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Wednesday 10 July, 2024
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Shell Decide to Leave Pakistan

BY Shahzad Saeed Jun 14, 2023. 08:27 pm

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According to a stock filing made on Wednesday at the Pakistan Stock Exchange, Shell Petroleum Company Limited (SPCo) plans to sell its ownership interest in Shell Pakistan Limited (PSX: SHEL).

In accordance with the filing, the SPCo informed the Board of Directors of SPL of its intention to sell its shareholding (77% of local operations) in SPL at a meeting held on June 14, 2023.

The filing also stated that “any sale will be subject to a targeted sales process, the execution of legally binding documentation, and receipt of applicable regulatory approvals.”

“SPL’s ongoing business operations are unaffected by this announcement. According to the filing, SPL “remains committed to delivering safe and dependable operations for our customers and partners.

According to Shell, “Shell is seeing strong interest from international buyers. SPL remains committed to delivering safe, reliable operations.”

In order to streamline Shell’s portfolio, Shell Petroleum Company Limited, a division of Shell plc (Shell), has announced its intention to sell its stake in Shell Pakistan Limited (SPL). Shell Pakistan has been operating in the nation for 75 years, and it has a sizable retail presence as well as a successful lubricants business. The execution of legally binding documentation, a targeted sales process, and the receipt of all necessary regulatory approvals must all occur before any sale can take place, the spokesperson continued.

In January, Shell began to consider selling its home energy retail businesses in the UK, the Netherlands, and Germany due to challenging market conditions brought on by EU authorities trying to shield consumers from rising energy prices. This most likely prompted Shell to make cost reductions at other stations, with Pakistan reportedly being one of many channels the company chose to stop funding.

The British company now plans to continue producing oil until 2030 while expanding its natural gas business in order to keep its position as the top LNG player in the world. To maintain strategic competitiveness in the industry, it might reduce operations in more nations in the interim.

Last month, SPL reported significant losses for the first quarter of 2023, severely harmed by the nation’s protracted economic crisis. In the first quarter of this year, the company’s earnings changed dramatically from a profit after taxes of Rs. 2 billion to a loss of Rs. 4.6 billion.

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The loss was brought on by the rupee’s unheard-of depreciation and macroeconomic unpredictability.

At the time of filing, SHEL’s stock price on the stock exchange was Rs. 89.17, up 7.5% or Rs. 6.22 on Wednesday’s turnover of 4,287,500 shares.

Read more: SAP Partnered With IPAK, International Packaging Films Limited

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