Shell Petroleum to sell stakes in Pakistan
Business
The company suffered losses due to exchange rate, devaluation of rupee and overdue receivables
KARACHI (Reuters/Web Desk) – Shell Pakistan Limited (SPL) said on Wednesday that the parent company Shell Petroleum Company – which owns 77 per cent shares in the local entity – would be exiting the country, without explaining how much shareholding would be disposed of.
The move comes as the company suffered significant losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee and overdue receivables.
According to a notice shared with the Pakistan Stock Exchange (PSX) and a press release issued by the SPL, the parent company has informed its Board of Directors on Wednesday about the intent to sell shareholding in the subsidiary.
However, it explained that “the announcement doesn't impact SPL’s current business operations, which continue,” and expressed the commitment to continue delivering safe and reliable operations for customers and partners.
Any sale would be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals, it said. “Shell is seeing strong interest from international buyers.”
The SPL is a subsidiary of the UK-based Shell Petroleum, which in turn is owned by Royal Dutch Shell Plc – one of the world’s largest energy and petrochemical companies.
