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6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2018

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)

Carel van Bylandtlaan 30, 2596 HR, The Hague

The Netherlands

Tel No: 011 31 70 377 9111

(Address of principal executive office)

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 ☒ Form 40-F ☐

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): ☐

Royal Dutch Shell plc (the “Registrant”) is filing the following exhibits on this Report on Form 6-K, each of which is hereby incorporated by reference:


Exhibit No.		Description

99.1		Regulatory release.

99.2		Royal Dutch Shell plc – Three and nine month periods ended September 30, 2018 Unaudited Condensed Interim Financial Report.

101		Interactive Data Files.

This Unaudited Condensed Interim Financial Report contains the Unaudited Condensed Consolidated Interim Financial Statements of the Registrant and its consolidated subsidiaries for the three and nine month periods ended September 30, 2018, and Business Review in respect of such periods. This Report on Form 6-K contains the Unaudited Condensed Interim Financial Report with additional information required to keep current our registration statement on Form F-3.

This Report on Form 6-K is incorporated by reference into:

the Registration Statement on Form F-3 of Royal Dutch Shell plc and Shell International Finance B.V. (Registration Number 333-222005 and 333-222005-01); and

the Registration Statements on Form S-8 of Royal Dutch Shell plc (Registration Numbers 333-126715, 333-141397, 333-171206, 333-192821, 333-200953, 333-215273 and 333-222813).


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		2

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 authorised.

Royal Dutch Shell plc

(Registrant)


By:		/s/ Linda Szymanski
		Name: Linda Szymanski
		Title: Company Secretary

Date: November 1, 2018


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		3

EX-99.1

Exhibit 99.1

Regulatory release

Three and nine month periods ended September 30, 2018

Unaudited Condensed Interim Financial Report

On November 1, 2018, Royal Dutch Shell plc released the Unaudited Condensed Interim Financial Report for the three and nine month periods ended September 30, 2018, of Royal Dutch Shell plc and its consolidated subsidiaries (collectively, “Shell”).


Contact – Investor Relations
International:		+31 (0)70 377 4540
North America:		+1 832 337 2034

Contact – Media
International:		+44 (0) 207 934 5550
USA:		+1 832 337 4355


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		4

EX-99.2

Exhibit 99.2

Royal Dutch Shell plc

Three and nine month periods ended September 30, 2018

Unaudited Condensed Interim Financial Report


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		5

ROYAL DUTCH SHELL PLC

3^RD QUARTER 2018 AND NINE MONTHS UNAUDITED RESULTS

SUMMARY OF UNAUDITED RESULTS


Quarters											$ million		Nine months
Q3 2018			Q2 2018			Q3 2017			%¹			Definition	2018			2017			%
	5,839			6,024			4,087			+43	Income/(loss) attributable to shareholders			17,762			9,170			+94
	5,570			5,226			3,698			+51	CCS earnings attributable to shareholders	Note 2		16,499			8,999			+83
	(54	)		535			(405	)			Of which: Identified items	A		783			(2,462	)

	5,624			4,691			4,103			+37	CCS earnings attributable to shareholders excluding identified items			15,716			11,461			+37
	169			121			105				Add: CCS earnings attributable to non-controlling interest			411			324

	5,793			4,812			4,208			+38	CCS earnings excluding identified items			16,127			11,785			+37
											Of which:
	2,292			2,305			1,282				Integrated Gas			7,036			3,632
	1,886			1,457			562				Upstream			4,894			1,441
	2,010			1,660			2,668				Downstream			5,436			7,686
	(395	)		(610	)		(304	)			Corporate			(1,239	)		(974	)

	12,092			9,500			7,582			+59	Cash flow from operating activities			31,064			28,375			+9
	(4,082	)		29			(3,912	)			Cash flow from investing activities			(8,347	)		(7,364	)
	8,010			9,529			3,670				Free cash flow	H		22,717			21,011

	0.70			0.72			0.50			+40	Basic earnings per share ($)			2.14			1.12			+91
	0.67			0.63			0.45			+49	Basic CCS earnings per share ($)	B		1.99			1.10			+81
	0.68			0.56			0.50			+36	Basic CCS earnings per share excl. identified items ($)			1.89			1.40			+35

	0.47			0.47			0.47			—	Dividend per share ($)			1.41			1.41			—

^1.	Q3 on Q3 change.

CCS earnings attributable to shareholders excluding identified items were $5.6 billion, compared with $4.1 billion in the third quarter 2017. Earnings primarily benefited from increased realised oil, gas and LNG prices as well as higher contributions from trading in Integrated Gas, partly offset by lower margins in Downstream, higher deferred tax charges in Upstream and adverse currency exchange effects.

Cash flow from operating activities for the third quarter 2018 was $12.1 billion, which included negative working capital movements of $2.6 billion, compared with $7.6 billion in the third quarter 2017, which included negative working capital movements of $1.3 billion¹. Excluding working capital movements, cash flow from operations of $14.7 billion mainly reflected increased earnings and higher dividends received.

Total dividends distributed to shareholders in the quarter were $3.9 billion. In October, the first tranche of the share buyback programme was completed, with almost 61 million A ordinary shares bought back for cancellation for an aggregate consideration of $2.0 billion. Today, Shell launches the second tranche of the share buyback programme, with a maximum aggregate consideration of $2.5 billion in the period up to and including January 28, 2019.

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Good operational delivery across all Shell businesses produced one of our strongest-ever quarters, with cash flow from operations of $14.7 billion, excluding working capital movements. Our strong financial performance allowed us to cover the cash dividend, interest payments, share buybacks and to further pay down debt.

Our strategy remains on track. We have completed the first tranche of share buybacks, in line with our intention to purchase $25 billion of our shares by the end of 2020, and today I’m pleased to announce the second tranche. Meanwhile, the transformation of our portfolio continued, with further divestments of non-strategic assets and the final investment decision on LNG Canada.”

¹	Revised from negative working capital movements of $2.5 billion. See Note 7 and Definition I.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		6

ADDITIONAL PERFORMANCE MEASURES


Quarters										$ million			Nine months
Q3 2018			Q2 2018			Q3 2017			%¹		Definition		2018			2017			%
	5,830			5,771			5,742			Capital investment		C		16,784			17,228
	613			2,502			1,365			Divestments		D		4,403			10,866

	3,596			3,442			3,657		-2	Total production available for sale (thousand boe/d)				3,625			3,634			—

	68.38			66.24			47.06		+45	Global liquids realised price ($/b)²				65.19			47.03			+39
	4.92			4.86			4.25		+16	Global natural gas realised price ($/thousand scf)²				4.91			4.30			+14

	9,312			10,006			9,477		-2	Operating expenses		G		29,037			28,307			+3
	9,248			9,844			9,197		+1	Underlying operating expenses		G		28,878			27,717			+4

	8.7	%		8.1	%		5.0	%		ROACE		E		8.7	%		5.0	%
	7.1	%		6.5	%		4.6	%		ROACE (CCS basis excluding identified items)		E		7.1	%		4.6	%

	23.1	%		23.6	%		25.7	%		Gearing³		F		23.1	%		25.7	%

^1.	Q3 on Q3 change.

