Shell plc completed a share‑buyback transaction on 2 January 2026, purchasing shares for cancellation as part of its ongoing $3.5 billion buyback programme. The transaction was executed by Merrill Lynch International and falls within the on‑ and off‑market limbs of a programme that began on 30 October 2025 and is scheduled to run through 30 January 2026.
The buyback is a key element of Shell’s disciplined capital‑return strategy, which aims to reduce the company’s issued share capital, enhance earnings per share, and maintain a strong balance sheet. In the quarter that ended 30 October 2025, Shell reported adjusted earnings of $5.4 billion, cash flow from operations of $12.2 billion, and a decline in net debt, all of which provide the financial flexibility needed to fund the programme.
By repurchasing shares, Shell reduces the number of shares outstanding, which directly lifts earnings per share if earnings remain flat or grow. Management has indicated that, upon completion of the current programme, the company will have repurchased more than a quarter of its shares over the last four years, underscoring the scale of the capital‑return effort.
The shares were bought across multiple trading venues, including the London Stock Exchange and Euronext Amsterdam, reflecting Shell’s broad market‑wide approach to the buyback. This strategy helps the company manage liquidity and market impact while ensuring a consistent execution pace.
CEO Wael Sawan highlighted that the buyback is part of Shell’s broader commitment to disciplined capital allocation, while CFO Sinead Gorman noted that the programme’s progress demonstrates the company’s confidence in its long‑term value creation plan.
Historically, Shell’s share‑buyback announcements in late 2025 and early 2026 have been associated with modest positive market reactions, typically within a ±1 % range, indicating that investors view the programme as a reliable component of the company’s shareholder‑return strategy.
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