SHELL PAKISTAN LIMITED
May 09 - 15, 2005
Shell is a superior brand name with a 100 year history in this region. The Royal Dutch/Shell Group has been active in the Indo-Pakistan sub continent from 1903 when a partnership was struck between The Shell Transport and Trading Company and the Royal Dutch Petroleum Company to supply petroleum products in Asia. In 1928, to enhance their distribution capabilities, the marketing interests of the Royal Dutch/Shell Group and Burmah Oil Company Limited in India were merged and the Burmah Shell Oil Storage Distribution and Storage Company of India was born. In 1970, when 51% of the share holding was transferred to Pakistani investors, the name of the company changed to Pakistan Burmah Shell (PBS) Limited. In February 1993, as a result of a decision by Burmah Oil to divest in Pakistan and the deregulation policy of the Government, the Shell Petroleum Co. bought the shares of Burmah Oil Company and 2% shares from the market to become the major shareholder in Shell Pakistan Limited (SPL). In February 2002, Shell increased its shareholding to 76.1% which further demonstrated its continued confidence in the country's economic progress.
The primary goal of the company is to position itself as the preferred oil company in Pakistan, leading the field in its commitment to customer service, quality of products, safety and environmental protection.
Shell Pakistan markets and distributes Fuels and Lubricants from Karachi to Peshawar and has a market share of approximately 30% for white oil products in Pakistan.
Amongst the year's significant initiatives has been the recent introduction of the New Shell Petrol that gives better mileage to drivers. Fuels treated with the Better Mileage formula can deliver enhanced fuel economy when compared to untreated fuels. We have invested heavily in leading edge research and development and further tested this fuel both in laboratory and by extensive car fleet tests to ensure better fuel economy for our customers.
The Shell Helix brand underwent a major re-launch designed to revive, refresh and rejuvenate car engines to give a smoother, quieter drive across the country. Shell is providing fuel and lubricants for the Mangla Raising Project at present one of the largest infrastructure projects in Pakistan. For Aviation fuels Shell is the supplier of first choice for all international customers in the South Asia region.
In an intensely competitive business environment, Shell Pakistan delivered a robust and encouraging performance, achieving after tax profits of Rs917 million for the nine months ending March 31, 2005 from Rs569 million for the same period last year. The growth in profits is mainly a result of higher selling prices and a superior product mix providing enhanced margins. Since 1993, Shell has invested Rs8 billion on demonstrating its commitment to the economic growth of the country.
Improving product/service delivery and access for customers nationwide, remains a top priority. Shell continues its investment in its growing service stations network, which has brought the number of Retail Visual Identity stations to 823. With this program Shell maintains its leadership in bringing the international standards through supply chain.
Commitment to high quality products is an essential commitment to our customers. The number of service stations offering CNG has increased to 91 from 54 last year to meet the growing demand for this fuel. Promoting CNG is strategically significant, whilst also an effort to protect the environment by promoting the use of cleaner fuels.
BUSINESS AND SOCIETY
The White Oil Pipeline commenced its operations in December 2004. WOPP is a $480 million project, in which Shell Pakistan has contributed $124 million as 26% equity share. During the current quarter, the pipeline was filled with 236 thousand metric tonnes of High Speed Diesel. As one of Pakistan's largest infrastructure projects, it will reduce both road damage and the risks of vehicular traffic transporting petroleum products as well as lend cost efficiencies in transportation.
The economic contribution a business makes comes essentially through providing employment investment and revenue to governments through taxes. Shell indirectly or directly supports livelihood of 25,000 people. It is one of the largest revenue collectors on behalf of the government, 30% of the company's total revenue comprises of government taxes and levies, contributing over Rs27 billion annually to the national exchequer.
A major step forward in environmental safety was achieved when Shell Pakistan Limited became the first local oil marketing company to acquire Tier-I marine oil spill (50 tonnes) control and recovery equipment giving us a localized ability to respond, promptly and effectively.
Shell promotes diversity not only at its office locations but even at its service stations. 2004 saw the induction of female staff at the highly male dominated petrol stations and depots — both major firsts amongst companies in the petroleum sector.
Shell has taken the initiative in establishing a cooperative body to tackle marine oil spill and marine shipping and & terminal standards issues in Pakistan. This cooperative is called Marine Oil Spill Resource Center. The parties participating in this centre are SPL, PSO, Caltex, PRL, NRL, Bosicor and Karachi Port Trust.
Tameer is a significant part of Shell Pakistan's social investment programme. It is an entrepreneurship development programme, focused on promotion of entrepreneurship amongst the youth by developing their skills. Across Pakistan, Tameer has successfully conducted 22 mind-stimulating workshops for a diverse audience numbering close to 650 people of which 40% were women, from remote villages to metropolises. Tameer has successfully reached out to 50 educational institutes and polytechnics and have been given the concept of entrepreneurship through seminars & meetings.
The future of Shell is inextricably linked to the future of Pakistan. Our commitment to society, its past & present, continues with the hope of securing a better future for all.