^2.	Following a reassessment, second and first quarter 2018 (liquids realised price) and the four quarters 2017 (natural gas realised price) have been revised.

^3.	With effect from 2018, the net debt calculation has been amended (see Definition F). Gearing as previously published at September 30, 2017 was 25.4%.

Supplementary financial and operational disclosure for this quarter is available at www.shell.com/investor.

THIRD QUARTER 2018 PORTFOLIO DEVELOPMENTS

Integrated Gas

In October, Shell and its partners announced a final investment decision on LNG Canada (Shell interest 40%). Construction has started, and first LNG is expected before the middle of the next decade.

Upstream

During the quarter, Shell and its partner Chevron won a 35-year production-sharing contract for the Saturno pre-salt block located off the coast of Brazil in the Santos Basin (Shell interest 50%).

In October, Shell announced the sale of its 36.8% non-operating interest in the Danish Underground Consortium to Norwegian Energy Company ASA, for a consideration of $1.9 billion, with an effective date of January 1, 2017.

In October, Shell and its partners announced first production at the Lula Extreme South deep-water development in the Brazilian pre-salt Santos Basin (Shell pre-unitisation interest 25%).

Downstream

In October, Shell completed the sale of its Downstream business in Argentina to Raízen. The business acquired by Raízen will continue the relationship with Shell through various commercial agreements, including long-term brand licence agreements as well as products supply and offtake contracts.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		7

PERFORMANCE BY SEGMENT

INTEGRATED GAS


Quarters										$ million	Nine months
Q3 2018			Q2 2018		Q3 2017			%¹			2018		2017		%
	2,116			3,358		1,217			+74	Segment earnings		7,865		4,230		+86
	(176	)		1,053		(65	)			Of which: Identified items (Definition A)		829		598
	2,292			2,305		1,282			+79	Earnings excluding identified items		7,036		3,632		+94

	3,320			2,950		1,742			+91	Cash flow from operating activities		8,831		5,644		+56

	862			804		1,148			-25	Capital investment (Definition C)		2,977		2,784		+7

	208			223		226			-8	Liquids production available for sale (thousand b/d)		214		194		+10
	4,156			4,243		4,496			-8	Natural gas production available for sale (million scf/d)		4,267		3,836		+11

	924			954		1,001			-8	Total production available for sale (thousand boe/d)		950		856		+11
	8.18			8.46		8.45			-3	LNG liquefaction volumes (million tonnes)		25.54		24.72		+3

	17.27			17.97		16.97			+2	LNG sales volumes (million tonnes)		53.82		48.89		+10

^1.	Q3 on Q3 change.

Third quarter identified items primarily reflected impairments of $131 million, mainly related to Shell’s investment in a joint venture. Other identified items mainly comprised a loss of $48 million related to the fair value accounting of commodity derivatives, as well as a gain of $26 million on sale of assets.

Compared with the third quarter 2017, Integrated Gas earnings excluding identified items benefited from higher realised oil, gas and LNG prices, as well as higher trading margins from LNG cargo diversions. This was partly offset by a decrease in production, which was 8% lower than in the third quarter 2017, mainly due to higher maintenance activity. LNG liquefaction volumes were 3% lower, largely driven by divestments.

Cash flow from operating activities included negative working capital movements of $421 million, compared with negative movements of $58 million² in the same quarter a year ago. Cash flow from operating activities excluding working capital movements increased compared with the same quarter a year ago, mainly as a result of higher earnings.

Nine months identified items primarily reflected a net gain of $904 million on sale of assets, mainly related to divestments in Thailand and India. Identified items also included impairments of $181 million, mainly driven by Shell’s investment in a joint venture, as well as a gain on fair value accounting of commodity derivatives of $160 million.

Compared with the first nine months of 2017, Integrated Gas earnings excluding identified items benefited from increased realised oil, gas and LNG prices, as well as a stronger contribution from trading and higher volumes. This was partly offset by higher operating expenses. Total production increased by 11%, mainly due to lower maintenance activity and the ramp-up of new fields. LNG liquefaction volumes were 3% higher, compared with the first nine months of 2017, mainly as a result of increased feedgas availability, partly offset by divestments.

Cash flow from operating activities included negative working capital movements of $853 million, compared with negative movements of $297 million³ in the same period last year. Cash flow from operating activities excluding working capital movements increased compared with the same period a year ago as a result of higher earnings, partly offset by cash margining on derivatives and higher tax payments.

²	Revised from negative working capital movements of $532 million. See Note 7 and Definition I.

³	Revised from negative working capital movements of $1,255 million. See Note 7 and Definition I.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		8

UPSTREAM


Quarters									$ million	Nine months
Q3 2018		Q2 2018			Q3 2017		%¹			2018		2017			%
	2,249		1,094			575		+291	Segment earnings		5,197		(499	)		+1,141
	363		(363	)		13			Of which: Identified items (Definition A)		303		(1,940	)
	1,886		1,457			562		+236	Earnings excluding identified items		4,894		1,441			+240

	6,663		5,528			4,222		+58	Cash flow from operating activities		15,792		12,572			+26

	3,037		3,021			2,805		+8	Capital investment (Definition C)		8,537		10,163			-16

	1,602		1,507			1,626		-1	Liquids production available for sale (thousand b/d)		1,561		1,650			-5
	6,206		5,687			5,974		+4	Natural gas production available for sale (million scf/d)		6,461		6,546			-1

	2,672		2,488			2,656		+1	Total production available for sale (thousand boe/d)		2,675		2,778			-4

^1.	Q3 on Q3 change.

Third quarter identified items were primarily driven by impairment movements mainly in North America, which resulted in an overall reversal of $381 million. This included an impairment reversal of $912 million for a shale asset, partly offset by an impairment charge of $515 million for an offshore asset. Identified items also comprised a net gain of $115 million on sale of assets, mainly related to divestments in the UK, as well as a charge of $108 million associated with the impact of the weakening Brazilian real on a deferred tax position.

Compared with the third quarter 2017, Upstream earnings excluding identified items reflected higher realised oil and gas prices as well as lower depreciation. These were partly offset by negative movements in deferred tax positions, which included impacts arising from changes in the upstream fiscal regime in Brazil, as well as a provision for unitisation settlements related to pre-salt assets in Brazil. Total production increased by 1% compared with the third quarter 2017, mainly driven by new field start-ups and ramp-ups, partly offset by divestments. Excluding portfolio impacts, production was 4% higher than in the same quarter a year ago.

