Shell to sell holding in Shell Pakistan to simplify portfolio

Shell Petroleum Company Limited, a subsidiary of Shell plc, has announced its intention to sell its holding in Shell Pakistan Limited (SPL). Shell said it is seeing strong interest from international buyers.

The UK-based global energy major said the move is to simplify Shell’s portfolio.

Shell Pakistan has been in the country for 75 years and has a substantial retail footprint and a strong lubricants business.

Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals. 

In May, Shell Pakistan posted a loss after tax of PKR4,762 million(USD16.6 million) in the first quarter of 2023, compared to the profit after tax of PKR2,079 million (USD7.25 million) in the same period a year earlier.

The period witnessed a devaluation of the Pakistan rupee, rising inflation and macroeconomic uncertainty. Continued economic challenges resulted in slowdown in economic activity, decrease in demand and risks to supply security for Shell Pakistan. Finances and profitability of the company also continued to be impacted. However, Shell Pakistan was able to maintain its market share, the company said.

The company stated it remains committed to operational excellence, safety performance, to further strengthen its financial position, and play a responsible role in society.