Jump to content

Shell Pakistan

From Wikipedia, the free encyclopedia

Shell Pakistan Limited
Company typeSubsidiary
PSX: SHEL
KSE 100 component
IndustryOil and gas
Founded1947; 77 years ago (1947)
HeadquartersKarachi, Pakistan
Key people
Waqar Siddiqui (CEO and Country hair)
ProductsGasoline, Aviation fuels, Compressed natural gas and lubricants
RevenueIncreaseRs. 412.7 billion (US$1.4 billion)}[1] (2022)
DecreaseRs. 2.95 billion (US$10 million)[1] (2022)
DecreaseRs. -72 million (US$−250,000)[1] (2022)
Total assetsIncreaseRs. 101.73 billion (US$350 million)[1] (2022)
Total equityDecreaseRs. 14.60 billion (US$51 million)[1] (2022)
ParentShell plc
Websiteshell.com.pk

Shell Pakistan Limited (Urdu: شیل پاکستان) is a Pakistani oil and gas company which is a subsidiary of the Shell plc and has been in South Asia for over 100 years.[2] Shell's flagship business in Pakistan is the downstream retail marketing company, Shell Pakistan Limited, which has interests in downstream businesses including retail, lubricants and aviation.[3] On 14th June, 2023 Shell announced to sell its holding in Pakistan.

In 2024, Asyad Holding, a Saudi based group through UAE-based Wafi Energy Holding Limited acquired 77.42 percent shareholdings and control of Shell Pakistan Limited. [4]

History

[edit]

Shell's origins date back to 1899 with the establishment of Asiatic Petroleum, a joint venture between Shell Transport Company and Royal Dutch Petroleum Company, which initiated kerosene oil imports from Azerbaijan into the region.[5] A significant historical marker from this period is a storage tank from 1898.[5] The company's documented presence in the Indian subcontinent began in 1903 when The Shell Transport & Trading Company and the Royal Dutch Petroleum Company formed a partnership to supply petroleum to Asia.[5]

In 1928, Royal Dutch Shell merged its marketing interests in India with those of Burmah Oil Company Limited, creating the Burmah Shell Oil Storage & Distribution Company of India.[5]

After Pakistan gained independence in 1947, the company was renamed as Burmah Shell Oil Distribution Company of Pakistan.[5]

During the 1950s, Shell Pakistan, then known as Burmah Shell, employed notable strategies for promoting kerosene oil, featuring popular singers such as Mohammed Rafi in their advertisements.[6]

In 1965, Shell sold half of its stake in Burmah Shell operating in East Pakistan.[7] Later, a new company was formed for East Pakistan named Burmah Eastern Limited which was listed on the stock exchange and the majority of its shareholding was held by Pakistanis.[7]

In 1970, it was listed on the Karachi Stock Exchange and the company was renamed as Pakistan Burmah Shell (PBS) Limited.[8] The Shell and Burmah Groups retained a 49 percent share, split evenly while National Investment Trust, a state-owned fund, owned a majority stake.[7]

In February 1993, during a period of economic liberalization, Burmah divested from PBS, allowing Shell Petroleum to increase its stake to 51 percent.[9] Over time, Shell Petroleum further increased its share, now holding a 77 percent stake in what is currently known as Shell Pakistan Ltd (SPL).[5]

Timeline

[edit]
  • 1898 Asiatic Petroleum (percentage ownership of Shell – 100%)
  • 1928 Burmah Shell (percentage ownership of Shell – 50%)
  • 1947 Burmah Shell (Pakistan) (percentage ownership of Shell – 50%)
  • 1970 Pakistan Burmah Shell (percentage ownership of Shell – 24.5%)
  • 1993 Shell Pakistan Ltd. (percentage ownership of Shell – 51%)
  • 2000 Shell Pakistan Ltd. (percentage ownership by Shell – 59.7%)
  • 2002 Shell Pakistan Ltd. (percentage ownership by Shell – 76.1%)

Operations

[edit]

Aviation

[edit]

Shell used to provide jet fuel at five major airfields across Pakistan and was the second largest Jet fuel supplier in Pakistan until 2022 when it discontinued the operations in aviation sector.[10]

Shell Lubricants

[edit]

SPL is the largest lubricant marketing company in Pakistan with over 20% share of the total lubricant market in the country. SPL's lubricant business is the second most profitable within Shell's Global Lubricant portfolio.[citation needed] The business is focused on sales of key Shell brands (Rimula, Helix & Advance) to high street traders and the transportation sector as well as heavy-duty brands to industrial customers and power sector customers.

