Shell Pakistan has announced that its parent company, Shell Petroleum Company (SPCo), has informed them of its intention to sell its stake in the business. SPCo currently owns 77% of Shell Pakistan Limited (SPL), which faced financial losses in 2022 due to factors such as exchange rates, devaluation of the Pakistani rupee, and overdue receivables.
The exact percentage of the stake being sold by SPCo has not been disclosed. However, SPL has clarified that the sale announcement does not impact its ongoing business operations. Any potential sale would be subject to a targeted sales process, binding documentation, and regulatory approvals. Shell has stated that there is strong interest from international buyers. In its financial report for 2022, SPL reported a net loss of Rs72.3 million compared to a profit of Rs4.4 billion in 2021, despite a 48.2% increase in sales.
The company highlighted its expansion efforts, including the commissioning of retail stations, Generation-5 Select outlets, and car wash facilities during the year. No final cash dividend was declared, although an interim cash dividend of Rs3 per share was paid for the first nine months of 2022.
