The Pakistan arm of Shell said in an official statement released by the company on Wednesday that it has signed a deal with its parent company’s unit, Shell Petroleum Company, to sell a majority stake in the company to Saudi Arabia’s Wafi Energy LLC for 77.42%.
In a statement, Shell said that it made the announcement about the sale on Capital Markets Day in June 2023, as part of its strategy to upgrade its mobility network.
Regulatory approvals are expected to be obtained by the end of the fourth quarter of 2024, so that the sale can be completed as soon as possible.
Shell’s premium fuel and lubricant portfolio will continue to be available in Pakistan following the completion of the project, and customers will still have access to Shell’s premium fuel and lubricant portfolio when it becomes operational.
In order to maintain the safety and reliability of its operations, SPL remains committed to doing so.
WAFI Energy LLC, one of the largest retail gas station companies in Saudi Arabia, is the sole licensee of the Shell Retail Network in Saudi Arabia, and it is one of the fastest growing network of retail gas stations in the Arab world.
In 2012, the company was incorporated as a Saudi Arabian company with an authorized capital of 3 million Saudi Riyals that has been paid up.
In June this year, Shell Petroleum Company Limited (SPCo), the parent company of the Pakistani entity, informed its shareholders that it was considering selling some of its stake in the Pakistani company.
According to the annual report for the year that was published by the company, SPCo owned 77.42% of Shell Pakistan at the end of December, 2022.
As reported by Shell Pakistan, at the time of the divestiture plan, the operations of the company would continue as usual, so the divestiture plan would have no impact on how Shell Pakistan conducts its business. Moreover, the company noted that international buyers were showing a great deal of interest in its products.
Among the top oil marketers in Pakistan, Shell Pakistan is one of the largest with over 800 retail outlets across the country, making it one of the leading oil marketing companies. For the nine months ended September 30, 2023, the company reported a profit after tax of Rs6,450 million, while for the same period in the previous year the company recorded a loss of Rs2,864 million.
+ There are no comments
Add yours