Transaction in Own Shares
- None.
- None.
Insights
A share buyback, such as the one executed by Shell plc, often signals a company's belief that its shares are undervalued and it can be a way to return value to shareholders. By reducing the number of shares in circulation, the earnings per share (EPS) may increase, potentially leading to a higher stock price. However, the impact on the stock price can vary depending on market perception and the scale of the buyback relative to the company's market capitalization.
Investors should consider the financial health of the company and the opportunity cost of the buyback. If the company is foregoing investment in growth opportunities or paying down debt, the long-term effects could be negative. Additionally, the execution of the buyback within pre-set parameters suggests a disciplined approach, minimizing the potential for market manipulation.
It's also noteworthy that the buyback is being conducted in compliance with both EU and UK market abuse regulations, ensuring transparency and adherence to legal standards. This compliance is crucial for maintaining investor confidence, especially post-Brexit, as it demonstrates Shell's commitment to upholding rigorous regulatory standards.
From a market research perspective, the buyback program's impact on Shell's market position must be assessed. The energy sector is currently undergoing significant transformation, with a shift towards renewable sources. Shell's decision to repurchase shares rather than directly investing in new energy projects could be interpreted as a conservative strategy, possibly maintaining short-term shareholder value at the potential expense of long-term strategic positioning.
Moreover, the timing and size of the buyback can affect investor sentiment. The market's reaction to such a program can serve as a barometer for the company's perceived intrinsic value. It will be important to monitor the stock's performance and trading volume in the wake of the announcement to gauge the market's response to Shell's strategic financial decision.
Legally, the share buyback process is tightly regulated to prevent market abuse and ensure fair trading practices. Shell's announcement mentions compliance with both the EU Market Abuse Regulation and its UK counterpart, reflecting the complexities of operating in a post-Brexit regulatory environment. The legal intricacies of such operations require meticulous attention to the evolving legislative landscape.
The involvement of Citigroup Global Markets Limited as an independent trading entity adds a layer of compliance, as it is meant to prevent the company from influencing the share price during the buyback period. This separation is a standard practice to ensure that trading decisions are made without undue influence from the company whose shares are being repurchased.
Transaction in Own Shares
26 February, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 26 February 2024 it purchased the following number of Shares for cancellation.
Aggregated information on Shares purchased according to trading venue:
| Date of purchase | Number of Shares purchased | Highest price paid | Lowest price paid | Volume weighted average price paid per share | Venue | Currency |
| 26/02/2024 | 1,100,000 | LSE | GBP | |||
| 26/02/2024 | - | Chi-X (CXE) | GBP | |||
| 26/02/2024 | - | BATS (BXE) | GBP | |||
| 26/02/2024 | 1,100,000 | XAMS | EUR | |||
| 26/02/2024 | - | CBOE DXE | EUR | |||
| 26/02/2024 | - | TQEX | EUR |
These share purchases form part of the on- and off-market limbs of the Company's existing share buy-back programme previously announced on 1 February 2024.
In respect of this programme, Citigroup Global Markets Limited will make trading decisions in relation to the securities independently of the Company for a period from 1 February 2024 up to and including 26 April 2024.
The on-market limb will be effected within certain pre-set parameters and in accordance with the Company’s general authority to repurchase shares on-market. The off-market limb will be effected in accordance with the Company’s general authority to repurchase shares off-market pursuant to the off-market buyback contract approved by its shareholders and the pre-set parameters set out therein. The programme will be conducted in accordance with Chapter 12 of the Listing Rules and Article 5 of the Market Abuse Regulation 596/2014/EU dealing with buy-back programmes (“EU MAR”) and EU MAR as “onshored” into UK law from the end of the Brexit transition period (at 11:00 pm on 31 December 2020) through the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and as amended, supplemented, restated, novated, substituted or replaced by the Financial Services Act, 2021 and relevant statutory instruments (including, The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310)), from time to time (“UK MAR”) and the Commission Delegated Regulation (EU) 2016/1052 (the “EU MAR Delegated Regulation”) and the EU MAR Delegated Regulation as “onshored” into UK law from the end of the Brexit transition period (at 11:00 pm on 31 December 2020) through the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and as amended, supplemented, restated, novated, substituted or replaced by the Financial Services Act, 2021 and relevant statutory instruments (including, The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310)), from time to time.
In accordance with EU MAR and UK MAR, a breakdown of the individual trades made by Citigroup Global Markets Limited on behalf of the Company as a part of the buy-back programme is detailed below.
Enquiries
Media International: +44 (0) 207 934 5550
Media Americas: +1 832 337 4335
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Acquisition or disposal of the issuer’s own shares
Attachment
FAQ
How many shares did Shell plc purchase for cancellation?
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