Information  X 
Enter a valid email address

Royal Dutch Shell (RDSA)

  Print      Mail a friend

Thursday 28 October, 2010

Royal Dutch Shell

ROYAL DUTCH SHELL 3RD QUARTER 2010 RESULTS


3RD QUARTER 2010 UNAUDITED RESULTS

  * Royal Dutch Shell's third quarter 2010 earnings, on a current cost of
    supplies (CCS) basis, were $3.5 billion compared to $3.0 billion a year
    ago. Basic CCS earnings per share increased by 16% versus the same quarter
    a year ago.

  * Third quarter 2010 CCS earnings, excluding identified items (see page 5),
    were $4.9 billion compared to $2.6 billion in the third quarter 2009.

  * Cash flow from operating activities for the third quarter 2010 was $9.0
    billion.

  * Net capital investment for the quarter was $10.3 billion, including the
    business acquisition of East Resources, Inc. in the USA and the joint
    acquisition of Arrow Energy Limited in Australia. Total dividends paid to
    shareholders during the third quarter 2010 were $2.6 billion.

  * Gearing at the end of the third quarter 2010 was 19.0%.

  * A third quarter 2010 dividend has been announced of $0.42 per ordinary
    share. With the introduction of the Scrip Dividend Programme, effective
    from the third quarter 2010 interim dividend, eligible shareholders have a
    choice to receive dividends in cash or in new shares.

SUMMARY OF UNAUDITED RESULTS                                                   
                                                                               
Quarters                  $ million                          Nine months       
                                                                               
Q3     Q2     Q3                                                               
2010   2010   2009   %1                                      2010   2009   %   
                                                                               
3,153  3,270  1,543       Upstream                           10,838 5,818      
                                                                               
325    1,471  1,292       Downstream                         2,539  2,020      
                                                                               
                          Corporate and Non-controlling                        
43     (212)  155         interest                           (430)  789        
                                                                               
3,521  4,529  2,990  +18  CCS earnings                       12,947 8,627  +50 
                                                                               
                          Estimated CCS adjustment for                         
(58)   (136)  257         Downstream                         390    1,930      
                                                                               
                          Income attributable to                               
3,463  4,393  3,247  +7   shareholders                       13,337 10,557 +26 
                                                                               
0.57   0.74   0.49   +16  Basic CCS earnings per share ($)   2.11   1.41   +50 
                                                                               
                          Estimated CCS adjustment per share                   
(0.01) (0.02) 0.04        ($)                                0.07   0.31       
                                                                               
0.56   0.72   0.53   +6   Basic earnings per share ($)       2.18   1.72   +27 
                                                                               
                          Cash flow from operating                             
9,016  8,096  7,350  +23  activities                         21,894 15,828 +38 
                                                                               
                          Cash flow from operating                             
1.47   1.32   1.20   +23  activities per share ($)           3.57   2.58   +38 
                                                                               
0.42   0.42   0.42   -    Dividend per share ($)             1.26   1.26   -   
                                                                               
1 Q3 on Q3 change                                                              
                                                                               

Royal Dutch Shell Chief Executive Officer Peter Voser commented:

"Our results have rebounded substantially from year-ago levels, driven by some
improvement in industry conditions, and Shell's strategy. We are seeing new
growth, with improved earnings and cash flow, underpinned by a 5% increase in
oil and gas production, a 22% increase in LNG sales and increased downstream
volumes. This is a better performance from Shell, achieved despite continued
difficult industry conditions in refining and natural gas markets.

We are making good progress on implementing our strategy, with a focus on
performance improvement, delivering a new wave of growth, and maturing the next
generation of growth options for shareholders, with achievements in all of
these themes during the quarter.

With an emphasis on continuous improvement, Shell is driving down costs and
improving capital efficiency. We have achieved some $2 billion of asset sales
so far in 2010, and announced the disposal of late-life oil and gas positions
at Statfjord in Norway, and refining capacity at Heide in Germany during the
quarter. Our cash generation from operations continues to improve. We expect
some $7-8 billion of asset sales in the 2010-11 timeframe, including exits from
non-core refining and marketing positions in Europe and Africa, and
rationalisation of our tight gas portfolio in North America, following recent
acquisitions there."

Turning to growth delivery, Voser commented: "We are in a delivery window for
new growth. Our new oil sands mine - Jackpine - started production during the
quarter, part of the 100,000 boe/d Athabasca Oil Sands Project Expansion 1.
AOSP-1 is the 5th start-up in a sequence of 13 new projects for 2010-11, which
will drive us to achieve our cash flow and production targets for 2012.

Shell has continued to make progress with longer term growth options during the
quarter, with the final investment decision on two new deep water projects -
the 100,000 boe/d Mars B development in the Gulf of Mexico, and Phase 2 of the
BC-10 development in Brazil. We have signed a purchase agreement with East
Resources, Inc., acquiring tight gas acreage in the USA, bringing our total
North America gas potential resources to some 40 tcfe, completed the joint
acquisition of Arrow Energy Limited, an Australian CBM-LNG play, and progressed
our Brazil retail and biofuels joint venture with Cosan."

