Coming off first-quarter adjusted earnings of $7.7 billion, Shell will commence a $3.5 billion share buyback program, the company said on May 2.
The past four quarters, Shell paid out total shareholder distributions of 41% of cash flow from operating activities (CFFO). In the first quarter, Shell reported $13.3 billion in CFFO. For the quarter, income attributable to shareholders was $7.4 billion, the company said.
Shell said the repurchase program is intended to reduce the issued share capital of the company, with the company cancelling all of the shares it buys. The company said it expects to complete the share repurchase in second-quarter 2024, before it announces results on Aug. 1.
Shell entered into an arrangement with a single broker consisting of three irrevocable, non-discretionary contracts, to enable the purchase of ordinary shares on both London and Netherlands exchanges for a period up to and including July 26. In the London exchange, the aggregate maximum consideration for repurchasing shares under the London contracts is $2 billion. In the Netherlands exchange, the maximum consideration under contract is $1.5 billion.
Recommended Reading
US NatGas Flows to Freeport LNG in Texas Seen at Five-month High, LSEG Data Shows
2024-05-17 - The startup and shutdown of Freeport and other U.S. LNG export plants often has a major impact on global gas prices.
Waha NatGas Prices Go Negative
2024-03-14 - An Enterprise Partners executive said conditions make for a strong LNG export market at an industry lunch on March 14.
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
‘Oversupplied’ NatGas Market Aiding Williams’ Storage Business
2024-05-08 - Midstream company Williams saw overall demand growth as heavy gas volumes passed through its network.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.