e6vk
FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For October 2010
Commission File Number: 1-32575
Royal Dutch Shell plc
(Exact name of registrant as specified in its charter)
England and Wales
(Jurisdiction of incorporation or organization)
30, Carel van Bylandtlaan, 2596 HR The Hague
The Netherlands
Tel No: (011 31 70) 377 9111
(Address of principal executive officers)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b):82-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Royal Dutch Shell plc
(Registrant)
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By:
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/s/ Michiel Brandjes
Name: Michiel Brandjes
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Title: Company Secretary |
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Date:
October 28, 2010
Royal Dutch Shell plc
3RD QUARTER 2010 UNAUDITED RESULTS
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Royal Dutch Shells 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. |
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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. |
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Cash flow from operating activities for the third quarter 2010 was $9.0 billion. |
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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. |
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Gearing at the end of the third quarter 2010 was 19.0%. |
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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
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Quarters |
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Nine months |
$ million |
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Q3 2010 |
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Q2 2010 |
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Q3 2009 |
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%1 |
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2010 |
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2009 |
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% |
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Upstream |
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3,153 |
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3,270 |
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1,543 |
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10,838 |
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5,818 |
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Downstream |
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325 |
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1,471 |
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1,292 |
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2,539 |
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2,020 |
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Corporate and Non-controlling interest |
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43 |
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(212 |
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155 |
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(430 |
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789 |
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CCS earnings |
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3,521 |
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4,529 |
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2,990 |
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+18 |
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12,947 |
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8,627 |
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+50 |
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Estimated CCS adjustment for Downstream |
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(58 |
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(136 |
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257 |
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390 |
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1,930 |
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Income attributable to shareholders |
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3,463 |
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4,393 |
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3,247 |
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+7 |
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13,337 |
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10,557 |
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+26 |
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Basic CCS earnings per share ($) |
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0.57 |
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0.74 |
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0.49 |
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+16 |
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2.11 |
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1.41 |
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+50 |
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Estimated CCS adjustment per share ($) |
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(0.01 |
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(0.02 |
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0.04 |
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0.07 |
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0.31 |
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Basic earnings per share ($) |
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0.56 |
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0.72 |
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0.53 |
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+6 |
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2.18 |
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1.72 |
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+27 |
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Cash flow from operating activities |
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9,016 |
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8,096 |
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7,350 |
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+23 |
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21,894 |
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15,828 |
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+38 |
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Cash flow from operating activities per share ($) |
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1.47 |
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1.32 |
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1.20 |
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+23 |
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3.57 |
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2.58 |
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+38 |
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Dividend per share ($) |
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0.42 |
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0.42 |
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0.42 |
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1.26 |
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1.26 |
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1 Q3 on Q3 change |
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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
Royal Dutch Shell plc 2
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 Shells 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.
Royal Dutch Shell plc 3
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
AOSPs 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 Shells (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.
Royal Dutch Shell plc 4
KEY FEATURES OF THE THIRD QUARTER 2010
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Third quarter 2010 CCS earnings were $3,521 million, 18% higher than in the same
quarter a year ago. |
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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. |
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Third quarter 2010 reported earnings were $3,463 million compared to $3,247 million
in the same quarter a year ago. |
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Basic CCS earnings per share increased by 16% versus the same quarter a year ago. |
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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. |
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Total dividends paid to shareholders during the third quarter 2010 were $2.6
billion. |
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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. |
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Return on average capital employed (ROACE), on a reported income basis, was 8.8%. |
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Gearing was 19.0% at the end of the third quarter 2010 versus 13.7% at the end of
the third quarter 2009. |
Upstream
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Oil and gas production for the third quarter 2010 was 3,058 thousand boe/d, 5%
higher than in the third quarter 2009. |
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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. |
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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. |
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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
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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. |
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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. |
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Supplementary financial and operational disclosure for the third quarter 2010 is
available at www.shell.com/investor. |
Royal Dutch Shell plc 5
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:
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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. |
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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. |
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Corporate earnings and Non-controlling interest for the third quarter 2009 included
charges of $42 million. |
SUMMARY OF IDENTIFIED ITEMS
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Quarters |
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Nine months |
$ million |
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Q3 2010 |
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Q2 2010 |
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Q3 2009 |
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2010 |
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2009 |
Segment earnings impact of identified items: |
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Upstream |
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(284 |
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10 |
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(123 |
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(164 |
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92 |
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Downstream |
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(1,128 |
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311 |
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536 |
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(852 |
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(347 |
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Corporate and Non-controlling interest |
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(42 |
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103 |
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CCS earnings impact |
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(1,412 |
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321 |
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371 |
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(1,016 |
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(152 |
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These identified items generally relate to events with an impact of more than $50
million on Royal Dutch Shells 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.
