Shell Launches $3.5bn Buyback Amid Lower Profit, Unilever Sees Faster Growth

Shell launches a $3.5 bln buyback despite decreased profit, Unilever eyes faster growth in the second half after revenue falls, and Just Group agrees to a £2.4 bln takeover. Shell's income attributable to shareholders fell 23% to $8.38 bln, while Unilever's revenue fell 3.2% to €30.13 bln and pretax profit decreased 8.5% to €5.09 bln.

Shell plc (NYSE: SHEL) has announced the commencement of a significant $3.5 billion share buyback programme that will run for approximately three months until October 24, 2025. This initiative comes despite a decrease in the company's adjusted earnings in the second quarter. The programme aims to reduce Shell's issued share capital, with all repurchased shares to be cancelled. The buyback will be executed through two equal contracts of $1.75 billion each for purchases on London and Netherlands exchanges.

Shell's adjusted earnings reached $4.264 billion in the second quarter, down 32% from a year ago, but still easily beating the average estimate of $3.74 billion in an analyst poll provided by the company. The oil major attributed the drop in earnings to a decline in oil prices, which averaged around $67 a barrel during the April-to-June quarter, compared to $75 a barrel in the first quarter and $85 a year earlier. OPEC+, made up of the Organization of the Petroleum Exporting Countries and allies such as Russia, began unwinding self-imposed production cuts aimed at supporting the market.

Despite the decrease in earnings, Shell has maintained a consistent pace of share buybacks, totaling $3.5 billion per quarter for the past 15 consecutive quarters. The company has also achieved $3.9 billion in cost cuts compared to 2022, part of a broader cost-cutting programme aimed at saving between $5 billion and $7 billion by the end of 2028.

Shell's cash flow from operations in the second quarter stood at $11.9 billion, down from $13.5 billion a year ago. Together with $2.1 billion in dividends, that brings shareholder distributions to 46% of operating cashflow, within its 40% to 50% guided range.

The structured nature of the share buyback programme, using irrevocable, non-discretionary contracts with independent brokers, ensures the buyback follows regulatory requirements and market best practices. This approach provides transparency and predictability for investors regarding the execution timeline and methodology.

Shell plc Shell announces commencement of a share buyback programme July 31, 2025 Shell plc (the ‘Company’) today announces the commencement of a $3.5 billion share buyback programme covering an aggregate contract term of approximately three months (the ‘programme’). The purpose of the programme is to reduce the issued share capital of the Company. All shares repurchased as part of the programme will be cancelled. It is intended that, subject to market conditions, the programme will be completed prior to the Company’s Q3 2025 results announcement. The Company has entered into an arrangement with a single broker consisting of two irrevocable, non-discretionary contracts, to enable the purchase of ordinary shares on both London market exchanges (the London Stock Exchange and/or on BATS and/or on Chi-X) (pursuant to one ‘London contract’) and Netherlands exchanges (Euronext Amsterdam and/or on CBOE Europe DXE and/or on Turquoise Europe) (pursuant to one ‘Netherlands contract’) for a period up to and including October 24, 2025. The aggregate maximum consideration for the purchase of ordinary shares under the London contract is $1.75 billion and the maximum consideration for the purchase of ordinary shares under the Netherlands contract is $1.75 billion . Purchases under the London contract will be carried out in accordance with the Company’s authority to repurchase shares on-market and will be effected within certain contractually agreed parameters. Purchases under the Netherlands contract will be carried out in accordance with the Company’s authority to repurchase shares off-market pursuant to the off-market share buyback contract approved by its shareholders and the parameters set out therein. The maximum number of ordinary shares which may be purchased or committed to be purchased by the Company under the programme (across both contracts) is 602,100,000, which is the maximum number remaining as of the date of this announcement pursuant to the relevant authorities granted by shareholders at the Company's 2025 Annual General Meeting. The broker will make its trading decisions in relation to the Company's securities independently of the Company. The programme will be conducted in accordance with Chapter 9 of the UK Listing Rules, Article 5 of the Market Abuse Regulation 596/2014/EU dealing with buy-back programmes (‘EU MAR’) and EU MAR as “onshored” into UK law from the end of the Brexit transition period (at 11:00 pm on 31 December 2020) through the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and as amended, supplemented, restated, novated, substituted or replaced, including by relevant statutory instruments (including, The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310)), from time to time and the Commission Delegated Regulation (EU) 2016/1052 (the ‘EU MAR Delegated Regulation’) and the EU MAR Delegated Regulation as “onshored” into UK law from the end of the Brexit transition period (at 11:00 pm on 31 December 2020) through the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and as amended, supplemented, restated, novated, substituted or replaced, including by relevant statutory instruments (including, The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310)), from time to time. Enquiries Media: International +44 (0) 207 934 5550; U.S. and Canada: https://www.shell.us/about-us/news-and-insights/media/submit-an-inquiry.html Cautionary Note The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The terms “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest. Forward-Looking statements This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their

References:
[1] https://www.reuters.com/business/energy/shells-profit-drops-by-almost-third-easily-beats-expectations-2025-07-31/
[2] https://www.stocktitan.net/news/SHEL/shell-announces-commencement-of-a-share-buyback-cdns9gf0pd29.html