Cash flow from operating activities included negative working capital movements of $631 million, compared with negative movements of $495 million⁴ in the same quarter a year ago. Cash flow from operating activities excluding working capital movements increased compared with the same quarter a year ago as a result of higher earnings, partly offset by higher tax payments.

Nine months identified items primarily reflected a net gain of $1,306 million on sale of assets, primarily related to divestments in Iraq, Malaysia and Oman. This was partly offset by a net charge of $665 million associated with the impact of the weakening Brazilian real on a deferred tax position, as well as a net impairment charge of $285 million, mainly related to assets in North America and deep-water rig joint ventures.

Compared with the first nine months of 2017, Upstream earnings excluding identified items benefited from higher realised oil and gas prices and lower depreciation, partly offset by negative movements in deferred tax positions and lower volumes. Production was 4% lower, mainly due to divestments and field decline, partly offset by new fields start-ups and ramp-ups. Excluding portfolio impacts, production increased by 3%.

Cash flow from operating activities included negative working capital movements of $976 million, compared with negative movements of $414 million⁵ in the same period last year. Cash flow from operating activities excluding working capital movements increased compared with the first nine months of 2017 mainly as a result of stronger earnings, partly offset by higher tax payments.

⁴	Revised from negative working capital movements of $627 million. See Note 7 and Definition I.

⁵	Revised from negative working capital movements of $757 million. See Note 7 and Definition I.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		9

DOWNSTREAM


Quarters										$ million	Nine months
Q3 2018		Q2 2018			Q3 2017			%¹			2018			2017			%
	1,709		1,168			2,405			-29	Segment earnings²		4,683			7,142			-34
	(301)		(492	)		(263	)			Of which: Identified items (Definition A)		(753	)		(544	)
	2,010		1,660			2,668			-25	Earnings excluding identified items²		5,436			7,686			-29
										Of which:
	1,473		1,102			2,018			-27	Oil Products		3,656			5,576			-34
	424		114			891			-52	Refining & Trading		679			2,366			-71
	1,049		988			1,127			-7	Marketing		2,977			3,210			-7
	537		558			650			-17	Chemicals		1,780			2,110			-16

	1,037		990			949			+9	Cash flow from operating activities		5,134			9,780			-48

	1,860		1,908			1,743			+7	Capital investment (Definition C)		5,137			4,208			+22

	2,675		2,557			2,592			+3	Refinery processing intake (thousand b/d)		2,623			2,566			+2

	6,697		6,745			6,557			+2	Oil products sales volumes (thousand b/d)		6,742			6,511			+4

	4,145		4,875			4,540			-9	Chemicals sales volumes (thousand tonnes)		13,534			13,551			—

^1.	Q3 on Q3 change.

^2.	Earnings are presented on a CCS basis (See Note 2).

Third quarter identified items primarily comprised impairments totalling $136 million, mainly related to assets in Singapore, and a loss of $101 million on fair value accounting of commodity derivatives.

Compared with the third quarter 2017, Downstream earnings excluding identified items were negatively impacted by lower margins, adverse currency exchange effects and higher operating expenses.

Cash flow from operating activities included negative working capital movements of $1,886 million, compared with negative movements of $1,277 million⁶ in the same quarter a year ago. Cash flow from operating activities excluding working capital movements benefited from reduced contributions to pension funds compared with the third quarter 2017. Excluding this impact, cash flow from operating activities excluding working capital movements remained at a similar level to that of the third quarter 2017.

Oil Products

•

Refining & Trading earnings excluding identified items reflected lower refining margins, lower trading results and higher tax expenses, compared with the third quarter 2017.

Refinery availability increased to 92% compared with 87% in the third quarter 2017, mainly due to the impacts of Hurricane Harvey in 2017 and improved operational performance.

•

Marketing earnings excluding identified items were negatively impacted by adverse currency exchange effects and lower margins, largely offset by lower tax expenses.

Compared with the third quarter 2017, Oil Products sales volumes were 2% higher, reflecting increased refining and trading volumes as well as stronger marketing volumes.

Chemicals

•

Chemicals earnings excluding identified items were impacted by lower cracker margins, reflecting less favourable industry conditions and higher feedstock prices, compared with the third quarter 2017. Earnings were also impacted by higher tax expenses.

Chemicals manufacturing plant availability increased to 93% from 88% in the third quarter 2017, mainly due to the impacts of Hurricane Harvey in 2017.

⁶	Revised from negative working capital movements of $1,446 million. See Note 7 and Definition I.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		10

Nine months identified items primarily reflected a loss on fair value accounting of commodity derivatives of $437 million and impairments totalling $226 million, mainly related to assets in Singapore.

Compared with the first nine months of 2017, Downstream earnings excluding identified items were negatively impacted by lower margins, adverse currency exchange effects and higher operating expenses.

Cash flow from operating activities included negative working capital movements of $4,406 million, compared with positive movements of $186 million⁷ in the first nine months 2017. Excluding working capital movements, cash flow from operations remained at a similar level to that of the same period a year ago.

Oil Products

•

Refining & Trading earnings excluding identified items reflected lower refining margins, lower trading results, adverse currency exchange effects and higher operating expenses, compared with the first nine months of 2017.

Refinery availability was 90%, compared with 91% in the first nine months of 2017.

•

Marketing earnings excluding identified items were impacted by adverse currency exchange effects and higher operating expenses, compared with the first nine months of 2017.

Compared with the first nine months of 2017, Oil Products sales volumes were 4% higher, mainly due to increased refining and trading volumes.

Chemicals

•

Chemicals earnings excluding identified items were impacted by lower cracker margins and higher operating expenses compared with the same period a year ago.

Chemicals manufacturing plant availability increased to 93% from 91% in the first nine months of 2017, mainly as a result of lower maintenance activity.

⁷	Revised from positive working capital movements of $77 million. See Note 7 and Definition I.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		11

CORPORATE


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
	(335	)		(273	)		(394	)	Segment earnings		(835	)		(1,578	)
	60			337			(90	)	Of which: Identified items (Definition A)		404			(604	)
	(395	)		(610	)		(304	)	Earnings excluding identified items		(1,239	)		(974	)

	1,072			32			669		Cash flow from operating activities		1,307			379

Third quarter identified items mainly reflected a tax credit of $68 million related to the impact of the weakening Brazilian real on financing positions.

Compared with the third quarter 2017, Corporate earnings excluding identified items reflected adverse currency exchange effects, partly offset by higher tax credits.