Voser concluded: "We are making good progress against our targets, and there is
more to come from Shell."

THIRD QUARTER 2010 PORTFOLIO DEVELOPMENTS

Upstream

In Australia, Shell and PetroChina announced the successful completion of their
joint acquisition of the Australian coal seam gas company, Arrow Energy
Limited.

In Canada, Shell announced the successful start of production of the 100
thousand barrels of oil equivalent per day (boe/d) expansion of its oil sands
operations in Canada (Shell share 60%). Production from the new Jackpine Mine
combined with existing production from the Muskeg River Mine will feed the
Scotford Upgrader, which processes the oil sands bitumen - heavy oil - for
refined oil products. Construction for the expansion of the Scotford Upgrader
is underway, and will come on-stream in early 2011 which will allow AOSP's
synthetic crude production to rise to the new 255 thousand boe/d (Shell share
60%) production capacity.

In Norway, Shell agreed to sell its interests in the Statfjord field and
associated satellite fields in the Norwegian sector of the North Sea, with a
Shell share production of some 13 thousand barrels of oil equivalent per day
(boe/d), for some $0.2 billion.

Shell completed a strategic trade to acquire additional interests in Gabon and
in the UK North Sea, in return for its interest in a pair of Norwegian offshore
fields.

In Saudi Arabia, Shell has entered into the second contract period for the
South Rub Al Khali Company Limited (SRAK) joint venture (Shell share 50%). SRAK
will now move forward with the appraisal of the Kidan sour gas fields.

In the USA, Shell signed a purchase agreement with East Resources, Inc., a
private company, with a primary focus on tight gas acreage in the Marcellus
shale, in the northeast USA. A multi-well appraisal programme is now on the
way, with encouraging initial results.

Also in the USA, Shell announced the final investment decision for the Mars B
project (Shell share 71.5%), a 100 thousand boe/d tension leg platform in the
Gulf of Mexico. In Brazil, Shell also announced the final investment decision
on the BC-10 Phase 2 project (Shell share 50%).

Downstream

In Germany, Shell announced a binding agreement for the sale of Shell's
(100%-owned) Heide refinery (90 thousand barrels per day capacity) and
associated local infrastructure and businesses. The transaction is subject to
regulatory approval.

In Brazil, Shell signed a binding agreement to form a joint venture (Shell
share 50%) with Cosan for the production of ethanol, sugar and power, and the
supply, distribution and retail of transportation fuels. The transaction is
subject to regulatory approvals.

KEY FEATURES OF THE THIRD QUARTER 2010

  * Third quarter 2010 CCS earnings were $3,521 million, 18% higher than in the
    same quarter a year ago.

  * Third quarter 2010 CCS earnings, excluding identified items (see page 5),
    were $4,933 million compared to $2,619 million in the third quarter 2009.

  * Third quarter 2010 reported earnings were $3,463 million compared to $3,247
    million in the same quarter a year ago.

  * Basic CCS earnings per share increased by 16% versus the same quarter a
    year ago.

  * Cash flow from operating activities for the third quarter 2010 was $9.0
    billion, compared to $7.3 billion in the same quarter last year. Excluding
    net working capital movements, cash flow from operating activities in the
    third quarter 2010 was $8.1 billion, compared to $7.7 billion in the same
    quarter last year.

  * Total dividends paid to shareholders during the third quarter 2010 were
    $2.6 billion.

  * Capital investment for the third quarter 2010 was $11.0 billion. Net
    capital investment (capital investment, less divestment proceeds) for the
    third quarter 2010 was $10.3 billion, including $5.5 billion related mainly
    to the business acquisition of East Resources, Inc. in the USA and the
    joint acquisition of Arrow Energy Limited in Australia.

  * Return on average capital employed (ROACE), on a reported income basis, was
    8.8%.

  * Gearing was 19.0% at the end of the third quarter 2010 versus 13.7% at the
    end of the third quarter 2009.

  Upstream

  * Oil and gas production for the third quarter 2010 was 3,058 thousand boe/d,
    5% higher than in the third quarter 2009.

    Production for the third quarter 2010 excluding the impact of divestments,
    production sharing contracts (PSC) pricing effects and OPEC quota restrictions
    was 7% higher compared to the same period last year.

    Underlying production in the third quarter increased by some 180 thousand boe/d
    from new field start-ups and the continuing ramp-up of fields, more than
    offsetting the impact of field declines.

  * LNG sales volumes of 4.26 million tonnes in the third quarter 2010 were 22%
    higher than in the same quarter a year ago.

