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Tuesday, May 21, 2024

Shell Petroleum intends to sell its stake in Pakistan

The development has raised alarm in Pakistan as concerns rack up over yet another multi-national company exiting the country, giving Pakistan's business confidence a hard hit. 

In an alarming development, Shell Pakistan Limited (SPL) announced Wednesday that its parent company, Shell Petroleum Company Limited, has notified its intent to sell its shareholding in the Pakistan unit.

According to the details, Board of Directors of Shell Pakistan Limited (SPL) held a meeting with its parent firm Shell Petroleum Company Limited (SPCo), where it was announced their intent to sell its shareholding in SPL. Shell Pakistan then sent a notice to the Pakistan Stock Exchange (PSX).

“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,” the notice which is going viral on social media said.

Read more: Weekly inflation clocks in at 42.27%

The oil and gas company clarified that any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals. SPL, however, said that the development would have no impact on its current business operations, which will continue.

“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” it added.

The development has raised alarm in Pakistan as concerns rack up over yet another multi-national company exiting the country, giving Pakistan’s business confidence a hard hit.

Last month, Shell Pakistan Limited announced its financial performance for the first quarter of 2023, which was severely impacted by the ongoing economic crisis in the country.

The loss came on the back of an unprecedented devaluation of the rupee, rising inflation and macroeconomic uncertainty.

Shortly after the announcement, at around 2:08 pm, the share price of Shell Pakistan was hovering around Rs89.17, up by Rs6.22 with a volume of over four million.

Read more: Pakistan’s economy in ‘collapse’ as IMF visits