Transaction in Own Shares
- None.
- None.
Insights
Share buybacks are a significant financial maneuver that can influence a company's stock price and earnings per share (EPS). By repurchasing its own shares, Shell plc is reducing the number of shares outstanding, which typically leads to an increase in EPS and can be viewed as a signal of confidence by management in the company's financial health. It can also serve as a method to return value to shareholders, aligning with shareholder value maximization strategies.
However, the timing and price of buybacks are crucial. The volume weighted average price paid per share indicates the price at which the company has repurchased its shares. Investors should compare this to the market price over time to assess the effectiveness of the buyback in terms of timing and cost efficiency. Additionally, the repurchase on different trading venues adds a layer of complexity, as it may affect liquidity and price dynamics in each market.
Shell's share buyback announcement is part of a broader trend where companies utilize excess cash flows for repurchases, especially in industries like energy where companies can generate substantial cash during periods of high commodity prices. This activity can be seen as a strategic allocation of capital, potentially more favorable than other investment opportunities or acquisitions, especially if the company's shares are deemed undervalued.
Investors and analysts would monitor such buybacks as they may impact the demand and supply dynamics of the shares in the market. The reduced supply of shares can lead to a scarcity premium, particularly if the buybacks are large relative to the trading volume. Additionally, the action may influence investor sentiment, as it could be perceived as a tangible commitment to returning capital to shareholders.
It is important to note that share buybacks are regulated under financial market laws to prevent market manipulation and ensure transparency. Shell's compliance with the Market Abuse Regulation (EU MAR) and its UK counterpart (UK MAR), along with the delegated regulations, is crucial. These regulations set forth strict rules on the conditions under which buybacks can occur, including volume limits, price conditions and the use of independent brokers to prevent conflicts of interest.
The detailed breakdown of trades by Citigroup Global Markets Limited, acting independently of Shell, is a requirement to prevent insider trading and to ensure that the buyback program is conducted within the legal framework. This transparency is vital for maintaining investor trust and the integrity of the financial markets.
Transaction in Own Shares
28 February, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 28 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 |
| 28/02/2024 | 1,160,800 | LSE | GBP | |||
| 28/02/2024 | - | Chi-X (CXE) | GBP | |||
| 28/02/2024 | - | BATS (BXE) | GBP | |||
| 28/02/2024 | 1,190,700 | XAMS | EUR | |||
| 28/02/2024 | - | CBOE DXE | EUR | |||
| 28/02/2024 | - | 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 GBP shares did Shell plc purchase for cancellation?
Who will make trading decisions for Shell plc until 26 April 2024?
What regulations does Shell plc's share buy-back program comply with?
What is the LEI number of Shell plc?
