LONDON, June 26, 2026, 10:03 BST
- Shell fell 1.23% to 2,889.50p by 09:36 BST, outpacing the FTSE 100’s 0.55% decline around the same time.
- Brent crude dropped about 2% near $74. Both Brent and WTI are tracking towards weekly losses of roughly 8%.
- Shell has put its $3 billion buyback on hold until July 14 as ARC Resources (TSE:ARX) gets ready for a vote on its Shell deal.
Shell Plc (LON:SHEL) slid on Friday morning, trailing the FTSE 100 after oil prices dropped and with Shell’s buyback program paused. The shares traded at 2,889.50p, off 36p, at 09:36 BST, while the FTSE 100 was down 0.55%.
Shell traded 23.1% under its 52-week high of 3,758.50p and 13.7% above the 52-week low of 2,541.71p. Shares sit closer to the low end of the past year’s range, with a dividend yield of almost 3.8% and a market cap around 161.38 billion pounds.
Shell holders get another wrinkle: the company isn’t buying stock in the market right now. Shell’s May 7 programme targets up to $3 billion in ordinary shares with authority for up to 320 million shares. But Shell said it has to pause the buyback plan from the time ARC’s shareholder circular is published until after the ARC meeting wraps.
With sterling near $1.3201, Shell’s $3 billion buyback comes to about 2.27 billion pounds, around 1.4% of the company’s market value on Google Finance. It’s not big next to Shell’s total equity value, but it’s tangible support to lose in a crude sell-off.
Oil dropped early. Brent futures lost $1.50 to $73.76 a barrel by 0649 GMT, while U.S. West Texas Intermediate fell $1.49 to $70.43. More tankers were able to leave the Strait of Hormuz. “There is a general selloff as the market reacts to the increased flows exiting the Strait of Hormuz and China not yet picking up crude demand,” said June Goh, senior oil market analyst at Sparta Commodities. Reuters
Shell is feeling the squeeze on cash conversion. In the first quarter, Shell reported $6.1 billion in cash flow from operations, but $11.2 billion went out the door on working capital. Net debt climbed to $52.6 billion from $45.7 billion at the end of the last quarter.
Shell kept cash flowing to investors. The company handed out $5.3 billion to shareholders in the first quarter, with $3.2 billion in buybacks and $2.1 billion in dividends. Shell also declared a $0.3906 per share dividend for the first quarter and rolled out a new $3 billion buyback program alongside results.
Shell said the cash dividend for sterling holders is 29.18p per ordinary share. Payment is set for June 29. Shares have been ex-dividend since May 21.
Shell is making its largest deal since the BG takeover in 2016, agreeing to buy ARC Resources (TSE:ARX) for $16.4 billion, mostly in shares. The Canadian gas producer brings 370,000 barrels of oil equivalent per day. Shell’s capital plan faces its next test as the deal goes forward.
ARC is set for a shareholder vote on July 14. The deal needs backing from at least 66% of shareholders. Shell said any shares it doesn’t buy back during the buyback pause will roll into the rest of its 2026 buyback programs, provided the board signs off.
Shell Chief Executive Wael Sawan said the ARC deal fits with Shell’s financial plans and repeated that the company still aims to return 40% to 50% of operating cash flow to shareholders. “We are very comfortable with what this deal does for our financial framework,” Sawan told reporters when the deal was announced. Reuters
