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.