THE HAGUE, Netherlands,
April 26, 2018 /PRNewswire/ --
SUMMARY OF UNAUDITED RESULTS
$ million Quarters
Definition Q1 2018 Q4 2017 Q1 2017 %1
Income/(loss) attributable
to shareholders 5,899 3,807 3,538 +67
CCS earnings attributable
to shareholders Note 2 5,703 3,082 3,381 +69
Of which: Identified items [A] 381 (1,221) (373)
CCS earnings attributable
to shareholders excluding
identified items 5,322 4,303 3,754 +42
Add: CCS earnings
attributable to
non-controlling interest 121 94 109
CCS earnings excluding
identified items 5,443 4,397 3,863 +41
Of which:
Integrated Gas 2,439 1,636 1,181
Upstream 1,551 1,650 540
Downstream 1,687 1,396 2,489
Corporate (234) (285) (347)
Cash flow from operating
activities 9,427 7,275 9,508 -1
Cash flow from investing
activities (4,249) (665) (4,324)
Free cash flow H 5,178 6,610 5,184
Basic earnings per share
($) 0.71 0.46 0.43 +65
Basic CCS earnings per
share ($) [B] 0.69 0.37 0.41 +68
Basic CCS earnings per
share excl. identified
items ($) 0.64 0.52 0.46 +39
Dividend per share ($) 0.47 0.47 0.47 -
1. Q1 on Q1 change.
Compared with the first quarter 2017, CCS earnings attributable
to shareholders excluding identified items increased by
$1.6 billion, mainly driven by higher
contributions from Integrated Gas and Upstream, partly offset by
lower earnings in Downstream.
Cash flow from operating activities for the first quarter 2018
was $9.4 billion, which included
negative working capital movements of $0.9
billion, compared with $9.5
billion in the first quarter 2017, which included negative
working capital movements of $1.6
billion[1].
________________________________________
[1] Revised from negative working capital movements
of $1.8 billion. See Note 7 and
Definition I.
Total dividends distributed to shareholders in the quarter were
$4.0 billion.
Royal Dutch Shell Chief Executive Officer Ben van Beurden commented: "Shell's
strong earnings this quarter were underpinned by higher oil and gas
prices, the continued growth and very good performance of our
Integrated Gas business, and improved profitability in our Upstream
business. Less favourable refining market conditions and lower
contributions from trading impacted the earnings of our Downstream
business.
We continue to upgrade our portfolio through performance
improvement, new projects, divestments and the development of new
businesses. Competitiveness and resilience - now and through the
energy transition - are key features of our world-class investment
case.
We have a strong financial framework. Our commitment to
capital discipline is unchanged, we are making good progress with
our $30 billion divestment programme
and our outlook for free cash flow - which covered our cash
dividend and interest this quarter and over the last year - is
consistent with our intent to buy back at least $25 billion of our shares over the period
2018-2020."
ADDITIONAL PERFORMANCE MEASURES
$ million Quarters
Definition Q1 2018 Q4 2017 Q1 2017 %[1]
Capital investment [C] 5,183 6,778 4,720
Divestments D 1,288 6,474 29
Total production available
for sale (thousand boe/d) 3,839 3,756 3,752 +2
Global liquids realised
price ($/b) 60.66 55.28 48.36 +25
Global natural gas realised
price ($/thousand scf) 4.86 4.40 4.29 +13
Operating expenses [G] 9,719 9,776 9,282 +5
Underlying operating
expenses [G] 9,786 9,839 9,181 +7
ROACE [E] 6.4% 5.8% 4.0%
ROACE (CCS basis excluding
identified items) [E] 6.0% 5.6% 3.3%
Gearing[2] [F] 24.7% 25.0% 28.3%
1. Q1 on Q1 change.
2. With effect from 2018, the net debt calculation has been amended (see
Definition F). Gearing as previously published at December 31, 2017, and at
March 31, 2017, was 24.8% and 27.2% respectively.
Changes to the Interim Financial Statements are described in
Notes 1, 6 and 7, while revised definitions are explained in
Definitions A, F and I.
Supplementary financial and operational disclosure for this
quarter is available at http://www.shell.com/investor.
FIRST QUARTER 2018 PORTFOLIO DEVELOPMENTS
Integrated Gas
During the quarter, Shell announced the sale of its shares in
Shell entities in New Zealand to
OMV for $578 million.
Upstream
During the quarter, Shell announced one of its largest US Gulf
of Mexico exploration finds in the past decade from the Whale
deep-water well (Shell share 60%). The discovery is under
evaluation.
In the deep-water bid round in Mexico in January for the Gulf of Mexico, Shell won four exploration
blocks on its own, four with its partner Qatar Petroleum and one
with its partner Pemex Exploración y Producción. Shell will be the
operator of all nine blocks.
Shell won four additional deep-water exploration blocks in
Brazil, one block on its own, and
three in joint bids with Chevron, Petrobras and Galp. Shell will be
the operator of two blocks.
In March, the Dutch cabinet decided to reduce NAM's production
(Shell interest 50%) from the Groningen field to zero by 2030. It
is expected that this decision, if fully implemented, will reduce
Shell's proved reserves by an estimated 0.5 to 0.65 billion boe in
2018.
In March, Shell completed the sale of its 19.6% interest in the
West Qurna 1 oil field in Iraq to
Itochu Corporation. Divestments completed in the quarter totalled
$574 million.
In April, Shell announced a final investment decision to develop
the Vito deep-water field in the US Gulf of Mexico. Vito (Shell
interest 63.1%) is expected to reach an average peak production of
100 thousand boe/d.
Downstream
During the quarter, Shell Midstream Partners, L.P., sold
approximately 36 million common units for total gross proceeds of
$980 million. Gross proceeds from the
public offering were $680 million
with $300 million from a private
offering with Shell Midstream LP Holdings LLC.
In April, Shell signed an agreement to sell its Downstream
business in Argentina to Raízen.
The sale includes the Buenos Aires
refinery, around 645 retail stations, the global commercial
businesses, as well as supply and distribution activities in the
country. The businesses acquired by Raízen will continue the
relationship with Shell through various commercial
agreements.
