What factors drove SHEL's Q2 2024 EPS to exceed expectations?

Shell's (SHEL) Q2 2024 EPS exceeded expectations due to several key factors:

1. Carbon Capture Initiatives: Shell's positive final investment decision (FID) for the Polaris carbon capture project in Canada is a significant step in reducing emissions from its operations. This project, along with the Atlas Carbon Storage Hub, is expected to capture and store a substantial amount of CO2, reflecting Shell's commitment to sustainability and potentially leading to cost savings and improved environmental performance.
2. Share Buyback Program: Shell announced the commencement of a $3.5 billion share buyback program, which is set to reduce the issued share capital of the company. Such programs can boost EPS by reducing the number of shares outstanding, making the remaining shares more valuable.
3. Dividend Payments: Shell has a history of paying dividends, and the company's dividend payout ratio is notable. The payment of dividends can contribute to higher EPS, especially if the company's earnings are sufficient to cover both dividends and other expenses.
4. Operational Performance: Shell reported strong operational performance across its business segments in Q2 2024, with adjusted earnings of $7.7 billion. This reflects efficient management of its assets and resilience in the face of market challenges.

In conclusion, Shell's Q2 2024 EPS exceeded expectations due to a combination of factors, including its carbon capture initiatives, share buyback program, dividend payments, and strong operational performance. These elements, either directly or indirectly, contribute to the company's profitability and financial health, thereby impacting its EPS.