Transaction in Own Shares
- None.
- None.
Insights
Share buybacks are a strategic financial maneuver that can signal a company's confidence in its own financial health and future prospects. In the case of Shell plc's announcement of purchasing shares for cancellation, several implications are worth noting. Firstly, the reduction of outstanding shares can contribute to an increase in earnings per share (EPS), potentially making the remaining shares more attractive to investors. This could lead to a positive impact on the stock price, as the market often reacts favorably to buyback announcements.
However, it is crucial to consider the financial robustness of the company executing the buyback. Allocating capital to repurchase shares instead of investing in growth or paying down debt could be seen as a lack of viable investment opportunities or a move to artificially inflate stock prices. Investors should closely monitor the company's debt levels, cash flow and overall financial strategy to assess the long-term sustainability of such buybacks.
Market perception of share buyback programs can vary and the context within which Shell is conducting this activity is key to understanding its potential market impact. The company has set pre-defined parameters for the buyback, which indicates a methodical approach rather than an opportunistic one. This could reassure investors of a disciplined capital allocation strategy.
Additionally, the fact that trading decisions are made independently by Citigroup Global Markets Limited, within the given parameters, adds a layer of impartiality to the execution of the buyback program. It's important to observe the market's response in the days following the announcement to gauge the sentiment and potential shifts in investor confidence.
Shell’s adherence to the Market Abuse Regulation (MAR) and the detailed disclosure of trades is a critical aspect of the buyback program. Compliance with MAR ensures transparency and fairness in the market, which is essential for maintaining investor trust. The legal framework governing these transactions, including both EU MAR and UK MAR, is designed to prevent market manipulation and abuse.
The company's LEI (Legal Entity Identifier) number is also provided, which is a unique identifier enabling transparent tracking of financial transactions. Such regulatory compliance is a positive sign for investors who are increasingly concerned with corporate governance and legal adherence.
Transaction in Own Shares
22 February, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 22 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 |
| 22/02/2024 | 755,598 | LSE | GBP | |||
| 22/02/2024 | - | Chi-X (CXE) | GBP | |||
| 22/02/2024 | - | BATS (BXE) | GBP | |||
| 22/02/2024 | 925,000 | XAMS | EUR | |||
| 22/02/2024 | - | CBOE DXE | EUR | |||
| 22/02/2024 | - | 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 on 22nd February 2024?
Who will manage the trading decisions for Shell plc's share buy-back program?
Until when will Citigroup Global Markets Limited manage the trading decisions for Shell plc's share buy-back program?
In compliance with which regulations is Shell plc conducting its buy-back program?
What is the LEI number of Shell plc?