Nine months identified items mainly reflected a tax credit of $399 million related to the impact of the weakening Brazilian real on financing positions.

Compared with the first nine months of 2017, Corporate earnings excluding identified items reflected adverse currency exchange effects as well as lower tax credits, partly offset by lower interest expense.

OUTLOOK FOR THE FOURTH QUARTER 2018

Compared with the fourth quarter 2017, Integrated Gas production is expected to be 0 – 40 thousand boe/d lower, mainly due to divestments. LNG liquefaction volumes are expected to be up to 0.3 million tonnes higher, mainly driven by increased feed gas availability and lower maintenance activity.

Compared with the fourth quarter 2017, Upstream production is expected to be 80 – 120 thousand boe/d higher, mainly due to lower maintenance activity and growth from new fields more than offsetting the impacts of field decline and divestments.

Refinery availability is expected to increase in the fourth quarter 2018 compared with the same period in 2017, as a result of lower maintenance activity.

Oil Products sales volumes are expected to be 40 – 70 thousand boe/d lower, compared with the same period a year ago, mainly as a result of the divestment of the Downstream business in Argentina.

Chemicals availability is expected to increase in the fourth quarter 2018 as a result of lower maintenance activity compared with the fourth quarter 2017.

Corporate earnings excluding identified items are expected to be a net charge of $350 – 400 million in the fourth quarter 2018. This excludes the impact of currency exchange rate effects.

FORTHCOMING EVENTS

Shell will host Management Day events on June 4, 2019 in London, and on June 5, 2019 in New York.

Fourth quarter 2018 results and dividends are scheduled to be announced on January 31, 2019. First quarter 2019 results and dividends are scheduled to be announced on May 2, 2019. Second quarter 2019 results and dividends are scheduled to be announced on August 1, 2019. Third quarter 2019 results and dividends are scheduled to be announced on October 31, 2019.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		12

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME


Quarters						$ million	Nine months
Q3 2018		Q2 2018		Q3 2017			2018		2017
	100,151		96,765		75,830	Revenue¹		286,151		219,757
	1,000		716		1,062	Share of profit of joint ventures and associates		2,755		3,191
	397		1,787		841	Interest and other income		3,024		798

	101,548		99,268		77,733	Total revenue and other income		291,930		223,746

	76,070		73,121		54,849	Purchases		215,719		159,352
	6,256		6,988		6,497	Production and manufacturing expenses		20,167		20,089
	2,829		2,781		2,750	Selling, distribution and administrative expenses		8,198		7,556
	227		237		230	Research and development		672		662
	322		243		326	Exploration		795		1,024
	5,198		5,359		6,408	Depreciation, depletion and amortisation²		15,891		20,427
	909		929		1,011	Interest expense		2,774		3,058

	91,811		89,658		72,071	Total expenditure		264,216		212,168

	9,737		9,610		5,662	Income/(loss) before taxation		27,714		11,578
	3,696		3,422		1,450	Taxation charge/(credit)		9,454		2,080

	6,041		6,188		4,212	Income/(loss) for the period¹		18,260		9,498
	202		164		125	Income/(loss) attributable to non-controlling interest		498		328

	5,839		6,024		4,087	Income/(loss) attributable to Royal Dutch Shell plc shareholders		17,762		9,170

	0.70		0.72		0.50	Basic earnings per share ($)³		2.14		1.12
	0.70		0.72		0.49	Diluted earnings per share ($)³		2.12		1.11

^1.	See Note 2 “Segment information”.

^2.	Third quarter 2018 includes an overall impairment reversal of $253 million, mainly related to Upstream assets in North America, where an impairment reversal for a shale asset was partly offset by an impairment loss for an offshore asset.

^3.	See Note 3 “Earnings per share”.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
	6,041			6,188			4,212		Income/(loss) for the period		18,260			9,498
									Other comprehensive income/(loss) net of tax:
									Items that may be reclassified to income in later periods:
	(500	)		(2,782	)		1,552		- Currency translation differences		(2,818	)		4,801
	—			—			328		- Unrealised gains/(losses) on securities¹		—			335
	(1	)		(2	)		—		- Debt instruments remeasurements¹		(15	)		—
	(69	)		(632	)		(327	)	- Cash flow hedging gains/(losses)		(769	)		(68	)
	43			(98	)		—		- Deferred cost of hedging¹		(148	)		—
	8			(57	)		(8	)	- Share of other comprehensive income/(loss) of joint ventures and associates		(27	)		124

	(519	)		(3,571	)		1,545		Total		(3,777	)		5,192
									Items that are not reclassified to income in later periods:
	615			1,265			(512	)	- Retirement benefits remeasurements		3,162			2,660
	84			131			—		- Equity instruments remeasurements¹		(203	)		—
	(2	)		—			—		- Share of other comprehensive income/(loss) of joint ventures and associates		(1	)		—

	697			1,396			(512	)	Total		2,958			2,660

	178			(2,175	)		1,033		Other comprehensive income/(loss) for the period		(819	)		7,852

	6,219			4,013			5,245		Comprehensive income/(loss) for the period		17,441			17,350
	173			83			177		Comprehensive income/(loss) attributable to non-controlling interest		349			445

	6,046			3,930			5,068		Comprehensive income/(loss) attributable to Royal Dutch Shell plc shareholders		17,092			16,905

^1.	See Note 1 “Basis of preparation” regarding IFRS 9 Financial Instruments.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		13

CONDENSED CONSOLIDATED BALANCE SHEET


$ million
	September 30, 2018		December 31, 2017
Assets
Non-current assets
Intangible assets		23,684		24,180
Property, plant and equipment		224,172		226,380
Joint ventures and associates		25,619		27,927
Investments in securities		3,057		7,222
Deferred tax		11,565		13,791
Retirement benefits		4,121		2,799
Trade and other receivables		7,902		8,475
Derivative financial instruments¹		623		919

		300,743		311,693

Current assets
Inventories		29,313		25,223
Trade and other receivables		51,097		44,565
Derivative financial instruments¹		7,724		5,304
Cash and cash equivalents		19,112		20,312

		107,246		95,404

Total assets		407,989		407,097

Liabilities
Non-current liabilities
Debt		64,455		73,870
Trade and other payables		3,133		3,447
Derivative financial instruments¹		1,359		981
Deferred tax		14,083		13,007
Retirement benefits		10,521		13,247
Decommissioning and other provisions		23,206		24,966

		116,757		129,518

Current liabilities
Debt		13,923		11,795
Trade and other payables		54,713		51,410
Derivative financial instruments¹		7,389		5,253
Taxes payable		9,496		7,250
Retirement benefits		411		594
Decommissioning and other provisions		3,814		3,465