  Downstream

  * Oil Products sales volumes were 4% higher than in the third quarter 2009.
    Chemical product sales volumes in the third quarter 2010 increased by 13%
    compared to the third quarter 2009.

  * Oil Products refinery availability was 93% compared to 94% in the third
    quarter 2009. Chemicals manufacturing plant availability increased to 96%
    from 95% in the third quarter 2009.

  * Supplementary financial and operational disclosure for the third quarter
    2010 is available at www.shell.com/investor .

SUMMARY OF IDENTIFIED ITEMS

Earnings in the third quarter 2010 reflected the following items, which in
aggregate amounted to a net charge of $1,412 million (compared to a net gain of
$371 million in the third quarter 2009), as summarised in the table below:

  * Upstream earnings included a net charge of $284 million, reflecting asset
    impairments and write-offs of $1,442 million, a charge related to the
    estimated fair value accounting of commodity derivatives (see Note 4), tax
    charges and provisions, which were partly offset by gains related to
    portfolio transactions and mark-to-market valuation of certain gas
    contracts. Earnings for the third quarter 2009 included a net charge of
    $123 million.

  * Downstream earnings included charges of $1,128 million reflecting asset
    impairments of $873 million, a charge related to the estimated fair value
    accounting of commodity derivatives (see Note 4) and provisions. Earnings
    for the third quarter 2009 included a net gain of $536 million.

  * Corporate earnings and Non-controlling interest for the third quarter 2009
    included charges of $42 million.

SUMMARY OF IDENTIFIED ITEMS                                                    
                                                                               
Quarters                   $ million                        Nine months        
                                                                               
Q3 2010  Q2 2010  Q3 2009                                   2010      2009     
                                                                               
                           Segment earnings impact of                          
                           identified items:                                   
                                                                               
(284)    10       (123)     Upstream                        (164)     92       
                                                                               
(1,128)  311      536       Downstream                      (852)     (347)    
                                                                               
                            Corporate and Non-controlling                      
-        -        (42)     interest                         -         103      
                                                                               
(1,412)  321      371      CCS earnings impact              (1,016)   (152)    
                                                                               

These identified items generally relate to events with an impact of more than
$50 million on Royal Dutch Shell's earnings and are shown to provide additional
insight into its segment earnings, CCS earnings and income attributable to
shareholders. Further additional comments on the business segments are provided
in the section 'Earnings by Business Segment' on page 6 and onwards.

EARNINGS BY BUSINESS SEGMENT

UPSTREAM                                                                       
                                                                               
Quarters                  $ million                          Nine months       
                                                                               
Q3     Q2     Q3                                                               
2010   2010   2009   %1                                      2010   2009   %   
                                                                               
3,153  3,270  1,543  +104 Upstream earnings                  10,838 5,818  +86 
                                                                               
6,139  5,411  4,168  +47  Upstream cash flow from operations 19,276 13,952 +38 
                                                                               
9,554  5,664  5,404  +77  Net capital investment             20,700 16,379 +26 
                                                                               
                          Crude oil production (thousand b/                    
1,709  1,655  1,652  +3   d)                                 1,699  1,672  +2  
                                                                               
                          Natural gas production available                     
7,823  8,440  7,343  +7   for sale (million scf/d)           9,008  8,181  +10 
                                                                               
                          Barrels of oil equivalent                            
3,058  3,110  2,917  +5   (thousand boe/d)                   3,252  3,082  +6  
                                                                               
4.26   3.88   3.49   +22  LNG sales volumes (million tonnes) 12.36  9.44   +31 
                                                                               
1  Q3 on Q3 change                                                             
                                                                               

Third quarter Upstream earnings were $3,153 million compared to $1,543 million
a year ago. Earnings included a net charge of $284 million related to
identified items, compared to a net charge of $123 million in the third quarter
2009 (see page 5).

Upstream earnings, excluding the impact of identified items, compared to the
third quarter 2009 reflected the effect on revenues from improved crude oil and
natural gas realised prices and increased production volumes, lower operating
costs and lower exploration well write-off expenses which were partially offset
by increased production taxes. Earnings also reflected increased LNG sales
volumes, improved LNG realised prices and higher dividends received from an LNG
joint venture.

Global liquids realisations were 15% higher than in the third quarter 2009.
Global gas realisations were 17% higher than in the same quarter a year ago. In
the Americas, gas realisations increased by 25%. Outside the Americas, gas
realisations increased by 16%.

Third quarter 2010 production was 3,058 thousand boe/d compared to 2,917
thousand boe/d a year ago. Crude oil production was up 3% and natural gas
production was up 7% compared to the third quarter 2009. In Nigeria, Shell's
share of Shell Petroleum Development Nigeria Company (SPDC) joint venture
production increased by 175 thousand boe/d driven by the ramp-up of new
projects and improved security conditions.

