Transaction in Own Shares

Rhea-AI Summary

Shell plc (SHEL) has announced the purchase of 1,635,768 shares for cancellation on September 3, 2024, as part of its existing share buy-back programme. The purchases were made across different venues, with 825,698 shares bought on the London Stock Exchange at a volume-weighted average price of £26.3721, and 810,070 shares on XAMS at €31.6310. This initiative is part of the company's on- and off-market share repurchase program announced on August 1, 2024, which will run until October 25, 2024. Citigroup Global Markets is managing the trades independently within pre-set parameters, adhering to regulatory guidelines including EU and UK Market Abuse Regulations.

Positive

• Shell is actively implementing its share buy-back programme, potentially increasing shareholder value
• The company is repurchasing shares across multiple markets, demonstrating global market presence
• The share buy-back program is structured to comply with strict regulatory guidelines, ensuring transparency and fairness

Negative

• Significant capital expenditure on share repurchases may reduce funds available for other investments or operations

Insights

Financial Analyst

Shell's latest share buyback activity demonstrates the company's continued commitment to returning value to shareholders. The purchase of 825,698 shares on the London Stock Exchange at an average price of £26.3721 and 810,070 shares on Euronext Amsterdam at €31.6310 is part of their ongoing programme announced on August 1, 2024.

This buyback strategy can be seen as a positive signal, potentially indicating that Shell believes its shares are undervalued. It also suggests strong cash flow generation, allowing the company to invest in its future while simultaneously rewarding shareholders. However, investors should note that while buybacks can boost earnings per share and stock prices in the short term, they don't necessarily reflect improvements in the company's fundamental business operations or long-term growth prospects.

The execution of the buyback through Citigroup Global Markets , operating independently within pre-set parameters, adds a layer of objectivity to the process. This approach, combined with adherence to regulatory frameworks like EU MAR and UK MAR, underscores Shell's commitment to transparency and regulatory compliance in its capital allocation decisions.

Market Research Analyst

Shell's share repurchase activity offers intriguing insights into market dynamics. The significant price differential between London (£26.3721) and Amsterdam (€31.6310) listings, equivalent to about 20%, highlights potential arbitrage opportunities and market inefficiencies that savvy investors might exploit.

The timing of this buyback, amidst global economic uncertainties and fluctuating oil prices, suggests Shell's confidence in its financial position. It's worth noting that energy sector companies often use buybacks as a flexible alternative to dividends, allowing them to return cash to shareholders while maintaining financial flexibility in a volatile commodity price environment.

Investors should consider the broader implications of this buyback on Shell's capital structure and future investment capacity. While it may signal financial strength in the short term, it's important to balance this against the company's long-term growth investments, especially in the context of the ongoing energy transition.

Transaction in Own Shares

03 September, 2024

• • • • • • • • • • • • • • • •

Shell plc (the ‘Company’) announces that on 03 September 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
03/09/24	825,698	£26.9100	£26.1250	£26.3721	LSE	GBP
03/09/24	0	£0.0000	£0.0000	£0.0000	Chi-X (CXE)	GBP
03/09/24	0	£0.0000	£0.0000	£0.0000	BATS (BXE)	GBP
03/09/24	810,070	£32.2300	£31.3100	£31.6310	XAMS	EUR
03/09/24	0	£0.0000	£0.0000	£0.0000	CBOE DXE	EUR
03/09/24	0	£0.0000	£0.0000	£0.0000	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 August 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 August 2024 up to and including 25 October 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

• RNS Template Complete 03-Sep-24

FAQ

How many shares did Shell (SHEL) repurchase on September 3, 2024?

Shell (SHEL) repurchased a total of 1,635,768 shares on September 3, 2024, with 825,698 shares bought on the London Stock Exchange and 810,070 shares on XAMS.

What was the average price paid per share for Shell's (SHEL) stock repurchase on September 3, 2024?

On September 3, 2024, Shell (SHEL) paid a volume-weighted average price of £26.3721 per share on the London Stock Exchange and €31.6310 per share on XAMS.

When did Shell (SHEL) announce its current share buy-back programme?

Shell (SHEL) announced its current share buy-back programme on August 1, 2024.

Until what date is Shell's (SHEL) current share buy-back programme scheduled to run?

Shell's (SHEL) current share buy-back programme is scheduled to run until October 25, 2024.