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Saudi-based Wafi Energy signs deal to take over Shell Pakistan

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1 year ago

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  • Sale is expected to be completed by fourth quarter of 2024.
  • Shell brand will remain in Pakistan via brand licensing agreements.
  • WAFI Energy is a fast-growing retail gas station network.

Shell Petroleum Company Limited, a subsidiary of Shell plc (Shell), has agreed to sell its 77.42% majority interest in Shell Pakistan Limited (SPL) to Saudi Arabia-based Wafi Energy LLC, said an official statement issued by the company on Wednesday.

“The sale is part of Shell’s strategy to high-grade its mobility network and was first announced on Capital Markets Day in June 2023,” the statement added.

The sale is expected to be completed by the fourth quarter of 2024, subject to regulatory approvals.

Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuel and lubricant portfolio, it said.

“SPL remains committed to delivering safe, reliable operations.”

WAFI Energy LLC, one of the leading fuel station companies in Saudi Arabia, is a fast-growing retail gas station network and the sole licensee of Shell Retail Network in Saudi Arabia.

The company was incorporated in 2012 with an authorised and paid-up capital of 3 million Saudi Riyal.

The development came after Shell Pakistan’s parent company, Shell Petroleum Company Limited (SPCo), notified its intent to sell its shareholding in the Pakistani entity in June this year.

SPCo had a 77.42% stake in Shell Pakistan as of December 31, 2022, according to the annual report for that year.

Shell Pakistan said at the time that the divestment plan would have no impact on its current business operations, which would continue as usual. The company also said that it was seeing strong interest from international buyers.

Shell Pakistan is one of the leading oil marketing companies in Pakistan, with a network of over 800 retail outlets across the country. The company reported a profit after tax of Rs6,450 million for the nine months ended September 30, 2023, compared to Rs2,864 million in the same period last year.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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