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
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.