FORM 6-K

UNITED STATES

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

Commission File Number: 1-32575

Royal Dutch Shell plc

England and Wales

30, Carel van Bylandtlaan, 2596 HR The Hague

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-                    

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Royal Dutch Shell plc

Exhibit		Description
No.
99.1		Regulatory release.
99.2		Royal Dutch Shell plc Financial Report 2004.
23.1		Consent of KPMG Audit Plc and PricewaterhouseCoopers LLP.

This Report on Form 6-K is incorporated by reference into the Registration Statement on Form F-4 (the “Form F-4”) of Royal Dutch Shell plc filed with the Securities and Exchange Commission on May 18, 2005 and the related U.S. prospectus dated May 19, 2005 (the “Prospectus”) filed with the Securities and Exchange Commission on such date by Royal Dutch Shell plc in connection with the exchange offer by Royal Dutch Shell plc for the outstanding ordinary shares of Royal Dutch Petroleum Company. In accordance with Rule 412 under the Securities Act of 1933, as amended, the Audited Consolidated Financial Statements attached hereto and thereby incorporated by reference into the Form F-4 and the Prospectus supersede for purposes of the Form F-4 and the Prospectus the following audited financial statements:

(a)	the Audited Financial Statements of Royal Dutch Shell plc that appear in the Form F-4;
(b)	the Audited Financial Statements of Royal Dutch Petroleum Company that appear in the Annual Report on Form 20-F/ A of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c. (“Shell Transport”) for the year ending December 31, 2004 (the “2004 20-F/ A”);
(c)	the Audited Financial Statements of Shell Transport that appear in the 2004 20-F/ A;
(d)	the Netherlands GAAP Audited Financial Statements of the Royal Dutch/ Shell Group of Companies that appear in the 2004 20-F/ A; and
(e)	the US GAAP Audited Financial Statements of the Royal Dutch/ Shell Group of Companies that appear in the 2004 20-F/ A.

END

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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

By:	/S/ JEROEN VAN DER VEER

By:	/S/ MICHIEL BRANDJES

Date: July 20, 2005

 

Exhibit 99.1

Regulatory release

Royal Dutch Shell plc

Today, Royal Dutch Shell plc released its Consolidated Financial Statements 2004 prepared under Accounting Principles Generally Accepted in the United States, including notes.

The Consolidated Financial Statements and related report published today give retroactive effect for the periods presented to the unification of Royal Dutch Petroleum Company (Royal Dutch) and The “Shell” Transport and Trading Company, p.l.c. (Shell Transport) under one company, Royal Dutch Shell plc, which has been accounted for using a carry-over basis of the historical costs of the assets and liabilities of the Royal Dutch/Shell Group, Royal Dutch and Shell Transport as described therein. The Consolidated Financial Statements and related report can be downloaded from www.shell.com/results or www.sec.gov.

Contact — Investor Relations
UK:		David Lawrence		+44 20 7934 3855
UK:		Gerard Paulides		+44 20 7934 6287
Continental Europe:		Bart van der Steenstraten		+31 70 377 3996
USA:		Harold Hatchett		+1 212 218 3112
Contact — Media
UK & International:		Stuart Bruseth		+44 20 7934 6238
		Andy Corrigan		+44 20 7934 5963
		Simon Buerk		+44 20 7934 3453
		Lisa Givert		+44 20 7934 2914
		Bianca Ruakere		+44 20 7934 4323
		Bernadette Cunnane		+44 20 7934 2713
		Susan Shannon		+44 20 7934 3277
The Netherlands:		Shell Media contact		+31 70 377 8750

 

Exhibit 99.2

Royal Dutch Shell plc

Financial Report 2004

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Financial Report 2004

This report contains:

(1)	A Supplemental Discussion and Analysis of Financial Condition and Results of Operations with respect to Royal Dutch Shell plc, a publicly-listed company incorporated in England and Wales and headquartered and tax resident in The Netherlands (“Royal Dutch Shell”), that supplements the Discussion and Analysis of Financial Condition and Results of Operations of the Royal Dutch/ Shell Group of Companies (the “Royal Dutch/Shell Group”) contained in the Annual Report on Form 20-F/ A of Royal Dutch Petroleum Company (N.V. Koninklijke Nederlandsche Petroleum Maatschappij) (“Royal Dutch”) and The “Shell” Transport and Trading Company, plc (“Shell Transport”) for the year ending December 31, 2004 (the “2004 20-F/ A”), the predecessors to Royal Dutch Shell;
(2)	Selected Financial Data for the five years ending December 31, 2004; and
(3)	Audited Consolidated Financial Statements and unaudited1 supplementary information of Royal Dutch Shell for the three years ending December 31, 2004.

This report contains forward-looking statements that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business as well as risks related to the unification of Royal Dutch and Shell Transport under Royal Dutch Shell, described below and reflected in the audited Consolidated Financial Statements attached hereto. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables which could cause actual results, trends or reserves replacement to differ materially, including, but not limited to the costs related to the unification transaction; the failure of the unification transaction to achieve the expected benefits; changes in dividend policy; the development of the trading market in Royal Dutch Shell shares; tax treatment of dividends paid to shareholders; the accounting implications of the unification transaction and other factors affecting the Royal Dutch/Shell Group’s businesses generally, including, but not limited to, price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, risks associated with the identification of suitable potential acquisition properties and targets and successful negotiation and consummation of such transactions, the risk of doing business in developing countries, legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Each forward-looking statement speaks only as of the date of the particular statement. Please refer to the 2004 20-F/A for a description of certain important factors, risks and uncertainties that may affect the businesses of Royal Dutch Shell and its consolidated subsidiaries.

Supplemental

Royal Dutch Shell plc

This Supplemental Discussion and Analysis of Financial Condition and Results of Operations with respect to Royal Dutch Shell supplements the Discussion and Analysis of Financial Condition and Results of Operations of the Royal Dutch/ Shell Group contained in the 2004 20-F/ A (the “Pre-Transaction MD&A”) to reflect the material changes to the Pre-Transaction MD&A following the unification of Royal Dutch and Shell Transport under Royal Dutch Shell, as reflected in the audited Consolidated Financial Statements attached hereto. This discussion does not purport to restate the Pre-Transaction MD&A.

Unification of Royal Dutch and Shell Transport

1	Reserves, reserves volumes and reserves related information and disclosure are referred to as “unaudited” as a means to clarify that this information is not covered by the audit opinion of the registered independent public accounting firms that have audited and reported on the Consolidated Financial Statements of Royal Dutch Shell.

Royal Dutch Shell plc

Financial Report 2004	1

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Pursuant to the Transaction on July 20, 2005, the terms of the Exchange Offer and the Scheme, holders of ordinary shares of Royal Dutch (“Royal Dutch Ordinary Shares”), holders or Shell Transport ordinary shares (the “Shell Transport Ordinary Shares”), holders of Shell Transport bearer warrants and holders of American depositary receipts representing Shell Transport Ordinary Shares (the “Shell Transport ADRs”) received, respectively:

•   for each Royal Dutch Ordinary Share held in New York registry form tendered:		1 Royal Dutch Shell Class A American depositary receipt (representing 2 Royal Dutch Shell Class A ordinary shares)
•   for each Royal Dutch Ordinary Share held in bearer or Hague registry form tendered:		2 Royal Dutch Shell Class A ordinary shares
•   for each Shell Transport Ordinary Share (including Shell Transport Ordinary Shares to which holders of Shell Transport bearer warrants are entitled):		0.287333066 Royal Dutch Shell Class B ordinary shares
•   for each Shell Transport ADR:		0.861999198 Royal Dutch Shell Class B American depositary receipts (representing 2 Royal Dutch Shell Class B ordinary shares)

Royal Dutch Shell Class A ordinary shares and Royal Dutch Shell Class B ordinary shares are identical, except for the dividend access mechanism described more fully in Royal Dutch Shell’s Report on Form 6-K previously furnished to the U.S. Securities and Exchange Commission on July 20, 2005 (containing the description of the Royal Dutch Shell capital stock), which will only apply to the Class B ordinary shares.

Accounting of the Transaction

The Transaction did not affect the operating cash flow, liquidity or capital resources reflected in the Pre-Transaction MD&A, as all cash flow, other than interest income and interest expense of Royal Dutch and Shell Transport that are not material in relation to that of the Royal Dutch/ Shell Group, and other material financial activities arise at the Royal Dutch/ Shell Group level.

Consolidated Statement of Income

	Royal Dutch Shell plc
	Financial Report 2004

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Consolidated Balance Sheet

	•	the elimination of dividends payable by the Royal Dutch/ Shell Group to Royal Dutch and Shell Transport as at December 31, 2004 and 2003 of $4,750 million and $5,123 million, respectively. These dividends were included within “Accounts receivable” in the Royal Dutch and Shell Transport Balance Sheet and “Dividends payable” in the Royal Dutch/ Shell Group Balance Sheet.
	•	the elimination of short-term deposits by Royal Dutch with a Royal Dutch/ Shell Group company as at December 31, 2004 and 2003 of $60 million and $458 million, respectively, and the elimination of a $6 million amount payable by Royal Dutch Shell to a Royal Dutch/ Shell Group company as at December 31, 2004. The deposits were included within “Accounts receivable” in the Royal Dutch Balance Sheet and “Short-term debt” in the Royal Dutch/ Shell Group Balance Sheet. The amount payable by Royal Dutch Shell was included within “Accounts receivable” in the Royal Dutch/ Shell Group Balance Sheet and “Accounts payable and accrued liabilities” in the Royal Dutch Shell Balance Sheet.
	•	the elimination of short-term deposits of $391 million by Royal Dutch Shell with a Royal Dutch/ Shell Group company as at December 31, 2004, previously reflected within “Accounts payable and accrued liabilities” in the Royal Dutch/ Shell Group Balance Sheet and “Investments” in the Royal Dutch Shell Balance Sheet.

The Shell Group Balance Sheet as at December 31, 2004 and 2003, after giving effect to the Transaction, also reflects the inclusion of cash and cash equivalents previously held by Royal Dutch and Shell Transport of $737 million and $165 million, respectively.

Recent Developments

The United States Securities and Exchange Commission (the “SEC”) and UK Financial Services Authority (the “FSA”) issued formal orders of private investigation in relation to the reserves recategorisation which Royal Dutch and Shell Transport resolved by reaching agreements with the SEC and the FSA. In connection with the agreement with the SEC, Royal Dutch and Shell Transport consented, without admitting or denying the SEC’s findings or conclusions, to an administrative order finding that Royal Dutch and Shell Transport violated, and requiring Royal Dutch and Shell Transport to cease and desist from future violations of, the antifraud, reporting, recordkeeping and internal control provisions of the US Federal securities laws and related SEC rules, agreed to pay a $120 million civil penalty and has undertaken to spend an additional $5 million developing a comprehensive internal compliance program. In connection with the agreement with the FSA, Royal Dutch and Shell Transport agreed, without admitting or denying the FSA’s findings or conclusions, to the entry of a Final Notice by the FSA finding that Royal Dutch and Shell Transport breached market abuse provisions of the UK’s Financial Services and Markets Act 2000 and the Listing Rules made under it and agreed to pay a penalty of £17 million. The penalties from the SEC and FSA and the additional amount to develop a comprehensive internal compliance program have been paid by Shell Group companies and fully included in the Income Statement of the Shell Group for the year 2004. The United States Department of Justice commenced a criminal investigation but made a determination not to prosecute. Euronext Amsterdam, The Dutch Authority Financial Markets (the “AFM”) and the California Department of Corporations are investigating the issues related to the reserves recategorisation. Management of the Shell Group cannot currently predict the manner and timing of the resolution of these pending matters and is currently unable to estimate the range of reasonably possible losses from such matters. The AFM have announced that their findings do not give rise to any further actions from their side at this time.

Royal Dutch Shell plc

Financial Report 2004	3

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Sakhalin

The project is midway through construction and will provide critical oil and gas infrastructure to Sakhalin Island. Significant milestones have been achieved at the LNG plant, onshore processing facility and the installation of the first gravity based structure offshore. Pipeline construction continues to make good progress and the second gravity based structure is expected to be installed next month.

The cost and schedule estimates are still under review by SEIC and SEIC shareholders, who are focused on aggressively pursuing mitigation actions. SEIC will be working closely with Russian authorities and state experts to review revised plans and budgets.

Looking beyond Sakhalin II, the Shell Group’s overall capital investment programme will reflect its recently announced new project opportunities such as Qatar LNG, Nigeria LNG and Libya, as well as market inflation specific to large construction projects and foreign exchange rate movements. The overall Shell Group investment programme, including these projects and Sakhalin II, will be subject to review, consideration and approval by the Royal Dutch Shell Board later in 2005. The latest estimate for the Shell Group’s 2005 total capital investment, across all its business activities, remains in the order of some $15 billion (excluding the 45% minority share of Sakhalin II held by Mitsui Sakhalin Holdings BV (25%) and Diamond Gas Sakhalin BV – a subsidiary of Mitsubishi Corporation – (20%)).

	Royal Dutch Shell plc
	Financial Report 2004

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Shell Group

Selected Financial Data
Income data														$ million
						2003				2002				2001				2000
		2004
Sales proceeds
Oil and gas			308,660				243,566				202,861				149,005				161,219
Chemicals			27,780				19,459				14,659				13,767				15,658
Other			1,082				864				767				589				481
Gross proceeds			337,522				263,889				218,287				163,361				177,358
Sales taxes, excise duties and similar levies			72,332				65,527				54,834				40,908				41,122
Net proceeds			265,190				198,362				163,453				122,453				136,236
Earnings by industry segment
Exploration & Production			8,957				8,590				6,641				7,882				9,902
Gas & Power			2,069				2,270				747				1,199				92
Oil Products			6,281				2,821				2,485				1,919				3,371
Chemicals			930				(209	)			565				127				1,031
Other industry segments			(141	)			(267	)			(110	)			(287	)			(12	)
Total operating segments			18,096				13,205				10,328				10,840				14,384
Corporate			(848	)			(810	)			(669	)			(196	)			(691	)
Minority interests			(626	)			(353	)			(175	)			(360	)			(357	)
Income from continuing operations			16,622				12,042				9,484				10,284				13,336
Income from discontinued operations, net of tax a			1,560				25				187				37				(508	)
Cumulative effect of a change in accounting principle, net of tax			–				255				–				–				–
Net income			18,182				12,322				9,671				10,321				12,828

Balance sheet data (at December 31)																		$ million
Total fixed and other long-term assets			130,963				125,946				111,476				80,729				76,836
Net current assets/(liabilities)			7,153				(5,059	)			(7,627	)			3,930				10,734
Total debt			14,362				19,669				19,082				5,820				7,427
Net assets			90,545				78,251				66,195				62,822				64,572
Minority interests			5,309				3,415				3,568				3,466				2,897
Capital employedb			110,216				101,335				88,845				72,108				74,896

Cash flow data																		$ million
Cash flow provided by operating activities			25,600				21,983				15,768				16,936				18,312
Capital expenditure (including acquisitions)			12,734				12,252				21,027				9,598				6,128
Cash flow used in investing activities			5,644				8,253				20,632				9,080				1,490
Dividends paid			7,660				6,832				5,750				5,409				5,423
Cash flow used in financing activities			12,476				12,864				10				11,365				9,074
Increase/(decrease) in cash and cash equivalents			7,091				408				(5,545	)			(4,552	)			7,476
Other statistics
Total debt ratiob			13.0%				19.4%				21.5%				8.1%				9.9%
a  Income from discontinued operations comprises:

$ million
		2004				2003				2002				2001				2000
Earnings by industry segment
Exploration & Production			358				78				85				29				(31	)
Gas & Power			86				19				27				27				21
Oil Products			1,256				39				142				51				(689	)
Chemicals			–				–				–				–				–
Other industry segments			–				–				–				–				–
Corporate			(52	)			(98	)			(67	)			(104	)			(119	)
Minority interests			(88	)			(13	)			–				34				310
			1,560				25				187				37				(508	)

b

The debt ratio is defined as short-term plus long-term debt as a percentage of capital employed. Capital employed is Shell Group net assets before deduction of minority interests plus short-term and long-term debt. Management of the Shell Group believes that the debt ratio calculated on this basis (rather than the ratio of total debt to shareholders equity) is useful to investors because it takes account of all amounts of capital employed in the business. Management uses this measure to assess the level of debt relative to the capital invested in the business. The derivation of capital employed from Shell Group net assets is shown in the table above.

Royal Dutch Shell plc

Financial Report 2004	5

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Capital investment							$ million
			2004				2003				2002				2001				2000
Capital expenditurea
	Exploration & Production			8,387				8,129				13,064				6,847				3,720
	Gas & Power			1,357				1,021				471				313				288
	Oil Products			2,404				2,367				7,653				1,462				1,258
	Chemicals			366				470				680				685				726
	Other			220				265				494				291				136
				12,734				12,252				22,362				9,598				6,128
Exploration expenses				1,123				1,059				997				885				834
New equity investments in associated companies				681				758				684				704				605
New loans to associated companies				377				225				605				370				556
Other investments				–				–				–				224				414
Total capital investment*				14,915				14,294				24,648				11,781				8,537
*comprising
	Exploration & Production			9,868				9,337				14,151				8,191				4,979
	Gas & Power			1,633				1,511				953				963				835
	Oil Products			2,466				2,405				7,968				1,527				1,571
	Chemicals			705				599				998				760				978
	Other			243				442				578				340				174
				14,915				14,294				24,648				11,781				8,537

a	Includes the acquisitions in 2002 of Enterprise Oil, Pennzoil-Quaker State, the outstanding shares in DEA and in Equilon. The payment of $1.3 billion relating to DEA was made in 2003.

