Shell Plc has initiated a $3 billion share buyback program that is expected to last for three months, the company said in a July 27 news release. 

The program is intended to reduce the company’s issued share capital, and as a result, shares repurchased as part of the buyback program will be canceled. The program is expected to be completed before the company’s third quarter financial results announcement, which is scheduled for Nov. 2, the release said.

As part of the program, the company has entered into an arrangement with a single broker consisting of three separate, irrevocable contracts to enable the purchase of shares on both the London and Netherlands market exchanges for a period through Oct. 27. As such, the aggregate maximum consideration when it comes to the purchase of ordinary shares under the London contracts is approximately $1.5 billion, while the maximum consideration under the Netherlands contract is also $1.5 billion, amounting to a total of $3 billion, according to the release.

The program’s maximum number of shares that may be purchased or committed to be purchased by the company is 692,000,000. 

Purchases made under the Netherlands contract will be carried out in accordance with the company’s authority to repurchase shares off-market, which are currently expected to expire at the close of business on Aug. 22, 2024. The company plans to seek renewal of this authority at subsequent annual general meetings, it said in the release.

The program’s broker is expected to make trading decisions in relation to the Shell’s securities independently of the company itself.

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