Underlying production, compared to the third quarter 2009, increased by some
180 thousand boe/d from new field start-ups and the continuing ramp-up of
fields over the past 12 months, more than offsetting field declines.

LNG sales volumes of 4.26 million tonnes were 22% higher than in the same
quarter a year ago. Volumes improved globally, with major contributions from
the Sakhalin II LNG project and Nigeria LNG.

DOWNSTREAM                                                                    
                                                                              
Quarters                  $ million                         Nine months       
                                                                              
Q3     Q2     Q3                                                              
2010   2010   2009   %1                                     2010   2009   %   
                                                                              
325    1,471  1,292  -75  Downstream CCS earnings           2,539  2,020  +26 
                                                                              
(61)   (142)  251         Estimated CCS adjustment          381    1,986      
                                                                              
264    1,329  1,543  -83  Downstream earnings               2,920  4,006  -27 
                                                                              
                          Downstream cash flow from                           
1,953  3,197  3,157  -38  operations                        2,309  1,813  +27 
                                                                              
701    (21)   1,677  -58  Net capital investment            1,367  5,024  -73 
                                                                              
                          Refinery plant intake (thousand b                   
3,292  3,296  2,997  +10  /d)                               3,196  3,095  +3  
                                                                              
                          Oil Products sales volumes                          
6,385  6,615  6,121  +4   (thousand b/d)                    6,389  6,109  +5  
                                                                              
                          Chemicals sales volumes (thousand                   
5,333  5,254  4,723  +13  tonnes)                           15,356 13,476 +14 
                                                                              
1 Q3 on Q3 change                                                             
                                                                              

Third quarter Downstream CCS earnings were $325 million compared to $1,292
million in the third quarter 2009. Earnings included charges of $1,128 million
related to identified items, compared to a net gain of $536 million in the
third quarter 2009 (see page 5).

Downstream CCS earnings, excluding the impact of identified items, compared to
the third quarter 2009 reflected improved refining contributions, higher
Chemicals earnings and lower operating costs.

Oil Products marketing CCS earnings, excluding the impact of identified items,
improved compared to the same period a year ago, mainly reflecting higher
lubricants earnings and reduced trading contributions.

Oil Products sales volumes increased by 4% compared to the same quarter last
year. Excluding the impact of divestments, sales volumes increased by 6%.

Refining CCS results, excluding impairment charges, improved from the third
quarter 2009, benefiting from higher realised refining margins globally and
higher refinery plant intake volumes. Refinery availability was 93% compared to
94% in the third quarter 2009.

Chemicals CCS earnings compared to the third quarter 2009 reflected improved
realised chemicals margins, higher chemicals sales volumes and lower operating
costs.

Chemicals sales volumes increased by 13% compared to the same quarter last
year, mainly due to start-up of the Shell Eastern Petrochemicals Complex in
Singapore. Chemicals manufacturing plant availability increased to 96% from 95%
in the third quarter 2009.

CORPORATE AND NON-CONTROLLING INTEREST                                         
                                                                               
Quarters                   $ million                         Nine months       
                                                                               
Q3 2010  Q2 2010  Q3 2009                                    2010      2009    
                                                                               
148      (112)    202      Corporate                         (140)     883     
                                                                               
(105)    (100)    (47)     Non-controlling interest          (290)     (94)    
                                                                               
                           Corporate and Non-controlling                       
43       (212)    155      interest                          (430)     789     
                                                                               

Third quarter Corporate earnings and Non-controlling interest were $43 million
compared to $155 million for the same period last year. Earnings for the third
quarter 2009 included charges of $42 million related to identified items (see
page 5).

Corporate earnings for the third quarter 2010 reflected higher tax credits,
which were more than offset by lower currency exchange gains and a lower net
interest result compared to the same period in 2009.

FORTHCOMING EVENTS

Fourth quarter 2010 results and fourth quarter 2010 dividend are scheduled to
be announced on February 3, 2011. First quarter 2011 results and first quarter
2011 dividend are scheduled to be announced on April 28, 2011. Second quarter
2011 results and second quarter 2011 dividend are scheduled to be announced on
July 28, 2011. Third quarter 2011 results and third quarter 2011 dividend are
scheduled to be announced on October 27, 2011. A Shell strategy update is
planned for March 15, 2011.

