London, June 13, 2026, 14:02 (BST)
- Shell shares in London finished at 3,220.50p on June 12, falling 1.69%. The stock lagged the FTSE 100, which ended higher.
- The company has paused its $3.0 billion buyback until July 14 due to securities-law rules related to its planned ARC Resources deal.
- Shell’s second-quarter results and dividend update are due out July 30. The company says that’s the next big catalyst for the stock.
Shell Plc shares slipped in the latest London trading as the company paused its buyback program and oil prices tumbled. Shares closed at 3,220.50p on June 12, off 55.50p, or 1.69%. The FTSE 100 gained 1.63%. Buybacks can help by shrinking the share count, which boosts earnings per share and can put a floor under the stock.
Shell is putting its $3.0 billion buyback programme on hold from June 12 until after market close on July 14. Reuters said the pause comes as Shell works through securities laws tied to its planned $16.4 billion deal for ARC Resources, which needs at least 66% approval at ARC’s July 14 shareholder vote. Shell said any unfinished repurchases will be added to later 2026 buybacks if the board agrees.
Shell’s pause doesn’t alter the core case for the ARC deal, but it means the stock loses a familiar near-term prop. The company said in April it would buy ARC in a cash-and-share deal aimed at building its Montney shale footprint in Canada, boosting gas-heavy output close to existing sites, and firming up feedstock sources for LNG Canada. Shell owns 40% of the LNG Canada project. LNG, short for liquefied natural gas, is natural gas chilled to a liquid for shipping and sits at the center of Shell’s long-term plans.
Oil gave stocks another drag. Brent crude dropped 3.7% on June 12, Reuters said, as hopes for a Middle East diplomatic deal lowered energy prices. The broader STOXX 600 moved up, but European energy names were the only main sector down. That included Shell. Lower Brent can help Shell’s working capital over time, but if prices stay weak, analysts could cut upstream cash targets.
Shell is still pitching its story on strong cash returns, LNG, and portfolio discipline. First-quarter adjusted earnings hit $6.92 billion, beating the $6.36 billion consensus from Reuters as trading and refining helped. The company lifted its dividend 5%. “The dividend increase reflects that confidence we have in the long-term cash flows of the company,” CFO Sinead Gorman said. Reuters
Shell is leaning harder on fossil-fuel projects and commodity prices, with less focus on lower-carbon business. Reuters, citing Bloomberg News, reported on June 12 that Shell plans to sell offshore wind assets that could bring in more than $1 billion. Reuters said it couldn’t independently verify the news, and Shell wouldn’t comment. This move could draw in investors who want faster returns but it leaves the shares tied to swings in oil prices, political risks, and more criticism over the energy transition.
Valuation looks fair, not like a sure thing. Shell is trading at just over 13 times earnings based on Google Finance, with a dividend yield around 3.35%. Fourteen analysts there are split down the middle between Buy and Hold, none with a Sell, and their average 12-month target is 3,777.05p—roughly 17% higher than now. That view shows the stock can still appeal to investors who are OK with oil, gas and execution risk. But with the buyback on hold, the ARC vote up ahead and crude prices falling, it’s tough to call Shell shares cheap right now.
Shell’s second-quarter numbers and interim dividend update are set for July 30. Investors want to see if the ARC vote puts buybacks back on the table. Focus is also on the impact of Middle East tensions on integrated gas output, and whether weaker crude prices now mean easier working capital—or trouble ahead for Shell’s cash flows.