Royal Dutch Shell plc 6
EARNINGS BY BUSINESS SEGMENT
UPSTREAM
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Quarters |
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Nine
months |
$ million |
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Q3 2010 |
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Q2 2010 |
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Q3 2009 |
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%1 |
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2010 |
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2009 |
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% |
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Upstream earnings |
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3,153 |
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3,270 |
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1,543 |
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+104 |
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10,838 |
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5,818 |
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+86 |
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Upstream cash flow from operations |
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6,139 |
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5,411 |
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4,168 |
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+47 |
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19,276 |
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13,952 |
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+38 |
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Net capital investment |
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9,554 |
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5,664 |
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5,404 |
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+77 |
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20,700 |
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16,379 |
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+26 |
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Crude oil production (thousand b/d) |
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1,709 |
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1,655 |
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1,652 |
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+3 |
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1,699 |
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1,672 |
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+2 |
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Natural gas production available for sale
(million scf/d) |
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7,823 |
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8,440 |
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7,343 |
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+7 |
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9,008 |
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8,181 |
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+10 |
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Barrels of oil equivalent (thousand boe/d) |
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3,058 |
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3,110 |
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2,917 |
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+5 |
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3,252 |
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3,082 |
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+6 |
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LNG sales volumes (million tonnes) |
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4.26 |
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3.88 |
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3.49 |
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+22 |
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12.36 |
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9.44 |
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+31 |
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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, Shells 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.
Royal Dutch Shell plc 7
DOWNSTREAM
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Quarters |
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Nine months |
$ million |
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
%1 |
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2010 |
|
2009 |
|
% |
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Downstream CCS earnings |
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325 |
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1,471 |
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1,292 |
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|
75 |
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2,539 |
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2,020 |
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|
+26 |
|
Estimated CCS adjustment |
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(61 |
) |
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|
(142 |
) |
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251 |
|
|
|
|
|
|
|
381 |
|
|
|
1,986 |
|
|
|
|
|
Downstream earnings |
|
|
264 |
|
|
|
1,329 |
|
|
|
1,543 |
|
|
|
83 |
|
|
|
2,920 |
|
|
|
4,006 |
|
|
|
27 |
|
Downstream cash flow from operations |
|
|
1,953 |
|
|
|
3,197 |
|
|
|
3,157 |
|
|
|
38 |
|
|
|
2,309 |
|
|
|
1,813 |
|
|
|
+27 |
|
Net capital investment |
|
|
701 |
|
|
|
(21 |
) |
|
|
1,677 |
|
|
|
58 |
|
|
|
1,367 |
|
|
|
5,024 |
|
|
|
73 |
|
Refinery plant intake (thousand b/d) |
|
|
3,292 |
|
|
|
3,296 |
|
|
|
2,997 |
|
|
|
+10 |
|
|
|
3,196 |
|
|
|
3,095 |
|
|
|
+3 |
|
Oil Products sales volumes (thousand b/d) |
|
|
6,385 |
|
|
|
6,615 |
|
|
|
6,121 |
|
|
|
+4 |
|
|
|
6,389 |
|
|
|
6,109 |
|
|
|
+5 |
|
Chemicals sales volumes (thousand tonnes) |
|
|
5,333 |
|
|
|
5,254 |
|
|
|
4,723 |
|
|
|
+13 |
|
|
|
15,356 |
|
|
|
13,476 |
|
|
|
+14 |
|
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.
Royal Dutch Shell plc 8
CORPORATE AND NON-CONTROLLING INTEREST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
Nine months |
$ million |
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
148 |
|
|
|
(112 |
) |
|
|
202 |
|
|
|
(140 |
) |
|
|
883 |
|
Non-controlling interest |
|
|
(105 |
) |
|
|
(100 |
) |
|
|
(47 |
) |
|
|
(290 |
) |
|
|
(94 |
) |
Corporate and Non-controlling interest |
|
|
43 |
|
|
|
(212 |
) |
|
|
155 |
|
|
|
(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.