		89,746		79,767

Total liabilities		206,503		209,285

Equity attributable to Royal Dutch Shell plc shareholders		197,533		194,356
Non-controlling interest		3,953		3,456

Total equity		201,486		197,812

Total liabilities and equity		407,989		407,097

^1.	See Note 6 “Derivative financial instruments and debt excluding finance lease liabilities”.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		14

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


	Equity attributable to Royal Dutch Shell plc shareholders
$ million	Share capital¹			Shares held in trust			Other reserves²			Retained earnings			Total			Non- controlling interest			Total equity
At January 1, 2018 (as previously published)		696			(917	)		16,932			177,645			194,356			3,456			197,812
Impact of IFRS 9³		—			—			(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		—			—			(670	)		17,762			17,092			349			17,441
Transfer from other comprehensive income⁴		—			—			(1,108	)		1,108			—			—			—
Dividends		—			—			—			(11,806	)		(11,806	)		(489	)		(12,295	)
Repurchases of shares⁵		(4	)		—			4			(2,007	)		(2,007	)		—			(2,007	)
Share-based compensation⁶		—			(301	)		25			177			(99	)		—			(99	)
Other changes in non-controlling interest		—			—			—			47			47			637			684

At September 30, 2018		692			(1,218	)		15,045			183,014			197,533			3,953			201,486

At January 1, 2017		683			(901	)		11,298			175,566			186,646			1,865			188,511
Comprehensive income/(loss) for the period		—			—			7,735			9,170			16,905			445			17,350
Dividends		—			—			—			(11,731	)		(11,731	)		(309	)		(12,040	)
Scrip dividends		9			—			(9	)		3,120			3,120			—			3,120
Share-based compensation		—			350			(309	)		(9	)		32			—			32
Other changes in non-controlling interest		—			—			—			54			54			1,506			1,560

At September 30, 2017		692			(551	)		18,715			176,170			195,026			3,507			198,533

^1.	See Note 4 “Share capital”.

^2.	See Note 5 “Other reserves”.

^3.	See Note 1 “Basis of preparation”.

^4.	In accordance with IFRS 9 Financial Instruments, the transfer mainly relates to the sale of Shell’s shareholding in Malaysia LNG Tiga Sdn Bhd ($617 million) and the sale of shares in Canadian Natural Resources Limited ($481 million).

^5.

On July 26, 2018 Shell entered into an irrevocable, non-discretionary arrangement to enable the repurchase of A ordinary and/or B ordinary shares for cancellation, covering the period up to and including October 25, 2018. The repurchase of shares recognised through retained earnings in the quarter represents the aggregate maximum consideration Shell is contractually bound to under this first tranche of the buyback programme, plus associated stamp duty.

^6.

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.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		15

CONSOLIDATED STATEMENT OF CASH FLOWS


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
	6,041			6,188			4,212		Income/(loss) for the period		18,260			9,498
									Adjustment for:
	2,694			2,808			1,734		- Current tax		7,671			5,124
	690			734			839		- Interest expense (net)		2,161			2,548
	5,198			5,359			6,408		- Depreciation, depletion and amortisation		15,891			20,427
	149			46			47		- Exploration well write-offs¹		304			356
	(163	)		(1,568	)		(459	)	- Net (gains)/losses on sale and revaluation of non-current assets and businesses		(2,338	)		(321	)
	(1,000	)		(716	)		(1,062	)	- Share of (profit)/loss of joint ventures and associates		(2,755	)		(3,191	)
	1,374			1,244			1,082		- Dividends received from joint ventures and associates		3,368			3,351
	(1,693	)		(3,459	)		(1,237	)	- (Increase)/decrease in inventories		(4,871	)		(711	)
	(2,722	)		(3,061	)		(3,816	)	- (Increase)/decrease in current receivables¹		(6,466	)		(33	)
	1,788			4,374			3,776		- Increase/(decrease) in current payables¹		5,678			366
	560			(624	)		(1,076	)	- Derivative financial instruments¹		(827	)		(899	)
	711			634			(1,319	)	- Deferred tax, retirement benefits, decommissioning and other provisions¹		1,294			(4,467	)
	299			156			(31	)	- Other¹		467			269
	(1,834	)		(2,615	)		(1,516	)	Tax paid²		(6,773	)		(3,942	)

	12,092			9,500			7,582		Cash flow from operating activities		31,064			28,375

	(5,800	)		(5,275	)		(5,018	)	Capital expenditure		(15,864	)		(14,984	)
	(78	)		(179	)		(42	)	Investments in joint ventures and associates		(672	)		(393	)
	231			1,422			236		Proceeds from sale of property, plant and equipment and businesses		2,400			5,942
	935			163			874		Proceeds from sale of joint ventures and associates		1,119			1,956
	236			210			237		Interest received		602			567
	394			3,688			(199	)	Other^2,3		4,068			(452	)

	(4,082	)		29			(3,912	)	Cash flow from investing activities		(8,347	)		(7,364	)

	(155	)		(2,968	)		(544	)	Net increase/(decrease) in debt with maturity period within three months		(416	)		(1,412	)
									Other debt:
	424			123			29		- New borrowings		788			640
	(2,260	)		(3,582	)		(2,702	)	- Repayments		(7,232	)		(7,617	)
	(864	)		(895	)		(858	)	Interest paid		(2,648	)		(2,710	)
	(1	)		—			279		Change in non-controlling interest		673			287
									Cash dividends paid to:
	(3,949	)		(3,886	)		(3,016	)	- Royal Dutch Shell plc shareholders		(11,806	)		(8,611	)
	(134	)		(228	)		(113	)	- Non-controlling interest		(486	)		(309	)
	(1,414	)		—			—		Repurchases of shares		(1,414	)		—
	(2	)		(192	)		(221	)	Shares held in trust: net sales/(purchases) and dividends received		(1,088	)		(274	)

	(8,355	)		(11,628	)		(7,146	)	Cash flow from financing activities		(23,629	)		(20,006	)

	(11	)		(360	)		183		Currency translation differences relating to cash and cash equivalents		(288	)		564

	(356	)		(2,459	)		(3,293	)	Increase/(decrease) in cash and cash equivalents		(1,200	)		1,569

	19,468			21,927			23,992		Cash and cash equivalents at beginning of period		20,312			19,130

	19,112			19,468			20,699		Cash and cash equivalents at end of period		19,112			20,699

^1.	Prior period comparatives within Cash flow from operating activities have been revised to conform with current year presentation. See Note 7 “Change in presentation of Consolidated Statement of Cash Flows”.

^2.

