Shell Petroleum Company intends to sell its stake in Shell Pakistan. On Wednesday, Shell Pakistan Limited (SPL) disclosed that its parent company, Shell Petroleum Company Limited (SPCo), had informed SPL of its intention to sell a portion of its stock.
Shell Pakistan informed the Pakistan Stock Exchange (PSX) of the development in a notice.
We hereby inform you that The Shell Petroleum Company Limited (SPCo) has informed the Board of Directors of Shell Pakistan Limited (SPL) of its intention to sell its shares in SPL at a meeting of its Board held on June 14, 2023.
The sale will be subject to a targeted sales process, the execution of legally binding documentation, and the receipt of all necessary regulatory approvals, according to the company.
SPL is a division of Royal Dutch Shell Plc, one of the biggest energy and petrochemical corporations in the world, which is a division of Shell Petroleum Company Limited, based in the United Kingdom.
Ad Shell Petroleum Company intends to sell its stake in Shell Pakistan, in addition to selling compressed natural gas and petroleum products, SPL also blends and sells a variety of lubricating oils.
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SPL, however, asserted that the development would not have an effect on its ongoing business operations.
“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” the statement continued.
The ongoing 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 uncertainty.
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 around Rs89.17, up by Rs6.22 on a volume of over 4 million.
