Karachi June 14 2023: Shell International decided to exit from Pakistan by selling Shell Pakistan Limited stake after suffering loss of PKR 12.3 billion during last three quarters 2023 primarily because of exchange losses, according to company filing to the exchange.
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.
However, any sale will be subject to a targeted sales process, the execution of binding documentation and receipt of applicable regulatory approvals.
This announcement does not impact SPL’s current business operations, which continue. SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners.
Shell PLC will increase its dividend 15% and boost natural gas production as new Chief Executive Officer Wael Sawan refocuses on the fossil fuels that drove record profits last year.
It’s part of a pivot by the European oil major to expand the most profitable parts of its business, even if they are carbon intensive, while scaling back ventures that don’t make high enough returns. The company reiterated its pledge to achieve net-zero emissions by 2050.
“We will invest in the models that work — those with the highest returns that play to our strengths,” Sawan said in a statement. The CEO and his management team will lay out more details of the plan to shareholders at a presentation in New York later on Wednesday.
Shell has been gradually building back its dividend since former CEO Ben van Beurden cut it during the depths of the pandemic. While the latest increase will still leave the payout about 30% below the pre-Covid level, the move may help convince investors that the company can be a reliable source of cash, like its more highly valued American peers.
Shell Pakistan Limited is a limited liability Company incorporated in Pakistan on June 28, 1969 under the repealed Companies Act, VII of 1913 (now Companies Act, 2017 (the Act) and is listed on Pakistan Stock Exchange Limited.
The Company is a subsidiary of Shell Petroleum Company Limited, United Kingdom (Immediate Parent) which is a subsidiary of Shell plc (formerly known as Royal Dutch Shell Plc.) (Ultimate Parent).
