Transaction in Own Shares
- None.
- None.
Insights
Shell plc's recent share buy-back announcement is a significant financial event that reflects the company's capital allocation strategy and impacts shareholder value. The repurchase of shares can signal management's confidence in the company's intrinsic value and often results in an increase in earnings per share (EPS), potentially boosting investor sentiment.
The details provided indicate a substantial volume of shares bought back, which could imply a material investment by the company in its own equity. This action may suggest that the company perceives its stock to be undervalued. It is also noteworthy that the buy-back is executed within the regulatory framework of both EU and UK market abuse regulations, ensuring compliance and transparency.
Investors and analysts would monitor such buy-backs closely, as they can affect the company's financial ratios and return on equity. Moreover, the involvement of a third-party financial institution like Goldman Sachs International to independently make trading decisions could be seen as a measure to avoid conflicts of interest and ensure the buy-back is conducted at arm's length.
Overall, this share repurchase activity could be perceived positively by the market if it aligns with broader financial health and strategic goals of Shell plc. However, it is essential to consider the opportunity cost of such capital deployment and whether investing in the business or other growth opportunities could have offered higher returns.
The execution of Shell plc's share buy-back program within the pre-set parameters and the adherence to the EU and UK market abuse regulations demonstrates the company's commitment to corporate governance and regulatory compliance. Shareholders typically view such governance practices as a positive indicator of management's responsibility and the board's oversight capabilities.
Furthermore, the buy-back program's structure, involving both on-market and off-market limbs and the clear delegation of trading decisions to an independent financial institution, reflects a sophisticated approach to capital management and regulatory adherence. This could enhance investor confidence in the company's governance structures and its ability to manage complex financial transactions.
It is also relevant to consider the potential impact on the company's capital structure. Reducing the number of shares outstanding can increase the relative ownership stake of remaining shareholders and may lead to a more concentrated ownership profile, which could influence corporate governance dynamics.
Transaction in Own Shares
December 19, 2023
• • • • • • • • • • • • • • • •
Shell plc (the 'Company') announces that on 19 December 2023 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 |
| 19/12/2023 | 1,755,050 | LSE | GBP | |||
| 19/12/2023 | 315,187 | Chi-X (CXE) | GBP | |||
| 19/12/2023 | 386,961 | BATS (BXE) | GBP | |||
| 19/12/2023 | 1,406,023 | XAMS | EUR | |||
| 19/12/2023 | 407,251 | CBOE DXE | EUR | |||
| 19/12/2023 | 67,617 | 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
How many shares did Shell plc (SHEL) purchase on 19 December 2023?
Who will make trading decisions for Shell plc (SHEL) until 26 January 2024?
In what way is Shell plc (SHEL) conducting the share buy-back program?
