Shell plc’s Share Buy-back Programme: A Detailed Analysis of Transactions on 14 March 2025
On 14 March 2025, Shell plc (the ‘Company’) announced the purchase of a significant number of its own shares for cancellation. This transaction was executed as part of the Company’s existing share buy-back programme, which was first announced on 30 January 2025. In this blog post, we will delve deeper into the details of these share purchases, providing a breakdown of the number of shares, prices paid, and trading venues involved.
Aggregated Information on Shares Purchased
The Company purchased a total of 617,546 shares on 14 March 2025. The following table summarises the 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 |
|---|---|---|---|---|---|---|
| 14/03/2025 | 459,115 | £ 26.2000 | £ 25.9550 | £ 26.1038 | LSE | GBP |
| 14/03/2025 | 74,973 | £ 26.2000 | £ 25.9650 | £ 26.1156 | Chi-X (CXE) | GBP |
| 14/03/2025 | 74,274 | £ 26.2000 | £ 25.9500 | £ 26.1172 | BATS (BXE) | GBP |
| 14/03/2025 | 333,174 | € 31.4100 | € 31.0900 | € 31.3087 | XAMS | EUR |
| 14/03/2025 | 75,969 | € 31.4150 | € 31.0950 | € 31.3221 | CBOE DXE | EUR |
Impact on Individual Investors and the World
The Company’s share buy-back programme is designed to reduce the number of outstanding shares, thereby increasing the earnings per share (EPS) for the remaining shareholders. This can lead to an increase in share price due to the ‘law of supply and demand’ – when the demand for a stock exceeds its supply, the price tends to rise. Thus, individual investors holding Shell shares could potentially benefit from the buy-back programme, as the increased EPS and potential price rise could result in capital gains.
On a larger scale, Shell’s share buy-back programme is part of a broader trend among multinational corporations to return excess capital to shareholders. This trend is driven by several factors, including low interest rates, strong corporate cash flows, and the desire to maintain a consistent dividend payout ratio. The net effect of this trend on the overall economy depends on how the returned capital is reinvested. If the capital is used to invest in productive assets or pay down debt, it can contribute to economic growth. However, if the capital is primarily used for stock buy-backs or dividends, it may not directly contribute to economic growth but can lead to increased wealth for shareholders.
Conclusion
In conclusion, on 14 March 2025, Shell plc announced the purchase of 617,546 shares as part of its existing share buy-back programme. The Company purchased shares from various trading venues, with the highest and lowest prices paid, as well as the volume weighted average price, provided in the table above. These share purchases could potentially benefit individual investors by increasing EPS and potentially driving up share prices. On a larger scale, Shell’s share buy-back programme is part of a broader trend among corporations to return excess capital to shareholders, with implications for economic growth depending on how the returned capital is reinvested.
As an assistant, I don’t hold any personal investments or have the ability to be affected by this news. However, I can help you understand the implications of Shell’s share buy-back programme and how it may impact you as an individual investor or the global economy.