PERFORMANCE BY SEGMENT
INTEGRATED GAS
$ million Quarters
Q1 2018 Q4 2017 Q1 2017 %[1]
Segment earnings 2,391 848 1,822 +31
Of which: Identified items
(Definition [A]) (48) (788) 641
Earnings excluding identified items 2,439 1,636 1,181 +107
Cash flow from operating activities 2,561 823 1,951 +31
Capital investment (Definition C) 1,311 1,043 805 +63
Liquids production available for
sale (thousand b/d) 212 229 169 +25
Natural gas production available
for sale (million scf/d) 4,407 4,364 3,317 +33
Total production available for sale
(thousand boe/d) 972 981 741 +31
LNG liquefaction volumes (million
tonnes) 8.90 8.52 8.18 +9
LNG sales volumes (million tonnes) 18.58 17.15 15.84 +17
1. Q1 on Q1 change.
First quarter identified items primarily reflected an
impairment charge of $50 million, a
loss on fair value accounting of commodity derivatives of
$30 million, and a charge of
$26 million related to the impact of
the weakening of the Australian dollar on a deferred tax position.
Identified items also included a gain of $54
million from a deferred tax adjustment.
Compared with the first quarter 2017, Integrated Gas earnings
excluding identified items benefited from increased contributions
from trading, higher volumes and higher realised oil, gas and LNG
prices. This more than offset the impact of higher operating
expenses.
Cash flow from operating activities increased compared with the
same quarter a year ago as a result of higher earnings, partly
offset by increased cash margining on derivatives. Cash flow from
operating activities included negative working capital movements of
$384 million, compared with negative
movements of $405
million[2] in the same quarter a year ago.
Compared with the first quarter 2017, total production increased
by 31%, mainly due to higher volumes from Pearl GTL and Gorgon.
Despite the Woodside divestment that was completed in the fourth
quarter 2017, LNG liquefaction volumes increased by 9% compared
with the first quarter 2017, mainly due to higher volumes from
Gorgon and increased feedgas supply across the portfolio.
________________________________________________________________________________________
[2]Revised from negative working capital movements of
$590 million. See Note 7 and
Definition I.
UPSTREAM
$ million Quarters
Q1 2018 Q4 2017 Q1 2017 %[1]
Segment earnings 1,854 2,050 (530) +450
Of which: Identified items
(Definition [A]) 303 400 (1,070)
Earnings excluding identified items 1,551 1,650 540 +187
Cash flow from operating activities 3,556 3,765 3,849 -8
Capital investment (Definition C) 2,479 3,485 2,854 -13
Liquids production available for
sale (thousand b/d) 1,573 1,542 1,697 -7
Natural gas production available
for sale (million scf/d) 7,505 7,154 7,618 -1
Total production available for sale
(thousand boe/d) 2,867 2,775 3,011 -5
1. Q1 on Q1 change.
First quarter identified items primarily reflected a
total net gain on sale of assets of $606
million, mainly related to the divestments of Shell's
interests in the West Qurna 1 field in Iraq and North
Sabah in Malaysia. In
addition, as a result of the Dutch cabinet's decision to reduce
production from the Groningen field to zero by 2030, Shell's joint
venture NAM impaired the Groningen asset. Consequently, Shell's
share of results of the NAM joint venture for the first quarter
included an impairment of $244
million, resulting in Shell's net investment in NAM now
being fully written down to zero. Other impairments totalled
$70 million.
Compared with the first quarter 2017, Upstream earnings
excluding identified items benefited from higher realised oil and
gas prices as well as lower depreciation. This more than offset the
impact of lower volumes.
Despite higher earnings, cash flow from operating activities
decreased as a result of higher tax payments, portfolio impacts and
lower dividends received compared with the same quarter a year ago.
Cash flow from operating activities included negative working
capital movements of $830 million,
compared with negative movements of $671
million[3] in the first quarter 2017.
First quarter production decreased by 5%, compared with the same
quarter a year ago, mainly due to the divestments of a package of
assets in the UK North Sea, oil sands interests in Canada and onshore assets in Gabon, partly offset by new fields ramping-up.
Excluding portfolio impacts, production was 4% higher than in the
same quarter a year ago.
____________________________________________________________________________________________
[3] Revised from negative working capital movements
of $803 million. See Note 7 and
Definition I.
DOWNSTREAM
$ million Quarters
Q1 2018 Q4 2017 Q1 2017 %[1]
Segment earnings[2] 1,806 1,116 2,580 -30
Of which: Identified items
(Definition [A]) 119 (280) 91
Earnings excluding identified items2 1,687 1,396 2,489 -32
Of which:
Oil Products 1,002 884 1,653 -39
Refining & Trading 62 96 715 -91
Marketing 940 788 938 -
Chemicals 685 512 836 -18
Cash flow from operating activities 3,107 2,649 3,705 -16
Capital investment (Definition C) 1,369 2,208 1,046 +31
Refinery processing intake (thousand
b/d) 2,637 2,589 2,630 -
Oil products sales volumes (thousand
b/d) 6,785 6,861 6,508 +4
Chemicals sales volumes (thousand
tonnes) 4,514 4,688 4,546 -1
1. Q1 on Q1 change.
2. Earnings are presented on a CCS basis (See Note 2).
First quarter identified items primarily reflected a gain
on fair value accounting of commodity derivatives of $66 million, as well as a gain of $57 million related to deferred tax
remeasurements in non-operated ventures, partly offset by
impairments of $37 million.
Compared with the first quarter 2017, Downstream earnings
excluding identified items reflected lower contributions from
trading, adverse exchange rate effects, as well as weaker refining
industry conditions.
Cash flow from operating activities reflected decreased earnings
and included negative working capital movements of $29 million, compared with negative movements of
$368 million[4] in the
same quarter a year ago.
Oil Products
- Refining & Trading earnings excluding
identified items reflected lower contributions from trading and
weaker refining industry conditions, compared with the first
quarter 2017. Earnings also decreased as a result of portfolio
impacts.
Refinery availability decreased to 92% compared with 94 % in the
first quarter 2017, mainly due to additional planned
maintenance.
- Marketing earnings excluding identified items
were at the same level as in the first quarter 2017.
