Transaction in Own Shares
- None.
- None.
Insights
The share buy-back program executed by Shell plc is indicative of strategic capital allocation aimed at optimizing shareholder value. This action typically signals a company's belief that its shares are undervalued and that the buy-back will be accretive to earnings per share by reducing the number of shares outstanding. The immediate impact on the stock market can be an increase in the share price due to the reduced supply and perceived company confidence.
Investors should consider the volume of shares repurchased and the prices paid, as these factors may influence the company's cash reserves and impact its ability to invest in other growth opportunities or pay down debt. The disclosed involvement of Goldman Sachs International as an independent decision-maker in the trading process suggests a level of compliance with market regulations and a structured approach to the buy-back.
Long-term implications for the business include potential changes in capital structure, which can affect the company's cost of capital and financial flexibility. Shareholders may view this activity favorably if it leads to improved return on equity and supports a bullish sentiment on the stock.
The share repurchase by Shell plc has been conducted in accordance with relevant regulations, including the EU Market Abuse Regulation (EU MAR) and the UK Market Abuse Regulation (UK MAR), as well as the Commission Delegated Regulation (EU) 2016/1052. Compliance with these regulations is crucial to ensure transparency and fairness in the market and to prevent any potential abuse arising from insider information.
It is important for stakeholders to recognize that such transactions are subject to strict rules that govern the timing, price and volume of shares repurchased. The company's adherence to these rules, as well as the delegation of trading decisions to Goldman Sachs International, can be seen as a measure to mitigate any conflicts of interest and to ensure that the buy-back program is executed in a manner that aligns with shareholder interests.
Share buy-back programs are often executed by companies when they have excess cash and believe that their stock is undervalued. From a market research perspective, this activity by Shell plc should be evaluated in the context of the broader energy sector performance and investor sentiment towards oil and gas companies.
Market conditions, such as oil price fluctuations, regulatory changes and shifts in energy demand, play a significant role in determining the attractiveness of such buy-backs. The timing of the buy-back also suggests confidence in the company's financial stability and future earnings potential, which could be a response to market dynamics or internal performance metrics.
Understanding the sector trends and comparing Shell's buy-back strategy with its peers can provide deeper insights into the company's market positioning and potential strategic advantages or disadvantages it may face in the near future.
Transaction in Own Shares
January 15, 2024
• • • • • • • • • • • • • • • •
Shell plc (the 'Company') announces that on 15 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 |
| 15/01/2024 | 444,392 | LSE | GBP | |||
| 15/01/2024 | - | - | - | - | Chi-X (CXE) | GBP |
| 15/01/2024 | - | - | - | - | BATS (BXE) | GBP |
| 15/01/2024 | - | - | - | - | XAMS | EUR |
| 15/01/2024 | - | - | - | - | CBOE DXE | EUR |
| 15/01/2024 | - | - | - | - | 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
How many shares did Shell plc purchase on January 15, 2024?
At what price did Shell plc purchase the shares?
Who will make trading decisions in relation to the securities for Shell plc's share buy-back program?
What regulations is Shell plc's share buy-back program being conducted in accordance with?
Who approved the off-market buyback contract for Shell plc's share buy-back program?
What is the LEI number of Shell plc?
