Shell plc completed a share‑buyback on January 5 2026, repurchasing a total of 1,500,136 shares. The transaction comprised 752,239 shares bought on the London Stock Exchange (LSE) and 747,897 shares acquired on the Euronext Amsterdam (XAMS) venue. The LSE purchases were executed at a volume‑weighted average price of £27.54 per share, with the highest price paid at £27.94 and the lowest at £27.22. No trades were reported on the Chi‑X (CXE) venue for that date.
The buyback is part of a $3.5 billion program announced on October 30 2025, scheduled to conclude on January 30 2026. By repurchasing over 1.5 million shares, Shell reduces its issued share capital, which is expected to lift earnings per share and reinforce its shareholder‑return strategy. The program reflects the company’s strong cash‑flow generation, with Q3 2025 results showing adjusted earnings of $5.4 billion and operating cash flow of $12.2 billion, providing the liquidity needed for the buyback.
CEO Wael Sawan and CFO Sinead Gorman highlighted that the program demonstrates Shell’s confidence in its long‑term value creation plan. Sawan noted that disciplined capital allocation, including share repurchases, is a core component of the company’s strategy to return excess cash to shareholders when investment opportunities are limited. Gorman emphasized that the buyback schedule aligns with Shell’s broader commitment to disciplined capital allocation and reflects the company’s robust financial position.
Analysts observed a modest positive reaction to the transaction, with market sentiment reflecting confidence in Shell’s cash‑flow strength and the perceived value of the share repurchase. The buyback is viewed as a signal that management believes the shares are undervalued and that the company can sustain its dividend and growth initiatives while returning capital to shareholders.
The transaction underscores Shell’s ongoing focus on shareholder value and its ability to fund capital‑return initiatives without compromising investment in core and emerging businesses. By reducing the share count, the company positions itself to deliver higher earnings per share and maintain a competitive dividend policy, reinforcing investor confidence in its long‑term strategy.
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