Shell Pakistan Limited said its parent Shell Petroleum Company would be exiting Pakistan by selling its 77% shareholding in the local business.
The move comes after Shell Pakistan suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee amid the ongoing financial crisis and economic slowdown in the country.
“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,” the local company said in a stock filing.
“Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals.”
In May 2023, SPL had reported a loss of Rs4.76 billion in the first three months of 2023. In contrast, Shell Pakistan Limited earned a profit of Rs2.08 billion in the same period of the previous year in 2022.