Shell Retail

[edit]

SPL is the second-largest oil marketing company (OMC) and the largest private OMC in Pakistan with a 25% share of the white-oils market. The Retail business comprises over 800 retail outlets.[citation needed]

Pakistan Refinery Limited

[edit]

Pakistan Refinery Limited (PRL), located at Karachi, is the third largest refinery in the country,[11] with a refining capacity of 2.1 mn tons per annum. The refinery was set up in the 1960s, and Shell has a 26% equity interest in it. With the introduction of the deemed duty element in the oil products pricing mechanism in 2001, the refineries profitability has improved considerably. As 50% of its profits are mandated by the Government to be retained for upgrading/modernization, PRL is now embarking on major up-gradation projects including expansion and de-sulphurization.

Pak-Arab Pipeline Company Limited

[edit]

In August 2001, a new company called Pak-Arab Pipeline Company (PAPCO) was formed to construct and operate a critical 840 km white-oil pipeline for transportation of AGO from Karachi to depots in the centre and north of Pakistan. SPL has a 26% equity interest in PAPCO and the PAPCO's Chief Financial Officer remains a SPL nominee.[12]

Financial performance

[edit]
Shell Pakistan Financial Performance (2009-2023)
Year ended Revenue (PKR million) Operating income (PKR million) Net income (PKR million) Total assets (PKR million) Total equity (PKR million)
31 December 2009[13] Decrease177,110 Increase3,910 Increase2,563 Decrease33,653 Increase8,271
31 December 2010[14] Increase223,814 Decrease3,044 Decrease1,616 Increase38,497 Decrease7,900
31 December 2011[15] Increase247,507 Increase2,833 Increase906 Increase49,159 Increase8,258
31 December 2012[16] Decrease244,317 Decrease5 Decrease(2,083) Decrease44,895 Decrease6,178
31 December 2013[17] Increase287,992 Increase2,424 Increase1,061 Decrease40,595 Increase7,223
31 December 2014[18] Increase291,363 Decrease546 Decrease(1,067) Decrease38,678 Decrease5,895
31 December 2015[19] Decrease248,571 Increase2,345 Increase911 Decrease37,934 Increase5,981
31 December 2016[20] Decrease214,853 Increase5,705 Increase6,764 Increase42,510 Increase11,110
31 December 2017[21] Decrease206,758 Decrease4,323 Decrease3,183 Decrease38,893 Decrease10,198
31 December 2018[22] Decrease186,204 Decrease(60) Decrease(1,102) Increase49,116 Decrease6,353
31 December 2019[23] Increase199,719 Decrease(140) Decrease(1,486) Increase56,175 Decrease4,291
31 December 2020[24] Decrease165,140 Decrease(4,815) Decrease(4,821) Decrease54,645 Decrease(651)
31 December 2021[25] Increase249,210 Increase6,609 Increase4,467 Increase84,933 Increase15,321
31 December 2022[26] Increase412,699 Decrease2,915 Decrease(72) Increase101,732 Decrease14,597

Shell Pakistan in 2012

[edit]

Shell Pakistan Limited (SPL) has more than 850 retail stations in more than 330 cities, having 20% market share and is the largest foreign investor in Pakistan's oil marketing sector. Shell has been the leader in the lubricants sector since 2002, currently with more than 40% share of the organized sector.

