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Royal Dutch Shell (RDSA) starts $1.5bn share buyback

By Rob Griffin

13:01, 2 December 2021

Shell logo on a gas station sign
Shell starts returning cash to shareholders - Photo: Shutterstock

Oil giant Royal Dutch Shell started a $1.5bn (£1.1bn) share buyback, returning cash to investors after completing the sale of its Permian business in the United States.

In a statement, the company said this was the first tranche of the $7bn shareholder distributions from the deal and that further information on the remaining $5.5bn would be announced early next year.

The FTSE 100 company entered into an agreement with a broker to enable the purchase of A ordinary shares and/or B ordinary shares up to 28 January 2022.

Permian sale

The move comes after Shell Enterprises, a subsidiary of Royal Dutch Shell, announced yesterday that it had completed the sale of its interest in Permian to ConocoPhillips for $9.5bn in cash.


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


25.49 Price
+0.890% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee 0.0118%
Overnight fee time 22:00 (UTC)
Spread 0.020

Natural Gas

2.77 Price
-1.140% 1D Chg, %
Long position overnight fee 0.0451%
Short position overnight fee -0.0670%
Overnight fee time 22:00 (UTC)
Spread 0.0050

The agreement covers the sale of Shell’s 225,000 net acres and existing production of around 175,000 barrels equivalent per day.

“As previously announced, the cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions with the remainder used for further strengthening of the balance sheet,” the company said.

Read more: Shell ditches ‘Royal’ name and simplifies share structure

Markets in this article

115.29 USD
-0.37 -0.320%
115.29 USD
-0.37 -0.320%
UK 100
7533.2 USD
67.6 +0.910%
Shell plc
30.470 USD
0.3 +1.000%
Shell plc
30.470 USD
0.3 +1.000%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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