Shell plc’s Share Buy-back Program: An In-depth Look
On 10 February 2025, Shell plc (the ‘Company’) announced the purchase of a significant number of its own shares for cancellation. This transaction is part of the Company’s existing share buy-back programme, which was previously announced on 30 January 2025. In this blog post, we’ll delve into the details of the share purchases made on that day.
Aggregated Information on Shares Purchased
The Company purchased a total of 1,165,000 shares on 10 February 2025. The following table summarizes the number of shares purchased, the highest, lowest, and volume-weighted average prices paid, and the currency for each trading venue:
| Date of Purchase | Number of Shares purchased | Highest price paid (per share) | Lowest price paid (per share) | Volume weighted average price paid per share (per share) | Venue | Currency |
|---|---|---|---|---|---|---|
| 10/02/2025 | 894,839 | £ 26.5300 | £ 26.1950 | £ 26.4253 | LSE GBP | GBP |
| 10/02/2025 | 105,161 | £ 26.5050 | £ 26.2000 | £ 26.4083 | Chi-X (CXE) GBP | GBP |
| 10/02/2025 | 100,000 | £ 26.5050 | £ 26.2100 | £ 26.4171 | BATS (BXE) GBP | GBP |
| 10/02/2025 | 665,000 | € 32.1400 | € 31.7200 | € 31.9601 | XAMS EUR | EUR |
| 10/02/2025 | 100,000 | € 32.1200 | € 31.7650 | € 31.9863 | CBOE DXE EUR | EUR |
| 10/02/2025 | 0 | – | – | – | TQEX EUR | EUR |
Impact on Shell plc and its Shareholders
The share buy-back programme allows Shell plc to reduce its issued share capital and, consequently, increase its earnings per share (EPS). This can lead to an increase in the share price due to the reduced number of shares outstanding, assuming the EPS remains constant. Additionally, the Company may use the repurchased shares to meet its obligations under its share-based payment plans or to offset shares issued under its long-term incentive plans.
Impact on the World
The share buy-back programme by Shell plc could have several implications for the global economy. First and foremost, it could lead to a reduction in the supply of Shell plc shares available in the market, potentially increasing the demand for the stock and, consequently, the share price. This could result in a positive sentiment for the company and, by extension, the broader energy sector. Furthermore, the repurchased shares may be used to meet the Company’s obligations under its share-based payment plans, which could lead to a reduction in the dilutive effect of stock options and other equity awards.
Conclusion
In conclusion, Shell plc’s share buy-back programme, as announced on 10 February 2025, represents a significant investment in the Company’s own shares. The programme involves the purchase of over 1 million shares across various trading venues and currencies. This transaction has the potential to positively impact Shell plc and its shareholders by increasing earnings per share and potentially boosting the share price. At the same time, it could have a positive impact on the global economy by reducing the supply of Shell plc shares and increasing demand for the stock. As always, it’s essential to keep an eye on the Company’s financial statements and market developments to fully understand the implications of its share buy-back programme.
- Shell plc announces share buy-back programme on 30 January 2025
- On 10 February 2025, the Company purchases over 1 million shares
- Transactions take place on various trading venues and currencies
- Impact on Shell plc: increased earnings per share and potentially higher share price
- Impact on the global economy: reduced supply of Shell plc shares and increased demand
