How did SHEL's Q1 2025 EPS forecast compare to past trends?

Shell's Q1 2025 EPS forecast of $7.90, as estimated by Scotiabank, represents a significant upside from the prior year's EPS of $7.67. This indicates a strong earnings recovery or growth trajectory for Shell, which can be attributed to various factors such as:

1. **Economic Recovery and Energy Demand**: As global economies emerge from the pandemic, energy demand is expected to rise, benefiting Shell's earnings due to its integrated oil and gas operations.
2. **Cost Reductions and Efficiency Gains**: Shell has been focusing on simplification and cost reductions, which have led to structural cost savings of over $3 billion since 2022. Such measures can enhance profitability by improving operational efficiency.
3. **Dividend and Share Buybacks**: Shell has increased its fourth-quarter dividend per share by 4% and initiated a share buyback program, reflecting confidence in its cash flow generation and potential stock price appreciation.

In summary, Shell's Q1 2025 EPS forecast reflects not only a strong current performance but also optimism about future growth, driven by economic recovery, operational efficiency, and strategic initiatives.