Compared with the first quarter 2017, Oil Products sales volumes
were higher due to increased trading volumes.
Chemicals
- Chemicals earnings excluding identified items
reflected less favourable industry conditions, higher operating
expenses and adverse exchange rate effects.
Chemicals manufacturing plant availability increased to 94% from
93% in the first quarter 2017, mainly reflecting lower planned
maintenance.
_____________________________________________________________________________________________
[4]Revised from negative working capital movements of
$221 million. See Note 7 and
Definition I.
CORPORATE
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Segment earnings (227) (838) (410)
Of which: Identified items
(Definition [A]) 7 (553) (63)
Earnings excluding identified items (234) (285) (347)
Cash flow from operating activities 203 38 3
First quarter identified items mainly reflected a small
tax credit related to the impact of the weakening Brazilian real on
deferred tax positions related to financing of the Upstream
business.
Compared with the first quarter 2017, Corporate earnings
excluding identified items benefited from lower net interest
expense, partly offset by lower currency exchange gains.
OUTLOOK FOR THE SECOND QUARTER
2018
Compared with the second quarter 2017, Integrated Gas production
is expected to be 140 to 160 thousand boe/d higher. This is mainly
due to lower maintenance. LNG liquefaction volumes are expected to
be at a similar level.
Compared with the second quarter 2017, Upstream production is
expected to be 230 to 260 thousand boe/d lower. This is mainly due
to portfolio impacts, higher maintenance, lower production at NAM
in the Netherlands and field
decline more than offsetting project start-ups.
Refinery availability is expected to decrease in the second
quarter 2018 compared with the same period a year ago as a result
of higher maintenance.
Oil products sales volumes are expected to increase by some 70
thousand boe/d compared with the same period a year ago as a result
of the separation of Motiva assets, partly offset by completed
divestments.
Chemicals availability is expected to increase in the second
quarter 2018 as a result of lower maintenance compared with the
same period a year ago.
Corporate earnings excluding identified items are expected to be
a net charge of $300 - 350 million in
the second quarter and a net charge of around $1.4 - 1.6 billion for the full year 2018. This
excludes the impact of currency exchange rate effects and interest
rate movements.
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Revenue[1] 89,235 85,422 71,796
Share of profit of joint ventures
and associates 1,039 1,034 1,198
Interest and other income 840 1,668 317
Total revenue and other income 91,114 88,124 73,311
Purchases 66,528 64,095 51,266
Production and manufacturing
expenses 6,923 6,563 6,658
Selling, distribution and
administrative expenses 2,588 2,953 2,412
Research and development 208 260 212
Exploration 230 921 443
Depreciation, depletion and
amortisation 5,334 5,796 7,838
Interest expense 936 984 1,112
Total expenditure 82,747 81,572 69,941
Income/(loss) before taxation 8,367 6,552 3,370
Taxation charge/(credit)[2] 2,336 2,615 (274)
Income/(loss) for the period[1] 6,031 3,937 3,644
Income/(loss) attributable to
non-controlling interest 132 130 106
Income/(loss) attributable to Royal
Dutch Shell plc shareholders 5,899 3,807 3,538
Basic earnings per share ($)[3] 0.71 0.46 0.43
Diluted earnings per share ($)[3] 0.70 0.46 0.43
1. See Note 2 "Segment information".
2. Fourth quarter 2017 included a charge of $2,014 million primarily related to a
remeasurement of deferred tax positions following the US tax reform legislation.
3. See Note 3 "Earnings per share".
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Income/(loss) for the period 6,031 3,937 3,644
Other comprehensive income/(loss) net of tax:
Items that may be reclassified to income in
later periods:
- Currency translation differences 464 355 1,222
- Unrealised gains/(losses) on securities[1] - 258 129
- Debt instruments remeasurements[1] (12) - -
- Cash flow hedging gains/(losses) (68) (484) 88
- Deferred cost of hedging[1] (93) - -
- Share of other comprehensive income/(loss) of
joint ventures and associates 22 46 60
Total 313 175 1,499
Items that are not reclassified to income in
later periods:
- Retirement benefits remeasurements 1,282 (2,056) 1,753
- Equity instruments remeasurements[1] (418) - -
- Share of other comprehensive income/(loss) of
joint ventures and associates 1 - -
Total 865 (2,056) 1,753
Other comprehensive income/(loss) for the
period 1,178 (1,881) 3,252
Comprehensive income/(loss) for the period 7,209 2,056 6,896
Comprehensive income/(loss) attributable to
non-controlling interest 93 133 116
Comprehensive income/(loss) attributable to
Royal Dutch Shell plc shareholders 7,116 1,923 6,780
1. See Note 1 "Basis of preparation" regarding
IFRS 9 Financial Instruments.
CONDENSED CONSOLIDATED BALANCE SHEET
$ million
Mar 31, 2018 Dec 31, 2017
Assets
Non-current assets
Intangible assets 24,312 24,180
Property, plant and equipment 226,328 226,380
Joint ventures and associates 28,852 27,927
Investments in securities 7,023 7,222
Deferred tax 13,247 13,791
Retirement benefits 3,256 2,799
Trade and other receivables 8,371 8,475
Derivative financial
instruments[1] 1,284 919
312,673 311,693
Current assets
Inventories 25,014 25,223
Trade and other receivables 45,071 44,565
Derivative financia[l]
instruments1 6,034 5,304
Cash and cash equivalents 21,927 20,312
98,046 95,404
Total assets 410,719 407,097
Liabilities
Non-current liabilities
Debt 73,630 73,870
Trade and other payables 3,131 3,447
Derivative financial
instruments[1] 883 981
Deferred tax 13,131 13,007
Retirement benefits 12,319 13,247
Decommissioning and other
provisions 24,723 24,966
127,817 129,518
Current liabilities
Debt 14,392 11,795
Trade and other payables 49,405 51,410
Derivative financial
instruments[1] 5,283 5,253
Taxes payable 8,657 7,250
Retirement benefits 454 594
Decommissioning and other
provisions 3,398 3,465
81,589 79,767
Total liabilities 209,406 209,285
Equity attributable to Royal
Dutch Shell plc shareholders 197,331 194,356
Non-controlling interest 3,982 3,456
Total equity 201,313 197,812
Total liabilities and equity 410,719 407,097
1. See Note 6 "Derivative financial instruments and debt excluding finance lease
liabilities".