Shell Group															per €0.07 ordinary sharea
			2004				2003				2002				2001				2000
Net assets – $				13.07				11.27				9.49				8.91				9.04
Total assets – $				27.94				24.45				21.98				15.88				17.31
Basic earnings – $a,b				2.69				1.81				1.41				1.45				1.80
	from continuing operations			2.46				1.77				1.38				1.45				1.87
	from discontinued operations			0.23				–				0.03				–				(0.07	)
	cumulative effect of a change in accounting principle, net of tax			–				0.04				–				–				–
Diluted earnings – $a,b				2.68				1.81				1.41				1.45				1.79
	from continuing operations			2.45				1.77				1.38				1.45				1.86
	from discontinued operations			0.23				–				0.03				–				(0.07	)
	cumulative effect of a change in accounting principle, net of tax			–				0.04				–				–				–
Dividends declared by Royal Dutch – €				1.79				1.76				1.72				1.66				1.59
Dividends declared by Royal Dutch – $				2.23				2.06				1.80				1.50				1.40
Dividends declared by Shell Transport – pence				0.17				0.16				0.15				0.15				0.15
Dividends declared by Shell Transport – $				0.32				0.27				0.24				0.22				0.21
Equivalent dividend declared by Royal Dutch Shell – $				1.07				0.94				0.79				0.70				0.68

a	Earnings per Royal Dutch Shell Class A ordinary and Class B ordinary shares are identical. The historical earnings per share following the unification transaction have been accounted for on a carry over basis using the aggregate weighted average outstanding shares of the constituent businesses adjusted to the equivalent shares of the combined company for all periods presented.
b	The basic earnings per share amounts shown are related to profit after taxation. The 2004 calculation uses a weighted-average number of shares of 6,770,458,923 (2003: 6,811,314,175; 2002: 6,876,188,213; 2001: 7,100,044,876; 2000: 7,145,691,840). The basic earnings per share number has been restated to exclude shares held by Shell Group companies for stock options and other incentive compensation plans. For the purpose of the calculation, shares repurchased under the buyback programme are deemed to have been cancelled on purchase date.
	The diluted earnings per share are based on the same profit figures. For this calculation, the following weighted-average number of shares are used. 2004: 6,776,396,453; 2003: 6,813,444,740; 2002: 6,878,412,716; 2001: 7,105,915,746; 2000: 7,153,415,313. The difference between the basic and diluted number of shares relates to stock option schemes as mentioned above.

	Royal Dutch Shell plc
	Financial Report 2004

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Index to Consolidated Financial Statements

Report of the Independent Registered Public Accounting Firms
Consolidated Statement of Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Shareholder’s Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Supplementary Information — Oil and Gas (Unaudited)
Reserves
Standardised measure of discounted future cash flows
Supplementary Information — Derivatives and other Financial Instruments and Derivative Commodity Instruments

Royal Dutch Shell plc

Financial Report 2004	7

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Report of the Independent Registered Public Accounting Firms

To the Board of Directors and Shareholders of Royal Dutch Shell plc:

We have audited the accompanying consolidated balance sheets of Royal Dutch Shell plc and its subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of income, of changes in shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2004. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the consolidated financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management in the preparation of the consolidated financial statements, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Royal Dutch Shell plc and its subsidiaries at December 31, 2004 and 2003 and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2004, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 on pages 13 to 14, the consolidated financial statements give retroactive effect to the Transaction for all periods presented using a carry-over basis of the historical costs of the assets and liabilities of the Royal Dutch / Shell Group of Companies, Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c on a 100% basis without giving effect to any minority interests in the Royal Dutch Petroleum Company arising from the Transaction.

/s/ KPMG Accountants N.V.

/s/ PricewaterhouseCoopers LLP

March 29, 2005, except for Note 1 (Basis of Presentation — Royal Dutch Shell plc) which is as of July 20, 2005.

	Royal Dutch Shell plc
	Financial Report 2004

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Consolidated Statement of Income			$ million
			Note				2004				2003				2002
Sales proceeds								337,522				263,889				218,287
Sales taxes, excise duties and similar levies								72,332				65,527				54,834
Net proceedsa								265,190				198,362				163,453
Cost of salesb								221,678				165,147				135,658
Gross profit								43,512				33,215				27,795
Selling and distribution expenses								12,340				11,409				9,617
Administrative expenses								2,542				1,887				1,598
Exploration								1,823				1,475				1,052
Research and development								553				584				472
Operating profit of Shell Group companies								26,254				17,860				15,056
Share of operating profit of associated companies				4				5,653				3,446				2,792
Operating profit								31,907				21,306				17,848
Interest and other income				5				1,730				1,996				782
Interest expense				6				1,213				1,324				1,291
Currency exchange gains/(losses)								(39	)			(231	)			(25	)
Income before taxation								32,385				21,747				17,314
Taxation				7				15,137				9,352				7,655
Income after taxation								17,248				12,395				9,659
Income applicable to minority interests								626				353				175
Income from continuing operations								16,622				12,042				9,484
Income from discontinued operations, net of tax				3				1,560				25				187
Cumulative effect of a change in accounting principle, net of tax				2				–				255				–
Net income								18,182				12,322				9,671
Net income per sharec								2.69				1.81				1.41
Diluted net income per shared								2.68				1.81				1.41
a Includes net proceeds related to buy/sell contracts:				2				24,744				19,795				14,267
b Includes costs related to buy/sell contracts:				2				24,719				19,713				14,419
c Net income per share
	– Continuing operations							2.46				1.77				1.38
	– Discontinued operations							0.23				–				0.03
	– Cumulative effect of a change in accounting principle, net of tax							—				0.04				—
d Diluted net income per share
	– Continuing operations							2.45				1.77				1.38
	– Discontinued operations							0.23				–				0.03
	– Cumulative effect of a change in accounting principle, net of tax							—				0.04				—

Royal Dutch Shell plc

Financial Report 2004	9

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Consolidated Balance Sheet				$ million
								Dec 31,				Dec 31,
				Note				2004				2003
Fixed assets
	Tangible assets				8				88,940				87,088
	Intangible assets				8				4,890				4,735
	Investments:
		associated companies			4				19,743				19,371
		securities			12				1,627				2,317
		other							1,121				1,086
Total fixed assets									116,321				114,597
Other long term assets
	Prepaid pension costs				20				8,278				6,516
	Deferred taxation				7				1,995				2,092
	Other				9				4,369				2,741
Total other long-term assets									14,642				11,349
Current assets
	Inventories				10				15,391				12,690
	Accounts receivable				11				38,063				29,013
	Cash and cash equivalents				12				9,208				2,117
Total current assets									62,662				43,820
Current liabilities: amounts due within one year
	Short-term debt				13				5,762				10,569
	Accounts payable and accrued liabilities				15				39,862				32,383
	Taxes payable				7				9,885				5,927
Total current liabilities									55,509				48,879
Net current assets/(liabilities)									7,153				(5,059	)
Total assets less current liabilities									138,116				120,887
Long-term liabilities: amounts due after more than one year
	Long-term debt				13				8,600				9,100
	Other				16				8,065				6,054
									16,665				15,154
Provisions
	Deferred taxation				7				14,844				15,185
	Pensions and similar obligations				20				5,044				4,927
	Decommissioning and restoration costs				23				5,709				3,955
									25,597				24,067
Group net assets before minority interests									95,854				81,666
Minority interests									5,309				3,415
Net assets									90,545				78,251
Shareholders’ equity
	Equity share capital				18				586				587
	Preference shares				18				20				20
	Additional paid in capital				17				5,374				5,372
	Treasury sharesa				17				(4,187	)			(3,428	)
	Other comprehensive income				17				(792	)			(3,836	)
	Retained earnings				17				89,544				79,536
									90,545				78,251
a Comprises 177 million shares at December 31, 2004 (2003: 144 million).

	Royal Dutch Shell plc
	Financial Report 2004

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Consolidated Statement of Changes in Shareholders’ Equity
(see note 17)			$ million
							2004				2003				2002
Shareholders’ equity at 1 January								78,251				66,195				62,822
Earnings reinvested:
	Net income for the year							18,182				12,322				9,671
	Less dividends							(7,396	)			(6,532	)			(5,522	)
								10,786				5,790				3,945
Other comprehensive income, net of tax:
	Currency translation differences							3,548				5,795				3,108
	Unrealised gains/(losses) on securities							(350	)			689				25
	Unrealised gains/(losses) on cash flow hedges							31				51				(225	)
	Minimum pension liability adjustments							(185	)			358				(1,475	)
								3,044				6,893				1,433
Common stock held in treasury:
	Purchase of treasury shares							(848	)			(715	)			(981	)
	Release of treasury shares							—				21				52
	Dividends received							89				63				85
								(759	)			(631	)			(844	)
(Share buy backs)/cancellations								(777	)			4				(1,365	)
Shareholders’ equity at 31 December								90,545				78,251				66,195

Royal Dutch Shell plc

Financial Report 2004	11

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Consolidated Statement of Cash Flows (see Note 19)					$ million
					Note				2004				2003				2002
Cash flow provided by operating activities
	Net income:									18,182				12,322				9,671
	Adjustments to reconcile net income to cash flow provided by operating activities									–				–				–
		Depreciation, depletion and amortisation				8				12,273				11,711				8,739
		Profit on sale of assets								(3,033	)			(2,141	)			(367	)
		Movements in:								–				–				–
			inventories							(2,731	)			(236	)			(2,079	)
			accounts receivable							(8,462	)			1,834				(5,830	)
			accounts payable and accrued liabilities							7,317				(212	)			6,989
			taxes payable							2,997				(223	)			(744	)
		Associated companies: dividends more/(less) than net income				4				258				511				117
		Deferred taxation and other provisions								(524	)			(621	)			423
		Long-term liabilities and other								(1,391	)			(1,328	)			(1,326	)
		Income applicable to minority interests								714				366				175
Cash flow provided by operating activities										25,600				21,983				15,768
Cash flow used in investing activities
	Capital expenditure (including capitalised leases)					8				(12,734	)			(12,252	)			(12,102	)
	Acquisitions (Enterprise Oil, Penzoil-Quaker State and additional shares in Equilon)									–				–				(8,925	)
	Proceeds from sale of assets									5,078				2,286				1,099
	New investments in associated companies					4				(1,058	)			(983	)			(1,289	)
	Disposals of investments in associated companies									1,327				708				501
	Proceeds from sale and other movements in investments									1,743				1,988				84
Cash flow used in investing activities										(5,644	)			(8,253	)			(20,632	)
Cash flow used in financing activities
	Long-term debt (including short term part)
		new borrowings								544				572				5,267
		repayments								(1,688	)			(2,740	)			(5,610	)
										(1,144	)			(2,168	)			(343	)
	Net increase/(decrease) in short-term debt									3,698				(2,501	)			7,075
	Change in minority interests									807				(1,363	)			421
	Repurchase of share capital, including expenses									(781	)			–				(1,393	)
	Dividends paid to Royal Dutch and Shell Transport shareholders									(7,396	)			(6,532	)			(5,522	)
	Dividends paid to minority interests									(264	)			(300	)			(228	)
Cash flow used in financing activities										(12,476	)			(12,864	)			10
Net investments in treasury stock and dividends received										(758	)			(633	)			(864	)
Currency translation differences relating to cash and cash equivalents										369				175				173
Increase/(decrease) in cash and cash equivalents										7,091				408				(5,545	)
Cash and cash equivalents at January 1										2,117				1,709				7,254
Cash and cash equivalents at December 31										9,208				2,117				1,709

	Royal Dutch Shell plc
	Financial Report 2004

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Notes to the Consolidated Financial Statements

1 Basis of Presentation — Royal Dutch Shell plc

Pursuant to the terms of the Exchange Offer and the Scheme, holders of ordinary shares of Royal Dutch (“Royal Dutch Ordinary Shares”), holders or Shell Transport ordinary shares (the “Shell Transport Ordinary Shares”), holders of Shell Transport bearer warrants and holders of American depositary receipts representing Shell Transport Ordinary Shares (the “Shell Transport ADRs”) received, respectively:

•   for each Royal Dutch Ordinary Share held in New York registry form tendered:		1 Royal Dutch Shell Class A American depositary receipt (representing 2 Royal Dutch Shell Class A ordinary shares)
•   for each Royal Dutch Ordinary Share held in bearer or Hague registry form tendered:		2 Royal Dutch Shell Class A ordinary shares
•   for each Shell Transport Ordinary Share (including Shell Transport Ordinary Shares to which holders of Shell Transport bearer warrants are entitled):		0.287333066 Royal Dutch Shell Class B ordinary shares
•   for each Shell Transport ADR:		0.861999198 Royal Dutch Shell Class B American depositary receipts (representing 2 Royal Dutch Shell Class B ordinary shares)

These Consolidated Financial Statements are considered historical Consolidated Financial Statements giving retroactive effect to the Transaction, for all periods presented which has been accounted for using a carry-over basis of the historical costs of the assets and liabilities of the Royal Dutch/ Shell Group, Royal Dutch and Shell Transport. These financial statements reflect the financial position and results of the Shell Group on a 100% basis without giving effect to any minority interests in Royal Dutch resulting from the Transaction. The Consolidated Financial Statements covering periods ending on or after the date of consummation of the Transaction will give effect to any minority interest in Royal Dutch outstanding on the date thereof.

Royal Dutch and Shell Transport entered into a scheme of amalgamation dated September 12, 1906 and agreements from 1907 by which the scheme of amalgamation was implemented and pursuant to which they “amalgamated” their interests in the oil industry in a transaction has been accounted for as one that involves a single economic entity, based on the history of the operation and management of Royal Dutch, Shell Transport and the Royal Dutch/Shell Group. Since that time, Royal Dutch has owned 60% of the Royal Dutch/ Shell Group and Shell Transport has owned 40% of the Royal Dutch/ Shell Group. All operating activities have been conducted through the Royal Dutch/ Shell Group and the Royal Dutch/ Shell Group has operated as a single economic enterprise. Prior to the consummation of the Transaction, economic interests of the Royal Dutch and Shell Transport shareholders in the Royal Dutch/ Shell Group reflected the 60:40 economic interests of Royal Dutch and Shell Transport in the Royal Dutch/ Shell Group. The Transaction had little impact on the economic rights and exposures of shareholders of Royal Dutch and Shell Transport, as the separate assets and liabilities of Royal Dutch and Shell Transport are not material in relation to their interests in the Royal Dutch/ Shell Group, and the Transaction did not result in the acquisition of any new businesses or operating assets and liabilities. In addition, the Transaction did not affect the proved oil and gas reserve information reported by the Royal Dutch/ Shell Group, Royal Dutch and Shell Transport.

The basic earnings per share amounts shown relate to profit after taxation. The 2004 calculation uses a weighted-average number of shares of 6,770,458,923 (2003: 6,811,314,175; 2002: 6,876,188,213). The basic earnings per share number has been restated to exclude

Royal Dutch Shell plc

Financial Report 2004	13

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shares held by Shell Group companies for stock options and other incentive compensation plans. For the purpose of the calculation, shares repurchased under the buy-back programme are deemed to have been cancelled on purchase date.

The diluted earnings per share are based on the same profit figures. For this calculation, the following weighted-average number of shares are used: 2004: 6,776,396,453; 2003: 6,813,444,740; 2002: 6,878,412,716. The difference between the basic and diluted number of shares relates to stock option schemes as mentioned above.

2 Accounting policies

Shell Group companies are engaged in all principal aspects of the oil and natural gas industry. They also have interests in chemicals and additional interests in power generation and renewable energy (chiefly in wind and solar energy). The Shell Group conducts its business through five principal segments, Exploration & Production, Gas & Power, Oil Products, Chemicals and Other businesses. These activities are conducted in more than 140 countries and territories and subject to changing economic, regulatory and political conditions.

US accounting pronouncement FIN 46 (Consolidation of Variable Interest Entities) was implemented in 2003 with a consequential increase in the Shell Group’s tangible fixed assets and debt of $3.4 billion as of September 30, 2003, mainly relating to power generation contracts (“tolling agreements”) which were previously accounted for as executory contracts and marked to market.

Investments in companies over which Shell Group companies have significant influence but not control are classified as associated companies and are accounted for on the equity basis. Investments in companies over which the Shell Group has no significant influence are stated at cost and dividends received from these companies are accounted for when received. Certain joint ventures in oil and natural gas production activities are taken up in the Consolidated Financial Statements in proportion to the relevant Shell Group interest.

The Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the United States (“US GAAP”).

The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and Notes thereto. Actual results could differ from those estimates.

The Consolidated Financial Statements have been prepared under the historical cost convention.

These Consolidated Financial Statements do not constitute the statutory accounts of the Company within the meaning of the United Kingdom Companies Act 1985 (the “Companies Act”) for any accounting period. The statutory accounts of the Company for the period from incorporation (February 5, 2002) to February 28, 2003, for the year ended February 28, 2003 and for the 10-month period ended December 31, 2004 have been delivered to the United Kingdom Registrar of Companies. The statutory accounts for the 10-month period ended December 31, 2004 were subject to audit and the auditors issued an audit report under section 235 of the Companies Act in respect of the accounts for the 10 months ended December 31, 2004 which was unqualified and did not include any statements made under section 237(2) or (3) of the Companies Act. The statutory accounts for the year ended February 28, 2004 and for the period ended February 28, 2003 were not subject to audit.

Currency translation

The US dollar equivalents of exchange gains and losses arising as a result of foreign currency transactions (including those in respect of inter-company balances unless related to transactions of a long-term investment nature) are included in Shell Group net income.

Revenue recognition

	Royal Dutch Shell plc
	Financial Report 2004

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Sales between Shell Group companies, as disclosed in the segment information, are based on prices generally equivalent to commercially available prices.

In Exploration & Production and Gas & Power title typically passes (and revenues are recognised) when product is physically transferred into a vessel, pipe or other delivery mechanism. For sales by refining companies, title typically passes (and revenues are recognised) either when product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms. Revenues on wholesale sales of oil products and chemicals are recognised when transfer of ownership occurs and title is passed, either at the point of delivery or the point of receipt, depending on contractual conditions.

