Transaction in Own Shares

05 November, 2024

Shell plc (the ‘Company’) announces that on 05 November 2024 it purchased the following number of Shares for cancellation. Aggregated information on Shares purchased according to trading venue:

Date of purchase

05/11/2024

Number of Shares purchased

1,078,300

Highest price paid

£26.1000

Lowest price paid

£25.8450

Volume weighted average price paid per share

£26.0212

Venue

LSE

Currency

GBP

These share purchases form part of the on- and off-market limbs of the Company’s existing share buy-back programme previously announced on 31 October 2024.

Transaction in own shares is a common practice among companies looking to increase shareholder value and manage their capital structure. By repurchasing their own shares, companies can improve earnings per share, signaling to investors that they believe the stock is undervalued. Share buybacks can also help support the stock price in times of market volatility.

Despite its benefits, share buybacks have faced criticism in recent years for prioritizing short-term gains over long-term investments. Some argue that companies should instead allocate funds towards research and development, employee wages, or other initiatives that could drive sustainable growth.

Overall, the decision to engage in a share buyback program is unique to each company and depends on its financial goals and market conditions.

How will it affect me?

As a shareholder of Shell plc, the share buyback program could potentially benefit you by increasing the value of your remaining shares. By reducing the number of outstanding shares in the market, the company’s earnings per share may improve, leading to a higher stock price. However, it’s essential to consider the long-term implications of share buybacks on the company’s financial health and growth prospects.

How will it affect the world?

Share buyback programs can have broader implications for the financial markets and the overall economy. When companies repurchase their own shares, it can artificially inflate stock prices and create a misleading perception of company performance. This could contribute to market volatility and distort investment decisions. Additionally, critics argue that share buybacks exacerbate income inequality by benefiting shareholders over other stakeholders, such as employees and communities.

Conclusion

In conclusion, transaction in own shares is a common corporate practice that can have both positive and negative impacts. While it may benefit shareholders in the short term by increasing stock value, it’s essential for companies to balance share buybacks with long-term investment strategies to ensure sustainable growth and value creation.