Shell plc completed a share‑buyback transaction on 13 January 2026, purchasing 829,333 shares on the London Stock Exchange and 848,147 shares on the Amsterdam exchange, for a total of 1,677,480 shares. The transaction is part of a $3.5 billion buy‑back programme that began on 30 October 2025 and is scheduled to conclude on 30 January 2026, with Merrill Lynch International executing the trades.
The buyback reduces Shell’s issued share capital, which can lift earnings per share and support the share price. The programme is financed by the company’s strong free‑cash‑flow yield of 14 %, allowing Shell to return capital to shareholders while maintaining its dividend distribution targets. The transaction is a key element of Shell’s disciplined capital‑allocation strategy, which balances shareholder returns with investment in growth and cost‑control initiatives.
Shell’s decision to repurchase shares comes amid a mixed financial backdrop. In the third quarter of 2025, the company reported earnings per share of $1.86, slightly below the $1.92 recorded in the same quarter a year earlier. The chemicals and products segment is expected to report a loss in the fourth quarter of 2025, while upstream and integrated gas operations remain relatively stable. Despite these headwinds, Shell’s management reiterated its commitment to returning capital to investors, citing robust cash‑flow generation and a focus on disciplined spending.
Segment performance highlights that the chemicals division is the primary source of pressure, with expectations of operating below break‑even in the coming quarter. Upstream and integrated gas segments, however, are projected to maintain steady revenue streams, offsetting some of the weakness in chemicals. The buyback therefore serves as a buffer to support shareholder value while the company navigates sector‑specific challenges.
Management emphasized that the share‑buyback is part of a broader strategy to strengthen the balance sheet and enhance long‑term shareholder returns. The company’s leadership highlighted the importance of maintaining a healthy capital structure, especially in a market environment characterized by lower crude prices and tighter margins in the chemicals business.
Investors reacted cautiously, with some expressing concern about the company’s debt levels and the sustainability of the buyback programme under current market conditions. Nonetheless, Shell’s commitment to disciplined capital allocation and its strong free‑cash‑flow position provide reassurance that the buyback can be sustained until the programme’s conclusion.
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