Shell Pakistan Limited (SPL) has notified the Pakistan Stock Exchange (PSX) that parent Shell had notified it of the group’s intent to sell its shareholding in the business.
Shell Petroleum Company (SPCo), the immediate parent company, owns 77% of the local operations, which suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables. However, it remains unclear at this stage how much of its stake SPCo is selling. Keep in mind in March, SPL reported that its net loss for the year ending on Dec 31, 2022, remained at Rs 72.3 million versus a profit of Rs 4.4 billion in 2021.
SPL said in the notification that any sale would be “subject to a targeted sales process, the execution of binding documentation, and the receipt of applicable regulatory approvals”. The development is seen by analysts as another jolt to the ailing economic scenario as business confidence in Pakistan continues to decline sharply. The OICCI (overseas chamber) survey depicted a 21% plunge in business confidence so far in 2023.
One more multi national company intends to exit from #Pakistan. #Shell Pakistan Limited was notified by parent that they intend to sell their Pakistan operations@pakstockexgltd pic.twitter.com/qyomF8ozel
— Shahid Ali Habib (@ShahidAliHabib1) June 14, 2023
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