KARACHI, June 14 (Reuters) - Shell Pakistan (SHEL.PSX) said on Wednesday that its parent company, Shell (SHEL.L) unit Shell Petroleum Company, would be exiting Pakistan with the sale of its 77% shareholding in the in the local business.
The move came after Shell Pakistan (SPL) suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables, and as the country faces a financial crisis and economic slowdown.
"To support its intention to high-grade and simplify its portfolio, Shell Petroleum Company Ltd... has initiated a sales process to sell its 77.42% shareholding in Shell Pakistan Ltd," a spokesperson for Shell Pakistan said in an email to Reuters.
That includes "all of SPL’s Downstream businesses and SPL’s 26% ownership of Pak-Arab Pipeline Company Ltd (PAPCO)," the spokesperson added.
REUTERS/Morteza Nikoubazl/File PhotoIt said in the notice that Shell Petroleum Company had notified its board of directors of its intention to sell the holding in a meeting on June 14.
Persons:
Morteza, Shell, Wael Sawan, Ariba Shahid, Sakshi Dayal, Gibran Peshimam, David Evans, Jan Harvey, Kirsten Donovan
Organizations:
Shell Pakistan, Shell, Shell Petroleum Company, Shell Petroleum Company Ltd, Shell Pakistan Ltd, Reuters, Arab Pipeline Company, Pakistan Stock Exchange, REUTERS, Thomson
Locations:
KARACHI, Pakistan, Nowshera, Pakistan's, Khyber, Pakhtunkhwa Province, Bukom, Jurong, Singapore