In November 2004, FASB’s Emerging Issues Task Force (EITF) discussed EITF Issue No. 04-13 “Accounting for Purchases and Sales of Inventory with the Same Counterparty”, in order to consider whether or not “buy/sell” contractual arrangements should be reported net in the Statement of Income and accounted for as nonmonetary transactions. There was a further EITF meeting in March 2005 but no consensus was reached on this issue and further discussion is planned.

Buy/sell contractual arrangements in this context are defined as those entered into concurrently or in contemplation of one another with the same counterparty.

Buy/sell contracts are entered into by some Shell Group companies for feedstock, principally crude oil, and finished products mainly in the Oil Products segment, and are reported gross in the Statement of Income. Title of the commodity passes to the buyer on delivery, purchases and sales may not necessarily take place at the same time and amounts are separately invoiced and settled; there is no legal right of offset. The Shell Group considers therefore that these are not nonmonetary transactions and are then outside the scope of APB Opinion No. 29 “Accounting for Nonmonetary Transactions”. In addition, the guidance provided in EITF No. 99-19 “Reporting Revenue Gross as a Principal versus Net as an Agent”, EITF No. 02-3 “Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities” and EITF No. 03-11 “Reporting Realized Gains and Losses on Derivative Instruments That Are Subject to FASB Statement No. 133 and Not Held for Trading Purposes as Defined in Issue No. 02-3” has been considered in determining the presentation of the results of the Shell Group’s operations. As a result of a communication to the oil and gas industry issued by the US Securities and Exchange Commission in February 2005 requesting additional disclosures regarding buy/sell contracts, the Shell Group reviewed such contracts and has estimated that, if buy/sell contracts were required to be reported net, net proceeds and cost of sales for 2004 would be reduced by approximately $24,744 million and $24,719 million, respectively (2003: $19,795 million and $19,713 million, respectively; 2002: $14,267 million and $14,419 million, respectively) with no impact on net income.

Such arrangements should be distinguished from purchases and sales under exchange contracts to obtain or reposition feedstock for refinery operations and which are, as described above, shown net in the Statement of Income. The obligations of each party are not independent and settlement is based on volumes.

Depreciation, depletion and amortisation

Recoverability of assets

Estimates of future cash flows used in the evaluation for impairment for assets related to hydrocarbon production are made using risk assessments on field and reservoir performance and include outlooks on proved reserves and unproved volumes, which are then discounted or risk-weighted utilising the results from projections of geological, production, recovery and economic factors.

Royal Dutch Shell plc

Financial Report 2004	15

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Administrative expenses

Exploration costs

Management makes quarterly assessments of the amounts included within tangible fixed assets to determine whether capitalisation is initially appropriate and can continue. Exploration wells capitalised beyond 12 months are subject to additional judgment as to whether the facts and circumstances have changed and therefore whether the conditions described in (a) and (b) no longer apply.

An amendment (FAS 19-1 “Accounting for Suspended Well Costs”) to FASB Statement No. 19 “Financial Accounting and Reporting by Oil and Gas Producing Companies” has been issued. This could result, on a prospective basis, in the continued inclusion of the cost of certain exploratory wells in tangible fixed assets beyond 12 months which do not meet the current requirements given in (a) and (b) above. Under the proposal amounts remain capitalised beyond 12 months if both sufficient reserves have been found to justify completion as a producing well, and sufficient progress is being made towards assessing the reserves and the economic and operating viability of the project (which does not include delay for the possibility of a change in circumstances beyond an entity’s control, for example an increase in oil and/or gas prices).

If this amendment had been reflected in the Shell Group accounting policy, there would not have been a significant effect on the Consolidated Financial Statements presented; certain write-offs may not have been required which would result in subsequent additional depreciation, depletion and amortisation charges in future years.

Research and development

Deferred taxation

Leasing

Interest capitalisation

Securities

Short-term securities with a maturity from acquisition of three months or less and that are readily convertible into known amounts of cash are classified as cash equivalents. Securities forming part of a portfolio which is required to be held long term are classified under fixed assets – investments.

	Royal Dutch Shell plc
	Financial Report 2004

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Shares in Royal Dutch Shell plc held by Shell Group companies are reflected within Equity as treasury shares.

Cash flows resulting from movements in securities of a trading nature are reported under cash flow provided by operating activities while cash flows resulting from movements in other securities are reported under cash flow used in investing activities.

Inventories

Derivative instruments

A change in the carrying amount of a fair value hedge is taken to income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in the carrying amount of a cash flow hedge is recorded in other comprehensive income, until income reflects the variability of underlying cash flows; any ineffective portion is taken to income. A change in the carrying amount of a foreign currency hedge is recorded on the basis of whether the hedge is a fair value hedge or a cash flow hedge. A change in the carrying amount of other derivatives is taken to income.

Shell Group companies formally document all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions. The effectiveness of a hedge is also continually assessed. When effectiveness ceases, hedge accounting is discontinued.

Environmental expenditures

Employee retirement plans

For plans which define the amount of pension benefit to be provided, pension cost primarily represents the increase in actuarial present value of the obligation for pension benefits based on employee service during the year and the interest on this obligation in respect of employee service in previous years, net of the expected return on plan assets.

For plans where benefits depend solely on the amount contributed to the employee’s account and the returns earned on investments of those contributions, pension cost is the amount contributed by Shell Group companies for the period.

Postretirement benefits other than pensions

Stock-based compensation plans

Royal Dutch Shell plc

Financial Report 2004	17

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Decommissioning and restoration costs

This policy reflects US accounting standard FAS 143 (Asset Retirement Obligations) which was effective for the Shell Group from the beginning of 2003 and resulted in a credit to income of $255 million after tax, which was reported in 2003 as a cumulative effect of a change in accounting principle.

Acquisitions

Discontinued operations

Changes in US GAAP Accounting Policies since January 1, 2005

From the same date, the Shell Group changed its US GAAP accounting policy for major inspection costs. Previously such costs were expensed as incurred. From January 1, 2005 such costs are capitalized and amortized to income over the period until the next planned major inspection.

International Financial Reporting Standards

3 Discontinued operations

Income from discontinued operations comprises:

						$ million
		2004				2003				2002
Income before taxation from discontinued operations (including gains on disposal of $1,564 million in 2004 and impairments of $88 million in 2003 and $9 million in 2002)			1,980				135				282
Taxation			332				97				95
Minority interests			88				13				–
Income from discontinued operations, net of tax			1,560				25				187

	Royal Dutch Shell plc
	Financial Report 2004

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Net proceeds of discontinued operations in 2004 (up to the date of disposal, where applicable), excluding proceeds of the disposal of such operations, were $3.5 billion (2003: $3.4 billion; 2002: $3.1 billion).

Income from discontinued operations by segment is given in Note 24(b).

4 Associated companies

A summarised Statement of Income with respect to the Shell Group share of net income from associated companies, together with a segment analysis, is set out below:

						$ million
						2003				2002
		2004
Net proceeds			53,544				44,422				33,467
Cost of sales			43,694				37,084				26,744
Gross profit			9,850				7,338				6,723
Other operating expenses			4,197				3,892				3,931
Operating profit			5,653				3,446				2,792
Interest and other income			173				228				102
Interest expense			580				540				451
Currency exchange gains/(losses)			20				(3	)			(15	)
Income before taxation			5,266				3,131				2,428
Taxation			2,065				1,463				990
Income from continuing operations			3,201				1,668				1,438
Income from discontinued operations, net of tax			13				13				16
Net income			3,214				1,681				1,454

Income by segment						$ million
		2004				2003				2002
Exploration & Production			1,145				800				541
Gas & Power			1,142				650				589
Oil Products			1,253				632				448
Chemicals			(7	)			(169	)			153
Corporate and Other			(319	)			(232	)			(277	)
			3,214				1,681				1,454

(b) Investments

$ million
										2004				2003
		Shares				Loans				Total				Total
At January 1			16,800				2,571				19,371				17,945
New investments			681				377				1,058				983
Net asset transfers to/(from) associates, disposals and other movements			(649	)			(284	)			(933	)			(173	)
Net income			3,214				–				3,214				1,681
Dividends			(3,472	)			–				(3,472	)			(2,192	)
Currency translation differences			455				50				505				1,127
At December 31			17,029				2,714				19,743				19,371

Net income for 2004 includes a $565 million write-down in the carrying amount of Basell (Chemicals). This impairment followed the announcement in 2004 of a review of strategic alternatives regarding this joint venture, and the carrying amount of the Shell Group’s investment in Basell at December 31, 2004 is at expected net realisable value.

Net income for 2003 includes a $286 million write-down in the carrying amount of Basell (Chemicals) reflecting a reassessment of the outlook for the business, a $200 million write-down in the carrying amount of InterGen (Gas & Power) due to poor power market conditions, mainly in the US merchant power segment, and a $115 million write-down in the carrying amount of the Cuiaba power assets in South America (Gas & Power) in light of a reappraisal of the commercial outlook.

Royal Dutch Shell plc

Financial Report 2004	19

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A summarised consolidated Balance Sheet with respect to the Shell Group share of investments in associated companies is set out below:

		$ million
		2004				2003
Fixed assets			28,665				30,892
Current assets			10,427				8,248
Total assets			39,092				39,140
Current liabilities			7,559				8,745
Long-term liabilities			11,790				11,024
Net assets			19,743				19,371

An analysis by segment is shown in Note 24.

The Shell Group’s major investments in associated companies at December 31, 2004 comprised:

Segment
Name			Shell Group interest				Country of incorporation
Exploration & Production
	Aera			52%				USA
	Brunei Shell			50%				Brunei
	Woodside			34%				Australia
Gas & Power
	InterGen			68%				The Netherlands
	Nigeria LNG			26%				Nigeria
	Oman LNG			30%				Oman
Oil Products
	Motiva			50%				USA
	Showa Shell			40%				Japan
Chemicals
	Basell			50%				The Netherlands
	Saudi Petrochemical			50%				Saudi Arabia
	Infinium			50%				The Netherlands

Although the Shell Group has a 52% investment in Aera and a 68% investment in InterGen, the governing agreements and constitutive documents for these entities do not allow the Shell Group to control these entities, as voting control is either split 50:50 between the shareholders or requires unanimous approval of the shareholders or their representatives and, therefore, these entities have not been consolidated.

(c) Transactions between Shell Group companies and associated companies

		$ million
		2004				2003				2002
Charges to associated companies			14,018				18,155				10,573
Charges from associated companies			12,373				8,608				5,623

Balances outstanding at December 31, 2004 and 2003 in respect of the above transactions are shown in Notes 11 and 15.

5 Interest and other income

			$ million
			2004				2003				2002
Shell Group companies
	Interest income			457				354				521
	Other income			1,100				1,414				159
				1,557				1,768				680
Associated companies				173				228				102
				1,730				1,996				782

Other income in 2004 includes gains from the disposal of the Shell Group’s interest in Sinopec ($0.3 billion), and Fluxys and Distrigas ($0.5 billion). Other income in 2003 included a $1.3 billion gain from the disposal of the Shell Group’s interest in Ruhrgas.

	Royal Dutch Shell plc
	Financial Report 2004

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6 Interest expense

			$ million
			2004				2003				2002
Shell Group companies
	Interest incurred			839				828				883
	less interest capitalised			206				44				43
				633				784				840
Associated companies				580				540				451
				1,213				1,324				1,291

7 Taxation

(a) Taxation charge for the year

			$ million
			2004				2003				2002
Shell Group companies
	Current tax charge			13,585				8,200				6,658
	Deferred tax charge/(credit)			(513	)			(311	)			7
				13,072				7,889				6,665
Associated companies				2,065				1,463				990
				15,137				9,352				7,655

Reconciliations of the expected tax charge of Shell Group companies to the actual tax charge are as follows:

		$ million
		2004				2003				2002
Expected tax charge at statutory rates			13,718				8,913				6,512
Adjustments in respect of prior years			(52	)			166				(252	)
Other reconciling items			(594	)			(1,190	)			405
Taxation charge of Shell Group companies			13,072				7,889				6,665

The taxation charge of Shell Group companies includes not only income taxes of general application but also income taxes at special rates levied on income from Exploration & Production activities and various additional income and other taxes to which these activities are subject.

Earnings retained by the subsidiary and associated companies of the Shell Group amounted to $34,374 million at December 31, 2004 (2003: $25,210 million; 2002: $18,060 million). A portion of these retained earnings will flow up to the Company without tax cost. The balance of these retained earnings have been, or will be, substantially reinvested by the companies concerned and provision has not been made for taxes on possible future distribution of these undistributed earnings as it is not meaningful to provide for these taxes nor is it practicable to estimate their full amount or the withholding tax element.

Tax adjustments in respect of prior years relate to events in the current period and reflect the effects of changes in rules, facts or other factors compared to those used in establishing the tax position or deferred tax balance.

Other reconciling items in 2004 mainly comprises the effects of disposals during the year that were taxed below the statutory rate.

Other reconciling items in 2003 include the effects of disposals during the year that were taxed below the statutory rate (including $534 million from the disposal of the Shell Group’s interest in Ruhrgas), in addition to $442 million relating to the effects on deferred tax accounts of legislative changes to certain ring-fencing arrangements.

Other reconciling items in 2002 include $415 million due to the increase in the UK upstream corporate tax rate during the year.

(b) Taxes payable

		$ million
		2004				2003
Taxes on activities of Shell Group companies			5,606				2,148
Sales taxes, excise duties and similar levies and social law taxes			4,279				3,779
			9,885				5,927

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Financial Report 2004	21

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(c) Provision for deferred taxation

			$ million
			2004				2003
Tangible and intangible fixed assets				17,738				17,365
Pensions and similar obligations				2,653				2,118
Other items				2,568				2,649
Total deferred tax liabilities				22,959				22,132
Tax losses carried forward				(4,214	)			(3,876	)
Foreign tax creditsa				(2,042	)			(1,633	)
US trademarkb				(247	)			(309	)
Provisions
	Pensions and similar obligations			(1,228	)			(1,329	)
	Decommissioning and restoration costs			(2,191	)			(1,934	)
	Environmental and other provisions			(455	)			(334	)
Tangible and intangible fixed assets				(461	)			(153	)
Other items				(3,266	)			(3,268	)
Total deferred tax assets				(14,104	)			(12,836	)
Asset valuation allowance				3,994				3,797
Deferred tax assets net of valuation allowance				(10,110	)			(9,039	)
Net deferred tax liability				12,849				13,093
Presented in the Statement of Assets and Liabilities as:
	Deferred tax assets			1,995				2,092
	Deferred tax liabilities			14,844				15,185

a	Foreign tax credits represent surplus credits arising in holding and sub-holding Shell Group companies on income from other jurisdictions. A valuation allowance has been recorded against the substantial part of these balances in both 2004 and 2003.
b	Deferred tax asset created upon transfer of US trademark rights from a US wholly-owned Shell Group company to a Netherlands wholly-owned Shell Group company.

The Shell Group has tax losses carried forward amounting to $12,705 million at December 31, 2004. Of these, $10,470 million can be carried forward indefinitely. The remaining $2,235 million expires in the following years:

		$ million
2005			702
2006			239
2007			452
2008			70
2009 – 2013			404
2014 – 2019			368

8 Tangible and intangible fixed assets

$ million
		2004
																						2003
										Other				Total				Total				Total
		Tangible				Goodwill				intangibles				intangibles				Shell Group				Shell Group
Cost
At January 1			181,685				4,011				2,998				7,009				188,694				163,957
Capital expenditure			12,440				3				291				294				12,734				12,252
Sales, retirements and other movementsa			(9,345	)			(44	)			102				58				(9,287	)			(1,770	)
Currency translation differences			8,382				62				81				143				8,525				14,255
At December 31b			193,162				4,032				3,472				7,504				200,666				188,694
Depreciation
At January 1			94,597				1,336				938				2,274				96,871				80,898
Depreciation, depletion and amortisation charge			11,945				–				328				328				12,273				11,711
Sales, retirements and other movements			(7,310	)			(37	)			(38	)			(75	)			(7,385	)			(3,711	)
Currency translation differences			4,990				42				45				87				5,077				7,973
At December 31			104,222				1,341				1,273				2,614				106,836				96,871
Net 2004			88,940				2,691				2,199				4,890				93,830
Net 2003			87,088				2,675				2,060				4,735								91,823

a	Sales, retirements and other movements in 2003 include the effect of a change in accounting policy for certain long-term agreements (see Note 2).
b	Tangible fixed assets at December 31, 2004 include rights and concessions of $11.1 billion (2003: $12.0 billion).

Other intangible fixed assets at December 31, 2004 include $0.8 billion (2003: $0.8 billion) in respect of Pennzoil-Quaker State trademarks acquired in 2002. The trademarks are being amortised over an estimated useful life of forty years. Continued brand maintenance in addition to the established long-term leadership of these brands in automotive lubricants and vehicle care markets support this estimate.

Tangible fixed assets at year end, capital expenditure, together with new investments in associated companies, and the depreciation, depletion and amortisation charges are shown in Note 24, classified, consistent with oil and natural gas industry practice, according to

	Royal Dutch Shell plc
	Financial Report 2004

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operating activities. Such a classification, rather than one according to type of asset, is given in order to permit a better comparison with other companies having similar activities.

The net balances at December 31 include:

$ million
			2004				2003
Capitalised costs in respect of assets not yet used in operations
	Unproved properties			2,844				4,576
	Proved properties under development and other assets in the course of construction			13,491				12,680
				16,335				17,256

Unproved properties include capitalised exploratory well costs, for which the amounts at December 31, 2004, 2003 and 2002, and movements during 2004, 2003 and 2002 are given in the following table.

$ million
		2004				2003				2002
At January 1			771				720				515
Additions pending determination of proved reserves			566				501				568
Amounts charged to expense			(432	)			(449	)			(393	)
Reclassifications to productive wells on determination of proved reserves			(94	)			(56	)			(24	)
Other movements, including acquisitions, disposals and currency translation effects			(22	)			55				54
At December 31			789				771				720

There are no amounts remaining capitalised (a) in areas requiring major capital expenditure before production can begin, where neither drilling of additional exploratory wells is underway nor firmly planned for the near future, or (b) beyond 12 months in areas not requiring major capital expenditure before production can begin.