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME                                               
                                                                               
Quarters                  $ million                        Nine months         
                                                                               
Q3     Q2     Q3                                                               
2010   2010   2009   %1                                    2010    2009    %   
                                                                               
90,712 90,568 75,009      Revenue                          267,342 197,113     
                                                                               
                          Share of profit of                                   
1,020  1,308  746         equity-accounted investments     3,974   3,209       
                                                                               
1,010  (16)   271         Interest and other income3       1,311   1,388       
                                                                               
92,742 91,860 76,026      Total revenue and other income   272,627 201,710     
                                                                               
70,278 69,759 55,781      Purchases                        205,038 142,196     
                                                                               
                          Production and manufacturing                         
6,052  5,925  5,885       expenses                         17,164  17,919      
                                                                               
                          Selling, distribution and                            
3,701  3,433  4,306       administrative expenses          11,227  11,898      
                                                                               
203    180    318         Research and development         597     794         
                                                                               
610    403    637         Exploration                      1,390   1,509       
                                                                               
                          Depreciation, depletion and                          
6,196  3,237  4,341       amortisation                     12,359  10,710      
                                                                               
317    191    189         Interest expense                 769     538         
                                                                               
5,385  8,732  4,569  +18  Income before taxation           24,083  16,146  +49 
                                                                               
1,820  4,245  1,281       Taxation                         10,465  5,439       
                                                                               
3,565  4,487  3,288  +8   Income for the period            13,618  10,707  +27 
                                                                               
                          Income attributable to                               
102    94     41          non-controlling interest         281     150         
                                                                               
                          Income attributable to Royal                         
3,463  4,393  3,247  +7   Dutch Shell plc shareholders     13,337  10,557  +26 
                                                                               
                            Estimated CCS adjustment for                       
58     136    (257)       Downstream                       (390)   (1,930)     
                                                                               
3,521  4,529  2,990  +18    CCS earnings                   12,947  8,627   +50 
                                                                               

BASIC EARNINGS PER SHARE                                                       
                                                                               
Quarters                                                    Nine months        
                                                                               
Q3 2010  Q2 2010  Q3 2009                                   2010      2009     
                                                                               
0.56     0.72     0.53     Earnings per share ($)           2.18      1.72     
                                                                               
0.57     0.74     0.49     CCS earnings per share ($)       2.11      1.41     
                                                                               
DILUTED EARNINGS PER SHARE                                                     
                                                                               
Quarters                                                    Nine months        
                                                                               
Q3 2010  Q2 2010  Q3 2009                                   2010      2009     
                                                                               
0.56     0.72     0.53     Earnings per share ($)           2.17      1.72     
                                                                               
0.57     0.74     0.49     CCS earnings per share ($)       2.11      1.41     
                                                                               
SHARES2                                                                        
                                                                               
Quarters                   Millions                         Nine months        
                                                                               
Q3 2010  Q2 2010  Q3 2009                                   2010      2009     
                                                                               
                           Weighted average number of                          
                           shares as the basis for:                            
                                                                               
6,132.6  6,134.0  6,127.0    Basic earnings per share       6,131.1   6,125.1  
                                                                               
6,138.3  6,143.7  6,131.0    Diluted earnings per share     6,137.1   6,128.2  
                                                                               
                           Shares outstanding at the end of                    
6,132.0  6,132.5  6,125.2  the period                         6,132.0   6,125.2
                                                                               
1 Q3 on Q3 change.                                                             
                                                                               
2 Royal Dutch Shell plc ordinary shares of euro 0.07 each.                     
                                                                               
3 Other income includes dividend income, net gains on sale of assets and net   
foreign exchange effects on financing activities.                              
                                                                               

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                            
                                                                                       
                     Ordinary                                                          
                     share                                                             
                     capital  Shares                                                   
                              held in Other    Retained         Non-controlling Total  
$ million                     trust   reserves earnings Total   interest        equity 
                                                                                       
At December 31, 2009 527      (1,711) 9,982    127,633  136,431 1,704           138,135
                                                                                       
Income for the                                                                         
period               -        -       -        13,337   13,337  281             13,618 
                                                                                       
Other comprehensive                                                                    
income               -        -       (271)    -        (271)   57              (214)  
                                                                                       
Capital                                                                                
contributions from                                                                     
and other changes in                                                                   
non-controlling                                                                        
interest             -        -       -        294      294     16              310    
                                                                                       
Dividends paid       -        -       -        (7,586)  (7,586) (357)           (7,943)
                                                                                       
Shares held in                                                                         
trust: net sales/                                                                      
(purchases) and                                                                        
dividends received   -        368     -        -        368     -               368    
                                                                                       
Share-based                                                                            
compensation         -        -       (52)     223      171     -               171    
                                                                                       
At September 30,                                                                       
2010                 527      (1,343) 9,659    133,901  142,744 1,701           144,445
                                                                                       

                     Ordinary Shares                                                   
                     share    held in Other    Retained         Non-controlling Total  
$ million            capital  trust   reserves earnings Total   interest        equity 
                                                                                       
At December 31, 2008 527      (1,867) 3,178    125,447  127,285 1,581           128,866
                                                                                       
Income for the                                                                         
period               -        -       -        10,557   10,557  150             10,707 
                                                                                       
Other comprehensive                                                                    
income               -        -       6,562    -        6,562   49              6,611  
                                                                                       
Capital                                                                                
contributions from                                                                     
and other changes in                                                                   
non-controlling                                                                        
interest             -        -       -        3        3       33              36     
                                                                                       
