Shell Pakistan announces to discontinue aviation operations across the country
- Says after consideration of a wide range of factors, SPL has taken the decision not to participate in the tender floated by PCAA for the operation of six airports
Shell Pakistan Limited (SPL) on Wednesday announced that it has decided to discontinue its aviation operations across Pakistan.
In a notice to the Pakistan Stock Exchange (PSX), Shell Pakistan informed that the company carries out its aviation-related operations at the following locations: (i) Jinnah International Airport (JIAP) (ii) Quetta International Airport (QIAP) (ii) Begum Nusrat Bhutto Airport (BNB) (Sukkur) and (iv) Nawabshah Airport (WNS).
“Following the expiry of the leases related to the above airports, the Pakistan Civil Aviation Authority (CAA) has floated a joint-tender inviting participants to bid for the operation of six (6) airports, including all four of the airports currently operated by SPL as well as Skardu International Airport (KDU) and Gwadar International Airport (GDU).
Shell Pakistan posts Rs2,079m profit after tax
“After due consideration of a wide range of factors, including legal compliance, financial and commercial considerations, SPL has taken the decision not to participate in the tender,” read the notice.
SPL said it remains committed to the safe handover of operations to the CAA and/or relevant stakeholders (as appropriate) at the airports at which it is currently operating.
"The final date of exit from these airports will be communicated after consultation with the CAA," it added.
SPL further said that it remains committed to continuing all its other businesses and operations in Pakistan, which remain unaffected.
The oil marketing company recorded a drop of 37% in its month-on-month oil sales in the month of July, but the overall trend was lower as well.
Its sales clocked in at 100,000 tons on account of Eid holidays during the first half of the month where inter-provincial transportation activity decreased, which led to lower HSD sales, and monsoon season across the country resulted in lower traffic on the roads.
Moreover, Pakistan's oil sales commenced FY23 with a decline of 26% on month-on-month basis to clock in at 1.44 million tons in July 2022. Oil sales in July 2022 were the lowest since February 2021.
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