Depreciation, depletion and amortisation charges for the year are included within the following headings in the Statement of Income:

$ million
			2004				2003				2002
Cost of sales				9,876				9,702				7,312
Selling and distribution expenses				1,438				1,229				1,041
Administrative expenses				121				121				62
Exploration				684				411				80
Research and development				33				28				33
Depreciation, depletion and amortisation:
	from continuing operations			12,152				11,491				8,528
	from discontinued operations			121				220				211
				12,273				11,711				8,739

Depreciation, depletion and amortisation charges for 2004 include $617 million (2003: $1,249 million; 2002: $191 million) relating to the impairment of tangible fixed assets, and $5 million (2003: $127 million; 2002: $6 million) relating to the impairment of intangible fixed assets. Such charges are recorded within cost of sales. The impairment charges relate to assets held for use (2004: $229 million; 2003: $1,169 million; 2002: $105 million) and to assets held for sale (2004: $393 million; 2003: $207 million; 2002: $92 million).

For 2004, the majority of the impairment charges were in Oil Products ($579 million) and were related to the deterioration in the local operating environment for certain refinery assets and writing down to expected proceeds of marketing assets held for sale.

For 2003, the impairments were incurred in Exploration & Production ($698 million, mainly due to lower production outlooks in the UK and South America), in Oil Products ($331 million, mainly due to the announced closure of the Bakersfield refinery and the impact of local economic conditions in Latin America), in Chemicals ($220 million, mainly in CS Metals, as anticipated benefits from a prototype technology did not meet performance expectations) and in Renewables ($127 million for Shell Solar following an extensive review to assess the value of the business).

For 2002, the majority of the impairment charges (in total $197 million) were in Oil Products, reflecting plans in the USA to close surplus base oil production facilities, the closure of the Pililla base oil and bitumen refinery in the Philippines and a change in outlook for liquefied petroleum gas assets in Argentina coupled with the country’s economic downturn.

Depreciation, depletion and amortisation charges for 2004 also included $570 million relating to the write-off of various exploration properties mainly in Ireland, Norway and the United Kingdom, where new information during the year from exploratory work confirmed lower than expected volume projections (2003: $366 million, mainly in Brazil and Ireland).

Royal Dutch Shell plc

Financial Report 2004	23

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9 Other long-term assets

10 Inventories

$ million
		2004				2003
Inventories of oil and chemicals			14,488				11,742
Inventories of materials			903				948
			15,391				12,690

11 Accounts receivable

		$ million
		2004				2003
Trade receivables			23,626				17,523
Amounts owed by associated companies			2,619				2,093
Other receivables			4,061				3,647
Deferred charges and prepayments			7,757				5,750
			38,063				29,013

Provisions for doubtful items deducted from accounts receivable amounted to $564 million at December 31, 2004 (2003: $557 million). Deferred charges and prepayments include amounts in respect of risk management activities.

12 Securities

$125 million (2003: $125 million) of these securities are debt securities classified as held-to-maturity, with maturity falling between one and five years. The remainder are classified as available for sale, of which $688 million at December 31, 2004 (2003: $638 million) are debt securities. Of the available for sale securities, the maturities of $21 million fall within one year, $411 million fall between one year and five years, and $256 million exceed five years.

The carrying amount of securities classified as cash equivalent is $1,477 million at December 31, 2004 (2003: $107 million), all of which are debt securities classified as available for sale.

Total securities at December 31, 2004 amounting to $814 million (2003: $1,557 million) are listed on recognised stock exchanges.

During 2004 a Shell Group company disposed of an equity investment, resulting in the reclassification of an unrealised gain of $348 million from Other comprehensive income to Net income.

13 Debt

$ million
		2004				2003
Debentures and other loans			4,661				8,181
Amounts due to banks and other credit institutions (including long-term debt due within one year)			1,048				2,279
			5,709				10,460
Capitalised lease obligations			53				109
Short-term debt			5,762				10,569
less long-term debt due within one year			1,291				1,874
Short-term debt excluding long-term debt due within one year			4,471				8,695

Short-term debt at December 31, 2003 included $1.3 billion of non-recourse debt owed by a Shell Group company, for which a covenant had been breached in 2001. During 2004, this company was disposed of and this debt was relieved in its entirety.

Short-term debenture balances fell during the year as a consequence of the Shell Group’s reduced need for commercial paper financing.

	Royal Dutch Shell plc
	Financial Report 2004

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The following relates only to short-term debt excluding long-term debt due within one year:

$ million
			2004				2003
Maximum amount outstanding at the end of any quarter				6,688				9,159
Average amount outstanding				6,381				8,392
Amounts due to banks and other credit institutions				812				2,657
Unused lines of short-term credit				4,023				3,916
Approximate average interest rate on:
	average amount outstanding			3%				3%
	amount outstanding at December 31			3%				2%

The amount outstanding at December 31, 2004 includes $3,315 million of fixed rate and $248 million of variable rate US dollar debt at an average interest rate of 2% and 9% respectively.

(b) Long-term debt

$ million
		2004				2003
Debentures and other loans			4,204				4,868
Amounts due to banks and other credit institutions			3,744				3,724
			7,948				8,592
Capitalised lease obligations			652				508
Long-term debt			8,600				9,100
add long-term debt due within one year			1,291				1,874
Long-term debt including long-term debt due within one year			9,891				10,974

The following relates to long-term debt including the short-term part but excluding capitalised lease obligations.

The amount at December 31, 2004 of $9,186 million (2003: $10,357 million) comprises:

							Average
			$ million				interest rate
US Dollar denominated debt
	Fixed rate			4,925				6%
	Variable rate			697				4%
Non-dollar denominated debt
	Fixed rate			3,101				4%
	Variable rate			463				5%
				9,186

The approximate weighted average interest rate in 2004 was 5% for both US dollar debt and total debt.

The aggregate maturities of long-term debts are:

$ million
2005			1,238
2006			1,884
2007			2,474
2008			530
2009			117
2010 and after			2,943
			9,186

During 2004, the Medium Term Note and Commercial Paper Facilities have been increased to a total level of $30.0 billion. As at December 31, 2004, debt outstanding under central borrowing programmes, which includes these facilities, totalled $8.3 billion with the remaining indebtedness raised by Shell Group companies with no recourse beyond the immediate borrower and/or the local assets.

In accordance with the risk management policy, Shell Group companies have entered into interest rate swap agreements against most of the fixed rate debt. The use of interest rate swaps is further discussed in Note 28.

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Financial Report 2004	25

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14 Commitments

$ million
		Operating				Capital
		leases				leases
2005			1,744				105
2006			1,203				73
2007			958				67
2008			781				61
2009			709				58
2010 and after			4,460				852
Total minimum payments			9,855				1,216
less executory costs and interest							511
Present value of net minimum capital lease payments							705

The figures above for operating lease payments represent minimum commitments existing at December 31, 2004 and are not a forecast of future total rental expense.

Total rental expense for all operating leases was as follows:

$ million
		2004				2003				2002
Minimum rentals			2,140				2,135				1,557
Contingent rentals			75				60				104
Sub-lease rentals			(198	)			(198	)			(300	)
			2,017				1,997				1,361

(b) Long-term purchase obligations

$ million
2005			461
2006			420
2007			413
2008			385
2009			380
2010 and after			3,437
			5,496

The agreements under which these unconditional purchase obligations arise relate mainly to the purchase of chemicals feedstock, utilities and to the use of pipelines.

Payments under these agreements, which include additional sums depending upon actual quantities of supplies, amounted to $542 million in 2004 (2003: $252 million).

15 Accounts payable and accrued liabilities

		$ million
		2004				2003
Trade payables			18,716				14,110
Amounts due to associated companies			1,927				1,828
Pensions and similar obligations			286				261
Other payables			11,245				8,841
Accruals and deferred income			7,659				7,315
Dividends payable			29				28
			39,862				32,383

Other payables include amounts in respect of risk management activities.

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	Financial Report 2004

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16 Long-term liabilities – Other

		$ million
		2004				2003
Risk management activities			1,801				439
Deferred income			1,501				1,354
Environmental liabilities			664				676
Deposits for return items			603				566
Liabilities under staff benefit plans			541				315
Advance payments received under long-term supply contracts			354				315
Redundancy liabilities			127				165
Other			2,474				2,224
			8,065				6,054

These amounts include $1,222 million at December 31, 2004 (2003: $1,305 million) which does not fall due until more than five years after the respective Balance Sheet dates.

17 Changes in Consolidated Shareholders’ Equity

																											$ million
							Shell								Shell
			Royal Dutch				Transport				Total equity				Transport				Additional								Other
			ordinary				Ordinary				share				Preference				paid in				Treasury				comprehensive				Retained
			shares				shares				capital				shares				capital				shares				income				earnings				Total
At 1 January 2002				359				237				596				20				5,385				(1,953	)			(12,162	)			70,936				62,822
Net income																																9,671				9,671
Dividends																																(5,522	)			(5,522	)
Other comprehensive income, net of tax
	Currency translation differences																											3,108								3,108
	unrealised gains/(losses) on securities																											25								25
	unrealised gains/(losses) on cash flow hedges																											(225	)							(225	)
	minimum pension liability adjustments																											(1,475	)							(1,475	)
Purchase of treasury shares																								(981	)											(981	)
Release of treasury shares																								52												52
Dividends received																								85												85
Shares repurchased for cancellation				(4	)			(2	)			(6	)							(10	)											(1,349	)			(1,365	)
At January 1 2003				355				235				590				20				5,375				(2,797	)			(10,729	)			73,736				66,195
Net income																																12,322				12,322
Dividends																																(6,532	)			(6,532	)
Other comprehensive income, net of tax																																				–
	Currency translation differences																											5,795								5,795
	unrealised gains/(losses) on securities																											689								689
	unrealised gains/(losses) on cash flow hedges																											51								51
	minimum pension liability adjustments																											358								358
Purchase of treasury shares																								(715	)											(715	)
Release of treasury shares																								21												21
Dividends received																								63												63
Shares repurchased for cancellation				(3	)							(3	)							(3	)											10				4
At January 1 2004				352				235				587				20				5,372				(3,428	)			(3,836	)			79,536				78,251
Net income																																18,182				18,182
Dividends																																(7,396	)			(7,396	)
Other comprehensive income, net of tax
	Currency translation differences																											3,548								3,548
	unrealised gains/(losses) on securities																											(350	)							(350	)
	unrealised gains/(losses) on cash flow hedges																											31								31
	minimum pension liability adjustments																											(185	)							(185	)
Purchase of treasury shares																								(848	)											(848	)
Release of treasury shares																																				–
Dividends received																								89												89
Shares repurchased for cancellation								(1	)			(1	)							2												(778	)			(777	)
At December 31 2004				352				234				586				20				5,374				(4,187	)			(792	)			89,544				90,545

18 Share Capital

Equity shares

$ million
						2004				2003
Allotted, called up and fully paid
Royal Dutch ordinary shares							352				352
Shell Transport Ordinary shares							234				235
							586				587

The number of shares outstanding at December 31, 2004 and 2003 were as follows:

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Financial Report 2004	27

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						Shell Transport				Combined
		Royal Dutch				and Trading				Royal Dutch Shell
Shares outstanding at December 31, 2004			2,081,725,000				9,624,900,000				6,929,002,027
Shares outstanding at December 31, 2003			2,083,500,000				9,667,500,000				6,944,792,416

Under the terms of the Transaction, Royal Dutch and Shell Transport ordinary shares were exchanged at the agreed ratios set forth in Note 1.

Non equity shares

$ million
		number of shares				2004				2003
Allotted, called up and fully paid
€448 Royal Dutch priority shares			1,500				1				1
£1 Shell Transport and Trading Company plc First Preference Shares			2,000,000				3				3
£1 Shell Transport and Trading Company plc Second Preference Shares			10,000,000				16				16
							20				20

19 Statement of Consolidated Cash Flows

Accordingly, the cash flows recorded in the Statement of Cash Flows exclude both the currency translation differences which arise as a result of translating the assets and liabilities of non-US dollar Shell Group companies to US dollars at year-end rates of exchange (except for those arising on cash and cash equivalents) and non-cash investing and financing activities. These currency translation differences and non-cash investing and financing activities must therefore be added to the cash flow movements at average rates in order to arrive at the movements derived from the Balance Sheet.

2004										$ million
														Movements
		Movements				Movements								derived from
		derived from				arising from								Statement of
		Statement of				currency				Non-cash				Assets and
		Cash Flows				translation				movements				Liabilities
Tangible and intangible fixed assets			(2,626	)			3,447				1,186				2,007
Investments			(2,075	)			1,598				194				(283	)
Other long-term assets			2,053				1,004				236				3,293
Inventories			2,731				691				(721	)			2,701
Accounts receivable			8,462				1,348				(760	)			9,050
Cash and cash equivalents			8,199				(1,108	)			–				7,091
Short-term debt			4,370				(898	)			1,335				4,807
Accounts payable and accrued liabilities			(7,317	)			(794	)			632				(7,479	)
Taxes payable			(2,997	)			(579	)			(382	)			(3,958	)
Long-term debt			817				(357	)			40				500
Other long-term liabilities			(1,441	)			(248	)			(322	)			(2,011	)
Deferred taxation			672				(673	)			342				341
Other provisions			(148	)			(471	)			(1,252	)			(1,871	)
Minority interests			(1,257	)			(109	)			(528	)			(1,894	)
Other items			(193	)			193				–				–
Adjustment for Treasury stock and Other comprehensive income excluding currency translation differences			758				504				–				–
											–
Movement in retained earnings of Shell Group companies			10,008
Movement in cumulative currency translation differences							3,548
Movement in net assets															12,294

Income taxes paid by Shell Group companies totalled $11.6 billion in 2004 (2003: $8.6 billion; 2002: $6.7 billion). Interest paid by Shell Group companies was $0.9 billion in 2004 (2003: $0.9 billion; 2002: $1.0 billion).

The main non-cash movements relate to the impact on the Balance Sheet of divestments, particularly of the Shell Group’s interest in Rayong Refinery which held $1.3 billion of short-term debt. There was also a review of the estimated provision for decommissioning and restoration costs during 2004 based on current experience and techniques which resulted in an increase of approximately $1.1 billion in both the provision and the corresponding tangible fixed assets.

20 Employee retirement plans and other postretirement benefits

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	Financial Report 2004

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Some Shell Group companies have established unfunded defined benefit plans to provide certain postretirement healthcare and life insurance benefits to their retirees, the entitlement to which is usually based on the employee remaining in service up to retirement age and the completion of a minimum service period.

The Shell Group has accounted for the impact of the United States Medicare Prescription Drug, Improvement and Modernization (“Medicare”) Act of 2003, with effect from January 1, 2004. The impact was a $300 million reduction in the accumulated postretirement benefit obligation at January 1, 2004 and a $52 million reduction in postretirement benefit cost for 2004. There was no reduction to accumulated postretirement benefit obligations of $159 million at January 1, 2004, for certain separately administered retiree benefit plans which must be analysed under final government regulations. The first subsidies arising from the Medicare Act are expected to be received in 2006.

$ million
											Other benefits
			Pension benefits								2004												2003
			2004				2003				USA				Other				Total				USA				Other				Total
Change in benefit obligation
Obligations for benefits based on employee service to date at January 1				46,476				39,109				2,520				512				3,032				2,068				377				2,445
Increase in present value of the obligation for benefits based on employee service during the year				1,086				991				35				16				51				37				15				52
Interest on the obligation for benefits in respect of employee service in previous years				2,529				2,333				139				28				167				141				24				165
Benefit payments made				(2,350	)			(2,034	)			(119	)			(28	)			(147	)			(95	)			(25	)			(120	)
Currency translation effects				3,461				5,333				–				40				40				–				78				78
Other componentsa				3,620				744				(66	)			43				(23	)			369				43				412
Obligations for benefits based on employee service to date at December 31				54,822				46,476				2,509				611				3,120				2,520				512				3,032
Change in plan assets
Plan assets held in trust at fair value at January 1				43,960				33,035
Actual return on plan assets				5,262				6,598
Employer contributions				1,562				1,275
Plan participants’ contributions				56				40
Benefit payments made				(2,350	)			(2,034	)
Currency translation effects				3,367				4,911
Other componentsa				17				135
Plan assets held in trust at fair value at December 31				51,874				43,960
Plan assets in excess of/(less than) the present value of obligations for benefits at December 31				(2,948	)			(2,516	)			(2,509	)			(611	)			(3,120	)			(2,520	)			(512	)			(3,032	)
Unrecognised net (gains)/losses remaining from the adoption of current method of determining pension costs				3				5
Unrecognised net (gains)/losses since adoption				9,888				7,295				727				186				913				876				149				1,025
Unrecognised prior service cost/(credit)				1,185				1,258				(34	)			2				(32	)			(82	)			–				(82	)
Net amount recognised				8,128				6,042				(1,816	)			(423	)			(2,239	)			(1,726	)			(363	)			(2,089	)
Amounts recognised in the Statement of Assets and Liabilities:
Intangible assets				353				326
Prepaid benefit costs				8,278				6,516
Accrued benefit liabilities:
	Short-term			(213	)			(182	)			(40	)			(33	)			(73	)			(51	)			(28	)			(79	)
	Long-term			(2,878	)			(2,917	)			(1,776	)			(390	)			(2,166	)			(1,675	)			(335	)			(2,010	)
				5,540				3,743				(1,816	)			(423	)			(2,239	)			(1,726	)			(363	)			(2,089	)
Amount recognised in Equity:
Accumulated other comprehensive income				2,588				2,299
Net amount recognised				8,128				6,042				(1,816	)			(423	)			(2,239	)			(1,726	)			(363	)			(2,089	)

a	Other components comprise mainly the effect of changes in actuarial assumptions, most notably the discount rate and in 2004 the impact of accounting for the US Medicare Act on the accumulated postretirement benefit obligation at January 1.

