ISLAMABAD: Calling the aviation sector in Pakistan no longer commercially viable, Shell Pakistan Limited (SPL) on Wednesday decided to halt its aviation operations nationwide and notified the Pakistan Stock Exchange (PSX) in this regard.
According to the details, SPL made this decision during a meeting of its board of directors held on 17e August 2022 and communicated its decision to the Managing Director, Pakistan Stock Exchange Limited, Karachi in accordance with Section 96 of the Securities Act 2015 and Clause 5.6.1(a) of the Pakistan Stock Exchange Regulations (PSX).
“You are kindly requested to inform TRE certificate holders accordingly,” reads the letter from SPL’s director and chief financial officer.
Currently, SPL conducts its aviation-related activities at four sites. These are Jinnah Airport (JIAP) in Karachi, Quetta International Airport (QIAP), Begum Nusrat Bhutto Airport (BNB) in Sukkur and Nawabshah Airport (WNS) in Sukkur.
According to a letter from SPL’s Director and Chief Financial Officer (CFO), Zarrar Mahmud dated On August 17, following the expiration of leases related to the above airports, the Civil Aviation Authority of Pakistan (CAA) launched a joint tender inviting participants to bid for the operation of six airports, including the four airports currently operated by SPL (listed above) as well as Skardu International Airport (KDU) and Gwadar International Airport (GDU).
After due consideration of a wide range of factors, including legal compliance and financial and commercial considerations, SPL has made the decision not to participate in the tender, said the Director and Chief Financial Officer of SPL.
He added that SPL is committed to ensuring the safe transfer of operations to the CAA and/or relevant stakeholders, as appropriate, at the airports where it currently operates.
It is pertinent to note that SPL in its letter to PSX also clarified in its letter that the final exit date from these airports will be communicated after consultation with CAA.
According to SPL, Shell Pakistan remains committed to continuing all its other activities and operations in Pakistan, which are unaffected. The company will actively work to minimize the impact of current challenges and strive to seize opportunities to ensure that the company plays a key role in developing Pakistan’s energy future.
It is worth mentioning that the Board of Directors of Shell Pakistan Limited (SPL) also announced the company’s half-year results and recorded a profit after tax of PKR 7,469 million compared to the profit of PKR 2,153 million. at the same time last year. .
According to SPL, the encouraging turnaround is mainly driven by improved business performance focused on strategic priorities such as differentiated fuels and lubricants, the positive change in the index pricing formula from pricing agency S&P Global Platts by government and safe and efficient fuel operations.
During this period, the mobility business launched 13 new retail sites which will help increase volume. Shell V-Power remains the market leader in the premium fuel category. Through fruitful dialogue with the government, we will see the expansion of our network in Punjab, which will help us grow.
In addition, the company (SPL) has authored a road safety book titled “Once Upon a Time on the Road” with the aim of influencing behaviors to make roads safer in Pakistan. The book will be part of Care Foundation’s sixth grade school curriculum across Pakistan, SPL said.