Shell launches $3.5 billion share buyback program

Published 30/01/2025, 08:10
Shell launches $3.5 billion share buyback program

LONDON - Shell (LON:SHEL) plc announced on Thursday the launch of a $3.5 billion share buyback program, aiming to reduce its issued share capital. The buyback, which will see all repurchased shares cancelled, is set to be completed by May 2, 2025, ahead of the company’s first-quarter results announcement.

The energy giant has established two separate contracts for the repurchase of shares on London and Netherlands exchanges, with $2.1 billion allocated for the London contract and $1.4 billion for the Netherlands contract. The program is expected to run until April 25, 2025, and will be conducted in compliance with both UK and EU market regulations.

Under the terms of the program, a maximum of 420 million ordinary shares may be bought, adhering to the authority granted by shareholders at Shell’s 2024 Annual General Meeting. This authority is due to expire on August 20, 2025, unless renewed at the company’s subsequent Annual General Meetings.

Shell has engaged a single broker to execute the buyback independently, ensuring that the repurchases are made within the set parameters and regulatory frameworks. This includes the UK Listing Rules and the Market Abuse Regulation of the European Union, which have been incorporated into UK law following Brexit.

The announcement follows Shell’s consistent strategy of returning value to its shareholders and managing its capital structure. The company’s forward-looking statements indicate a focus on financial health and operational efficiency, while also acknowledging potential market risks and uncertainties.

This share buyback initiative is part of Shell’s broader financial strategy, as the company continues to navigate the dynamic energy market. The information regarding the buyback program is based on a press release statement from Shell plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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