Shell's Quarterly Share Buyback Expected Back at $3.5 Billion Soon
Dow Jones
Sep 25
1132 GMT - British energy major Shell should return to its $3.5 billion quarterly buyback from the fourth quarter onwards, HSBC's Kim Fustier writes in a note. Shell cut its quarterly run rate to $3 billion in the first quarter of the year. If Shell returns to its previous buyback rate, it would imply a 38% to 39% cash flow from operations payout ratio in 2026 and 2027, she says. This is just below the lower end of Shell's 40% to 50% through-the-cycle target, she notes. This potentially means there could be upside to the $3.5 billion figure, at least temporarily, she says. "But Shell management may prefer to remain on the conservative side," she adds. Shares fall 1.2% to 3,597 pence.
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