Additional information on pension benefits

			$ million
			2004				2003
Obligation for pension benefits in respect of unfunded plans				2,032				2,155
Accumulated benefit obligation				48,654				41,865
For employee retirement plans with projected benefit obligation in excess of plan assets, the respective amounts are:
	Projected benefit obligation			36,246				30,291
	Plan assets			33,646				28,176
For employee retirement plans with accumulated benefit obligation in excess of plan assets, the respective amounts are:
	Accumulated benefit obligation			11,844				10,452
	Plan assets			10,734				9,356

Royal Dutch Shell plc

Financial Report 2004	29

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Employer contributions to defined benefit pension plans during 2005 are estimated to be $1.4 billion. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

										$ million
						Other benefits
		Pension
		benefits				USA				Other				Total
2005			2,584				132				32				164
2006			2,664				135				33				168
2007			2,738				147				33				180
2008			2,829				157				34				191
2009			2,908				165				35				200
2010–2014			15,759				905				178				1,083

Benefit costs for the year comprise:

$ million
														Other benefits
		Pension benefits												2004												2003												2002
		2004				2003				2002				USA				Other				Total				USA				Other				Total				USA				Other				Total
Service cost			1,086				991				899				35				16				51				37				15				52				32				7				39
Interest cost			2,529				2,333				2,001				139				28				167				141				24				165				111				21				132
Expected return on plan assets			(3,894	)			(3,547	)			(3,339	)
Other components			317				303				(100	)			41				8				49				66				4				70				76				7				83
Cost of defined benefit plans			38				80				(539	)			215				52				267				244				43				287				219				35				254
Payments to defined contribution plans			221				171				84
			259				251				(455	)			215				52				267				244				43				287				219				35				254

Discount rates, projected rates of remuneration growth and expected rates of return on plan assets vary for the different plans as they are determined in the light of local conditions. Expected rates of return on plan assets are calculated using a common assumption-setting process based on a projection of real long-term bond yields and an equity risk premium which are combined with local inflation assumptions and applied to each plan’s actual asset mix. The weighted averages applicable for the principal plans in the Shell Group are:

														Other benefits
		Pension benefits												2004								2003								2002
		2004				2003				2002				USA				Other				USA				Other				USA				Other
Assumptions used to determine benefit obligations at December 31
Discount rate			5.1%				5.6%				5.9%				5.8%				5.0%				6.0%				5.6%				6.5%				5.6%
Projected rate of remuneration growth			3.8%				3.9%				4.0%
Assumptions used to determine benefit costs for year ended December 31
Discount rate			5.6%				5.9%				6.0%				6.0%				5.6%				6.5%				5.6%				7.0%				6.0%
Expected rate of return on plan assets			7.6%				7.9%				8.0%
Projected rate of remuneration growth			3.9%				4.0%				4.0%
Healthcare cost trend rates
Healthcare cost trend rate in year after reporting year															10.0%				3.7%				10.0%				3.9%				7.8%				4.6%
Ultimate healthcare cost trend rate															5.0%				2.9%				5.0%				2.9%				5.0%				2.9%
Year ultimate healthcare cost trend rate is applicable															2012				2007				2011				2006				2010				2004

The effect of a one percentage point increase/(decrease) in the annual rate of increase in the assumed healthcare cost trend rates would be to increase/(decrease) annual postretirement benefit cost by approximately $35 million/($25 million) and the accumulated postretirement benefit obligation by approximately $456 million/($374 million).

Weighted-average plan asset allocations by asset category and the target allocation for December 31, 2004 for the principal pension plans in the Shell Group are:

		Target				Percentage of plan
		allocation				assets at December 31
		2004				2004				2003
Equity securities			72%				73%				73%
Debt securities			23%				21%				22%
Real estate			2%				2%				2%
Other			3%				4%				3%
Total			100%				100%				100%

	Royal Dutch Shell plc
	Financial Report 2004

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Plan long-term investment strategies are generally determined by the responsible Pension Fund Trustees using a structured asset-liability modelling approach to determine the asset mix which best meets the objectives of optimising investment return and maintaining adequate funding levels.

21 Employee emoluments and numbers

		$ million
		2004				2003				2002
Remuneration			8,125				7,477				6,096
Social law taxes			695				660				518
Pensions and similar obligations (Note 21)			526				538				(201	)
			9,346				8,675				6,413

(b) Average numbers

		thousands
		2004				2003				2002
Exploration & Production			17				17				17
Gas & Power			2				2				2
Oil Products			78				82				75
Chemicals			8				9				9
Corporate and Other			9				9				8
			114				119				111

(c) Year-end numbers

		thousands
		2004				2003				2002
Exploration & Production			17				17				17
Gas & Power			2				2				2
Oil Products			76				82				80
Chemicals			8				9				9
Corporate and Other			9				9				8
			112				119				116

In addition to remuneration above, there were charges for redundancy of $526 million in 2004 (2003: $291 million; 2002: $215 million).

The charges relate to 4,000 employees in 2004 (mainly in the Oil Products segment, primarily due to portfolio restructuring, and in the Corporate and Other segment due to restructuring in information and technology), 2,000 employees in 2003 (mainly in the Exploration & Production and Oil Products segments) and 2,600 employees in 2002 (mainly in the Exploration & Production and Oil Products segments). The liabilities for redundancies at December 31, 2004 and 2003, and movements during 2004 and 2003 are given in the following table.

		$ million
		2004				2003
At January 1			494				395
Charges			526				291
Payments			(394	)			(245	)
Other movements and currency translation effects			(29	)			53
At December 31			597				494

22 Stock-based compensation plans

Certain Shell Group companies have in place various stock-based plans for senior staff and other employees of those and other Shell Group companies. Details of the principal plans are given below.

The Shell Group Stock Option Plans offer eligible employees options over Royal Dutch ordinary shares (Royal Dutch shares) or Shell Transport Ordinary shares (Shell Transport shares) at a price not less than the fair market value of the shares at the date the options were granted. The options are exercisable three years from grant, except for those granted under the US plans, which vest a third per year for three years. The options lapse ten years after grant, however leaving Shell Group employment may cause options to lapse earlier. For

Royal Dutch Shell plc

Financial Report 2004	31

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Shell Group Managing Directors and the most senior executives, 100% of the options granted in 2003 (and in subsequent years) are subject to performance conditions.

Under the Restricted Stock Plan, grants are made on a highly selective basis to senior staff. A maximum of 250,000 Royal Dutch shares (or equivalent value in Shell Transport shares) can be granted under the plan in any year. Shares are granted subject to a three-year restriction period and the number of shares awarded is based on the share price at the start of the restricted period. The shares, together with additional shares equivalent to the value of the dividends payable over the restriction period, are released to the individual at the end of the three-year period.

The following table shows for 2003 and 2004, in respect of option plans, the number of shares under option at the beginning of the year, the number of options granted, exercised and expired during the year and the number of shares under option at the end of the year, together with their weighted average exercise price translated at the respective year-end exchange rates:

		Royal Dutch shares								Shell Transport shares								Shell Canada common sharesa
						Weighted								Weighted								Weighted
						average								average								average
						exercise								exercise								exercise
		Number				price				Number				price				Number				price
		(thousands)				($)				(thousands)				($)				(thousands)				($)
Under option at January 1, 2003			33,381				59.86				101,447				8.26				4,777				21.71
Granted			15,643				45.13				41,893				6.74				1,674				35.65
Exercised			–				–				(192	)			6.47				(505	)			22.88
Expired			(1,003	)			64.03				(2,813	)			8.92				(73	)			26.03
Under option at December 31, 2003b			48,021				60.09				140,335				8.44				5,873				29.43
Granted			14,816				52.42				42,998				7.47				1,697				45.99
Exercised			(495	)			47.20				(1,341	)			7.10				(1,175	)			22.73
Expired			(1,644	)			68.14				(6,033	)			9.69				(285	)			25.85
Under option at December 31, 2004b			60,698				60.56				175,959				8.73				6,110				37.17

a	Unissued.
b	The underlying weighted average exercise prices for Royal Dutch and Shell Transport shares under option at December 31, 2004 were €44.42 (2003: €47.64) and £4.53 (2003: £4.73) respectively.

The following tables provide further information about the options outstanding at December 31, 2004:

														Royal Dutch shares
		Options outstanding												Options exercisable
						Weighted
						average				Weighted								Weighted
						remaining				average								average
						contractual				exercise								exercise
		Number				life				price				Number				price
Range of exercise prices		(thousands)				(years)				($)				(thousands)				($)
$40 to $45			6,541				8.2				42.25				2,027				42.24
$45 to $50			7,096				9.1				48.65				223				45.71
$50 to $55			19,118				7.4				52.72				6,241				53.49
$55 to $60			8,354				7.6				56.30				2,353				56.21
$60 to $65			3,759				6.2				60.77				3,759				60.77
$65 to $70			773				2.3				66.70				773				66.70
$75 to $80			149				6.8				76.94				149				76.94
$80 to $85			9,503				6.3				82.92				1,959				81.34
$85 to $90			2,124				5.4				85.36				2,124				85.36
$90 to $95			79				5.2				94.11				79				94.11
$95 to $100			3,202				6.2				96.21				3,202				96.21
$40 to $100			60,698				7.3				60.56				22,889				65.95

														Shell Transport shares
		Options outstanding												Options exercisable
						Weighted
						average				Weighted								Weighted
						remaining				average								average
						contractual				exercise								exercise
		Number				life				price				Number				price
Range of exercise prices		(thousands)				(years)				($)				(thousands)				($)
$7 to $8			93,250				7.8				7.36				9,847				7.00
$8 to $9			6,937				3.3				8.45				6,137				8.47
$9 to $10			11,694				4.4				9.74				11,694				9.74
$10 to $11			51,761				6.3				10.29				14,110				10.64
$11 to $12			12,317				6.0				11.80				12,317				11.80
$7 to $12			175,959				6.8				8.73				54,105				9.80

	Royal Dutch Shell plc
	Financial Report 2004

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In the UK, The Shell Petroleum Company Limited and Shell Petroleum N.V. each operate a savings-related stock option scheme, under which options are granted over shares of Shell Transport at prices not less than the market value on a date not more than 30 days before the date of the grant of option and are normally exercisable after completion of a three-year or five-year contractual savings period. The following table shows for 2003 and 2004, in respect of these plans, the number of Shell Transport shares under option at the beginning of the year, the number of options granted, exercised and expired during the year and the number of shares under option at the end of the year:

		thousands
		2004				2003
Under option at January 1			15,089				18,680
Granted			–				4,975
Exercised			(1,924	)			(707	)
Expired			(2,634	)			(7,859	)
Under option at December 31			10,531				15,089

Certain Shell Group companies have incentive compensation plans containing stock appreciation rights linked to the value of Royal Dutch shares. During 2004 1,375,989 of these stock appreciation rights were exercised and 21,833 forfeited, leaving a balance of 7,484,779 at December 31, 2004 (2003: 8,882,601).

In 2001, the Global Employee Share Purchase Plan was implemented giving eligible employees the opportunity to buy Royal Dutch or Shell Transport shares, with 15% added after a specified holding period. At December 31, 2004 16,024 (2003: 4,754) Royal Dutch shares and 25,881 (2003: 19,742) Shell Transport shares were held by Shell Group companies in connection with the Global Employee Share Purchase Plan.

Effects on Shell Group net income and Earnings per share under the fair value method

A comparison of the Shell Group’s net income and Earnings per share for both Royal Dutch and Shell Transport as reported under the intrinsic value method and on a pro forma basis calculated as if the fair value of options and share purchase rights granted would have been considered as compensation expense is as follows:

		2004								2003								2002
						Pro forma								Pro forma								Pro forma
Shell Group net income ($ million)			18,182				17,937				12,322				12,045				9,671				9,468
Basic earnings per share attributable to Royal Dutch ($)a			5.39				5.32				3.63				3.55				2.82				2.76
Diluted earnings per share attributable to Royal Dutch ($)a			5.39				5.31				3.63				3.55				2.81				2.76
Basic earnings per ADR attributable to Shell Transport ($)a			4.60				4.54				3.10				3.03				2.41				2.36
Diluted earnings per ADR attributable to Shell Transport ($)a			4.60				4.54				3.10				3.03				2.41				2.36

a	Based on Royal Dutch and Shell Transport share numbers before unification.

The fair value of the Shell Group’s 2004 option grants was estimated using a Black-Scholes option pricing model and the following assumptions for US dollar, euro and sterling denominated options respectively: risk-free interest rates of 3.5%, 3.1% and 4.9%; dividend yield of 4.1%, 4.5% and 4.0%; volatility of 28.2%, 30.3% and 31.7% and expected lives of five to seven years.

23 Decommissioning and restoration costs

		$ million
										2004												2003
		Short-term				Long-term				Total				Short-term				Long-term				Total
At January 1			89				3,955				4,044				71				3,528				3,599
Cumulative effect of change in accounting policya			–				–				–				108				(102	)			6
Liabilities incurred			6				291				297				–				174				174
Liabilities settled			(77	)			(18	)			(95	)			(106	)			(37	)			(143	)
Accretion expense			–				284				284				–				49				49
Reclassifications and other movements			160				912				1,072				12				12				24
Currency translation differences			7				285				292				4				331				335
At December 31			185				5,709				5,894				89				3,955				4,044

a	US accounting standard FAS 143 (Asset Retirement Obligations) was effective from the beginning of 2003 (see Note 2).

A review of the estimated provision for decommissioning and restoration costs was performed during 2004 based on current experience and techniques. This resulted in an increase of $1.1 billion in both the provision and corresponding tangible fixed assets, reported within other movements.

For the purposes of calculating provisions for decommissioning and restoration costs, estimated total ultimate liabilities of $9.8 billion at December 31, 2004 (2003: $7.5 billion) were used. Such estimates are subject to various regulatory and technological developments.

Royal Dutch Shell plc

Financial Report 2004	33

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24 Information by geographical area and by industry segment^a

		$ million
		2004								2003								2002
		Net				Fixed				Net				Fixed				Net				Fixed
		proceeds				assets				proceeds				assets				proceeds				assets
Europe			94,904				37,930				70,375				37,686				62,575				36,516
Other Eastern Hemisphere			49,482				36,977				37,482				33,530				32,406				28,492
USA			102,877				27,580				75,109				30,343				54,677				27,266
Other Western Hemisphere			17,927				13,834				15,396				13,038				13,795				11,869
Total Group			265,190				116,321				198,362				114,597				163,453				104,143

a	As a consequence of the separate reporting of income from discontinued operations (see Note 3), information for comparative periods has been reclassified where necessary:

(b) Industry segment

2004			$ million
			Total				Exploration				Gas &				Oil								Corporate
			Shell Group				& Production				Power				Products				Chemicals				and Other
Sales
	third parties			265,190				20,643				9,604				207,006				26,877				1,060
	inter-segment							19,001				1,210				11,924				2,620				11
Net proceeds								39,644				10,814				218,930				29,497				1,071
Operating profit/(loss)
	Shell Group companies			26,254				18,386				331				7,152				1,245				(860	)
	Shell Group share of associated companies			5,653				2,438				1,384				1,749				94				(12	)
				31,907				20,824				1,715				8,901				1,339				(872	)
Interest and other income				1,730				244				768				90				1				627
Interest expense				1,213																				1,213
Currency exchange gains/(losses)				(39	)			(78	)			15				(19	)			(16	)			59
Taxation				15,137				12,033				429				2,691				394				(410	)
Income applicable to minority interests				626
Income from continuing operations				16,622				8,957				2,069				6,281				930				(989	)
Income from discontinued operations, net of taxa				1,560				358				86				1,256				–				(52	)
Net income				18,182				9,315				2,155				7,537				930				(1,041	)
Total assets at December 31				193,626				68,199				23,214				71,447				18,330				12,406
Total liabilities at December 31				(97,862	)			(44,602	)			(15,897	)			(44,509	)			(8,062	)			15,208
Tangible fixed assets at December 31
	Cost			193,162				115,404				8,028				53,773				14,561				1,396
	Accumulated depreciation			(104,222	)			(63,411	)			(1,107	)			(30,689	)			(8,381	)			(634	)
Goodwill at December 31				2,691				–				184				2,470				23				14
Investments in associated companies at December 31				19,743				4,762				4,312				6,206				4,139				324
Capital expenditure and new investments in associated companies				13,792				8,745				1,633				2,466				705				243
Depreciation, depletion and amortisation charge from continuing operations
	Impairment			622				7				–				580				29				6
	Other			11,530				8,132				262				2,476				515				145

	Royal Dutch Shell plc
	Financial Report 2004

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2003			$ million
			Total				Exploration				Gas &				Oil								Corporate
			Shell Group				& Production				Power				Products				Chemicals				and Other
Sales
	third parties			198,362				12,224				7,377				159,075				18,843				843
	inter-segment							20,244				850				3,416				1,974				29
Net proceeds								32,468				8,227				162,491				20,817				872
Operating profit/(loss)
	Shell Group companies			17,860				14,968				510				3,175				(112	)			(681	)
	Shell Group share of associated companies			3,446				1,857				871				910				(165	)			(27	)
				21,306				16,825				1,381				4,085				(277	)			(708	)
Interest and other income				1,996				88				1,366				(39	)			(29	)			610
Interest expense				1,324																				1,324
Currency exchange gains/(losses)				(231	)			(16	)			(23	)			(23	)			(14	)			(155	)
Taxation				9,352				8,307				454				1,202				(111	)			(500	)
Income applicable to minority interests				353
Income from continuing operations				12,042				8,590				2,270				2,821				(209	)			(1,077	)
Income from discontinued operations, net of taxa				25				78				19				39				–				(98	)
Cumulative effect of change in accounting principle, net of tax				255				255
Net income				12,322				8,923				2,289				2,860				(209	)			(1,175	)
Total assets at December 31				169,737				63,641				19,212				64,725				15,297				6,862
Total liabilities at December 31				(88,215	)			(47,866	)			(13,277	)			(42,549	)			(7,888	)			23,365
Tangible fixed assets at December 31
	Cost			181,685				105,540				6,934				53,556				14,028				1,627
	Accumulated depreciation			(94,597	)			(56,265	)			(985	)			(28,784	)			(7,851	)			(712	)
Goodwill at December 31				2,675				–				184				2,455				23				13
Investments in associated companies at December 31				19,371				4,108				4,924				5,965				4,017				357
Capital expenditure and new investments in associated companies				13,235				8,278				1,511				2,405				599				442
Depreciation, depletion and amortisation charge from continuing operations
	Impairment			1,288				679				–				262				220				127
	Other			10,203				7,048				116				2,455				458				126

a	$88 million of income applicable to minority interests is deducted in arriving at income from discontinued operations for the Shell Group in 2004 (2003: $13 million).

