Transaction in Own Shares
- None.
- None.
Insights
Share buybacks are a significant financial strategy that can influence a company's stock price and shareholder value. In the case of Shell plc, the repurchase of shares for cancellation indicates a return of capital to shareholders, which can signal confidence in the company's financial health and future prospects. The repurchase also reduces the number of shares outstanding, potentially increasing earnings per share (EPS) and the intrinsic value of remaining shares. It is essential to analyze the volume weighted average price paid per share and compare it with the current market price to assess the timing and cost-effectiveness of these buybacks.
Furthermore, the involvement of Citigroup Global Markets Limited as an independent decision-maker in the trading of securities suggests a structured approach to the buyback, aiming to avoid market manipulation and comply with market abuse regulations. Investors should monitor the impact of these buybacks on the company's cash reserves and debt levels, as an imbalanced capital allocation could affect long-term financial stability.
Shell plc's share buyback program reflects broader market trends where corporations utilize excess capital for shareholder returns. The context of this buyback, within the energy sector, could be a response to the current market dynamics, such as fluctuations in oil prices, regulatory changes and shifts in energy demand. As buybacks can be interpreted as a lack of profitable reinvestment opportunities, it's crucial to evaluate Shell's strategic positioning and R&D investment to ensure sustained growth beyond the short-term boost from share repurchases.
Additionally, the geographic spread across different trading venues and currencies (GBP and EUR) highlights the multinational nature of Shell's investor base and the need to manage currency risk effectively. The distribution of buyback activities could also provide insights into where the company perceives the most value, potentially influencing international investor sentiment and the stock's liquidity across markets.
Shell plc's compliance with the Market Abuse Regulation (EU MAR) and the UK's equivalent post-Brexit (UK MAR) is crucial to ensure the legality of the buyback program. The detailed disclosure of individual trades made by Citigroup Global Markets Limited is a requirement to maintain transparency and prevent market abuse. The regulatory landscape dictates the parameters within which the buyback must be conducted, such as volume limits and timing restrictions, to prevent undue influence on the share price.
Understanding the legal framework, including the EU MAR Delegated Regulation and its UK counterpart, is imperative for investors who need to be assured that the buyback program is executed within the bounds of the law, minimizing the risk of regulatory sanctions that could negatively impact the company's reputation and financial standing.
Transaction in Own Shares
1 March, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 1 March 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 |
| 01/03/2024 | 931,038 | LSE | GBP | |||
| 01/03/2024 | - | Chi-X (CXE) | GBP | |||
| 01/03/2024 | - | BATS (BXE) | GBP | |||
| 01/03/2024 | 853,885 | XAMS | EUR | |||
| 01/03/2024 | - | CBOE DXE | EUR | |||
| 01/03/2024 | - | 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 on 1 March 2024?
What was the highest price paid per share by Shell plc on 1 March 2024?
Which trading venue saw the purchase of 853,885 shares by Shell plc on 1 March 2024?
Who is overseeing the trading decisions for Shell plc's share buy-back program?
How long will Citigroup Global Markets Limited oversee trading decisions for Shell plc's share buy-back program?