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to Royal Dutch
Shell plc shareholders
Shares Other Non-
Share held in reserves Retained controlling Total
$ million capital[1] trust [2] earnings Total interest equity
At January 1,
2018 (as
previously
published) 696 (917) 16,932 177,645 194,356 3,456 197,812
Impact of IFRS
9 [3] - - (138) 88 (50) - (50)
At January 1,
2018 (as
revised) 696 (917) 16,794 177,733 194,306 3,456 197,762
Comprehensive
income/(loss)
for the period - - 1,217 5,899 7,116 93 7,209
Transfer from
other
comprehensive
income - - (37) 37 - - -
Dividends - - - (3,971) (3,971) (208) (4,179)
Share-based
compensation[4] - (119) (238) 191 (166) - (166)
Other changes
in
non-controlling
interest - - - 46 46 641 687
At March 31,
2018 696 (1,036) 17,736 179,935 197,331 3,982 201,313
At January 1,
2017 683 (901) 11,298 175,566 186,646 1,865 188,511
Comprehensive
income/(loss)
for the period - - 3,242 3,538 6,780 116 6,896
Dividends - - - (3,903) (3,903) (31) (3,934)
Scrip dividends 4 - (4) 1,249 1,249 - 1,249
Share-based
compensation - 557 (510) (1) 46 - 46
Other changes
in
non-controlling
interest - - - (1) (1) (14) (15)
At March 31,
2017 687 (344) 14,026 176,448 190,817 1,936 192,753
1. See Note 4 "Share capital".
2. See Note 5 "Other reserves".
3. See Note 1 "Basis of preparation".
4. The amendments to IFRS 2 Share-based Payment became effective January 1,
2018. Following adoption of the amendments, components of share-based
payments that were previously classified as cash-settled are now classified
as equity-settled. This resulted in an increase of $172 million in the share
plan reserve within other reserves and a net increase of $125 million in
retained earnings.
-
CONSOLIDATED STATEMENT OF CASH FLOWS
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Income/(loss) for the period 6,031 3,937 3,644
Adjustment for:
- Current tax 2,169 1,467 1,882
- Interest expense (net) 737 817 952
- Depreciation, depletion and
amortisation 5,334 5,796 7,838
- Exploration well write-offs[1] 109 541 284
- Net (gains)/losses on sale
and revaluation of non-current
assets and businesses (607) (1,319) 70
- Share of (profit)/loss of
joint ventures and associates (1,039) (1,034) (1,198)
- Dividends received from joint
ventures and associates 750 1,647 776
- (Increase)/decrease in
inventories 281 (1,368) 266
- (Increase)/decrease in
current receivables[1] (683) (2,544) 721
- Increase/(decrease) in
current payables[1] (484) 2,040 (2,552)
- Derivative financial
instruments[1] (763) (140) 49
- Deferred tax, retirement
benefits, decommissioning and
other provisions[1] (51) 167 (2,143)
- Other[1] 12 (367) 9
Tax paid (2,369) (2,365) (1,090)
Cash flow from operating
activities 9,427 7,275 9,508
Capital expenditure (4,789) (5,861) (4,306)
Investments in joint ventures
and associates (415) (202) (194)
Proceeds from sale of property,
plant and equipment and
businesses 747 2,866 122
Proceeds from sale of joint
ventures and associates 21 221 1
Interest received 156 157 123
Other 31 2,154 (70)
Cash flow from investing
activities (4,249) (665) (4,324)
Net increase/(decrease) in debt
with maturity period
within three months 2,707 543 (290)
Other debt:
- New borrowings 241 120 364
- Repayments (1,390) (4,103) (1,322)
Interest paid (889) (840) (850)
Change in non-controlling
interest 674 6 2
Cash dividends paid to:
- Royal Dutch Shell plc
shareholders (3,971) (2,266) (2,654)
- Non-controlling interest (124) (97) (31)
Repurchases of shares - - -
Shares held in trust: net
sales/(purchases) and dividends
received (894) (443) (60)
Cash flow from financing
activities (3,646) (7,080) (4,841)
Currency translation
differences relating to cash
and
cash equivalents 83 83 122
Increase/(decrease) in cash and
cash equivalents 1,615 (387) 465
Cash and cash equivalents at
beginning of period 20,312 20,699 19,130
Cash and cash equivalents at
end of period 21,927 20,312 19,595
1. Prior period comparatives within Cash flow from operating
activities have been revised to conform with current year
presentation. Overall, the revisions do not have an impact on the
previously published Cash flow from operating activities. See Note
7 "Change in presentation of Consolidated Statement of Cash
Flows".
NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited Condensed Consolidated Interim Financial
Statements ("Interim Statements") of Royal Dutch Shell plc ("the
Company") and its subsidiaries (collectively referred to as
"Shell") have been prepared in accordance with IAS 34 Interim
Financial Reporting as issued by the International Accounting
Standards Board and as adopted by the European Union, and on the
basis of the same accounting principles as those used in the Annual
Report and Form 20-F for the year ended December 31, 2017 (pages 142 to 148) as filed
with the U.S. Securities and Exchange Commission, except for the
adoption of IFRS 9 Financial Instruments and IFRS 15
Revenue from Contracts with Customers on January 1, 2018, and should be read in
conjunction with that filing.
IFRS 9 sets out the requirements for recognising and measuring
financial assets, financial liabilities and certain contracts to
buy or sell non-financial items. Furthermore, the standard
facilitates use of hedge accounting and also results in different
income recognition upon the sale of certain investments in
securities. The adoption of IFRS 9 resulted in a decrease of
$83 million in equity at January 1, 2018, mainly representing the
recognition of additional provisions for impairment of receivables
under the expected loss model. In addition, changing the
measurement basis from amortised cost to fair value for certain
financial assets resulted in an increase of $33 million in equity at January 1, 2018. Furthermore, a reclassification
within equity between other reserves and retained earnings,
primarily representing deferred cost of hedging, was recognised.