2002			$ million
			Total				Exploration				Gas &				Oil								Corporate
			Shell Group				& Production				Power				Products				Chemicals				and Other
Sales
	third parties			163,453				11,640				4,254				132,681				14,125				753
	inter-segment							14,680				620				3,080				1,082				17
Net proceeds								26,320				4,874				135,761				15,207				770
Operating profit/(loss)
	Shell Group companies			15,056				11,976				89				3,009				438				(456	)
	Shell Group share of associated companies			2,792				1,316				729				554				213				(20	)
				17,848				13,292				818				3,563				651				(476	)
Interest and other income				782				98				118				10				3				553
Interest expense				1,291																				1,291
Currency exchange gains/(losses)				(25	)			(25	)			6				(67	)			(16	)			77
Taxation				7,655				6,724				195				1,021				73				(358	)
Income applicable to minority interests				175
Income from continuing operations				9,484				6,641				747				2,485				565				(779	)
Income from discontinued operations, net of tax				187				85				27				142				–				(67	)
Net income				9,671				6,726				774				2,627				565				(846	)
Total assets at December 31				153,291				56,988				16,057				60,549				14,172				5,525
Total liabilities at December 31a				(83,672	)			(45,191	)			(12,223	)			(41,826	)			(7,903	)			23,471
Tangible fixed assets at December 31
	Cost			157,499				93,333				2,843				47,689				12,010				1,624
	Accumulated depreciation			(79,136	)			(47,076	)			(763	)			(23,926	)			(6,711	)			(660	)
Goodwill at December 31				2,324				–				184				1,989				22				129
Investments in associated companies at December 31				17,945				3,591				4,679				5,344				4,154				177
Capital expenditure, acquisitions and new investments in associated companies				23,651				13,154				953				7,968				998				578
Depreciation, depletion and amortisation charge from continuing operations
	Impairment			188				33				4				102				29				20
	Other			8,340				5,603				112				2,160				372				93

As a consequence of the separate reporting of income from discontinued operations (see Note 3), information for comparative periods has been reclassified where necessary.

a	Deferred taxation as at December 31, 2002 is included on a net liability basis, rather than as separate deferred taxation assets and liabilities as in 2004 and 2003.

Royal Dutch Shell plc

Financial Report 2004	35

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25 Oil and gas exploration and production activities

$ million
		2004				2003				2002
Cost
Proved properties			104,479	a			94,069	a			83,964
Unproved properties			4,281				5,400				4,768
Support equipment and facilities			3,266				3,128				2,352
			112,026				102,597				91,084
Depreciation
Proved properties			60,101	a			53,867	a			45,525
Unproved properties			1,437				824				325
Support equipment and facilities			1,582				1,443				1,224
			63,120				56,134				47,074
Net capitalised costs			48,906				46,463				44,010
Oil sands: net capitalised costs			3,087				2,811				2,246

a	Includes capitalised asset retirement costs.

The Shell Group share of associated companies’ net capitalised costs was $3,958 million at December 31, 2004 (2003: $3,772 million; 2002: $3,173 million).

(b) Costs incurred

2004											$ million
			Eastern Hemisphere																Western Hemisphere
															Middle
															East,
											Asia				Russia,
			Europe				Africa				Pacific				CISa				USA				Other				Total
Acquisition of properties
	Proved			–				–				–				192				17				(1	)			208
	Unproved			(3	)			46				(3	)			7				19				44				110
Exploration				152				196				141				127				418				214				1,248
Developmentb
	Excluding oil sands			2,404				1,831				363				2,645				867				362				8,472
	Oil sands																							132				132

2003											$ million
			Eastern Hemisphere																Western Hemisphere
															Middle
															East,
											Asia				Russia,
			Europe				Africa				Pacific				CISa				USA				Other				Total
Acquisition of properties
	Proved			6				8				177				194				–				–				385
	Unproved			–				209				3				273				17				8				510
Exploration				187				163				139				273				342				155				1,259
Developmentb
	Excluding oil sands			2,776				1,660				311				1,251				1,599				588				8,185
	Oil sands																							88				88

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	Financial Report 2004

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2002											$ million
			Eastern Hemisphere																Western Hemisphere
															Middle
															East,
											Asia				Russia,
			Europe				Africa				Pacific				CIS				USA				Other				Total
Acquisition of properties
	Proved			3,776				–				–				122				565				801				5,264
	Unproved			1,693				53				–				3				368				412				2,529
Exploration				217				279				115				170				328				182				1,291
Development
	Excluding oil sands			1,605				1,370				442				685				1,465				407				5,974
	Oil sands																							931				931

a	These amounts do not include Sakhalin II project costs in 2004 of $869 million (2003: $384 million) reported in the Gas & Power segment.
b	Includes capitalised asset retirement costs.

The Shell Group share of associated companies’ cost incurred was $415 million in 2004 (2003: $417 million; 2002: $551 million).

(c) Earnings

2004											$ million
			Eastern Hemisphere																Western Hemisphere
															Middle
															East,
											Asia				Russia,
			Europe				Africa				Pacific				CIS				USA				Other				Total
Sales:
	Third parties			5,856				137				1,045				1,806				2,092				1,277				12,213
	Intra-group			7,223				5,616				1,517				4,616				4,755				1,187				24,914
Net proceeds				13,079				5,753				2,562				6,422				6,847				2,464				37,127
Production costsb				1,895				1,548				537				1,687				779				518				6,964
Exploration expense				201				157				139				101				364				209				1,17 1
Depreciation, depletion and amortisation				3,764				700				566				799				1,6 22				811				8,262
Other income/(costs)				(1,308	)			(353	)			280				(517	)			(340	)			(334	)			(2,572	)
Earnings before taxation				5,911				2,995				1,600				3,318				3,742				592				18,158
Taxation				3,559				2,448				350				2,795				1,298				186				10,636
Earnings from continuing operations				2,352				547				1,250				523				2,444				406				7,522
Earnings from discontinued operations, net of tax				–				144				109				105				–				–				358
Earnings from operations				2,352				691				1,359				628				2,444				406				7,880
Earnings from oil sands																								290				290

2003											$ million
			Eastern Hemisphere																Western Hemisphere
															Middle
															East,
											Asia				Russia,
			Europe				Africa				Pacific				CIS				USA				Other				Total
Sales:
	Third parties			5,386				129				808				1,640				1,903				1,115				10,981
	Intra-group			5,873				3,888				1,179				3,713				4,480				713				19,846
Net proceeds				11,259				4,017				1,987				5,353				6,383				1,828				30,827
Production costsb				1,886				1,087				419				1,408				603				366				5,769
Exploration expense				229				235				112				121				275				144				1,116
Depreciation, depletion and amortisation				3,723				462				539				585				1,667				681				7,657
Other income/(costs)				(512	)			(187	)			238				(443	)			30				(240	)			(1,114	)
Earnings before taxation				4,909				2,046				1,155				2,796				3,868				397				15,171
Taxation				1,686				1,437				217				2,239				1,497				204				7,280
Earnings from continuing operations				3,223				609				938				557				2,371				193				7,891
Earnings from discontinued operations, net of tax				–				(16	)			68				26				–				–				78
Earnings from operations				3,223				593				1,006				583				2,371				193				7,969
Earnings from oil sands																								(101	)			(101	)

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2002											$ million
			Eastern Hemisphere																Western Hemisphere
															Middle
															East,
											Asia				Russia,
			Europe				Africa				Pacific				CIS				USA				Other				Total
Sales:
	Third parties			5,472				73				763				1,772				1,997				892				10,969
	Intra-group			4,572				2,538				1,186				3,087				2,863				433				14,679
Net proceeds				10,044				2,611				1,949				4,859				4,860				1,325				25,648
Production costsb				1,826				754				420				1,275				589				298				5,162
Exploration expense				177				204				58				81				249				208				977
Depreciation, depletion and amortisation				2,469				458				572				777				1,461				265				6,00 2
Other income/(costs)				(428	)			(97	)			160				(654	)			(221	)			(219	)			(1,459	)
Earnings before taxation				5,144				1,098				1,059				2,072				2,340				335				12,048
Taxation				2,340				789				294				1,638				791				93				5,945
Earnings from continuing operations				2,804				309				765				434				1,549				242				6,103
Earnings from discontinued operations, net of tax				–				(15	)			70				30				–				–				85
Earnings from operations				2,804				294				835				464				1,549				242				6,188
Earnings from oil sands																								(3	)			(3	)

a	As a consequence of the separate reporting of income from discontinued operations (see Note 3), information for comparative periods has been reclassified where necessary.
b	Includes certain royalties paid in cash amounting to $2,019 million in 2004 (2003: $1,700 million; 2002: $1,449 million).

The Shell Group share of associated companies’ earnings was $1,145 million in 2004 (2003: $800 million; 2002: $541 million) mainly in the USA $603 million (2003: $424 million; 2002: $330 million) and Asia Pacific $522 million (2003: $353 million; 2002: $170 million).

26 Auditors’ remuneration

Remuneration of KPMG and PricewaterhouseCoopers						$ million
		2004				2003				2002
Audit fees			42				32				27
Audit-related feesa			13				11				17
Tax feesb			9				7				6
Fees for all other non-audit services			6				6				12

a	Fees for audit-related services such as employee benefit plan audits, due diligence assistance, assurance of non-financial data, operational audits, training services and special investigations.
b	Fees for tax compliance, tax advice and tax planning services.

27 Contingencies and litigation

		$ billion
In respect of debt			1.7
In respect of customs duties			0.5
Other			0.7
			2.9

The $1.7 billion of guarantees in respect of debt relate to project finance. Guarantees in respect of customs duties mainly relate to a cross guarantee, renewable annually, for amounts payable by industry participants in a western European country.

Shell Oil Company (including subsidiaries and affiliates, referred to collectively as SOC), along with numerous other defendants, has been sued by public and quasi-public water purveyors, as well as governmental entities, alleging responsibility for groundwater contamination caused by releases of gasoline containing oxygenate additives. Most of these suits assert various theories of liability, including product liability, and seek to recover actual damages, including clean-up costs. Some assert claims for punitive damages. As of December 31, 2004, there were approximately 66 pending suits by such plaintiffs that asserted claims against SOC and many other defendants (including major energy and refining companies). Although a majority of these cases do not specify the amount of monetary damages sought, some include specific damage claims collectively against all defendants. While the aggregate amounts claimed against all defendants for actual and punitive damages in such suits could be material to the financial statements if they were ultimately recovered against SOC alone rather than apportioned among the defendants, management of the Shell Group considers the amounts claimed in these pleadings to be highly speculative and not an appropriate basis on which to determine a reasonable estimate of the amount of the loss that may be ultimately incurred, for the reasons described below.

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	Financial Report 2004

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The reasons for this determination can be summarised as follows:

•	While the majority of the cases have been consolidated for pre-trial proceedings in the U.S. District Court for the Southern District of New York, there are many cases pending in other jurisdictions throughout the U.S. Most of the cases are at a preliminary stage. In many matters, little discovery has been taken and the courts have yet to rule upon motions on substantive legal issues. Consequently, management of the Shell Group does not have sufficient information to assess the facts underlying the plaintiffs’ claims; the nature and extent of damages claimed, if any; the reasonableness of any specific claim for money damages; the allocation of potential responsibility among defendants; or the law that may be applicable. Additionally, given the pendency of cases in varying jurisdictions, there may be inconsistencies in the determinations made in these matters.
•	There are significant unresolved legal questions relating to claims asserted in this litigation. For example, it has not been established whether the use of oxygenates mandated by the 1990 amendments to the Clean Air Act can give rise to a products liability based claim. While some trial courts have held that it cannot, other courts have left the question open or declined to dismiss claims brought on a products liability theory. Other examples of unresolved legal questions relate to the applicability of federal preemption, whether a plaintiff may recover damages for alleged levels of contamination significantly below state environmental standards, and whether a plaintiff may recover for an alleged threat to groundwater before detection of contamination.
•	There are also significant unresolved legal questions relating to whether punitive damages are available for products liability claims or, if available, the manner in which they might be determined. For example, some courts have held that for certain types of product liability claims, punitive damages are not available. It is not known whether that rule of law would be applied in some or all of the pending oxygenate additive cases. Where specific claims for damages have been made, punitive damages represent in most cases a majority of the total amounts claimed.
•	There are significant issues relating to the allocation of any liability among the defendants. Virtually all of the oxygenate additives cases involve multiple defendants including most of the major participants in the retail gasoline marketing business in the regions involved in the pending cases. The basis on which any potential liability may be apportioned among the defendants in any particular pending case cannot yet be determined.

For these reasons, management of the Shell Group is not currently able to estimate a range of reasonably possible losses or minimum loss for this litigation; however, management of the Shell Group does not currently believe that the outcome of the oxygenate-related litigation pending as of December 31, 2004 will have a material impact on the Shell Group’s financial condition, although such resolutions could have a significant effect on periodic results for the period in which they are recognised.

A $490 million judgment in favour of 466 plaintiffs in a consolidated matter that had once been nine individual cases was rendered in 2002 by a Nicaraguan court jointly against SOC and three other named defendants (not affiliated with SOC), based upon Nicaraguan Special Law 364 for claimed personal injuries resulting from alleged exposure to dibromochloropropane (DBCP) — a pesticide manufactured by SOC prior to 1978. This special law imposes strict liability (in a predetermined amount) on international manufacturers of DBCP. The statute also provides that unless a deposit (calculated as described below) of an amount denominated in Nicaraguan cordobas is made into the Nicaraguan courts, the claims would be submitted to the US courts. In SOC’s case the deposit would have been between $19 million and $20 million (based on an exchange rate between 15 and 16 cordobas per US dollar). SOC chose not to make this deposit. The Nicaraguan courts did not, however, give effect to the provision of Special Law 364 that requires submission of the matter to the US courts. Instead, the Nicaraguan court entered judgment against SOC and the other defendants. Further, SOC was not afforded the opportunity to present any defences in the Nicaraguan court, including that it was not subject to Nicaraguan jurisdiction because it had neither shipped nor sold DBCP to parties in Nicaragua. At this time, SOC has not completed the steps necessary to perfect an appeal in Nicaragua and, as described below, the Nicaraguan claimants have sought to enforce the Nicaraguan judgment against SOC in the U.S. and in Venezuela. SOC does not have any assets in Nicaragua. In 2003, an attempt by the plaintiffs to enforce the Nicaraguan judgment described above in the United States against Shell Chemical Company and purported affiliates of the other named defendants was rejected by the U.S. District Court for the Central District of California, which decision is on appeal before the Ninth Circuit Court of Appeals. Enforcement of the Nicaraguan judgment was rejected because of improper service and attempted enforcement against non-existent entities or entities that were not named in the Nicaraguan judgment. Thereafter, SOC filed a declaratory judgment action seeking ultimate adjudication of the non-enforceability of this Nicaraguan judgment in the U.S. District Court for the Central District of California. This district court denied motions filed by the Nicaraguan claimants to dismiss SOC claims that Nicaragua does not have impartial tribunals, the proceedings violated due process, the relationship between SOC and Nicaragua made the exercise of personal jurisdiction unreasonable, and Special Law 364 is repugnant to U.S. public policy because it violates due process. A finding in favour of SOC on any of these grounds will result in a refusal to recognize and enforce the judgment in the United States. Several requests for Exequatur were filed in 2004 with the Tribunal Suprema de Justicia (the Venezuelan Supreme Court) to enforce Nicaraguan judgments. The petitions imply that judgments can be satisfied with assets of Shell Venezuela, S.A., which was neither a party to the Nicaraguan judgment nor a subsidiary of SOC, against whom the Exequatur was filed. The petitions are pending before the Tribunal Suprema de Justicia but have not been accepted. As of December 31, 2004, five additional Nicaraguan judgments had been entered in the collective amount of approximately $226.5 million in favor of 240 plaintiffs jointly against Shell Chemical

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Company and three other named defendants (not affiliated with Shell Chemical Company) under facts and circumstances almost identical to those relating to the judgment described above. Additional judgments are anticipated (including a suit seeking more than $3 billion). It is the opinion of management of the Group that the above judgments are unenforceable in a U.S. court, as a matter of law, for the reasons set out in SOC’s declaratory judgment action described above. No financial provisions have been established for these judgments or related claims.

Since 1984, SOC has been named with others as a defendant in numerous product liability cases, including class actions, involving the failure of residential plumbing systems and municipal water distribution systems constructed with polybutylene plastic pipe. SOC fabricated the resin for this pipe while the co-defendants fabricated the raw materials for the pipe fittings. As a result of two class action settlements in 1995, SOC and the co-defendants agreed on a mechanism to fund until 2009 the settlement of most of the residential plumbing claims in the United States. Financial provisions have been taken by SOC for its settlement funding needs anticipated at this time. Additionally, claims that are not part of these class action settlements or that challenge these settlements continue to be filed primarily involving alleged problems with polybutylene pipe used in municipal water distribution systems. It is the opinion of management of the Shell Group that exposure from this other polybutylene litigation pending as of December 31, 2004, is not material. Management of the Shell Group cannot currently predict when or how all polybutylene matters will be finally resolved.