Dividends paid       -        -       -        (7,913)  (7,913) (164)           (8,077)
                                                                                       
Shares held in                                                                         
trust: net sales/                                                                      
(purchases) and                                                                        
dividends received   -        201     -        -        201     -               201    
                                                                                       
Share-based                                                                            
compensation         -        -       (22)     190      168     -               168    
                                                                                       
At September 30,                                                                       
2009                 527      (1,666) 9,718    128,284  136,863 1,649           138,512
                                                                                       

CONDENSED CONSOLIDATED BALANCE SHEET                                           
                                                                               
                                         $ million                             
                                                                               
                                         Sept 30,     Jun 30,      Sept 30,    
                                         2010         2010         2009        
                                                                               
Assets                                                                         
                                                                               
Non-current assets:                                                            
                                                                               
Intangible assets                        5,171        5,171        5,288       
                                                                               
Property, plant and equipment            139,863      133,179      127,207     
                                                                               
Equity-accounted investments             34,015       31,128       30,265      
                                                                               
Investments in securities                3,968        3,860        4,187       
                                                                               
Deferred tax                             5,372        4,480        4,309       
                                                                               
Pre-paid pension costs                   10,383       9,316        9,691       
                                                                               
Other                                    8,909        7,528        9,646       
                                                                               
                                         207,681      194,662      190,593     
                                                                               
Current assets:                                                                
                                                                               
Inventories                              28,922       27,972       25,420      
                                                                               
Accounts receivable                      62,769       62,615       66,966      
                                                                               
Cash and cash equivalents                11,282       12,008       14,275      
                                                                               
                                         102,973      102,595      106,661     
                                                                               
Total assets                             310,654      297,257      297,254     
                                                                               
Liabilities                                                                    
                                                                               
Non-current liabilities:                                                       
                                                                               
Debt                                     35,148       35,796       31,522      
                                                                               
Deferred tax                             13,179       13,802       13,917      
                                                                               
Retirement benefit obligations           6,048        5,873        5,918       
                                                                               
Other provisions                         14,352       13,322       13,523      
                                                                               
Other                                    4,696        4,869        4,719       
                                                                               
                                         73,423       73,662       69,599      
                                                                               
Current liabilities:                                                           
                                                                               
Debt                                     9,932        4,505        4,774       
                                                                               
Accounts payable and accrued liabilities 65,980       64,553       69,489      
                                                                               
Taxes payable                            13,431       12,096       11,879      
                                                                               
Retirement benefit obligations           397          388          435         
                                                                               
Other provisions                         3,046        2,890        2,566       
                                                                               
                                         92,786       84,432       89,143      
                                                                               
Total liabilities                        166,209      158,094      158,742     
                                                                               
Equity attributable to Royal Dutch Shell                                       
plc shareholders                         142,744      137,488      136,863     
                                                                               
Non-controlling interest                 1,701        1,675        1,649       
                                                                               
Total equity                             144,445      139,163      138,512     
                                                                               
Total liabilities and equity             310,654      297,257      297,254     
                                                                               
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                                
                                                                              
Quarters                   $ million                         Nine months      
                                                                              
Q3 2010  Q2 2010  Q3 2009                                    2010     2009    
                                                                              
                           Cash flow from operating                           
                           activities:                                        
                                                                              
3,565    4,487    3,288    Income for the period             13,618   10,707  
                                                                              
                           Adjustment for:                                    
                                                                              
3,545    4,210    1,677    - Current taxation                11,869   5,888   
                                                                              
264      161      157      - Interest (income)/expense       656      857     
                                                                              
                           - Depreciation, depletion and                      
6,196    3,237    4,341    amortisation                      12,359   10,710  
                                                                              
                           - Net (gains)/losses on sale of                    
(681)    (28)     (81)     assets                            (932)    (366)   
                                                                              
                           - Decrease/(increase) in net                       
937      (482)    (384)    working capital                   (5,175)  (3,584) 
                                                                              
                           - Share of profit of                               
(1,020)  (1,308)  (746)    equity-accounted investments      (3,974)  (3,209) 
                                                                              
                           - Dividends received from                          
1,486    1,425    993      equity-accounted investments      4,455    3,212   
                                                                              
                           - Deferred taxation and other                      
(1,941)  182      (401)    provisions                        (1,466)  (987)   
                                                                              
(86)     425      332      - Other                           686      (1,458) 
                                                                              
                           Cash flow from operating                           
12,265   12,309   9,176    activities (pre-tax)              32,096   21,770  
                                                                              
(3,249)  (4,213)  (1,826)  Taxation paid                     (10,202) (5,942) 
                                                                              
                           Cash flow from operating                           
9,016    8,096    7,350    activities                        21,894   15,828  
                                                                              
                           Cash flow from investing                           
                           activities:                                        
                                                                              
