Islamabad [Pakistan]June 15 (ANI): Global energy major Shell on Wednesday made a decision to sell its shares and decided to exit the Pakistani market, Pakistan-based ARY News reported.
Shell Petroleum Limited (SPCo) has announced its intention to sell its interest in Shell Pakistan Limited (SPL) at a meeting with the Board of Directors of Shell Pakistan Limited (SPL). Shell Pakistan Limited (SPL) is a subsidiary of British Shell Petroleum Limited. SPCL is a subsidiary of Royal Dutch Shell plc.
In a statement, a Shell Pakistan spokesman said, “Any sale will be subject to a targeted sales process, execution of binding documentation and receipt of applicable regulatory approvals. Shell sees strong interest from international buyers, ’” according to ARY News.
According to a Shell Pakistan spokesman, the announcement of the stake sale by the global oil major will not affect the company’s business operations.
In a notification to the Pakistan Stock Exchange (PSX), Shell Pakistan said, “We hereby inform you that the Board of Directors of Shell Pakistan Limited (SPL) at its board meeting on June 14, 2023, has Ltd (SPCo) has notified its intention to sell its stake in SPL,” Pakistan-based Geo News reported.
In early May, Shell Pakistan Limited announced its financial results for the first quarter of 2023, a quarter that has been heavily impacted by the ongoing economic crisis in Pakistan, ARY News reported.
The company’s earnings turned in the red in the first quarter of fiscal 2023 with a post-tax profit of Pakistan Rs 2 billion (PKR) compared to the same period last year. The company posted a loss of PKR 4.6 billion. The losses came against a backdrop of unprecedented devaluation of the Pakistani rupee, rising inflation and macroeconomic uncertainty.
Meanwhile, Pakistan-based The Express Tribune reported that Pakistan will face a burden of 7.3 trillion Pakistani rupees (PKR) in the next fiscal year as interest payments on domestic and foreign debt continue to rise.
Initially, the Pakistani government has a budget of PKR 3.9 trillion to cover loan markups for the ongoing fiscal year 2022-23. However, revised estimates showed an increase in interest expenses to PKR 5.52 trillion, according to the Tribune.
The budget has allocated PKR 3.43 trillion for interest payments on domestic debt. However, revised figures show the real amount was 4.7 trillion Pakistani rupees. Meanwhile, the Pakistani government initially intended to spend PKR 510.9 billion to pay interest on foreign debt. However, this figure rose to PKR 7,725.3 billion. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)