With effect from the third quarter 2018, tax paid on divestments has been reclassified from Cash flow from operating activities to Cash flow from investing activities. 2018 comparatives have been revised to conform with this presentation change, with a cash outflow of $45 million reclassified from “Tax paid” to “Other” (all related to first quarter 2018). No revision was made for prior years.

^3.	Second quarter 2018 includes $3,307 million from the sale of shares in Canadian Natural Resources Limited, which were received in connection with the oil sands divestment.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		16

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 US 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, this standard facilitates the use of hedge accounting and 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.

IFRS 16 Leases will be applied by Shell with effect from January 1, 2019. Under the new standard, all lease contracts, with limited exceptions, are recognised in the financial statements by way of right-of-use assets and corresponding lease liabilities. Shell will apply the modified retrospective transition approach without restating comparative information.

Compared with the existing accounting for operating leases under IAS 17, application of the new standard will have a significant impact on the classification of expenditures and consequently the classification of cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. It will also impact the timing of expenses recognised in the statement of income.

Differences between the operating lease commitments under the current standard and the additional lease liabilities recognised on balance sheet at January 1, 2019 are expected to be mainly driven by the impact of discounting lease payments, short-term leases, the use of hindsight to assess options to extend or terminate leases and commencement of lease contracts after January 1, 2019. To determine the impact upon application of the new standard, a detailed review of contracts is underway. No impact is expected in relation to lease contracts previously classified as finance leases.

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.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		17

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


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
									Third-party revenue
	10,848			10,293			8,316		Integrated Gas		31,862			24,469
	1,769			2,346			1,654		Upstream		6,687			5,079
	87,518			84,119			65,843		Downstream		247,563			190,170
	16			7			17		Corporate		39			39
	100,151			96,765			75,830		Total third-party revenue¹		286,151			219,757

									Inter-segment revenue
	1,242			1,271			1,101		Integrated Gas		3,601			2,779
	10,526			9,494			7,991		Upstream		28,924			24,211
	1,559			1,927			1,142		Downstream		4,280			2,967
	—			—			—		Corporate		—			—

									CCS earnings
	2,116			3,358			1,217		Integrated Gas		7,865			4,230
	2,249			1,094			575		Upstream		5,197			(499	)
	1,709			1,168			2,405		Downstream		4,683			7,142
	(335	)		(273	)		(394	)	Corporate		(835	)		(1,578	)
	5,739			5,347			3,803		Total		16,910			9,295

^1.	Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Third quarter 2018 includes a charge of $1,078 million (Q2 2018: $1,047 million charge; nine months 2018: $1,591 million charge).

RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
	5,839			6,024			4,087		Income/(loss) attributable to Royal Dutch Shell plc shareholders		17,762			9,170
	202			164			125		Income/(loss) attributable to non-controlling interest		498			328

	6,041			6,188			4,212		Income/(loss) for the period		18,260			9,498
									Current cost of supplies adjustment:
	(381	)		(1,105	)		(528	)	Purchases		(1,760	)		(230	)
	95			273			145		Taxation		435			62
	(16	)		(9	)		(26	)	Share of profit/(loss) of joint ventures and associates		(25	)		(35	)

	(302	)		(841	)		(409	)	Current cost of supplies adjustment¹		(1,350	)		(203	)

	5,739			5,347			3,803		CCS earnings		16,910			9,295
									of which:
	5,570			5,226			3,698		CCS earnings attributable to Royal Dutch Shell plc shareholders		16,499			8,999
	169			121			105		CCS earnings attributable to non-controlling interest		411			296

^1.	The adjustment attributable to Royal Dutch Shell plc shareholders is a negative $269 million in the third quarter 2018 (Q2 2018: negative $798 million; Q3 2017: negative $389 million; nine months 2018: negative $1,263 million; nine months 2017: negative $171 million).


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		18

3.	Earnings per share

EARNINGS PER SHARE


Quarters						Nine months
Q3 2018	Q2 2018		Q3 2017			2018		2017
5,839		6,024		4,087	Income/(loss) attributable to Royal Dutch Shell plc shareholders ($ million)		17,762		9,170
					Weighted average number of shares used as the basis for determining:
8,290.3		8,309.4		8,249.6	Basic earnings per share (million)		8,301.4		8,206.1
8,353.1		8,376.0		8,324.9	Diluted earnings per share (million)		8,368.7		8,280.3

4.	Share capital

ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH¹

Number of shares

Nominal value ($ million)

Total

At January 1, 2018

4,597,136,050

3,745,486,731

387

309

696

Repurchases of shares

(43,054,969

)

—

)

—

)

At September 30, 2018

4,554,081,081

3,745,486,731

383

309

692

At January 1, 2017

4,428,903,813

3,745,486,731

374

309

683

Scrip dividends

115,510,804

—

At September 30, 2017

4,544,414,617

3,745,486,731

383

309

692

^1.	Share capital at September 30, 2018 also included 50,000 issued and fully paid sterling deferred shares of £1 each.

At Royal Dutch Shell plc’s Annual General Meeting on May 22, 2018, 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 €194 million (representing 2,771 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 22, 2019, and the end of the Annual General Meeting to be held in 2019, unless previously renewed, revoked or varied by Royal Dutch Shell plc in a general meeting.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		19

5.	Other reserves

OTHER RESERVES


$ million	Merger reserve			Share premium reserve		Capital redemption reserve		Share plan reserve			Accumulated other comprehensive 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		—			—		—		—			(670	)		(670	)
Transfer from other comprehensive income		—			—		—		—			(1,108	)		(1,108	)
Repurchases of shares		—			—		4		—			—			4
Share-based compensation		—			—		—		25			—			25

At September 30, 2018		37,298			154		88		1,465			(23,960	)		15,045

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		—			—		—		—			7,735			7,735
Scrip dividends		(9	)		—		—		—			—			(9	)
Share-based compensation		—			—		—		(309	)		—			(309	)

At September 30, 2017		37,302			154		84		1,335			(20,160	)		18,715

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 September 30, 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	September 30, 2018		December 31, 2017
Carrying amount		64,101		70,140
Fair value¹		66,643		74,650

^1.	Mainly determined from the prices quoted for these securities.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		20

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
	Q1 2017			Q2 2017			Q3 2017			Q4 2017			Full year 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


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		21

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


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
									Identified items before tax
	163			1,568			461		- Divestment gains/(losses)		2,356			322
	253			(418	)		(510	)	- Impairments		(582	)		(3,788	)
	(239	)		(218	)		(452	)	- Fair value accounting of commodity derivatives and certain gas contracts		(494	)		236
	(68	)		(166	)		(84	)	- Redundancy and restructuring		(171	)		(373	)
	(9	)		7			(195	)	- Other		51			(941	)

	100			773			(780	)	Total identified items before tax		1,160			(4,544	)