(9,609)  (6,513)  (6,219)  Capital expenditure               (21,369) (19,010)
                                                                              
                           Investments in equity-accounted                    
(1,179)  (136)    (448)    investments                       (1,940)  (2,302) 
                                                                              
666      1,007    327      Proceeds from sale of assets      2,039    805     
                                                                              
                           Proceeds from sale of                              
44       136      267      equity-accounted investments      211      487     
                                                                              
                           (Additions to)/proceeds from sale                  
(37)     26       (16)     of securities                     (18)     (68)    
                                                                              
51       13       118      Interest received                 102      288     
                                                                              
                           Cash flow from investing                           
(10,064) (5,467)  (5,971)  activities                        (20,975) (19,800)
                                                                              
                           Cash flow from financing                           
                           activities:                                        
                                                                              
                           Net (decrease)/increase in debt                    
                           with maturity period                               
                                                                              
3,232    1,017    (57)     within three months               4,399    (5,691) 
                                                                              
199      3,323    5,353    Other debt: New borrowings        7,729    19,281  
                                                                              
(491)    (414)    (241)                Repayments            (2,852)  (2,057) 
                                                                              
(307)    (379)    (86)     Interest paid                     (1,204)  (610)   
                                                                              
                           Change in non-controlling                          
(3)      330      23       interest                          315      42      
                                                                              
                           Dividends paid to:                                 
                                                                              
                           - Royal Dutch Shell plc                            
(2,583)  (2,448)  (2,656)  shareholders                      (7,586)  (7,913) 
                                                                              
(168)    (150)    (65)     - Non-controlling interest        (357)    (164)   
                                                                              
                           Shares held in trust:                              
                                                                              
                           - Net sales/(purchases) and                        
(34)     86       (17)     dividends received                170      70      
                                                                              
                           Cash flow from financing                           
(155)    1,365    2,254    activities                        614      2,958   
                                                                              
                           Currency translation differences                   
                           relating to cash and                               
                                                                              
477      (434)    46       cash equivalents                  30       101     
                                                                              
                           (Decrease)/increase in cash and                    
(726)    3,560    3,679    cash equivalents                  1,563    (913)   
                                                                              
                           Cash and cash equivalents at                       
12,008   8,448    10,596   beginning of period               9,719    15,188  
                                                                              
                           Cash and cash equivalents at end                   
11,282   12,008   14,275   of period                         11,282   14,275  
                                                                              

EXPLANATORY NOTES

1. Basis of preparation

The quarterly financial report and tables of Royal Dutch Shell plc and its
subsidiaries (collectively known as "Shell") are prepared on the same
accounting principles as, and should be read in conjunction with, the Annual
Report on Form 20-F for the year ended December 31, 2009 (pages 101 to 106) as
filed with the US Securities and Exchange Commission.

With effect from January 1, 2010, acquisitions and divestments are accounted
for in accordance with revised IFRS 3 Business Combinations and IAS 27
Consolidated and Separate Financial Statements. The revised standards apply
with prospective effect to the acquisition of a business or for certain types
of transactions involving an additional investment or a partial disposal,
requiring for example the recognition in income of certain transaction costs,
the recognition at fair value of contingent consideration payable and the
re-measurement of existing interests held or retained. The exact impact depends
on the individual transaction concerned, with potentially different amounts
being recognised in the Consolidated Financial Statements than would previously
have been the case.

2. Earnings on an estimated current cost of supplies (CCS) basis

To facilitate a better understanding of underlying business performance, the
financial results are also analysed on an estimated current cost of supplies
(CCS) basis as applied for the Downstream segment earnings. Earnings on an
estimated current cost of supplies basis provides useful information concerning
the effect of changes in the cost of supplies on Shell's results of operations
and is a measure to manage the performance of the Downstream segment but is not
a measure of financial performance under IFRS.

On this basis, the purchase price of the volumes sold during the period is
based on the estimated current cost of supplies during the same period after
making allowance for the estimated tax effect, instead of the first-in,
first-out (FIFO) method of inventory accounting. Earnings calculated on this
basis do not represent an application of the last-in, first-out (LIFO)
inventory basis and do not reflect any inventory drawdown effects.

3. Return on average capital employed (ROACE)

ROACE is defined as the sum of the current and previous three quarters' income
adjusted for interest expense, after tax, divided by the average capital
employed for the period.

4. Impacts of Accounting for Derivatives

IFRS requires derivative instruments to be recognised in the financial
statements at fair value. Any change in the current period between the
period-end market price and the contract settlement price is recognised in
income where hedge accounting is either not permitted or not applied to these
contracts.

The physical crude oil and related products held by the Downstream business as
inventory are recorded at historical cost or net realisable value, whichever is
lower, as required under IFRS. Consequently, any increase in value of the
inventory over cost is not recognised in income until the sale of the commodity
occurs in subsequent periods.

