THE HAGUE, the Netherlands,
January 30, 2015 /PRNewswire/ --
Royal Dutch Shell plc
(NYSE:RDS.A)(NYSE:RDS.B) announced its unaudited results for the
fourth quarter and full year 2014 on 29
January 2015. Subsequent to making that announcement, a
stock valuation error in its Downstream operations was discovered.
The value of inventories in the condensed consolidated balance
sheet, reported as $19,981 million,
should be corrected to $19,701
million.
The fourth quarter and full year 2014 results of Royal Dutch Shell plc have been revised to take
account of this stock valuation error. The impact is shown
below.
Royal Dutch Shell's fourth
quarter and full year 2014 earnings, on a current cost of supplies
(CCS) basis are unchanged. These earnings were $4.2 billion and $19.0
billion respectively.
Fourth quarter and full year 2014 CCS earnings excluding
identified items are unchanged. These earnings were
$3.3 billion and $22.6 billion respectively.
The CCS adjustment for Downstream increased from $3,390 million to $3,568
million in the fourth quarter 2014 and from $3,989 million to $4,167
million for the full year 2014.
As a consequence, fourth quarter 2014 Income attributable to
Royal Dutch Shell plc shareholders
reduced from $773 million to
$595 million. Full year 2014 Income
attributable to Royal Dutch Shell
plc shareholders reduced from $15,052
million to $14,874
million.
The impact on end 2014 return on average capital employed on a
reported income basis (7.1%) and gearing (12.2%) is immaterial.
Fourth quarter and full year 2014 Basic CCS earnings per share
and per ADS are unchanged.
Basic earnings per share and diluted earnings per share both
reduced from $0.12 per share to
$0.09 per share in the fourth quarter
2014 and from $2.38 per share to
$2.36 per share for the full year
2014.
Summary of unaudited results
Quarters $million Full year
Q4 2014 Q4 2014 2014 2014
Amended Reported Revision Amended Reported Revision
Income attributable to Royal Dutch
595 773 (178) Shell plc shareholders 14,874 15,052 (178)
Current cost of supplies (CCS)
3,568 3,390 178 adjustment for Downstream 4,167 3,989 178
4,163 4,163 - CCS earnings 19,041 19,041 -
901 901 - Identified items (3,521) (3,521) -
CCS earnings excluding identified
3,262 3,262 - items 22,562 22,562 -
Of which:
1,730 1,730 - Upstream 16,505 16,505 -
1,550 1,550 - Downstream 6,265 6,265 -
Corporate and Non-controlling
(18) (18) - interest (208) (208) -
Cash flow from operating
9,608 9,608 - activities 45,044 45,044 -
The adjustment of the value of inventories leads to the
correction of certain other line items in the unaudited condensed
consolidated financial statements which are considered to be
immaterial.
The revised amounts will be included in the 2014 Annual Report
and Form 20-F.
Cautionary note
The companies in which Royal Dutch
Shell plc directly and indirectly owns investments are
separate entities. In this announcement "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
announcement refer to companies in which 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 announcement, 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 ownership
interest held by Shell in a venture, partnership or company, after
exclusion of all third-party interest.
This announcement contains forward looking statements concerning
the financial condition, results of operations and businesses of
Shell and the Shell Group. 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 Shell and
the Shell Group 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", "goals", "intend", "may",
"objectives", "outlook", "plan", "probably", "project", "risks",
"seek", "should", "target", "will" and similar terms and phrases.
There are a number of factors that could affect the future
operations of Shell and the Shell Group and could cause those
results to differ materially from those expressed in the forward
looking statements included in this announcement, 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)
reserves 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 regulatory measures addressing climate change; (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 announcement 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 Shell's 20-F for the year ended 31 December 2013
(available at http://www.shell.com/investor and http://www.sec.gov
). These factors also should be considered by the reader. Each
forward looking statement speaks only as of the date of this
announcement, 30 January 2015. Neither Shell nor any of its
subsidiaries nor the Shell Group 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 announcement.
Enquiries
Shell Media Relations
International: +44(0)20-7934-5550
Americas: +1-713-241-4544
Shell Investor Relations
International: +31-70-377-4540
North America:
+1-832-337-2034
SOURCE Royal Dutch Shell plc