Royal Dutch Shell plc 9
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
Nine months |
$ million |
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
%1 |
|
2010 |
|
2009 |
|
% |
Revenue |
|
|
90,712 |
|
|
|
90,568 |
|
|
|
75,009 |
|
|
|
|
|
|
|
267,342 |
|
|
|
197,113 |
|
|
|
|
|
Share of profit of equity-accounted investments |
|
|
1,020 |
|
|
|
1,308 |
|
|
|
746 |
|
|
|
|
|
|
|
3,974 |
|
|
|
3,209 |
|
|
|
|
|
Interest and other income3 |
|
|
1,010 |
|
|
|
(16 |
) |
|
|
271 |
|
|
|
|
|
|
|
1,311 |
|
|
|
1,388 |
|
|
|
|
|
Total revenue and other income |
|
|
92,742 |
|
|
|
91,860 |
|
|
|
76,026 |
|
|
|
|
|
|
|
272,627 |
|
|
|
201,710 |
|
|
|
|
|
Purchases |
|
|
70,278 |
|
|
|
69,759 |
|
|
|
55,781 |
|
|
|
|
|
|
|
205,038 |
|
|
|
142,196 |
|
|
|
|
|
Production and manufacturing expenses |
|
|
6,052 |
|
|
|
5,925 |
|
|
|
5,885 |
|
|
|
|
|
|
|
17,164 |
|
|
|
17,919 |
|
|
|
|
|
Selling, distribution and administrative expenses |
|
|
3,701 |
|
|
|
3,433 |
|
|
|
4,306 |
|
|
|
|
|
|
|
11,227 |
|
|
|
11,898 |
|
|
|
|
|
Research and development |
|
|
203 |
|
|
|
180 |
|
|
|
318 |
|
|
|
|
|
|
|
597 |
|
|
|
794 |
|
|
|
|
|
Exploration |
|
|
610 |
|
|
|
403 |
|
|
|
637 |
|
|
|
|
|
|
|
1,390 |
|
|
|
1,509 |
|
|
|
|
|
Depreciation, depletion and amortisation |
|
|
6,196 |
|
|
|
3,237 |
|
|
|
4,341 |
|
|
|
|
|
|
|
12,359 |
|
|
|
10,710 |
|
|
|
|
|
Interest expense |
|
|
317 |
|
|
|
191 |
|
|
|
189 |
|
|
|
|
|
|
|
769 |
|
|
|
538 |
|
|
|
|
|
Income before taxation |
|
|
5,385 |
|
|
|
8,732 |
|
|
|
4,569 |
|
|
|
+18 |
|
|
|
24,083 |
|
|
|
16,146 |
|
|
|
+49 |
|
Taxation |
|
|
1,820 |
|
|
|
4,245 |
|
|
|
1,281 |
|
|
|
|
|
|
|
10,465 |
|
|
|
5,439 |
|
|
|
|
|
Income for the period |
|
|
3,565 |
|
|
|
4,487 |
|
|
|
3,288 |
|
|
|
+8 |
|
|
|
13,618 |
|
|
|
10,707 |
|
|
|
+27 |
|
Income attributable to non-controlling interest |
|
|
102 |
|
|
|
94 |
|
|
|
41 |
|
|
|
|
|
|
|
281 |
|
|
|
150 |
|
|
|
|
|
Income attributable to Royal Dutch Shell plc shareholders |
|
|
3,463 |
|
|
|
4,393 |
|
|
|
3,247 |
|
|
|
+7 |
|
|
|
13,337 |
|
|
|
10,557 |
|
|
|
+26 |
|
|
Estimated CCS adjustment for Downstream |
|
|
58 |
|
|
|
136 |
|
|
|
(257 |
) |
|
|
|
|
|
|
(390 |
) |
|
|
(1,930 |
) |
|
|
|
|
CCS earnings |
|
|
3,521 |
|
|
|
4,529 |
|
|
|
2,990 |
|
|
|
+18 |
|
|
|
12,947 |
|
|
|
8,627 |
|
|
|
+50 |
|
BASIC EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
Nine months |
|
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
2010 |
|
2009 |
Earnings per share ($) |
|
|
0.56 |
|
|
|
0.72 |
|
|
|
0.53 |
|
|
|
2.18 |
|
|
|
1.72 |
|
CCS earnings per share ($) |
|
|
0.57 |
|
|
|
0.74 |
|
|
|
0.49 |
|
|
|
2.11 |
|
|
|
1.41 |
|
|
DILUTED EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
Nine months |
|
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
2010 |
|
2009 |
Earnings per share ($) |
|
|
0.56 |
|
|
|
0.72 |
|
|
|
0.53 |
|
|
|
2.17 |
|
|
|
1.72 |
|
CCS earnings per share ($) |
|
|
0.57 |
|
|
|
0.74 |
|
|
|
0.49 |
|
|
|
2.11 |
|
|
|
1.41 |
|
|
SHARES2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