In the Downstream business, the buying and selling of commodities includes
transactions conducted through the forward markets using commodity derivatives
to reduce economic exposure. Some derivatives are associated with a future
physical delivery of the commodities.

Differences in the accounting treatment for physical inventory (at cost or net
realisable value, whichever is lower) and derivative instruments (at fair
value) have resulted in timing differences in the recognition of gains or
losses between reporting periods.

Similarly, earnings from long-term contracts held in the Upstream business are
recognised in income upon realisation. Associated commodity derivatives are
recognised at fair value as of the end of each quarter.

These differences in accounting treatment for long-term contracts (on accrual
basis) and derivative instruments (at fair value) have resulted in timing
differences in the recognition of gains or losses between the reporting
periods.

The aforementioned timing differences for Downstream and Upstream are reported
as identified items in the quarterly results and are estimates derived from the
overall portfolio of derivatives.

Certain UK gas contracts held by Upstream contain embedded derivatives or
written options, for which IFRS requires recognition at fair value, even though
they are entered into for operational purposes. The impact of the
mark-to-market calculation is also reported as an identified item in the
quarterly results.

CAUTIONARY STATEMENT

All amounts shown throughout this Report are unaudited.

The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this document "Shell", "Shell group" and
"Royal Dutch Shell" are sometimes used for convenience where references are
made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the
words "we", "us" and "our" are also used to refer to subsidiaries in general or
to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this
document refer to companies in which Royal Dutch Shell either directly or
indirectly has control, by having either a majority of the voting rights or the
right to exercise a controlling influence. The companies in which Shell has
significant influence but not control are referred to as "associated companies"
or "associates" and companies in which Shell has joint control are referred to
as "jointly controlled entities". In this document, associates and jointly
controlled entities are also referred to as "equity-accounted investments". The
term "Shell interest" is used for convenience to indicate the direct and/or
indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.)
ownership interest held by Shell in a venture, partnership or company, after
exclusion of all third-party interest.

This document contains forward-looking statements concerning the financial
condition, results of operations and businesses of Royal Dutch Shell. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements are statements of
future expectations that are based on management's current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of Royal Dutch
Shell to market risks and statements expressing management's expectations,
beliefs, estimates, forecasts, projections and assumptions. These
forward-looking statements are identified by their use of terms and phrases
such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'',
''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'',
''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'',
"scheduled" and similar terms and phrases. There are a number of factors that
could affect the future operations of Royal Dutch Shell and could cause those
results to differ materially from those expressed in the forward-looking
statements included in this document, including (without limitation): (a) price
fluctuations in crude oil and natural gas; (b) changes in demand for Shell's
products; (c) currency fluctuations; (d) drilling and production results; (e)
reserve estimates; (f) loss of market share and industry competition; (g)
environmental and physical risks; (h) risks associated with the identification
of suitable potential acquisition properties and targets, and successful
negotiation and completion of such transactions; (i) the risk of doing business
in developing countries and countries subject to international sanctions; (j)
legislative, fiscal and regulatory developments including potential litigation
and regulatory effects arising from recategorisation of reserves; (k) economic
and financial market conditions in various countries and regions; (l) political
risks, including the risks of expropriation and renegotiation of the terms of
contracts with governmental entities, delays or advancements in the approval of
projects and delays in the reimbursement for shared costs; and (m) changes in
trading conditions. All forward-looking statements contained in this document
are expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place undue
reliance on forward-looking statements. Additional factors that may affect
future results are contained in Royal Dutch Shell's Annual Report and Form 20-F
for the year ended December 31, 2009 (available at www.shell.com/investor and
www.sec.gov ). These factors also should be considered by the reader. Each
forward-looking statement speaks only as of the date of this document, October
28, 2010. Neither Royal Dutch Shell nor any of its subsidiaries undertake any
obligation to publicly update or revise any forward-looking statement as a
result of new information, future events or other information. In light of
these risks, results could differ materially from those stated, implied or
inferred from the forward-looking statements contained in this document.

The United States Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation tests
to be economically and legally producible under existing economic and operating
conditions. We use certain terms in this document that SEC's guidelines
strictly prohibit us from including in filings with the SEC. U.S. Investors are
urged to consider closely the disclosure in our Form 20-F, File No 1-32575,
available on the SEC website www.sec.gov . You can also obtain these forms from
the SEC by calling 1-800-SEC-0330.

October 28, 2010

Contacts:

  * Investor Relations: Europe: + 31 (0)70 377 4540; USA: +1 713 241 1042

  * Media: Europe: + 31 (0)70 377 3600

The information in these quarterly results reflects the consolidated financial
position and results of Royal Dutch Shell plc (“Royal Dutch Shell”). All 
amounts shown throughout this report are unaudited. Company No. 4366849, Registered 
Office: Shell Centre, London, SE1 7NA, England, UK