In connection with the recategorisation of certain hydrocarbon reserves that occurred in 2004, a number of putative shareholder class actions were filed against Royal Dutch, Shell Transport, Managing Directors of Royal Dutch during the class period, Managing Directors of Shell Transport during the class period and the external auditors for Royal Dutch, Shell Transport and the Royal Dutch/Shell Group. These actions were consolidated in the United States District Court in New Jersey and a consolidated complaint was filed in September 2004. The parties are awaiting a decision with respect to defendants’ motions to dismiss asserting lack of jurisdiction with respect to the claims of non-United States shareholders who purchased on non-United States securities exchanges and failure to state a claim. Merits discovery has not begun. The case is at an early stage and subject to substantial uncertainties concerning the outcome of the material factual and legal issues relating to the litigation, including the pending motions to dismiss on lack of jurisdiction and failure to state a claim. In addition, potential damages, if any, in a fully litigated securities class action would depend on the losses caused by the alleged wrongful conduct that would be demonstrated by individual class members in their purchases and sales of Royal Dutch and Shell Transport shares during the relevant class period. Accordingly, based on the current status of the litigation, management of the Shell Group is unable to estimate a range of possible losses or any minimum loss. Management of the Shell Group will review this determination as the litigation progresses.

Also in connection with the hydrocarbon reserves recategorisation, putative shareholder class actions were filed on behalf of participants in various Shell Oil Company qualified plans alleging that Royal Dutch, Shell Transport and various current and former officers and directors breached various fiduciary duties to employee participants imposed by the Employee Retirement Income Security Act of 1974 (ERISA). These suits were consolidated in the United States District Court in New Jersey and a consolidated class action complaint was filed in July 2004. Defendants’ motions to dismiss have been fully briefed. Some document discovery has taken place. The case is at an early stage and subject to substantial uncertainties concerning the outcome of the material factual and legal issues relating to the litigation, including the pending motion to dismiss and the legal uncertainties with respect to the methodology for calculating damage, if any, should defendants become subject to an adverse judgment. The Shell Group is in settlement discussions with counsel for plaintiffs, which it hopes will lead to a successful resolution of the case without the need for further litigation. No financial provisions have been taken with respect to the ERISA litigation.

The reserves recategorisation also led to the filing of shareholder derivative actions in June 2004. The four suits pending in New York state court, New York federal court and New Jersey federal court demand Shell Group management and structural changes and seek unspecified damages from current and former members of the Boards of Directors of Royal Dutch and Shell Transport. The suits are in preliminary stages and no responses are yet due from defendants. Because any money “damages” in the derivative actions would be paid to Royal Dutch and Shell Transport, management of the Shell Group does not believe that the resolution of these suits will have a material adverse effect on the Shell Group’s financial condition or operating results.

The United States Securities and Exchange Commission (SEC) and UK Financial Services Authority (FSA) issued formal orders of private investigation in relation to the reserves recategorisation which Royal Dutch and Shell Transport resolved by reaching agreements with the SEC and the FSA. In connection with the agreement with the SEC, Royal Dutch and Shell Transport consented, without admitting or denying the SEC’s findings or conclusions, to an administrative order finding that Royal Dutch and Shell Transport violated, and requiring Royal Dutch and Shell Transport to cease and desist from future violations of, the antifraud, reporting, recordkeeping and internal control provisions of the US Federal securities laws and related SEC rules, agreed to pay a $120 million civil penalty and has undertaken to spend an additional $5 million developing a comprehensive internal compliance program. In connection with the agreement with the FSA, Royal Dutch and Shell Transport agreed, without admitting or denying the FSA’s findings or conclusions, to the entry of a Final Notice by the FSA finding that Royal Dutch and Shell Transport breached market abuse provisions of the UK’s Financial Services and Markets Act 2000 and the Listing Rules made under it and agreed to pay a penalty of £17 million. The penalties from the SEC and FSA and the additional amount to develop a comprehensive internal compliance program have been paid by Shell Group companies and fully included in the Income Statement of the Shell Group. The United States Department of Justice has

	Royal Dutch Shell plc
	Financial Report 2004

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commenced a criminal investigation, and Euronext Amsterdam, the Dutch Authority Financial Markets and the California Department of Corporations are investigating the issues related to the reserves recategorisation. Management of the Shell Group cannot currently predict the manner and timing of the resolution of these pending matters and is currently unable to estimate the range of reasonably possible losses from such matters.

Shell Group companies are subject to a number of other loss contingencies arising out of litigation and claims brought by governmental and private parties, which are handled in the ordinary course of business.

The operations and earnings of Shell Group companies continue, from time to time, to be affected to varying degrees by political, legislative, fiscal and regulatory developments, including those relating to the protection of the environment and indigenous people, in the countries in which they operate. The industries in which Shell Group companies are engaged are also subject to physical risks of various types. The nature and frequency of these developments and events, not all of which are covered by insurance, as well as their effect on future operations and earnings, are unpredictable.

28 Financial instruments

Some Shell Group companies enter into derivatives such as interest rate swaps/ forward rate agreements to manage interest rate exposure. The financing of most Operating Companies is structured on a floating-rate basis and, except in special cases, further interest rate risk management is discouraged. Foreign exchange derivatives, such as forward exchange contracts and currency swaps/ options, are used by some Shell Group companies to manage foreign exchange risk. Commodity swaps, options and futures are used to manage price and timing risks mainly involving crude oil, natural gas and oil products.

The contract/notional amount, together with the estimated fair value (carrying amount) of derivatives held by Shell Group companies at December 31 is as follows:

$ million
		2004								2003
										Contract/
		Contract/				Estimated				notional				Estimated
		notional				fair value				amount				fair value
		amount
Interest rate swaps/forward rate agreements			4,307				70				4,322				121
Forward exchange contracts and currency swaps/options			18,830				53				18,874				165
Commodity swaps, options and futures			101,021				81				65,800				61
			124,158				204				88,996				347

The contract/national amounts of commodity swaps, options and futures have increased during the year as a consequence of rising crude oil and natural gas prices.

Other financial instruments in the Balance Sheet include fixed assets: investments – securities, trade receivables, short-term securities, cash and cash equivalents, short and long-term debt, and assets and liabilities in respect of risk management activities. The estimated fair values of these instruments approximate their carrying amounts.

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Supplementary Information – Oil and Gas (unaudited)

Reserves

Proved reserves are shown net of any quantities of crude oil or natural gas that are expected to be taken by others as royalties in kind but do not exclude quantities related to royalties expected to be paid in cash (except in North America and in other situations in which the royalty quantities are owned by others) or those related to fixed margin contracts. Proved reserves include certain quantities of crude oil or natural gas which will be produced under arrangements which involve Shell Group companies in upstream risks and rewards but do not transfer title of the product to those companies.

Oil and gas reserves cannot be measured exactly since estimation of reserves involves subjective judgment. These estimates remain subject to revision and are unaudited supplementary information.

1	Reserves, reserves volumes and reserves related information and disclosure are referred to as “unaudited” as a means to clarify that this information is not covered by the audit opinion of the registered independent public accounting firms that have audited and reported on the Consolidated Financial Statements of Royal Dutch

Shell plc.

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	Financial Report 2004

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Crude oil and natural gas liquids

Proved developed and undeveloped reserves

		million barrelsa
		2004
		Eastern Hemisphere																Western Hemisphere
										Asia				Middle East								Americas
		Europe				Africab				Pacificc				Russia, CISd				USA				Other				Total
Shell Group companies
At January 1			1,199				1,379				303				1,202				547				379				5,009
Revisions and reclassifications			(27	)			(46	)			13				80				(2	)			(197	)			(179	)
Improved recovery			6				2				–				4				–				–				12
Extensions and discoveries			5				13				10				68				12				2				110
Purchases of minerals in place			–				–				–				–				–				–				–
Sales of minerals in place			(2	)			(57	)			(35	)			–				–				–				(94	)
Production			(212	)			(146	)			(46	)			(172	)			(99	)			(38	)			(713	)
Transfers to associated companies			–				–				–				(384	)			–				–				(384	)
At December 31			969				1,145				245				798				458				146				3,761
Shell Group share of associated companies
At January 1			2				–				304				86				413				–				805
Revisions and reclassifications			–				–				(22	)			(13	)			18				–				(17	)
Improved recovery			–				–				38				–				–				–				38
Extensions and discoveries			–				–				–				–				–				–				–
Purchases of minerals in place			–				–				–				–				–				–				–
Sales of minerals in place			–				–				(1	)			–				–				–				(1	)
Production			–				–				(43	)			–				(39	)			–				(82	)
Transfers from Shell Group companies			–				–				–				384				–				–				384
At December 31			2				–				276				457				392				–				1,127
Minority Interests’ share of proved reserves of Shell Group companies
At December 31			–				23				1				109				–				14				147

Oil sandse		million barrels
Shell Group companies
At January 1			572				572
Revisions and reclassifications			72				72
Extensions and discoveries			–				–
Production			(29	)			(29	)
At December 31			615				615
Minority Interests’ share of oil sands
At December 31			135				135

Proved developed reserves

		million barrels
		2004
		Eastern Hemisphere																Western Hemisphere
										Asia				Middle East								Americas
		Europe				Africab				Pacificc				Russia, CISd				USA				Other				Total
Shell Group companies
At January 1			962				777				184				864				291				191				3,269
At December 31f			755				617				134				475				242				115				2,338
Shell Group share of associated companies
At January 1			1				–				224				1				364				–				590
At December 31f			1				–				187				360				349				–				897

a	These quantities have not been adjusted to standard heat content.
b	Excludes Egypt.
c	Excludes Sakhalin.
d	Middle East and Former Soviet Union/Commonwealth of Independent States. Includes Caspian region, Egypt and Sakhalin.
e	Petroleum reserves from operations that do not qualify as oil and gas producing activities, such as our Athabasca Oil Sands Project, are not included in oil and gas reserves and are not considered in the standardised measure of discounted future cash flows for oil and gas reserves, which is found on page 56. The petroleum reserves for the Athabasca Oil Sands Project are presented in this report net of royalty volumes.
f	After accounting for a transfer of proved developed reserves from Shell Group to associated companies of 360 million barrels at the end of 2004.

	Royal Dutch Shell plc
	Financial Report 2004

---

 

										million barrels																				million barrels
2003																														2002
Eastern Hemisphere																		Western Hemisphere												Eastern Hemisphere																Western Hemisphere
														Middle East,																												Middle East,
		Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total				Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total
			1,377				1,449				323				1,446				717				470				5,782				1,013				1,308				426				1,677				672				504				5,600
			88				(102	)			21				(204	)			(54	)			(57	)			(308	)			99				89				(27	)			(26	)			77				(42	)			170
			5				(6	)			16				10				8				1				34				13				–				6				47				51				–				117
			12				171				–				128				9				2				322				–				173				6				–				33				–				212
			1				–				–				3				–				–				4				507				–				–				–				7				41				555
			(39	)			–				–				–				(23	)			–				(62	)			(1	)			(19	)			(19	)			(62	)			(3	)			–				(104	)
			(245	)			(133	)			(57	)			(181	)			(110	)			(37	)			(763	)			(254	)			(102	)			(69	)			(190	)			(120	)			(33	)			(768	)
			–				–				–				–				–				–				–				–				–				–				–				–				–				–
			1,199				1,379				303				1,202				547				379				5,009				1,377				1,449				323				1,446				717				470				5,782
			2				–				325				118				413				–				858				1				–				307				–				356				–				664
			–				–				1				–				41				–				42				1				–				55				–				65				–				121
			–				–				13				–				–				–				13				–				–				4				–				–				–				4
			–				–				11				86				–				–				97				–				–				9				–				33				–				42
			–				–				–				–				–				–				–				–				–				–				121				–				–				121
			–				–				–				(117	)			–				–				(117	)			–				–				–				(1	)			–				–				(1	)
			–				–				(46	)			(1	)			(41	)			–				(88	)			–				–				(50	)			(2	)			(41	)			–				(93	)
			–				–				–				–				–				–				–				–				–				–				–				–				–				–
			2				–				304				86				413				–				805				2				–				325				118				413				–				858
			–				24				1				137				–				54				216				–				23				1				126				–				61				211

										million barrels																				million barrels
																							517				517																								594				594
																							10				10																								(77	)			(77	)
																							60				60																								–				–
																							(15	)			(15	)																							–				–
																							572				572																								517				517
																							126				126																								115				115

										million barrels																				million barrels
2003																														2002
Eastern Hemisphere																		Western Hemisphere												Eastern Hemisphere																Western Hemisphere
														Middle East,																												Middle East,
		Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total				Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total
			1,063				674				194				1,023				371				191				3,516				750				662				245				1,089				429				212				3,387
			962				777				184				864				291				191				3,269				1,063				674				194				1,023				371				191				3,516
			1				–				206				15				365				–				587				1				–				208				–				330				–				539
			1				–				224				1				364				–				590				1				–				206				15				365				–				587

Royal Dutch Shell plc

Financial Report 2004	45

---

 

Natural gas

Proved developed and undeveloped reserves

		thousand million standard cubic feeta
		2004
		Eastern Hemisphere																Western Hemisphere
										Asia				Middle East								Americas
		Europe				Africab				Pacificc				Russia, CISd				USA				Other				Total
Shell Group companies
At January 1			19,876				2,743				7,352				3,628				3,143				1,628				38,370
Revisions and reclassifications			(270	)			(74	)			125				138				(100	)			(45	)			(226	)
Improved recovery			9				–				–				–				–				4				13
Extensions and discoveries			217				–				171				2,128				257				192				2,965
Purchases of minerals in place			–				–				–				–				9				–				9
Sales of minerals in place			(48	)			–				(310	)			(258	)			–				(37	)			(653	)
Production			(1,345	)			(137	)			(535	)			(253	)			(486	)			(197	)			(2,953	)
At December 31			18,439				2,532				6,803				5,383				2,823				1,545				37,525
Shell Group share of associated companies
At January 1			39				–				3,122				–				27				–				3,188
Revisions and reclassifications			–				–				120				–				(8	)			–				112
Improved recovery			–				–				45				–				–				–				45
Extensions and discoveries			5				–				1				–				–				–				6
Purchases of minerals in place			–				–				–				–				–				–				–
Sales of minerals in place			–				–				(55	)			–				–				–				(55	)
Production			(7	)			–				(246	)			–				(2	)			–				(255	)
At December 31			37				–				2,987				–				17				–				3,041
Minority Interests’ share of proved reserves of Shell Group companies
At December 31			209				–				56				2,231				–				274				2,770

Proved developed reserves

		thousand million standard cubic feeta
		2004
		Eastern Hemisphere																Western Hemisphere
										Asia				Middle East								Americas
		Europe				Africab				Pacificc				Russia, CISd				USA				Other				Total
Shell Group companies
At January 1			11,477				886				3,128				446				1,754				1,297				18,988
At December 31			12,961				919				2,702				166				1,875				1,080				19,703
Shell Group share of associated companies
At January 1			34				–				1,825				–				22				–				1,881
At December 31			28				–				1,606				–				15				–				1,649

a	These quantities have not been adjusted to standard heat content.

b	Excludes Egypt.

c	Excludes Sakhalin.

d	Middle East and Former Soviet Union/Commonwealth of Independent States. Includes Caspian region, Egypt and Sakhalin.

	Royal Dutch Shell plc
	Financial Report 2004

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thousand million standard cubic feeta																														thousand million standard cubic feeta
2003																														2002
		Eastern Hemisphere																Western Hemisphere												Eastern Hemisphere																Western Hemisphere
														Middle East,																												Middle East,
		Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total				Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total
			21,284				1,692				7,862				1,118				3,842				1,959				37,757				22,022				1,780				9,031				1,777				3,663				2,257				40,530
			(435	)			(688	)			8				(22	)			(70	)			(181	)			(1,388	)			(110	)			1				(680	)			(282	)			162				(123	)			(1,032	)
			4				506				17				–				10				30				567				6				–				150				–				20				–				176
			459				1,361				6				2,790				305				34				4,955				29				–				126				–				410				9				574
			6				–				–				–				–				–				6				673				–				–				–				208				12				893
			(139	)			–				–				–				(389	)			(17	)			(545	)			(5	)			–				(212	)			–				(10	)			–				(227	)
			(1,303	)			(128	)			(541	)			(258	)			(555	)			(197	)			(2,982	)			(1,331	)			(89	)			(553	)			(377	)			(611	)			(196	)			(3,157	)
			19,876				2,743				7,352				3,628				3,143				1,628				38,370				21,284				1,692				7,862				1,118				3,842				1,959				37,757
			44				–				3,243				–				21				–				3,308				48				–				2,943				–				15				–				3,006
			–				–				106				–				9				–				115				1				–				434				–				7				–				442
			1				–				11				–				–				–				12				–				–				8				–				–				–				8
			1				–				–				–				–				–				1				3				–				80				–				1				–				84
			–				–				–				–				–				–				–				–				–				–				–				–				–				–
			–				–				–				–				–				–				–				–				–				–				–				–				–				–
			(7	)			–				(238	)			–				(3	)			–				(248	)			(8	)			–				(222	)			–				(2	)			–				(232	)
			39				–				3,122				–				27				–				3,188				44				–				3,243				–				21				–				3,308
			–				–				63				1,285				–				300				1,648				–				–				61				59				–				342				462

thousand million standard cubic feeta																														thousand million standard cubic feeta
2003																														2002
		Eastern Hemisphere																Western Hemisphere												Eastern Hemisphere																Western Hemisphere
														Middle East,																												Middle East,
		Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total				Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total
			11,472				735				3,405				574				2,311				1,464				19,961				11,880				668				3,635				1,097				2,363				1,754				21,397
			11,477				886				3,128				446				1,754				1,297				18,988				11,472				735				3,405				574				2,311				1,464				19,961
			38				–				1,776				–				17				–				1,831				41				–				1,759				–				11				–				1,811
			34				–				1,825				–				22				–				1,881				38				–				1,776				–				17				–				1,831

Royal Dutch Shell plc

Financial Report 2004	47

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Standardised measure of discounted future cash flows

$ million
		2004
		Eastern Hemisphere																Western Hemisphere
														Middle East,
		Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total
Shell Group companies
Future cash inflows			107,956				47,326				26,461				51,565				33,525				12,578				279,411
Future production costs			29,641				13,354				4,882				10,020				5,354				3,600				66,851
Future development costs			11,778				4,928				3,669				10,216				1,841				834				33,266
Future tax expenses			34,635				16,831				6,147				14,031				9,860				2,074				83,578
Future net cash flows			31,902				12,213				11,763				17,298				16,470				6,070				95,716
Effect of discounting cash flows at 10%			14,925				4,037				5,270				11,375				5,803				2,007				43,417
Standardised measure of discounted future net cash flows			16,977				8,176				6,493				5,923				10,667				4,063				52,299
Shell Group share of associated companies																											5,527
Minority interests			285				180				36				1,078				–				548				2,128

Change in standardised measure of Shell Group companies discounted future net cash flows
relating to proved Oil and Gas Reservesa										$ million
		2004				2003				2002
At January 1			48,172				55,160				37,910
Net changes in prices and production costs			23,524				12,178				34,592
Extensions, discoveries and improved recovery			6,223				9,255				5,177
Purchases and sales of minerals in place			(564	)			(2,558	)			7,319
Revisions of previous reserve estimates			(385	)			(4,103	)			375
Development cost related to future production			(6,829	)			(14,291	)			(6,168	)
Sales and transfers of oil and gas, net of production costsf			(27,530	)			(24,892	)			(20,387	)
Development cost incurred during the year			9,386				8,205				6,503
Accretion of discount			7,947				9,051				6,053
Net change in income tax			(7,645	)			167				(16,214	)
At December 31			52,299				48,172				55,160

a	The weighted average year-end spot oil price in 2004 was $37.61/bbl ($26.52/bbl in 2003, $24.49/bbl in 2002) and the weighted average year-end spot gas price in 2004 was $21.27/boe ($18.03/boe in 2003, $15.75/boe in 2002).
b	Excludes Egypt.
c	Excludes Sakhalin.
d	Middle East and Former Soviet Union / Commonwealth of Independent States. Includes Caspian region, Egypt and Sakhalin.
e	Includes a transfer of proved developed reserves from Shell Group to associated companies of 360 million barrels in 2004 ($260 million).

