Shell Pakistan Limited (SPL) on Wednesday announced that its parent company, Shell Petroleum Company Limited (SPCo), has notified its intent to sell its shareholding in SPL.

The development was shared by SPL in a notice to the Pakistan Stock Exchange (PSX).

“We hereby inform you that 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,” read the notice.

The company said that any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals.

SPL is a subsidiary of Shell Petroleum Company Limited, United Kingdom, which is a subsidiary of Royal Dutch Shell Plc, one of the world’s largest energy and petrochemical companies.

SPL markets petroleum products and compressed natural gas, and also blends and markets various kinds of lubricating oils.

SPL, however, said that the development would have no impact on its current business operations, which will continue.

“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” it added.

Last month, Shell Pakistan Limited announced its financial performance for the first quarter of 2023, which was severely impacted by the ongoing economic crisis in the country.

The earnings of the company turned crimson in 1QFY23 versus a similar period last year – from a profit after tax of Rs2 billion, the company posted a loss of Rs4.6 billion.

The loss came on the back of an unprecedented devaluation of the Rupee, rising inflation and macroeconomic uncertainty.

At around 1:30pm, and merely an hour after the notice was put on the PSX website, the share price of Shell Pakistan reached Rs89.17, up by Rs6.22 with a volume of over 4 million.