IFRS 15 provides a single model of accounting for revenue
arising from contracts with customers based on the identification
and satisfaction of performance obligations, and revenue from
contracts with customers that is distinguished from other sources.
Shell has adopted IFRS 15 with effect from January 1, 2018, and has elected to apply the
modified retrospective transition approach. Although IFRS 15 does
not generally represent a change from Shell's current practice, the
accounting for certain contracts, such as those with provisional
pricing or take-or-pay arrangements, and underlifts and overlifts,
has been identified as an area of change. However, these do not
have a significant effect on Shell's accounting or disclosures, and
therefore no transition adjustment is presented.
The financial information presented in the Interim Statements
does not constitute statutory accounts within the meaning of
section 434(3) of the Companies Act 2006 ("the Act"). Statutory
accounts for the year ended December 31,
2017 were published in Shell's Annual Report and Form 20-F
and a copy was delivered to the Registrar of Companies for
England and Wales. The auditor's report on those accounts
was unqualified, did not include a reference to any matters to
which the auditor drew attention by way of emphasis without
qualifying the report and did not contain a statement under
sections 498(2) or 498(3) of the Act.
2. Segment information
Segment earnings are presented on a current cost of supplies
basis (CCS earnings), which is the earnings measure used by the
Chief Executive Officer for the purposes of making decisions about
allocating resources and assessing performance. On this basis, the
purchase price of volumes sold during the period is based on the
current cost of supplies during the same period after making
allowance for the tax effect. CCS earnings therefore exclude the
effect of changes in the oil price on inventory carrying amounts.
Sales between segments are based on prices generally equivalent to
commercially available prices.
INFORMATION BY SEGMENT
$ million Quarters
Q4
Q1 2018 2017 Q1 2017
Third-party revenue
Integrated Gas 10,721 8,205 8,419
Upstream 2,572 2,644 1,609
Downstream 75,926 74,561 61,752
Corporate 16 12 16
Total third-party revenue[1] 89,235 85,422 71,796
Inter-segment revenue
Integrated Gas 1,088 1,199 805
Upstream 8,904 8,258 8,661
Downstream 794 1,281 726
Corporate - - -
CCS earnings
Integrated Gas 2,391 848 1,822
Upstream 1,854 2,050 (530)
Downstream 1,806 1,116 2,580
Corporate (227) (838) (410)
Total 5,824 3,176 3,462
1. First quarter 2018 includes $ 534 million of revenue from
sources other than from contracts with customers.
RECONCILIATION OF INCOME FOR THE PERIOD to CCS EARNINGS
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Income/(loss) attributable
to Royal Dutch Shell plc
shareholders 5,899 3,807 3,538
Income/(loss) attributable
to non-controlling interest 132 130 106
Income/(loss) for the period 6,031 3,937 3,644
Current cost of supplies
adjustment:
Purchases (274) (1,022) (217)
Taxation 67 287 60
Share of profit/(loss) of
joint ventures and
associates - (26) (25)
Current cost of supplies
adjustment1 (207) (761) (182)
CCS earnings 5,824 3,176 3,462
of which:
CCS earnings attributable to
Royal Dutch Shell plc
shareholders 5,703 3,082 3,381
CCS earnings attributable to
non-controlling interest 121 94 109
1. The adjustment attributable to Royal Dutch Shell plc shareholders
is a negative $196 million in the first quarter 2018
(Q4 2017: negative $725 million; Q1 2017: negative $157 million).
3. Earnings per share
EARNINGS PER SHARE
Quarters
Q1 2018 Q4 2017 Q1 2017
Income/(loss) attributable to
Royal Dutch Shell plc
shareholders
($ million) 5,899 3,807 3,538
Weighted average number of
shares used as the basis for
determining:
Basic earnings per share
(million) 8,304.6 8,274.6 8,154.8
Diluted earnings per share
(million) 8,377.2 8,354.5 8,222.9
4. Share capital
ISSUED AND FULLY PAID ORDINARY SHARES OF EUR0.07 EACH[1]
Number of shares Nominal value ($ million)
A B A B Total
At January 1, 2018 4,597,136,050 3,745,486,731 387 309 696
At March 31, 2018 4,597,136,050 3,745,486,731 387 309 696
At January 1, 2017 4,428,903,813 3,745,486,731 374 309 683
Scrip dividends 47,791,678 - 4 - 4
At March 31, 2017 4,476,695,491 3,745,486,731 378 309 687
1. Share capital at March 31, 2018 also included 50,000 issued and fully paid
sterling deferred shares of GBP1 each.
At Royal Dutch Shell plc's Annual General Meeting on
May 23, 2017, the Board was
authorised to allot ordinary shares in Royal Dutch Shell plc, and
to grant rights to subscribe for, or to convert, any security into
ordinary shares in Royal Dutch Shell plc, up to an aggregate
nominal amount of €190 million (representing 2,714 million ordinary
shares of €0.07 each), and to list such shares or rights on any
stock exchange. This authority expires at the earlier of the close
of business on August 23, 2018, and
the end of the Annual General Meeting to be held in 2018, unless
previously renewed, revoked or varied by Royal Dutch Shell plc in a
general meeting.
5. Other reserves
OTHER RESERVES
Accumulated
Share Capital other
Merger premium redemption Share plan comprehensi
$ million reserve reserve reserve reserve ve income Total
At January 1, 2018
(as previously
published) 37,298 154 84 1,440 (22,044) 16,932
Impact of IFRS 9 - - - - (138) (138)
At January 1, 2018
(as revised) 37,298 154 84 1,440 (22,182) 16,794
Other comprehensive
income/(loss)
attributable to Royal
Dutch Shell plc
shareholders - - - - 1,217 1,217
Transfer from other
comprehensive income - - - - (37) (37)
Share-based
compensation - - - (238) - (238)
At March 31, 2018 37,298 154 84 1,202 (21,002) 17,736
At January 1, 2017 37,311 154 84 1,644 (27,895) 11,298
Other comprehensive
income/(loss)
attributable to Royal
Dutch Shell plc
shareholders - - - - 3,242 3,242
Scrip dividends (4) - - - - (4)
Share-based
compensation - - - (510) - (510)
At March 31, 2017 37,307 154 84 1,134 (24,653) 14,026
The merger reserve and share premium reserve were established as
a consequence of Royal Dutch Shell plc becoming the single parent
company of Royal Dutch Petroleum Company and The "Shell" Transport
and Trading Company, p.l.c., now The Shell Transport and Trading
Company Limited, in 2005. The merger reserve increased in 2016
following the issuance of shares for the acquisition of BG Group
plc. The capital redemption reserve was established in connection
with repurchases of shares of Royal Dutch Shell plc. The share plan
reserve is in respect of equity-settled share-based compensation
plans.