									Tax impact
	(41	)		(156	)		(137	)	- Divestment gains/(losses)		(207	)		60
	(143	)		13			105		- Impairments		(114	)		1,067
	70			104			54		- Fair value accounting of commodity derivatives and certain gas contracts		190			(30	)
	10			63			13		- Redundancy and restructuring		57			101
	(52	)		(260	)		275		- Impact of exchange rate movements on tax balances		(357	)		733
	2			(2	)		65		- Other		54			123

	(154	)		(238	)		375		Total tax impact		(377	)		2,054

									Identified items after tax
	122			1,412			324		- Divestment gains/(losses)		2,149			382
	110			(405	)		(405	)	- Impairments		(696	)		(2,721	)
	(169	)		(114	)		(398	)	- Fair value accounting of commodity derivatives and certain gas contracts		(304	)		206
	(58	)		(103	)		(71	)	- Redundancy and restructuring		(114	)		(272	)
	(52	)		(260	)		275		- Impact of exchange rate movements on tax balances		(357	)		733
	(7	)		5			(130	)	- Other		105			(818	)

	(54	)		535			(405	)	Impact on CCS earnings		783			(2,490	)

									Of which:
	(176	)		1,053			(65	)	Integrated Gas		829			598
	363			(363	)		13		Upstream		303			(1,940	)
	(301	)		(492	)		(263	)	Downstream		(753	)		(544	)
	60			337			(90	)	Corporate		404			(604	)

	—			—			—		Impact on CCS earnings attributable to non-controlling interest		—			(28	)

	(54	)		535			(405	)	Impact on CCS earnings attributable to shareholders		783			(2,462	)

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” in 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).


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		22

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. Shell also enters into contracts for tolling, pipeline and storage capacity. 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, as well as contracts for tolling, pipeline and storage capacity, 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 changes in tax 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 are recognised on an accruals basis.

The reconciliation of “Capital expenditure” to “Capital investment” is as follows.


Quarters							$ million	Nine months
Q3 2018			Q2 2018		Q3 2017			2018			2017
	5,800			5,275		5,018	Capital expenditure		15,864			14,984
	78			179		42	Investments in joint ventures and associates		672			393
	172			195		280	Exploration expense, excluding exploration wells written off		489			668
	184			37		312	Finance leases		403			744
	(404	)		85		90	Other¹		(644	)		439

	5,830			5,771		5,742	Capital investment		16,784			17,228
							Of which:
	862			804		1,148	Integrated Gas		2,977			2,784
	3,037			3,021		2,805	Upstream		8,537			10,163
	1,860			1,908		1,743	Downstream		5,137			4,208
	71			38		46	Corporate		133			73

^1.	Third quarter 2018 includes an adjustment of $541 million to negate the impact of an internal restructuring related to Upstream Brazil operations.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		23

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.


Quarters								$ million	Nine months
Q3 2018			Q2 2018		Q3 2017				2018		2017
	231			1,422		236		Proceeds from sale of property, plant and equipment and businesses		2,400		5,942

	935			163		874		Proceeds from sale of joint ventures and associates		1,119		1,956
	56			138		—		Share and contingent consideration¹		194		2,829
	—			—		275		Proceeds from sale of interests in entities while retaining control		673		278
	(609	)		779		(20	)	Other²		17		(139	)

	613			2,502		1,365		Divestments		4,403		10,866
								Of which:
	317			1,995		22		Integrated Gas		2,326		56
	222			486		187		Upstream		1,282		8,288
	20			21		1,156		Downstream		741		2,504
	54			—		—		Corporate		54		18

^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.	Third quarter 2018 includes an adjustment of $883 million to negate the impact of an internal restructuring related to Upstream Brazil operations. Second quarter 2018 includes $636 million from the sale of Shell’s shareholding in Malaysia LNG Tiga Sdn Bhd.

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
	Q3 2018			Q2 2018			Q3 2017
Income for current and previous three quarters		22,197			20,368			11,106
Interest expense after tax		2,435			2,604			3,088

Income before interest expense		24,632			22,972			14,194

Capital employed – opening		286,889			286,604			286,558
Capital employed – closing		279,864			281,711			286,889

Capital employed – average		283,376			284,158			286,723

ROACE		8.7	%		8.1	%		5.0	%

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.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		24

$ million

Quarters

Q3 2018

Q2 2018

Q3 2017

CCS earnings excluding identified items

20,019

18,498

13,256

Capital employed – average

283,376

284,158

286,723

ROACE on a CCS basis excluding identified items

7.1

6.5

4.6

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
	September 30, 2018			June 30, 2018			September 30, 2017
Current debt		13,923			9,924			8,675
Non-current debt		64,455			70,547			79,681

Total debt¹		78,378			80,471			88,356

Add: Debt-related derivative financial instruments: net liability/(asset)²		1,247			1,208			1,156
Less: Cash and cash equivalents		(19,112	)		(19,468	)		(20,699	)

Net debt		60,513			62,211			68,813

Add: Total equity		201,486			201,240			198,533

Total capital		261,999			263,451			267,346

Gearing³		23.1	%		23.6	%		25.7	%

^1.	Includes finance lease liabilities of $14,277 million at September 30, 2018, $14,464 million at June 30, 2018, and $15,400 million at September 30, 2017.

^2.	There were no collateral balances in the quarters presented.

^3.	Gearing as previously published at December 31, 2017, and at September 30, 2017, was 24.8% and 25.4% 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.


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
	6,256			6,988			6,497		Production and manufacturing expenses		20,167			20,089
	2,829			2,781			2,750		Selling, distribution and administrative expenses		8,198			7,556
	227			237			230		Research and development		672			662

	9,312			10,006			9,477		Operating expenses		29,037			28,307

									Of which identified items:
	(64	)		(162	)		(131	)	(Redundancy and restructuring charges)/reversal		(159	)		(413	)
	—			—			(149	)	(Provisions)/reversal		—			(177	)

	(64	)		(162	)		(280	)			(159	)		(590	)

	9,248			9,844			9,197		Underlying operating expenses		28,878			27,717


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		25

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 6.

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.


Quarters									$ million	Nine months
Q3 2018			Q2 2018			Q3 2017				2018			2017
	12,092			9,500			7,582		Cash flow from operating activities		31,064			28,375

	(1,693	)		(3,459	)		(1,237	)	- (Increase)/decrease in inventories		(4,871	)		(711	)
	(2,722	)		(3,061	)		(3,816	)	- (Increase)/decrease in current receivables¹		(6,466	)		(33	)
	1,788			4,374			3,776		- Increase/(decrease) in current payables¹		5,678			366

	(2,627	)		(2,146	)		(1,277	)	(Increase)/decrease in working capital²		(5,659	)		(378	)

	14,719			11,646			8,859		Cash flow from operating activities excluding working capital movements²		36,723			28,753

^1.	See Note 7 “Change in presentation of Consolidated Statement of Cash Flows”.

