SHELL

pakistan limited

SHELL

M. Afraz Rasheed

Mahnoor Shah

Yousuf Anwer

Nayyab Mianoor

Simran Harichand

Ali Ahsan

Directors

SHARE PRICES IN THE INDUSTRY

2. Upstream Americas:

Manages the Upstream business in North and South America. It searches for and recovers crude oil and natural gas, transports gas and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream Americas also extracts bitumen from oil sands that is converted into synthetic crude oil. It comprises operations organised into business-wide managed activities and supporting activities.

PAKISTAN STATE OIL

PAKISTAN PETROLEUM PRICES

IN PAKISTAN:

• Omar Y Sheikh

(Chairman)

• Rafi H Basheer

• Farrokh K Captain

• Chong Keng Cheen

• Imran R Ibrahim

• Nasser N S Jaffer

• Zaffar A Khan

• Michael Noll

• Haroon Rashid

• Badaruddin F Vellani

GLOBAL:

• Josef Ackermann

• Malcolm Brinded

• Derek Burney

• Linda Cook (business)

• Charles O. Holliday

• John Kerr, Baron Kerr of Kinlochard

• Roelof van Lennep

• Mark Moody-Stuart

• Jorma Ollila

• Nigel Sheinwald

• Ben van Beurden

• Peter Voser

3. Downstream:

Manages Shell's manufacturing, distribution and marketing activities for oil products and chemicals. Manufacturing and supply includes refinery, supply and shipping of crude oil.

SHELL PAKISTAN SHARE PRICES

RECENT

MONTHLY

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•4. Projects & technology:

Manages the delivery of Shell's major projects and drives the research and innovation to create technology solutions. It provides technical services and technology capability covering both Upstream and Downstream activities. It is also responsible for providing functional leadership across Shell in the areas of health, safety and environment, and contracting and procurement.

BUSINESS NATURE

AUDITORS REPORT FOR THE YEAR ENDED 2013

EQUITY

1. Upstream International:

Manages the Upstream business outside the Americas. It searches for and recovers crude oil and natural gas, liquefies and transports gas, and operates the upstream and midstream infrastructure necessary to deliver oil and gas to the market. Its activities are organised primarily within geographic units, although there are some activities that are managed across the business or provided through support units.

Overview

Share capital

856,100 (rupees '000)

(2013 ANNUAL REPORT)

STOCK EXCHANGE IT'S LISTED ON:

Shell Pakistan Limited (SPL) in Numbers:

Shell has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 6 July 2012, it was the largest company on the FTSE, with a market capitalisation of £140.9 billion. It has secondary listings on Euronext Amsterdam and the New York Stock Exchange.

HISTORY IN PAKISTAN

TAXATION PERSPECTIVE OF SHELL

Auditor's Opinion

WHO DID THE AUDITING?

HOWEVER

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors.

ACCORDING TO THE AUDITORS COMMITEE THERE WERE MISSTATEMENTS IDENTIFIED OF $75 MILLION.

In their opinion the Consolidated Financial Statements of Royal Dutch Shell plc (the Company) and its subsidiaries (collectively Shell):

• give a true and fair view of the state of Shell’s affairs as at December 31, 2013, and of Shell’s income and cash flows for the year then ended;
• have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union; and
• have been prepared in accordance with the requirements of the Companies Act 2006 and Article 4 of the IAS Regulation.
• This opinion is to be read in the context of what we say in the remainder of this report.

• SPL serves approximately 1,000,000 customers at its Retail stations in Pakistan
• They have over 750 Retail stations across the country
• Offering over 15 lubricants for different vehicles and industrial uses.
• A Shell fleet of over 300 oil tankers distributes their products nationwide
• 60 aircrafts served daily
• Shell has a 39% brand share preference
• Shell is present at 5 major airfields across Pakistan
• SPL distributes from 8 oil depots (including JVs)

Shell has been in Pakistan for over a century, dating back to 1899 when Asiatic Petroleum, the far eastern marketing arm of two companies: Shell Transport Company and Royal Dutch Petroleum Company began importing kerosene oil from Azerbaijan into the subcontinent. Even today, the legacy of the past is visible in a storage tank carrying the date, 1898.

STANDING IN THE WORLD

Contradiction

How Shell uses Bermuda to turn tax into profit?

1) Their operations generate revenue through taxes and royalties for governments around the world. This is the third year (2013-2014) they are voluntarily publishing details of payments they have made to governments in some of the main countries where they operate.

2) In 2013, shell paid globally $20.3 billion in corporate taxes, and $4.1 billion in royalties. It collected $80.9 billion in excise duties and sales taxes on their fuel and other products on behalf of governments. Shell’s effective tax rate over the past year was 51%.

3) Shell believes major companies like it should be open on how much they pay to governments, and that governments should be transparent in how they use these funds.

4) In 2003, Shell became the first company to publish the royalties, taxes and other payments made to the Nigerian government, with their permission and support.

It believes that such transparency promotes good government, helping to ensure that the billions of dollars the energy industry pays in tax benefits society as a whole.

LOGO Changes

CURRENT FUEL PRICES IN PAKISTAN

Product - Super:

Price: 106.56 Rs/Litre

Product - Diesel:

Price: 108.34 Rs/Litre

Product - HOBC KHI:

Price: 134.88 Rs/Litre

Product - HOBC RWP:

Price: 133.01 Rs/Litre

Product - HOBC LHR:

Price: 132.19 Rs/Litre

Royal Dutch Shell plc commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom. Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the second largest company in the world, in terms of revenue, and one of the six oil and gas "supermajors".

The word “Shell” first appeared in 1891 as the trademark for the kerosene that Marcus Samuel and Company shipped to the Far East. The small London business dealt originally in antiques and oriental seashells.

In 1897 Samuel formed The Shell Transport and Trading Company. The first logo in 1901 was a mussel shell. In 1904 a scallop shell, or Pecten, gave a visual element to the corporate and brand name.

In 1915 the Shell Company of California first built service stations and had to make these stand out from the competition. They used bright colours that would not offend the Californians: because of the state’s strong Spanish connections they chose red and yellow, and it developed over the years.

1)Oil giant Shell makes clever use of the income tax rate in Bermuda: ZERO percent. Every euro that is made by one of Shell’s subsidiaries and flows to the island is used to propel the profit. The principal rule: keep it legal.

• Solen Insurance, Andrea Koroluk’s formal employer, is more than simply one of Shell’s many subsidiaries – partly due to its location. Solen, which is engaged in the insurance of oil transportation, oil refining and ships, is officially located on the tropical island of Bermuda.

• Solen and Shell are located in Bermuda because of the very supple approach to taxes in the country. As the rate of the profit tax on the island is 0 percent, the profits that Solen Insurance makes are transferred in its entirety – meaning tax free – to the parent company Shell in The Hague.

• Insurance premiums may be deducted from the revenues. A Shell subsidiary in for example Gabon, Australia or Brazil would detract the premiums they pay to Solen from the profits they make in these countries.

This way these subsidiaries have less tax to pay in the countries they are operating in. Subsequently Solen

makes a bigger profit in Bermuda, and does not pay any taxes over these profits. From Bermuda the profit can,

in turn, be piped back, wholly untaxed, to the headquarters in the homeland.

• The big question is how much Shell earns using this tax route!!!!

The company anxiously keeps the profits from Solen in Bermuda hidden.However, the company points out that in

comparison with other multinationals it pays quite a lot of tax – “44 percent of the profits"