Shell buyback faces fresh questions after Q4 warning as post-oil plan takes shape
Shell on Thursday flagged that weak oil trading would drag its chemicals and products division into a fourth-quarter loss, casting doubt on its $3.5 billion quarterly share buyback. RBC’s Biraj Borkhataria pinpointed the main issue: will management “hold the line” on buybacks? HSBC’s Kim Fustier expressed less confidence in that. UBS’s Josh Stone slashed his Q4 net income forecast by 14% to $3.6 billion, while Citi’s Alastair Syme trimmed his estimate 11% to $3.83 billion. Shell shares dropped 2.6%. The warning is crucial now since trading, refining, and chemicals have been the key drivers behind large quarterly cash returns. Investors crave the payout but also demand evidence that transition spending won’t morph into a slow drain.
