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.
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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.
شیل پٹرولیم کمپنی نےاپنے شیئر فروخت کرنے کااعلان کر دیا،اسٹاک اعلامیہ کےمطابق امریکی کمپنی شیل پٹرولیم کے شیئر فروخت ٹارگٹ سیلز کےعمل سےمشروط ہوگی،شیئر فروخت کرنےکااطلاق ریگولیٹری منظوریوں کےبعد ہوگا،شیئر فروخت کےعمل سےشیل پاکستان کےبزنس پر اثرنہیں ہوگا
Shell is leaving Pakistan pic.twitter.com/occkyklgEU
— Asad Kharal (@AsadKharal) June 14, 2023
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.
رجیم چینج کی تباہ کاریاں جاری و ساری ہیں شیل پاکستان سے الوداع کہہ رہی جو عمران خان کے دور میں 2ارب منافع پہ تھی اور ڈاکو + یزید راج میں 4.5 ارب کے سالانہ نقصان میں چلی گئی ۔۔۔ یزیدیو تم ایسا کرو اسکی ایف آئی آر بنواؤ اور 31فروری کی تاریخ میں عمران خان کو نامزد کر دو https://t.co/Ulu0jViMqM
— Usman Saeed Basra (@usmansaeedbasra) June 14, 2023
ایک عمران خان کو نیچا دکھانے کے لیے انہوں نے سارا ملک برباد کر ڈالا ہے۔ ملٹی نیشنل گروپ شیل پاکستان لمیٹڈ نے بھی خدا حافظ بول دیا ہے۔ pic.twitter.com/K4G2pdu8UP
— Fayyaz Shah (@RebelByThought) June 14, 2023
Multinationals are on way out from Pakistan, now Shell has decided to sell its shareholding from Pakistan. The reasons include highly uncertain political environment, regulated markets, capital controls, import restrictions, policy inconsistency and higher taxes. Big… pic.twitter.com/gW3K2m5XyN
— Farrukh Habib (@FarrukhHabibISF) June 14, 2023
Shell International intends to sell it's investment in Shell Pakistan‼️
Business confidence is declining in 🇵🇰🇵🇰, OICCI (overseas chamber) survey depicted 21% decline in business confidence in 2023 pic.twitter.com/sxH7auGByj
— Abdul Rehman (@AbdulRehman0292) June 14, 2023
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.