 | |
| Company type | Subsidiary |
|---|---|
| PSX: SHEL | |
| Industry | Oil and gas |
| Founded | 1947; 77 years ago (1947) |
| Headquarters | Karachi, Pakistan |
Key people | Waqar Siddiqui (Managing Director and Country Chair) |
| Products | Gasoline, Aviation fuels, Compressed natural gas and lubricants |
| Revenue |  Rs. 412.7 billion (US$1.4 billion)}[1] (2022) |
 Rs. 2.95 billion (US$10 million)[1] (2022) | |
| Rs. -72 million (US$−250,000)[1] (2022) | |
| Total assets | Rs. 101.73 billion (US$350 million)[1] (2022) |
| Total equity | Rs. 14.60 billion (US$51 million)[1] (2022) |
| Parent | Shell plc |
| Website | shell.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.
Shell Pakistan Ltd. has 782 petrol pumps,[4] whereas Cnergyico has 982 petrol pumps, the State-owned Pakistan State Oil Co. has 3,500 petrol pumps and Total Parco Pakistan Ltd. has 800 petrol pumps.[5]
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.[6] A significant historical marker from this period is a storage tank from 1898.[6] The company's documented presence in the Indo-Pakistan subcontinent began in 1903 when The Shell Transport & Trading Company and the Royal Dutch Petroleum Company formed a partnership to supply petroleum to Asia.[6]
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.[6]
After Pakistan gained independence in 1947, the company was renamed as Burmah Shell Oil Distribution Company of Pakistan.[6]
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.[7]
In 1965, Shell sold half of its stake in Burmah Shell operating in East Pakistan.[8] 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.[8]
In 1970, it was listed on the Karachi Stock Exchange and the company was renamed as Pakistan Burmah Shell (PBS) Limited.[9] The Shell and Burmah Groups retained a 49 percent share, split evenly while National Investment Trust, a state-owned fund, owned a majority stake.[8]
In February 1993, during a period of economic liberalization, Burmah divested from PBS, allowing Shell Petroleum to increase its stake to 51 percent.[10] Over time, Shell Petroleum further increased its share, now holding a 77 percent stake in what is currently known as Shell Pakistan Ltd (SPL).[6]
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.[11]
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.
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 (PRL), located at Karachi, is the third largest refinery in the country,[12] 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.
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.[13]
| Year ended | Revenue (PKR million) | Operating income (PKR million) | Net income (PKR million) | Total assets (PKR million) | Total equity (PKR million) |
|---|---|---|---|---|---|
| 31 December 2009[14] | 177,110
|
3,910
|
2,563
|
33,653
|
8,271
|
| 31 December 2010[15] | 223,814
|
3,044
|
1,616
|
38,497
|
7,900
|
| 31 December 2011[16] | 247,507
|
2,833
|
906
|
49,159
|
8,258
|
| 31 December 2012[17] | 244,317
|
5 |
(2,083)
|
44,895
|
6,178
|
| 31 December 2013[18] | 287,992
|
2,424
|
1,061
|
40,595
|
7,223
|
| 31 December 2014[19] | 291,363
|
546
|
(1,067)
|
38,678
|
5,895
|
| 31 December 2015[20] | 248,571
|
2,345
|
911
|
37,934
|
5,981
|
| 31 December 2016[21] | 214,853
|
5,705
|
6,764
|
42,510
|
11,110
|
| 31 December 2017[22] | 206,758
|
4,323
|
3,183
|
38,893
|
10,198
|
| 31 December 2018[23] | 186,204
|
(60)
|
(1,102)
|
49,116
|
6,353
|
| 31 December 2019[24] | 199,719
|
(140)
|
(1,486)
|
56,175
|
4,291
|
| 31 December 2020[25] | 165,140
|
(4,815)
|
(4,821)
|
54,645
|
(651)
|
| 31 December 2021[26] | 249,210
|
6,609
|
4,467
|
84,933
|
15,321
|
| 31 December 2022[27] | 412,699
|
2,915
|
(72)
|
101,732
|
14,597
|
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.[28]
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