Shell's Commercial Fuels business (including commercial transport) is a significant opportunity for growth. Its aviation business supplies fuels to six key airports across Pakistan. Shell has 30% interest in the Pakistan Refinery Limited (PRL) (average production: 40,000 bpd) located in Karachi and a 26% interest in US$480mn 780 km white oil pipelines.

In FY2010-2011 the Company earned a profit after tax of Rs. 906 million and recorded 11% growth in net revenue and 3% increase in gross profits compared to previous year.[27]

Notes

[edit]
  1. ^ a b c d e "Shell Pakistan Annual Report 2022" (PDF). www.shell.com.pk.
  2. ^ "Shell at a glance - Shell Pakistan". www.shell.com.pk. Archived from the original on 2 January 2011.
  3. ^ "Pakistan business structure - Shell Pakistan". www.shell.com.pk. Archived from the original on 14 May 2010.
  4. ^ Report, Recorder (7 July 2024). "Saudi Group acquires majority stake in Shell Pakistan". Brecorder. Retrieved 23 July 2024.
  5. ^ a b c d e f "Shell Pakistan's History".
  6. ^ Sheikh, Ali Tauqeer (29 June 2023). "The end of an era". DAWN.COM.
  7. ^ a b c Bamberg, James (2000). British Petroleum and Global Oil 1950-1975. Cambridge University Press. p. 258. ISBN 978-0-521-78515-0.
  8. ^ Pakistan & Gulf Economist. Economist Publications. 2007.
  9. ^ Pakistan & Gulf Economist. Economist Publications. 2007.
  10. ^ Alam, Kazim (18 August 2022). "Shell Pakistan to stop aviation operations". DAWN.COM.
  11. ^ "Pakistan Refinery Limited". www.prl.com.pk. Archived from the original on 27 September 2010.
  12. ^ Alam, Kazim (15 June 2023). "Foreign sponsor plans exit from Shell Pakistan". DAWN.COM.
  13. ^ "Shell Pakistan Annual Report 2009" (PDF). Shell Pakistan. 31 December 2009. Retrieved 12 November 2023.
  14. ^ "Shell Pakistan Annual Report 2010" (PDF). Shell Pakistan. 31 December 2010. Retrieved 12 November 2023.
  15. ^ "Shell Pakistan Annual Report 2011" (PDF). Shell Pakistan. 31 December 2011. Retrieved 12 November 2023.
  16. ^ "Shell Pakistan Annual Report 2012" (PDF). Shell Pakistan. 31 December 2012. Retrieved 12 November 2023.
  17. ^ "Shell Pakistan Annual Report 2013" (PDF). Shell Pakistan. 31 December 2013. Retrieved 12 November 2023.
  18. ^ "Shell Pakistan Annual Report 2014" (PDF). Shell Pakistan. 31 December 2014. Retrieved 12 November 2023.
  19. ^ "Shell Pakistan Annual Report 2015" (PDF). Shell Pakistan. 31 December 2015. Retrieved 12 November 2023.
  20. ^ "Shell Pakistan Annual Report 2016" (PDF). Shell Pakistan. 31 December 2016. Retrieved 12 November 2023.
  21. ^ "Shell Pakistan Annual Report 2017" (PDF). Shell Pakistan. 31 December 2017. Retrieved 12 November 2023.
  22. ^ "Shell Pakistan Annual Report 2018" (PDF). Shell Pakistan. 31 December 2018. Retrieved 12 November 2023.
  23. ^ "Shell Pakistan Annual Report 2019" (PDF). Shell Pakistan. 31 December 2019. Retrieved 12 November 2023.
  24. ^ "Shell Pakistan Annual Report 2020" (PDF). Shell Pakistan. 31 December 2020. Retrieved 12 November 2023.
  25. ^ "Shell Pakistan Annual Report 2021" (PDF). Shell Pakistan. 31 December 2021. Retrieved 12 November 2023.
  26. ^ "Shell Pakistan Annual Report 2022" (PDF). Shell Pakistan. 31 December 2022. Retrieved 12 November 2023.
  27. ^ "Shell Global" (PDF).

References

[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Shell_Pakistan&oldid=1253486549"