On Wednesday, Shell Pakistan Limited (SPL) made an announcement regarding the intention of its parent company, Shell Petroleum Company Limited (SPCo), to divest its shareholding in SPL. This significant development conveyed by Shell Pakistan through a notice submitted to the Pakistan Stock Exchange (PSX).
Pakistan is currently undergoing a severe economic crisis, evident from recent statistics and various incidents. Importing goods has become challenging, with the State Bank of Pakistan (SBP) refraining from issuing LCs. The exchange rate between the Pakistani rupee and the US dollar remains highly unstable, adding to the turmoil. Furthermore, the nation is grappling with political unrest, further exacerbating the situation.
Just a few days ago, we were delighted to receive positive news about fuel, as the first shipment of Russian Oil arrived in Pakistan, raising hopes for a potential price reduction. However, the latest update brings less favorable news, as Shell International has expressed its intention to divest its investment in Pakistan.
Statement by Shell Pakistan
Shell Pakistan Limited (SPL) has issued a statement through a notification to the Pakistan Stock Exchange (PSX), informing that in a meeting held today.
The Board of Directors of SPL received notification from Shell Petroleum Company Limited (SPCo) regarding their intention to divest their shareholding in SPL.
In a statement, Shell Pakistan said: “Any sale will be subject to a targeted sales process, the execution of binding documentation, and receipt of applicable regulatory approvals. SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners.”
“Any sale will be subject to a targeted sales process. The execution of binding documentation, and receipt of applicable regulatory approvals. This announcement does not impact SPL’s current business operations, which continue. SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners.”
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Last month, Shell Pakistan Limited (SPL) reported significant losses in the first quarter of 2023, greatly impacted by the prolonged economic crisis in the country. During 1QFY23, the company experienced a drastic shift in earnings from a profit after tax of Rs. 2 billion to a loss of Rs. 4.6 billion, marking a substantial decline.
The loss can be attributed to several factors, including an unprecedented depreciation of the Indian rupee. Escalating inflation, and overall macroeconomic uncertainty. As of the latest update, Shell Pakistan’s shares on the stock exchange valued at Rs. 89.17, reflecting a 7.5 percent increase of Rs. 6.22. On Wednesday, the turnover amounted to 4,287,500 shares.