6. Derivative financial instruments and debt excluding finance
lease liabilities
As disclosed in the Consolidated Financial Statements for the
year ended December 31, 2017,
presented in the Annual Report and Form 20-F for that year, Shell
is exposed to the risks of changes in fair value of its financial
assets and liabilities. The fair values of the financial assets and
liabilities are defined as the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Methods and
assumptions used to estimate the fair values at March 31, 2018 are consistent with those used in
the year ended December 31, 2017, and
the carrying amounts of derivative financial instruments measured
using predominantly unobservable inputs have not changed materially
since that date.
With effect from 2018, current and non-current derivative assets
and liabilities are no longer presented as part of "Trade and other
receivables" and "Trade and other payables", but separately
disclosed on the Balance Sheet to provide more insight.
The table below provides the comparison of the fair value with
the carrying amount of debt excluding finance lease liabilities,
disclosed in accordance with IFRS 7 Financial Instruments:
Disclosures.
DEBT EXCLUDING FINANCE LEASE LIABILITIES
$ million Mar 31, 2018 Dec 31, 2017
Carrying amount 73,350 70,140
Fair value[1] 76,581 74,650
1. Mainly determined from the prices quoted for these securities.
7. Change in presentation of Consolidated Statement of Cash
Flows
With effect from 2018, the reconciliation from "Income for the
period" to "Cash flow from operating activities" has been revised
to provide more insight and improve correlation with the Balance
Sheet and Statement of Income. "Cash flow from operating
activities" itself remains unchanged.
Exploration well write-offs, previously presented under "Other",
are shown separately. Changes in current and non-current derivative
financial instruments, previously presented under
"Decrease/(increase) in working capital" and "Other", are presented
under a new line item "Derivative financial instruments". Changes
in current retirement benefits and decommissioning provisions,
previously included in "Increase/(decrease) in payables", are
presented under "Deferred tax, retirement benefits, decommissioning
and other provisions", together with changes in non-current
balances. The impact of these changes is presented below.
$ million Quarters
Full year
Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017
Working capital movements (as
previously published) (1,828) 2,258 (2,467) (1,121) (3,158)
Impact of working capital
definition changes on:
- (Increase)/decrease in
current receivables (1,087) (238) 1,018 (585) (892)
- Increase/(decrease) in
current payables 1,350 444 172 (166) 1,800
Working capital movements (as
revised) (I) (1,565) 2,464 (1,277) (1,872) (2,250)
Cash flow from operating
activities excluding working
capital movements (as
previously published) 11,336 9,027 10,049 8,396 38,808
Impact of working capital
definition changes on:
- Exploration well write-offs 284 25 47 541 897
- Derivative financial
instruments 49 128 (1,076) (140) (1,039)
- Deferred tax, retirement
benefits, decommissioning and
other provisions (104) (129) (161) 12 (382)
- Other (492) (230) - 338 (384)
Cash flow from operating
activities excluding working
capital movements (as revised)
(II) 11,073 8,821 8,859 9,147 37,900
Cash flow from operating
activities (unchanged) (I +
II) 9,508 11,285 7,582 7,275 35,650
DEFINITIONS
A. Identified items
Identified items comprise: divestment gains and losses,
impairments, fair value accounting of commodity derivatives and
certain gas contracts, redundancy and restructuring, the impact of
exchange rate movements on certain deferred tax balances, and other
items. These items, either individually or collectively, can cause
volatility to net income, in some cases driven by external factors,
which may hinder the comparative understanding of Shell's financial
results from period to period. The impact of identified items on
Shell's CCS earnings is shown below.
IDENTIFIED ITEMS
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Identified items before tax
- Divestment gains/(losses) 625 1,220 (70)
- Impairments (417) (426) (2,444)
- Fair value accounting of
commodity derivatives and
certain gas contracts 66 (652) 573
- Redundancy and
restructuring 63 (135) (76)
- Other 53 356 (89)
Total identified items before
tax 390 363 (2,106)
Tax impact
- Divestment gains/(losses) (10) 55 267
- Impairments 16 105 919
- Fair value accounting of
commodity derivatives and
certain gas contracts (8) 111 (69)
- Redundancy and
restructuring (16) 28 31
- Impact of exchange rate
movements on tax balances (45) (111) 535
- Other 54 (1,772) 22
Total tax impact (9) (1,584) 1,705
Identified items after tax
- Divestment gains/(losses) 615 1,275 197
- Impairments (401) (321) (1,525)
- Fair value accounting of
commodity derivatives and
certain gas contracts 58 (541) 504
- Redundancy and
restructuring 47 (107) (45)
- Impact of exchange rate
movements on tax balances (45) (111) 535
- Other 107 (1,416) (67)
Impact on CCS earnings 381 (1,221) (401)
Of which:
Integrated Gas (48) (788) 641
Upstream 303 400 (1,070)
Downstream 119 (280) 91
Corporate 7 (553) (63)
Impact on CCS earnings
attributable to
non-controlling interest - - (28)
Impact on CCS earnings
attributable to shareholders 381 (1,221) (373)
The categories above represent the nature of the items
identified irrespective of whether the items relate to Shell
subsidiaries or joint ventures and associates. The after-tax impact
of identified items of joint ventures and associates is fully
reported within "Share of profit of joint ventures and associates"
on the Consolidated Statement of Income, and fully reported as
"identified items before tax" in the table above. Identified items
related to subsidiaries are consolidated and reported across
appropriate lines of the Consolidated Statement of Income. Only
pre-tax identified items reported by subsidiaries are taken into
account in the calculation of "underlying operating expenses"
(Definition G).