Nine months |
Millions |
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
2010 |
|
2009 |
Weighted average number of shares as the basis for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
6,132.6 |
|
|
|
6,134.0 |
|
|
|
6,127.0 |
|
|
|
6,131.1 |
|
|
|
6,125.1 |
|
Diluted earnings per share |
|
|
6,138.3 |
|
|
|
6,143.7 |
|
|
|
6,131.0 |
|
|
|
6,137.1 |
|
|
|
6,128.2 |
|
|
Shares outstanding at the end of the period |
|
|
6,132.0 |
|
|
|
6,132.5 |
|
|
|
6,125.2 |
|
|
|
6,132.0 |
|
|
|
6,125.2 |
|
|
|
|
1 |
|
Q3 on Q3 change. |
|
2 |
|
Royal Dutch Shell plc ordinary shares of 0.07 each. |
|
3 |
|
Other income includes dividend income, net gains on sale of assets and net foreign
exchange effects on financing activities. |
Royal Dutch Shell plc 10
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary |
|
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non- |
|
|
|
|
share |
|
held in |
|
Other |
|
Retained |
|
|
|
|
|
controlling |
|
Total |
$ million |
|
capital |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non- |
|
|
|
|
share |
|
held in |
|
Other |
|
Retained |
|
|
|
|
|
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 |
|
Royal Dutch Shell plc 11
CONDENSED CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
Sept 30, 2010 |
|
Jun 30, 2010 |
|
Sept 30, 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 |
|
Royal Dutch Shell plc 12
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
Nine months |
$ million |
|
Q3 2010 |
|
Q2 2010 |
|
Q3 2009 |
|
2010 |
|
2009 |
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for the period |
|
|
3,565 |
|
|
|
4,487 |
|
|
|
3,288 |
|
|
|
13,618 |
|
|
|
10,707 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Current taxation |
|
|
3,545 |
|
|
|
4,210 |
|
|
|
1,677 |
|
|
|
11,869 |
|
|
|
5,888 |
|
- Interest (income)/expense |
|
|
264 |
|
|
|
161 |
|
|
|
157 |
|
|
|
656 |
|
|
|
857 |
|
- Depreciation, depletion and amortisation |
|
|
6,196 |
|
|
|
3,237 |
|
|
|
4,341 |
|
|
|
12,359 |
|
|
|
10,710 |
|
- Net (gains)/losses on sale of assets |
|
|
(681 |
) |
|
|
(28 |
) |
|
|
(81 |
) |
|
|
(932 |
) |
|
|
(366 |
) |
- Decrease/(increase) in net working
capital |
|
|
937 |
|
|
|
(482 |
) |
|
|
(384 |
) |
|
|
(5,175 |
) |
|
|
(3,584 |
) |
- Share of profit of equity-accounted
investments |
|
|
(1,020 |
) |
|
|
(1,308 |
) |
|
|
(746 |
) |
|
|
(3,974 |
) |
|
|
(3,209 |
) |
- Dividends received from equity-accounted
investments |
|
|
1,486 |
|
|
|
1,425 |
|
|
|
993 |
|
|
|
4,455 |
|
|
|
3,212 |
|
- Deferred taxation and other provisions |
|
|
(1,941 |
) |
|
|
182 |
|
|
|
(401 |
) |
|
|
(1,466 |
) |
|
|
(987 |
) |
- Other |
|
|
(86 |
) |
|
|
425 |
|
|
|
332 |
|
|
|
686 |
|
|
|
(1,458 |
) |
Cash flow from operating activities
(pre-tax) |
|
|
12,265 |
|
|
|
12,309 |
|
|
|
9,176 |
|
|
|
32,096 |
|
|
|
21,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation paid |
|
|
(3,249 |
) |
|
|
(4,213 |
) |
|
|
(1,826 |
) |
|
|
(10,202 |
) |
|
|
(5,942 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities |
