Shell plc completed a share‑buyback transaction on 26 November 2025, purchasing and immediately cancelling shares through Merrill Lynch International on the London Stock Exchange and Euronext Amsterdam. The transaction reduced the company’s issued share capital in line with UK Listing Rules and the Market Abuse Regulation.
The buyback is part of a $3.5 billion program announced on 30 October 2025, marking Shell’s 16th consecutive quarter of buybacks exceeding $3 billion. By reducing share capital, the program is expected to lift earnings per share and signal confidence in the company’s cash‑flow generation.
Shell’s Q3 2025 results—released on the same day—show adjusted earnings of $5.4 billion, beating analyst expectations of $5.09 billion by $0.31 billion. Revenue of $70.4 billion fell short of the $73.9 billion consensus by $3.5 billion, a 4.7% miss driven by weaker demand in the chemicals segment and lower margins in integrated gas. Despite the revenue shortfall, operating cash flow rose to $12.2 billion, underscoring the company’s ability to fund shareholder returns.
Segment performance highlights that the Integrated Gas and Marketing units drove the earnings beat. Marketing income rose to $1.3 billion from $1.2 billion year‑ago, supported by higher margins and increased LNG trading volumes, while the Chemicals segment lagged due to commodity price volatility. The mix shift toward higher‑margin gas and marketing activities helped offset revenue compression in other areas.
CFO Sinead Gorman emphasized that the quarter “clearly illustrates how our focus on performance discipline and simplification is laying the foundations of a winning performance culture across Shell.” The statement reflects management’s intent to maintain disciplined cost control while investing in high‑return opportunities, reinforcing the rationale for the buyback.
Market reaction to the announcement was tempered by valuation concerns. UBS downgraded Shell from “Buy” to “Neutral” on 26 November 2025, citing that the stock no longer screens as cheap on multiples after a 12% year‑to‑date price run‑up, despite the company’s strong cash‑flow generation and earnings beat.
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