Transaction in Own Shares 11 December, 2024

Shell plc (the ‘Company’) announces that on 11 December 2024 it purchased the following number of Shares for cancellation. Aggregated information on Shares purchased according to trading venue:

Date of purchase

11/12/2024

Number of Shares purchased

1,150,000

Highest price paid

£25.1850

Lowest price paid

£24.8300

Volume weighted average price paid per share

£24.9775

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.

Share buy-back programmes are a common strategy used by companies to return capital to shareholders, boost earnings per share, and increase stock price. By repurchasing their own shares, companies reduce the number of outstanding shares on the market, which can make each remaining share more valuable. This can also signal to investors that the company believes its stock is undervalued.

However, there can be some potential drawbacks to share buy-backs. Critics argue that companies should instead be investing in growth opportunities, research and development, or employee benefits. Additionally, if a company borrows money to fund share buy-backs, it can increase their debt levels and impact their credit rating.

Ultimately, the impact of share buy-backs will depend on the specific circumstances of the company and the market conditions at the time.

Effect on Me

As a shareholder of Shell plc, the share buy-backs could potentially benefit me by increasing the value of my remaining shares. However, it’s important to consider the long-term implications and whether the company is sacrificing other investments for short-term gains.

Effect on the World

Share buy-backs are a common practice among publicly traded companies and can have a ripple effect on the overall stock market. By reducing the number of outstanding shares, companies can influence stock prices and market trends. It’s important for investors to monitor these activities and consider the broader implications for the economy.

Conclusion

Share buy-backs can be a strategic tool for companies to manage their capital structure and signal confidence to investors. However, it’s important to consider the potential impact on long-term growth and shareholder value. As with any financial decision, careful consideration and analysis are key to determining the best course of action.