Transaction in Own Shares
- None.
- None.
Insights
The share buy-back program executed by Shell plc represents a strategic financial maneuver aimed at reducing the number of shares in circulation, which can potentially increase the value of remaining shares and signal confidence to investors about the company's financial health. From a financial analysis perspective, the repurchase of shares on different trading venues at varying price points suggests a carefully orchestrated effort to manage the buy-back without causing significant market disruption.
Examining the volume-weighted average price paid per share across venues, there is a notable consistency, indicating a stable market perception of Shell's value during the transactions. The involvement of Goldman Sachs International as an independent decision-maker in the trading process adds a layer of strategic execution, ensuring that Shell's internal information does not unduly influence the buy-back.
Long-term implications for shareholders could include an improved earnings per share (EPS) ratio, often resulting in a positive market reaction. However, it's crucial to monitor the company's leverage ratios post-buy-back, as using debt to fund such programs can increase financial risk.
Share buy-back programs are frequently interpreted by the market as a positive signal, indicating that a company believes its stock is undervalued. Shell's decision to engage in such a program could lead to an uptick in investor sentiment, potentially making the stock more attractive to both institutional and retail investors. The transparency provided by the detailed breakdown of individual trades as per EU MAR and UK MAR regulations helps maintain market integrity and investor trust.
It's important to consider the broader energy sector trends, such as oil prices, regulatory changes and the transition to renewable energy, when assessing the potential impact of this buy-back program on Shell's stock performance. The company's strategic position within this context, coupled with its capital return strategy, will be closely watched by investors seeking to understand the long-term value proposition of Shell's stock.
Compliance with both the EU Market Abuse Regulation (MAR) and the UK MAR, as well as the detailed reporting of trades, reflects Shell's adherence to stringent regulatory frameworks governing share buy-backs. The legal complexities of operating such a program post-Brexit, with the need to navigate both EU and UK regulations, are well addressed in the announcement.
By engaging an external party like Goldman Sachs International to make trading decisions independently, Shell mitigates legal risks associated with market manipulation and insider trading. In addition, the share buy-back is conducted within the pre-set parameters approved by shareholders, further aligning with corporate governance best practices.
This legal structure and adherence to regulation not only ensure legal compliance but also serve to uphold shareholder confidence in the company's corporate governance standards.
Transaction in Own Shares
December 29, 2023
• • • • • • • • • • • • • • • •
Shell plc (the 'Company') announces that on 29 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 |
| 29/12/2023 | 650,081 | LSE | GBP | |||
| 29/12/2023 | 201,005 | Chi-X (CXE) | GBP | |||
| 29/12/2023 | 129,286 | BATS (BXE) | GBP | |||
| 29/12/2023 | 1,068,249 | XAMS | EUR | |||
| 29/12/2023 | 185,160 | CBOE DXE | EUR | |||
| 29/12/2023 | 48,209 | 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 as part of its share buy-back program?
Who made the trading decisions for the share buy-back program?
In accordance with which regulations is the share buy-back program being conducted?
What is the LEI number of Shell plc?
