Transaction in Own Shares
- None.
- None.
Insights
Shell plc's recent announcement of share repurchases is a strategic financial maneuver that often signals a company's confidence in its intrinsic value. By buying back 650,000 shares, Shell is effectively reducing the number of shares available in the market, which can lead to an increase in earnings per share (EPS) and potentially boost investor sentiment. The repurchase was executed at a volume-weighted average price, reflecting a fair market value over the trading period.
From a market perspective, this action might be interpreted as Shell having a surplus of cash and considering its stock to be undervalued. It's also a tool for adjusting capital structure and returning value to shareholders. However, investors should be cautious, as buybacks can sometimes be used to mask underlying financial issues or artificially inflate stock prices.
The financial implications of Shell's share buyback program are multi-faceted. On one hand, the reduction in outstanding shares can improve return on equity (ROE) by decreasing the equity base against which profits are measured. On the other hand, the capital used for the buyback represents an opportunity cost; funds could have been allocated to other value-creating opportunities such as investments in new projects or acquisitions.
Analysts must scrutinize the company's balance sheet to ensure that the buyback does not lead to an unsustainable level of debt. Moreover, the timing and price of the buyback should be evaluated to determine if the company is buying shares at an opportune time, thus maximizing value for remaining shareholders.
Shell's adherence to the regulatory framework of both the EU Market Abuse Regulation (EU MAR) and the UK Market Abuse Regulation (UK MAR) is crucial for legal compliance, especially post-Brexit. The detailed breakdown of trades by Goldman Sachs International ensures transparency and adherence to the rules governing buy-back programmes. This compliance mitigates legal risks and maintains corporate governance standards.
Investors should be aware that such compliance is not just a formality but a critical aspect of corporate operations that can have significant repercussions on market trust and the company's legal standing if not properly managed.
Transaction in Own Shares
January 10, 2024
• • • • • • • • • • • • • • • •
Shell plc (the 'Company') announces that on 10 January 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 |
| 10/01/2024 | 650,000 | LSE | GBP | |||
| 10/01/2024 | - | - | - | - | Chi-X (CXE) | GBP |
| 10/01/2024 | - | - | - | - | BATS (BXE) | GBP |
| 10/01/2024 | - | - | - | - | XAMS | EUR |
| 10/01/2024 | - | - | - | - | CBOE DXE | EUR |
| 10/01/2024 | - | - | - | - | 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 2 November 2023.
In respect of this programme, Goldman Sachs International will make trading decisions in relation to the securities independently of the Company for a period from 2 November 2023 up to and including 26 January 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 Goldman Sachs International 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
What did Shell plc (SHEL) announce on January 10, 2024?
What is the purpose of the share buy-back program announced by Shell plc (SHEL)?
Who will make trading decisions in relation to the securities for Shell plc's (SHEL) share buy-back program?
In what ways will the share buy-back program be conducted in accordance with regulations?
What is the LEI number of Shell plc (SHEL)?