^2.

As previously published, working capital increased by $2,467 million in the third quarter 2017, and by $2,037 million in the first nine months 2017. Cash flow from operating activities excluding working capital movements, as previously published, was $10,049 million in the third quarter 2017, and $30,412 million in the first nine months 2017.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		26

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 US 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 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, November 1, 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 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. US 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.

This announcement contains inside information.

November 1, 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


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		27

APPENDIX

PORTFOLIO DEVELOPMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2018

Portfolio Developments for the six months ended June 30, 2018, can be found in the Royal Dutch Shell plc Form 6-K filed with the SEC on July 26, 2018.

LIQUIDITY AND CAPITAL RESOURCES FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018

•

Cash and cash equivalents decreased to $19.1 billion at September 30, 2018, from $19.5 billion at June 30, 2018.

•

Cash flow from operating activities was an inflow of $12.1 billion for the third quarter 2018, mainly driven by third quarter earnings and dividends from joint ventures and associates, partly offset by a negative movement in working capital.

•

Cash flow from investing activities was an outflow of $4.1 billion, mainly driven by capital expenditure of $5.8 billion, partly offset by proceeds from the sale of joint ventures and associates of $0.9 billion and other items totalling $0.4 billion.

•

Cash flow from financing activities was an outflow of $ 8.4 billion, mainly driven by dividend payments to Royal Dutch Shell plc shareholders of $3.9 billion, net repayments of debt of $2.0 billion and repurchases of shares of $1.4 billion.

•

Total current and non-current debt decreased to $78.4 billion at September 30, 2018, compared with $80.5 billion at June 30, 2018. Total debt excluding finance leases decreased by $1.9 billion and the carrying amount of finance leases decreased by $0.2 billion. No debt was issued in the third quarter 2018 under the US shelf registration or Euro medium-term note (EMTN) programmes.

•

Cash dividends paid to Royal Dutch Shell plc shareholders were $3.9 billion in the third quarter 2018, compared with $3.0 billion in the third quarter 2017. The scrip dividend programme has been cancelled with effect from the fourth quarter 2017 interim dividend. Under this programme, an additional $0.9 billion dividends were distributed in the third quarter 2017.

•

Dividends of $0.47 per share are announced on November 1, 2018, in respect of the third quarter 2018. These dividends are payable on December 19, 2018. In the case of B shares, the dividends will be payable through the dividend access mechanism and are expected to be treated as UK-source rather than Dutch-source. See the Annual Report and Form 20-F for the year ended December 31, 2017 for additional information on the dividend access mechanism.

LIQUIDITY AND CAPITAL RESOURCES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

•

Cash and cash equivalents decreased to $19.1 billion at September 30, 2018, from $20.7 billion at September 30, 2017.

•

Cash flow from operating activities was an inflow of $31.1 billion for the nine months ended September 30, 2018, mainly driven by earnings, partly offset by a negative movement in working capital.

•

Cash flow from investing activities was an outflow of $8.3 billion for the nine months ended September 30, 2018, mainly driven by capital expenditure of $15.9 billion, partially offset by other items of $4.1 billion (mainly related to the sale of shares in Canadian Natural Resources Limited) and by proceeds from the sale of property, plant and equipment and businesses of $2.4 billion.

•

Cash flow from financing activities was an outflow of $23.6 billion for the nine months ended 2018, mainly driven by dividend payments to Royal Dutch Shell plc shareholders of $11.8 billion, net repayments of debt of $6.9 billion, and interest payments of $2.6 billion.

•

Total current and non-current debt decreased to $78.4 billion at September 30, 2018, compared with $88.4 billion at September 30, 2017. Total debt excluding finance leases decreased by $8.9 billion and the carrying amount of finance leases decreased by $1.1 billion. No debt was issued during the nine months ended September 30, 2018 under the US shelf registration or EMTN programmes.

•

Cash dividends paid to Royal Dutch Shell plc shareholders were $11.8 billion for the nine months ended September 30, 2018, compared with $8.6 billion for the same period last year. Under the scrip dividend programme, an additional $3.1 billion dividends were distributed to Royal Dutch Shell plc shareholders in the first nine months of 2017.


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		28

CAPITALISATION AND INDEBTEDNESS

The following table sets out the unaudited consolidated combined capitalisation and indebtedness of Shell at September 30, 2018. This information is derived from the Unaudited Condensed Consolidated Financial Statements.

CAPITALISATION AND INDEBTEDNESS


	$ million
	September 30, 2018
Equity attributable to Royal Dutch Shell plc shareholders		197,533

Current debt		13,923
Non-current debt		64,455
Total debt^[A]		78,378
Total capitalisation		275,911

[A] Of the total carrying amount of debt at September 30, 2018, $64.1 billion was unsecured, $14.3 billion was secured and $53.4 billion was issued by Shell International Finance B.V., a 100%-owned subsidiary of Royal Dutch Shell plc with its debt guaranteed by Royal Dutch Shell plc (December 31, 2017: $58.5 billion).

RATIO OF EARNINGS TO FIXED CHARGES

The following table sets out the consolidated unaudited ratio of earnings to fixed charges for the years ended December 31, 2013, 2014, 2015, 2016, 2017 and the nine months ended September 30, 2018:


	$ million
	Nine months ended September 30			Years ended December 31
	2018			2017			2016			2015			2014			2013
Pre-tax income from continuing operations before income from joint ventures and associates		24,959			13,905			2,061			(1,480	)		22,198			26,317
Total fixed charges		3,281			4,270			3,508			2,495			2,113			1,710
Distributed income from joint ventures and associates		3,368			4,998			3,820			4,627			6,902			7,117
Interest capitalised		(653	)		(622	)		(725	)		(839	)		(757	)		(762	)
Total earnings		30,955			22,551			8,664			4,803			30,456			34,382
Interest expensed and capitalised		2,738			3,562			2,736			1,795			1,522			1,412
Interest within rental expense		543			708			772			700			591			298
Total fixed charges		3,281			4,270			3,508			2,495			2,113			1,710
Ratio of earnings to fixed charges		9.43			5.28			2.47			1.93			14.41			20.11

For the purposes of the table above, “earnings” consists of pre-tax income from continuing operations (before adjustment for non-controlling interest) plus fixed charges (excluding capitalised interest) less undistributed income of joint ventures and associates. Fixed charges consist of expensed and capitalised interest (excluding accretion expense) plus interest within rental expenses (for operating leases).


Royal Dutch Shell plc		Unaudited Condensed Interim Financial Report		29