Shell Declares Quarterly Dividend and $3.5B Buyback Program
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SHEL?
Source: seekingalpha
- Quarterly Dividend Announcement: Shell declares a quarterly dividend of $0.372 per share, with ADS holders receiving $0.744 per ADS, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Dividend Payment Schedule: The dividend for ordinary shareholders will be payable on March 30, with a record date of February 20 and an ex-dividend date of February 19, ensuring timely returns for investors and bolstering confidence in the stock.
- Share Buyback Program: Shell initiates a $3.5 billion share buyback program expected to be completed within three months, aimed at enhancing earnings per share and rewarding shareholders, indicating the company's confidence in its future financial health.
- Future Outlook: The buyback program is set to conclude before the company's Q1 2026 results announcement, signaling Shell's positive outlook on future performance while providing additional returns to shareholders.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHEL is 74.27 USD with a low forecast of 41.75 USD and a high forecast of 91.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 74.630
Low
41.75
Averages
74.27
High
91.00
Current: 74.630
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Audit Report Quality: Over the past two years, EY issued only unqualified reports on Shell's consolidated financial statements and internal control effectiveness, with no disagreements on accounting matters or disclosures, indicating stable audit quality.
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- Rising Operating Costs: Analysts expressed concerns over Shell's increasing operating expenses, suggesting that the sustainability of the buyback program could be jeopardized without improved financial performance, which may impact investor confidence moving forward.
- Declining Reserve Life: Shell's reserve life decreased from 8.9 years in 2024 to 7.8 years, primarily due to asset sales in Nigeria and oil sands, leading analysts to anticipate increased scrutiny regarding Shell's M&A reserve replacement strategy.
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See More
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- Revenue and Cash Flow: The company's revenue stood at $64.09 billion, falling short of analysts' forecast of $64.61 billion, although operational cash flow reached $9.4 billion, the overall profitability was impacted by declining marketing margins and rising operating costs.
- Shareholder Return Plan: Shell announced a $3.5 billion share buyback program and increased its dividend by 4% to 37.2 cents per share, indicating a commitment to shareholder returns despite financial pressures.
- Future Outlook: Shell expects Integrated Gas production to range between 920,000 to 980,000 boe/d in Q1 2026, and despite market challenges, management remains optimistic about future capital expenditures and operational performance.
See More
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- Earnings Miss: The company's financial report indicates that both revenue and profit fell short of market expectations, reflecting uncertainties in the global energy market and challenges in cost control, which could impact future investment decisions.
- Outlook Initiation: Shell has initiated its outlook for Q1 and FY26, and while current performance is disappointing, the company aims to improve future financial results through strategic adjustments and market adaptability.
- Green Hydrogen Projects: Shell's green hydrogen initiatives in the EU are viewed as another failing investment, as ongoing expenditures raise questions about the feasibility and profitability of these projects, potentially affecting its strategic positioning in the renewable energy sector.
See More