Fair value accounting of commodity derivatives and certain
gas contracts: In the ordinary course of business, Shell enters
into contracts to supply or purchase oil and gas products as well
as power and environmental products. Derivative contracts are
entered into for mitigation of resulting economic exposures
(generally price exposure) and these derivative contracts are
carried at period-end market price (fair value), with movements in
fair value recognised in income for the period. Supply and purchase
contracts entered into for operational purposes are, by contrast,
recognised when the transaction occurs; furthermore, inventory is
carried at historical cost or net realisable value, whichever is
lower. As a consequence, accounting mismatches occur because: (a)
the supply or purchase transaction is recognised in a different
period, or (b) the inventory is measured on a different basis. In
addition, certain contracts are, due to pricing or delivery
conditions, deemed to contain embedded derivatives or written
options and are also required to be carried at fair value even
though they are entered into for operational purposes. The
accounting impacts are reported as identified items.
Impacts of exchange rate movements on tax balances
represent the impact on tax balances of exchange rate movements
arising on (a) the conversion to dollars of the local currency tax
base of non-monetary assets and liabilities, as well as losses
(this primarily impacts the Integrated Gas and Upstream segments)
and (b) the conversion of dollar-denominated inter-segment loans to
local currency, leading to taxable exchange rate gains or losses
(this primarily impacts the Corporate segment).
Other identified items represent other credits or charges
Shell's management assesses should be excluded to provide
additional insight, such as the impact arising from the US tax
reform legislation and certain provisions for onerous contracts or
litigation.
B. Basic CCS earnings per share
Basic CCS earnings per share is calculated as CCS earnings
attributable to Royal Dutch Shell plc shareholders (see Note 2),
divided by the weighted average number of shares used as the basis
for basic earnings per share (see Note 3).
C. Capital investment
Capital investment is a measure used to make decisions about
allocating resources and assessing performance. It comprises
capital expenditure, new investments in joint ventures and
associates, exploration expense excluding well write-offs, new
finance leases and investments in Integrated Gas, Upstream and
Downstream equity securities, all of which on an accruals
basis.
The reconciliation of "Capital expenditure" to "Capital
investment" is as follows.
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Capital expenditure 4,789 5,861 4,306
Investments in joint ventures
and associates 415 202 194
Exploration expense, excluding
exploration wells written off 122 380 157
Finance leases 182 330 41
Other1 (325) 5 22
Capital investment 5,183 6,778 4,720
Of which:
Integrated Gas 1,311 1,043 805
Upstream 2,479 3,485 2,854
Downstream 1,369 2,208 1,046
Corporate 24 42 15
1. First quarter 2018 includes a payment of $380 million related to a payable
position that formed part of the acquisition of Marathon Oil Canada Corporation in
Canada in the second quarter 2017.
D. Divestments
Divestments is a measure used to monitor the progress of Shell's
divestment programme. This measure comprises proceeds from sale of
property, plant and equipment and businesses, joint ventures and
associates, and other Integrated Gas, Upstream and Downstream
investments in equity securities, reported in "Cash flow from
investing activities", adjusted onto an accruals basis and for any
share consideration received or contingent consideration initially
recognised upon the related divestment, as well as proceeds from
the sale of interests in entities while retaining control (for
example, proceeds from sale of interest in Shell Midstream
Partners, L.P.), which are included in "Change in non-controlling
interest" within "Cash flow from financing activities".
In future periods, the proceeds from any disposal of shares
received as divestment consideration, and proceeds from realisation
of contingent consideration, will be included in "Cash flow from
investing activities".
The reconciliation of "Proceeds from sale of property, plant and
equipment and businesses" to "Divestments" is as follows.
-
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Proceeds from sale of property,
plant and equipment and businesses 747 2,866 122
Proceeds from sale of joint
ventures and associates 21 221 1
Share and contingent consideration1 - 217 -
Proceeds from sale of interests in
entities while retaining contro[l] 673 - -
Other[2] (153) 3,170 (94)
Divestments 1,288 6,474 29
Of which:
Integrated Gas 14 3,021 12
Upstream 574 3,254 17
Downstream 700 199 -
Corporate - - -
1. This is valued at the date of the related divestment, instead of when these
shares are disposed of or the contingent consideration is realised.
2. Fourth quarter 2017 includes proceeds of $2,635 million from the sale of shares
in Woodside Petroleum Limited.
E. Return on average capital employed
Return on average capital employed (ROACE) measures the
efficiency of Shell's utilisation of the capital that it employs.
In this calculation, ROACE is defined as income for the current and
previous three quarters, adjusted for after-tax interest expense,
as a percentage of the average capital employed for the same
period. Capital employed consists of total equity, current debt and
non-current debt.
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Income for current and
previous three quarters 15,822 13,435 7,966
Interest expense after tax 2,645 2,995 3,268
Income before interest expense 18,467 16,430 11,234
Capital employed - opening 284,382 280,988 278,887
Capital employed - closing 289,335 283,477 284,382
Capital employed - average 286,859 282,233 281,635
ROACE 6.4% 5.8% 4.0%
Return on average capital employed on a CCS basis excluding
identified items is defined as the sum of CCS earnings attributable
to shareholders excluding identified items for the current and
previous three quarters, as a percentage of the average capital
employed for the same period.
-
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
CCS earnings excluding
identified items 17,332 15,764 9,386
Capital employed - average 286,859 282,233 281,635
ROACE on a CCS basis excluding
identified items 6.0% 5.6% 3.3%
F. Gearing
Gearing is a key measure of Shell's capital structure and is
defined as net debt as a percentage of total capital. With effect
from 2018, the net debt calculation includes the fair value of
derivative financial instruments used to hedge foreign exchange and
interest rate risks relating to debt, and associated collateral
balances. Management believes this amendment is useful, because it
reduces the volatility of net debt caused by fluctuations in
foreign exchange and interest rates, and eliminates the potential
impact of related collateral payments or receipts. Debt-related
derivative financial instruments are a subset of the derivative
financial instrument assets and liabilities presented on the
Balance Sheet. Collateral balances are reported under "Trade and
other receivables" or "Trade and other payables" as appropriate.
Prior period comparatives have been revised to reflect the change
in net debt calculation.
