Dutch-British oil giant Shell under fire on warning in share buyback delay

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Dutch-British oil giant Shell under fire on warning in share buyback delay

Hague, Netherlands-based oil industry company, the Royal Dutch Shell Plc., commonly called as Shell, a Dutch-British energy company incorporated in the United Kingdom, had faced off sheer criticisms from analysts and economists on Friday, the 1st of November 2019, over a warning of a possible delay in its $25 billion worth of share buyback program.

Meanwhile, followed by a warning of a possible delay in its share buyback program, multiple analysts were quoted saying that the Shell move would eventually destabilise the credibility of management board of the world’s third-largest company by revenue as of December 31st, 2018, widely dubbed as one of the energy “supermajors”.

In point of fact, followed by media headlines revealing a plausible delay in Shell’s share buyback program later this week, Thursday’s (October 31st) Wall St. had witnessed a steep sell-off of Shell shares, which in effect had erased more than $10 billion of its market valuation in a single session.

Besides, Shell had reported a stronger-than-anticipated quarterly revenue on Q3, 2019, despite a multi-year low natgas and crude oil price on Thursday (October 31st), but its strong earnings’ report was steeply outstripped by Shell Chief Executive, Ben Ban Beurden’s unprecedented cautioning on a delay of its share buyback program that had bolted out of the blue and eventually led to a weekly decline of Shell’s share price by 2.57 per cent to €26.26 per share.

Aside from that, hinting that a share buyback program worth of up to $25 billion might not be completed before end-2020, Van Beurden said on later this week, “The prevailing weak macroeconomic conditions and challenging outlook inevitably create uncertainty about the pace of reducing gearing to 25% and completing the share buyback program within the 2020 timeframe. ”