Transaction in Own Shares
- None.
- None.
Insights
Shell plc's recent transaction involving the buyback of its own shares is a strategic financial maneuver with implications for shareholder value and market perception. The repurchase of shares often indicates management's belief that the stock is undervalued, providing a signal to the market which can lead to an uptick in stock price. The buyback will reduce the number of outstanding shares, potentially increasing the earnings per share (EPS) metric, a key indicator watched by investors. This could result in a positive re-rating of the stock by analysts. However, it is critical to assess the opportunity cost of such a buyback, including whether the funds could have been more effectively allocated towards business growth opportunities or debt reduction.
The buyback program executed by Shell plc falls within a broader industry trend where large corporations repurchase their own stock to return value to shareholders. It's important to analyze the market reaction to such buybacks, as they can be viewed as a lack of viable investment opportunities within the company. Additionally, the timing and scale of the buyback should be scrutinized for alignment with the company's long-term strategic goals. The impact on liquidity and market depth, as well as potential short-term volatility, are also considerations for stakeholders.
The compliance of Shell plc's share buyback with the Market Abuse Regulation (MAR) and the UK's adoption of these rules post-Brexit is crucial for legal adherence and investor confidence. The detailed disclosure of individual trades by Citigroup Global Markets Limited on behalf of the company ensures transparency, which is a cornerstone of market integrity. Investors should be aware of the legal framework governing such transactions to understand the robustness of the company's corporate governance practices.
Transaction in Own Shares
13 February, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 13 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 |
| 13/02/2024 | 350,000 | LSE | GBP | |||
| 13/02/2024 | - | Chi-X (CXE) | GBP | |||
| 13/02/2024 | - | BATS (BXE) | GBP | |||
| 13/02/2024 | 300,000 | XAMS | EUR | |||
| 13/02/2024 | - | CBOE DXE | EUR | |||
| 13/02/2024 | - | 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?
What were the highest and lowest prices paid for the shares on the LSE?
Who is managing Shell plc's share buy-back program?
Until when will the share buy-back program run?
What regulations govern Shell plc's buy-back program?
