firm.
SPL is a division of Royal Dutch Shell Plc, one of the biggest oil and petrochemical corporations in the world, which is a division of Shell Petroleum Company Limited, based in the United Kingdom.
In addition to selling compressed natural gas and petroleum products, SPL also blends and sells a variety of lubricating lubricants.
SPL, however, asserted that the development would not affect its ongoing commercial activities.
“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” the statement continued.
The prolonged economic crisis in the nation had a significant impact on Shell Pakistan Limited’s financial performance for the first quarter of 2023, which was disclosed last month.
In comparison to the same period last year, the company’s earnings turned red in the first quarter of this year, going from a profit after taxes of Rs. 2 billion to a loss of Rs. 4.6 billion.
The loss resulted from the rupee’s unheard-of depreciation, as well as rising inflation and macroeconomic instability.
Just one hour after the notice was posted on the PSX website, at around 1:30 p.m., Shell Pakistan’s share price was trading at roughly Rs89.17, up by Rs6.22 on a volume of over 4 million.
Shell’s Statement Regarding the Sales of its Holding in SPL.
The press release by Shell Pakistan has said, “Shell Petroleum Company Limited, a subsidiary of Shell plc (Shell), has announced its intention to sell its holding in Shell Pakistan Limited (SPL), simplifying Shell’s portfolio. Shell Pakistan 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.”
SPL remains committed to delivering safe, reliable operations.