-
$ million Quarters
Mar 31,
Mar 31, 2018 Dec 31, 2017 2017
Current debt 14,392 11,795 8,620
Non-current debt 73,630 73,870 83,009
Total debt1 88,022 85,665 91,629
Add: Debt-related derivative
financial instruments: net
liability/(asset) 2 42 591 3,892
Less: Cash and cash
equivalents (21,927) (20,312) (19,595)
Net debt 66,137 65,944 75,926
Add: Total equity 201,313 197,812 192,753
Total capital 267,450 263,756 268,679
Gearing3 24.7% 25.0% 28.3%
1. Includes finance lease liabilities of $14,672 million at March 31, 2018,
$15,524 million at December 31, 2017, and $14,704 million at March 31,
2017.
2. There were no collateral balances in the quarters presented.
3. Gearing as previously published at December 31, 2017, and at March 31,
2017, was 24.8% and 27.2% respectively. Gearing as previously published at
December 31, 2016, was 28.0% (29.1% as per revised net debt calculation).
G. Operating expenses
Operating expenses is a measure of Shell's cost management
performance, comprising the following items from the Consolidated
Statement of Income: production and manufacturing expenses;
selling, distribution and administrative expenses; and research and
development expenses. Underlying operating expenses measures
Shell's total operating expenses performance excluding identified
items.
$ million Quarters
Q1 2018 Q4 2017 Q1 2017
Production and manufacturing
expenses 6,923 6,563 6,658
Selling, distribution and
administrative expenses 2,588 2,953 2,412
Research and development 208 260 212
Operating expenses 9,719 9,776 9,282
Less identified items:
Redundancy and restructuring
charges/(reversal) 67 (152) (73)
Provisions/(reversal) - 215 (28)
67 63 (101)
Underlying operating expenses 9,786 9,839 9,181
H. Free cash flow
Free cash flow is used to evaluate cash available for financing
activities, including dividend payments, after investment in
maintaining and growing our business. It is defined as the sum of
"Cash flow from operating activities" and "Cash flow from investing
activities" as shown on page 1.
I. Cash flow from operating activities excluding working capital
movements
Working capital movements are defined as the sum of the
following items in the Consolidated Statement of Cash Flows: (i)
(increase)/decrease in inventories, (ii) (increase)/decrease in
current receivables, and (iii) increase/(decrease) in current
payables.
Cash flow from operating activities excluding working capital
movements is a measure used by Shell to analyse its operating cash
generation over time excluding the timing effects of changes in
inventories and operating receivables and payables from period to
period.
$ million Q1 2018 Q4 2017 Q1 2017
Cash flow from operating activities 9,427 7,275 9,508
- (Increase)/decrease in
inventories 281 (1,368) 266
- (Increase)/decrease in current
receivables1 (683) (2,544) 721
- Increase/(decrease) in current
payables1 (484) 2,040 (2,552)
(Increase)/decrease in working
capital2 (886) (1,872) (1,565)
Cash flow from operating activities
excluding working capital
movements2 10,313 9,147 11,073
1. See Note 7 "Change in presentation of Consolidated Statement of Cash Flows".
2. As previously published, working capital increased by $1,121 million in the
fourth quarter 2017, and by $1,828 million in the first quarter 2017. Cash flow
from operating activities excluding working capital movements, as previously
published, was $8,396 million in the fourth quarter 2017, and $11,336 million in
the first quarter 2017.
CAUTIONARY STATEMENT
All amounts shown throughout this announcement are unaudited.
All peak production figures in Portfolio Developments are quoted at
100% expected production.
The companies in which Royal Dutch Shell plc directly and
indirectly owns investments are separate legal 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 Royal Dutch
Shell plc and subsidiaries in general or to those who work for
them. These terms are also used where no useful purpose is served
by identifying the particular entity or entities. '‘Subsidiaries'’,
"Shell subsidiaries" and "Shell companies" as used in this
announcement refer to entities over which Royal Dutch Shell plc
either directly or indirectly has control. Entities and
unincorporated arrangements over which Shell has joint control are
generally referred to as "joint ventures" and "joint operations",
respectively. Entities over which Shell has significant
influence but neither control nor joint control are referred to as
"associates". The term "Shell interest" is used for convenience to
indicate the direct and/or indirect ownership interest held by
Shell in an entity or unincorporated joint arrangement, after
exclusion of all third-party interest.
This announcement contains forward-looking statements (within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995) 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 "aim",
"ambition", '‘anticipate'’, '‘believe'’, '‘could'’, '‘estimate'’,
'‘expect'’, '‘goals'’, '‘intend'’, '‘may'’, '‘objectives'’,
'‘outlook'’, '‘plan'’, '‘probably'’, '‘project'’, '‘risks'’,
"schedule", '‘seek'’, '‘should'’, '‘target'’, '‘will'’ 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 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. No assurance is provided that future dividend
payments will match or exceed previous dividend payments. 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 risk
factors that may affect future results are contained in Royal Dutch
Shell's Form 20-F for the year ended December 31, 2017 (available
at www.shell.com/investor and http://www.sec.gov). These risk
factors also expressly qualify all forward-looking statements
contained in this announcement and should be considered by the
reader. Each forward-looking statement speaks only as of the
date of this announcement, April 26, 2018. Neither Royal Dutch
Shell plc 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 announcement.
This Report contains references to Shell's website. These
references are for the readers' convenience only. Shell is not
incorporating by reference any information posted on
http://www.shell.com .
We may have used certain terms, such as resources, in this
announcement that the United States Securities and Exchange
Commission (SEC) strictly prohibits us from including in our
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 http://www.sec.gov .
This announcement contains inside information.
April 26, 2018
The information in this Report reflects the unaudited
consolidated financial position and results of Royal Dutch Shell
plc. Company No. 4366849, Registered Office: Shell Centre,
London, SE1 7NA, England, UK.
Contacts:
Linda Szymanski
Company Secretary
Investor Relations:
International +31(0)70-377-4540
North America +1-832-337-2034
Media:
International +44(0)207-934-5550
USA +1-832-337-4355
LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70
Classification: Inside Information
SOURCE Royal Dutch Shell plc