|
|
9,016 |
|
|
|
8,096 |
|
|
|
7,350 |
|
|
|
21,894 |
|
|
|
15,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
(9,609 |
) |
|
|
(6,513 |
) |
|
|
(6,219 |
) |
|
|
(21,369 |
) |
|
|
(19,010 |
) |
Investments in equity-accounted
investments |
|
|
(1,179 |
) |
|
|
(136 |
) |
|
|
(448 |
) |
|
|
(1,940 |
) |
|
|
(2,302 |
) |
Proceeds from sale of assets |
|
|
666 |
|
|
|
1,007 |
|
|
|
327 |
|
|
|
2,039 |
|
|
|
805 |
|
Proceeds from sale of equity-accounted
investments |
|
|
44 |
|
|
|
136 |
|
|
|
267 |
|
|
|
211 |
|
|
|
487 |
|
(Additions to)/proceeds from sale of
securities |
|
|
(37 |
) |
|
|
26 |
|
|
|
(16 |
) |
|
|
(18 |
) |
|
|
(68 |
) |
Interest received |
|
|
51 |
|
|
|
13 |
|
|
|
118 |
|
|
|
102 |
|
|
|
288 |
|
Cash flow from investing activities |
|
|
(10,064 |
) |
|
|
(5,467 |
) |
|
|
(5,971 |
) |
|
|
(20,975 |
) |
|
|
(19,800 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in debt with
maturity period
within three months |
|
|
3,232 |
|
|
|
1,017 |
|
|
|
(57 |
) |
|
|
4,399 |
|
|
|
(5,691 |
) |
Other debt: New borrowings |
|
|
199 |
|
|
|
3,323 |
|
|
|
5,353 |
|
|
|
7,729 |
|
|
|
19,281 |
|
Repayments |
|
|
(491 |
) |
|
|
(414 |
) |
|
|
(241 |
) |
|
|
(2,852 |
) |
|
|
(2,057 |
) |
Interest paid |
|
|
(307 |
) |
|
|
(379 |
) |
|
|
(86 |
) |
|
|
(1,204 |
) |
|
|
(610 |
) |
Change in non-controlling interest |
|
|
(3 |
) |
|
|
330 |
|
|
|
23 |
|
|
|
315 |
|
|
|
42 |
|
Dividends paid to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Royal Dutch Shell plc shareholders |
|
|
(2,583 |
) |
|
|
(2,448 |
) |
|
|
(2,656 |
) |
|
|
(7,586 |
) |
|
|
(7,913 |
) |
- Non-controlling interest |
|
|
(168 |
) |
|
|
(150 |
) |
|
|
(65 |
) |
|
|
(357 |
) |
|
|
(164 |
) |
Shares held in trust: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net sales/(purchases) and dividends
received |
|
|
(34 |
) |
|
|
86 |
|
|
|
(17 |
) |
|
|
170 |
|
|
|
70 |
|
Cash flow from financing activities |
|
|
(155 |
) |
|
|
1,365 |
|
|
|
2,254 |
|
|
|
614 |
|
|
|
2,958 |
|
Currency translation differences relating
to cash and
cash equivalents |
|
|
477 |
|
|
|
(434 |
) |
|
|
46 |
|
|
|
30 |
|
|
|
101 |
|
(Decrease)/increase in cash and cash
equivalents |
|
|
(726 |
) |
|
|
3,560 |
|
|
|
3,679 |
|
|
|
1,563 |
|
|
|
(913 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of
period |
|
|
12,008 |
|
|
|
8,448 |
|
|
|
10,596 |
|
|
|
9,719 |
|
|
|
15,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
|
11,282 |
|
|
|
12,008 |
|
|
|
14,275 |
|
|
|
11,282 |
|
|
|
14,275 |
|
Royal Dutch Shell plc 13
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 Shells 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.
Royal Dutch Shell plc 14
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
managements 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 managements 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 Shells 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 Shells 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 SECs 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 |