Shell plc completed a share‑repurchase transaction on February 25, 2026, as part of its $3.5 billion quarterly buy‑back program. The transaction was executed by Morgan Stanley & Co. International Plc, which acted independently of Shell from February 5 to May 1, 2026, and was conducted in compliance with UK Listing Rules and the Market Abuse Regulation.
The buy‑back is a key element of Shell’s capital‑allocation strategy, designed to return capital to shareholders, reduce issued share capital, and support earnings per share. The quarterly program has been a consistent feature of Shell’s financial policy, with the company targeting $3.5 billion each quarter and planning to complete the program before the Q1 2026 earnings announcement.
Shell’s recent financial performance underpins the buy‑back. In 2025, the company reported adjusted earnings of $18.5 billion and cash flow from operations of $12.2 billion in Q3. In Q4 2025, adjusted earnings were $3.3 billion and CFFO $9.4 billion. Integrated Gas, Upstream, and Marketing segments contributed $2.143 billion, $1.804 billion, and $1.316 billion respectively to Q3 2025 adjusted earnings, while the Chemicals & Products segment recorded a $0.2 billion loss, highlighting an area of ongoing focus for management.
Management emphasized the company’s financial discipline and focus on high‑return projects. CFO Sinead Gorman noted that “For the full year, Brent prices averaged more than $10 per barrel lower than the prior year, but said operational performance drove ‘solid financial results’ in the lower‑price environment.” The buy‑back aligns with the company’s strategy to maintain a CapEx range of $20‑$22 billion annually through 2028 and to prioritize LNG and other high‑return initiatives.
The chemicals segment remains a risk area, with management working to reposition the business. Despite this, Shell’s strong cash generation from Integrated Gas and Upstream segments provides the liquidity needed to sustain the buy‑back program and support future investment plans.
The share‑repurchase transaction on February 25, 2026, reinforces Shell’s commitment to returning value to shareholders while maintaining a disciplined capital structure, positioning the company for continued operational resilience amid evolving market conditions.
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