Additional information concerning proved reserves

Proved reserves are recognised under various forms of contractual agreements. Shell Group proved reserves volumes present in agreements such as Production Sharing Contracts or other forms of economic entitlement contracts where Shell Group share of reserves can vary with actual year-end price are approximately 859 million barrels of crude oil and natural gas liquids and 9,720 thousand million standard cubic feet of gas.

	Royal Dutch Shell plc
	Financial Report 2004

---

 

$ million																												$ million
2003																												2002
Eastern Hemisphere																Western Hemisphere												Eastern Hemisphere																Western Hemisphere
												Middle East,																												Middle East,
Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total				Europe				Africab				Asia Pacificc				Russia, CISd				USA				Other				Total
	108,836				36,965				21,695				42,627				31,203				14,710				256,036				98,126				36,427				22,243				36,513				32,541				16,280				242,130
	20,241				6,347				4,365				7,579				4,949				4,156				47,637				18,721				5,034				3,563				5,174				4,841				3,673				41,006
	6,541				4,661				2,528				9,679				3,085				1,315				27,809				4,783				4,670				2,397				2,844				3,201				1,532				19,427
	39,605				16,396				4,076				15,309				8,467				2,469				86,322				32,125				18,690				4,538				17,443				9,103				3,447				85,346
	42,449				9,561				10,726				10,060				14,702				6,770				94,268				42,497				8,033				11,745				11,052				15,396				7,628				96,351
	21,126				4,210				4,590				8,491				5,170				2,509				46,096				19,511				3,601				5,343				4,166				5,427				3,143				41,191
	21,323				5,351				6,136				1,569				9,532				4,261				48,172				22,986				4,432				6,402				6,886				9,969				4,485				55,160
																									5,501																												5,600
	–				136				30				(1,186	)			–				547				(473	)			–				123				22				753				–				468				1,366

Royal Dutch Shell plc

Financial Report 2004	49

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The following information is provided in accordance with the Securities and Exchange Commission rules issued in 1997. The contract/ notional amounts of the derivative instruments outstanding give an indication of the extent of the use of these instruments but not of the exposure to credit or market risk. Variable interest rates stated are spot rates applying as at December 31. Amounts denominated in non-US dollar currencies have been translated using spot exchange rates at December 31. Associated companies’ data are excluded.

Debt securities held for trading purposes

Debt securities held for purposes other than trading

2004			$ million
																							2010
			2005				2006				2007				2008				2009				and after				Total
Fixed rate US dollar debt securities				1,090				29				100				105				162				95				1,581
	average Interest rate			2.5%				7.1%				7.2%				5.7%				5.5%				6.5%
Variable rate US dollar debt securities				1				–				–				–				–				–				1
	average Interest rate			1.4%				–				–				–				–				–
Fixed rate euro debt securities				255				47				45				–				17				119				483
	average Interest rate			2.2%				5.9%				5.5%				–				4.0%				4.8%
Fixed rate UK pound debt securities				5				–				–				6				–				17				28
	average Interest rate			8.5%				–				–				5.0%				–				7.5%
Variable rate UK pound debt securities				24				–				–				–				–				–				24
	average Interest rate			4.8%				–				–				–				–				–
Fixed rate Canadian dollar debt securities				106				–				–				–				–				10				116
	average Interest rate			2.5%				–				–				–				–				8.1%
Other fixed rate debt securities				1				–				–				–				–				14				15
	average Interest rate			4.9%				–				–				–				–				5.8%
Other variable rate debt securities				37				–				–				–				–				–				37
	average Interest rate			4.6%				–				–				–				–				–
Total				1,519				76				145				111				179				255				2,285

2003			$ million
																							2009
			2004				2005				2006				2007				2008				and after				Total
Fixed rate US dollar debt securities				9				54				23				230				75				131				522
	average Interest rate			0.7%				5.8%				7.1%				5.6%				3.3%				6.2%
Variable rate US dollar debt securities				9				–				–				–				–				–				9
	Average Interest rate			1.4%				–				–				–				–				–
Fixed rate euro debt securities				5				–				48				42				–				109				204
	average Interest rate			1.9%				–				6.1%				5.3%				–				5.7%
Fixed rate UK pound debt securities				–				8				–				–				10				5				23
	average Interest rate			–				8.5%				–				–				5.7%				7.0%
Fixed rate Canadian dollar debt securities				39				–				–				–				–				8				47
	average Interest rate			2.7%				–				–				–				–				9.6%
Fixed rate Swedish krone debt securities				–				–				–				–				–				6				6
	average Interest rate			–				–				–				–				–				6.8%
Fixed rate Danish krone debt securities				–				–				–				–				–				7				7
	average Interest rate			–				–				–				–				–				5.0%
Other fixed rate debt securities				2				–				–				–				–				–				2
	average Interest rate			9.0%				–				–				–				–				–
Other variable rate debt securities				48				–				–				–				–				–				48
	average Interest rate			5.6%				–				–				–				–				–
Total				112				62				71				272				85				266				868

Equity securities held for purposes other than trading

	Royal Dutch Shell plc
	Financial Report 2004

---

 

respective market capitalisation, including 55% in the USA, 11% in the UK, 9% in Japan, 4% in France, 3% in Switzerland, 3% in Canada and 3% in Germany.

Debt

The following two tables give details of debt owed by Shell Group companies at December 31, 2004 and 2003 respectively, by year of maturity. Estimated fair value approximates carrying amount.

2004			$ million
																											2010
							2005				2006				2007				2008				2009				and after				Total
Fixed rate US dollar debt								4,200				676				1,115				85				91				2,073				8,240
	average interest rate							2.9%				3.7%				5.2%				8.1%				8.2%				8.3%
Variable rate US dollar debt								339				260				19				9				9				309				945
	average interest rate							7.5%				1.8%				3.6%				3.6%				3.7%				5.8%
Fixed rate European debt								294				723				1,322				419				1				2				2,761
	average interest rate							2.6%				4.2%				3.4%				3.3%				4.2%				4.5%
Variable rate European debt								20				1				1				1				–				–				23
	average interest rate							5.4%				2.9%				3.0%				3.0%				5.0%				5.0%
Other fixed rate debt								201				14				17				16				16				559				823
	average interest rate							3.6%				6.6%				5.6%				6.9%				6.9%				7.3%
Other variable rate debt								655				210				–				–				–				–				865
	average interest rate							7.3%				2.8%				–				–				–				–
Total								5,709				1,884				2,474				530				117				2,943				13,657

2003			$ million
																							2009
			2004				2005				2006				2007				2008				and after				Total
Fixed rate US dollar debt				5,766				804				613				1,073				152				2,709				11,117
	average interest rate			1.2%				4.8%				3.2%				5.0%				5.5%				7.9%
Variable rate US dollar debt				1,654				144				169				17				9				316				2,309
	average interest rate			3.9%				2.2%				2.1%				3.3%				4.2%				6.1%
Fixed rate European debt				733				4				666				946				377				4				2,730
	average interest rate			8.6%				3.6%				4.2%				3.3%				3.5%				3.7%
Variable rate European debt				1,173				2				3				3				1				–				1,182
	average interest rate			2.3%				4.3%				4.1%				4.1%				4.6%				5.3%
Other fixed rate debt				203				3				33				1				–				180				420
	average interest rate			5.0%				4.2%				10.5%				5.5%				5.5%				7.5%
Other variable rate debt				931				255				42				27				22				17				1,294
	average interest rate			6.8%				5.3%				4.0%				4.8%				4.8%				4.8%
Total				10,460				1,212				1,526				2,067				561				3,226				19,052

Fixed rate European currency debt expected to mature in 2005 includes $268 million of UK pound debt (with an average interest rate of 2.8%). The fixed rate European currency debt expected to mature in 2006 is mainly UK pound debt with an average interest rate of 4.3%. Fixed rate European currency debt expected to mature in 2007 includes $1,025 million of Euro debt with an average interest rate of 3.5% and $297 million of UK pound debt with an average interest rate of 3.3%. The fixed rate European currency debt expected to mature in 2008 is Euro debt with an average interest rate of 3.3%. The fixed rate European currency debt due to mature after 2010 is Euro debt with an average interest rate of 4.4%.

Other fixed rate debt expected to mature in 2005 includes $101 million of Argentine peso debt at an average interest rate of 3.3%. Other fixed rate debt due to mature after 2010 is mainly comprised of $154 million of Malaysian Ringgit debt (at an average interest rate of 8.0%) and $391 million of Canadian Dollar debt (at an average interest rate of 6.9%).

Other variable rate debt expected to mature in 2005 includes $205 million of Philippine peso debt with an average interest rate of 8.6% and $116 million of Canadian dollar debt at an average interest rate of 2.5%. Other variable rate debt expected to mature in 2006 includes $191 million of Canadian dollar debt at an average interest rate 2.5%.

Royal Dutch Shell plc

Financial Report 2004	51

---

 

Interest rate swaps/forward rate agreements

2004																										$ million
																		2009				Total contract/				Estimated
		2005				2006				2007				2008				and after				notional amount				fair value
US dollar
Fixed to Variable: contract/notional amount			801				600				1,000				300				–				2,701				72
average pay rate			1.7%				1.3%				1.4%				1.4%				–
average receive rate			5.1%				3.1%				5.0				3.3%				–
Variable to Fixed: contract/ notional amount			264				–				122				88				–				474				(17	)
average pay rate			2.8%				–				7.2%				6.2%				–
average receive rate			3.3%				–				4.4%				7.3%				–
UK pound
Fixed to Variable: contract/notional amount			–				723				–				–				–				723				8
average pay rate			–				4.5%				–				–				–
average receive rate			–				4.3%				–				–				–
Euro
Fixed to Variable: contract/notional amount			–				–				–				409				–				409				7
average pay rate			–				–				–				2.0%				–
average receive rate			–				–				–				3.3%				–
Total			1,065				1,323				1,122				797				–				4,307				70

2003																										$ million
																		2008				Total contract/				Estimated
		2004				2005				2006				2007				and after				notional amount				fair value
US dollar
Fixed to Variable: contract/notional amount			–				1,801				600				–				400				2,801				140
average pay rate			–				1.3%				1.1%				–				0.9%
average receive rate			–				5.0%				3.1%				–				3.2%
Variable to Fixed: contract/ notional amount			–				264				–				122				88				474				(25	)
average pay rate			–				2.8%				–				7.2%				6.8%
average receive rate			–				3.2%				–				4.2%				7.3%
UK pound
Fixed to Variable: contract/notional amount			–				–				669				–				–				669				11
average pay rate			–				–				3.6%				–				–
average receive rate			–				–				4.3%				–				–
Euro
Fixed to Variable: contract/notional amount			–				–				–				–				378				378				(5	)
average pay rate			–				–				–				–				2.1%
average receive rate			–				–				–				–				3.3%
Total			–				2,065				1,269				122				866				4,322				121

Foreign exchange contracts

2004 (all contracts mature in 2005)										$ million
		Average contractual				Contract/notional				Estimated
		exchange rate				amount				fair value
Buy euro/sell US dollar			1.34				3,919				81
Buy US dollar/sell euro			0.74				2,124				(19	)
Buy euro/sell UK pound			0.70				1,836				35
Buy UK pound/sell US dollar			1.89				1,376				25
Buy US dollar/sell Australian dollar			1.30				1,024				(9	)
Buy US dollar/sell Norwegian krone			6.26				741				(27	)
Buy Singapore dollar/sell US dollar			0.61				401				2
Buy New Zealand dollar/sell US dollar			0.71				335				2
Buy Canadian dollar/sell US dollar			0.79				208				11
Buy Norwegian krone/sell US dollar			0.16				202				1
Buy US dollar/sell Philippine peso			56.19				172				–
Buy US dollar/sell Swedish krone			6.61				141				–
Buy euro/sell Polish zloty			4.10				134				–
Buy US dollar/sell Hong Kong dollar			7.77				131				–
Other contracts							1,176				(7	)
Total							13,920				95

	Royal Dutch Shell plc
	Financial Report 2004

---

 

2003 (all contracts mature in 2004)										$ million
		Average contractual				Contract/notional				Estimated
		exchange rate				amount				fair value
Buy US dollar/sell UK pound			0.59				2,255				(118	)
Buy US dollar/sell euro			0.80				1,897				(26	)
Buy euro/sell US dollar			1.18				2,742				177
Buy UK pound/sell US dollar			1.73				1,017				3
Buy euro/sell UK pound			0.69				824				24
Buy US dollar/sell Australian dollar			1.36				422				(7	)
Buy Swiss franc/sell US dollar			0.77				431				24
Buy US dollar/sell Norwegian krone			6.67				672				(18	)
Buy Singapore dollar/sell US dollar			0.58				381				2
Buy US dollar/sell Danish krone			5.88				239				(3	)
Buy US dollar/sell Swedish krone			7.14				429				(3	)
Buy Swedish krona/sell US dollar			0.14				217				1
Buy euro/sell Norwegian krone			8.33				127				5
Buy US dollar/sell Philippine peso			55.87				118				–
Other contracts							1,074				25
Total							12,845				86

Currency swaps/options

2004																																		$ million
		Average
		contractual																								2010				Total contract/				Estimated
		exchange rate				2005				2006				2007				2008				2009				and after				notional amount				fair value
Buy UK pound/sell euro			1.54				–				–				924				410				–				–				1,334				139
Buy US dollar/sell Canadian dollar			1.40				867				606				441				296				132				–				2,342				(175	)
Buy Canadian dollar/sell US dollar			0.69				283				85				59				33				3				–				463				35
Buy US dollar/sell Brazilian real			2.85				101				5				89				61				–				–				256				(60	)
Buy UK pound/sell US dollar			1.74				37				31				24				18				14				213				337				26
Buy US dollar/sell Thai baht			39.94				142				–				–				–				–				–				142				(3	)
Other contracts			–				36				–				–				–				–				–				36				(4	)
Total							1,466				727				1,537				818				149				213				4,910				(42	)

2003																																		$ million
		Average
		contractual																								2009				Total contract/				Estimated
		exchange rate				2004				2005				2006				2007				2008				and after				notional amount				fair value
Buy UK pound/sell euro			1.54				338				–				–				855				378				–				1,571				173
Buy US dollar/sell Canadian dollar			1.31				1,136				640				358				209				96				–				2,439				(126	)
Buy US dollar/sell euro			1.09				461				–				–				–				–				–				461				171
Buy Australian dollar/sell US dollar			1.67				472				–				–				–				–				–				472				(130	)
Buy Canadian dollar/sell US dollar			0.67				324				91				56				46				17				–				534				34
Buy US dollar/sell Brazilian real			2.82				121				47				–				71				–				15				254				(39	)
Buy UK pound/sell US dollar			1.74				14				18				5				–				–				144				181				1
Other contracts							98				18				1				–				–				–				117				(5	)
Total							2,964				814				420				1,181				491				159				6,029				79

Royal Dutch Shell plc

Financial Report 2004	53

---

 

Commodity derivatives

The increases in fair values of commodity swaps, options and futures between 2003 and 2004 are primarily caused by underlying increases of commodity prices driven by an increase of crude oil prices in 2004.

Commodity swaps held for trading purposes

2004

$ million

2010 and

Total contract/

Estimated

2005

2006

2007

2008

2009

after

notional amount

fair value

Crude oil swaps

(a) Variable price to variable price contracts:

contract/notional amount ($ millions)

1,776

30

–

–

–

–

1,806

(8

)

Volume (million barrels “m bbl”)

42

1

–

–

–

–

average pay

42.3

41.6

–

–

–

–

average receive

42.1

41.5

–

–

–

–

(b) Buy fixed price/sell variable price contracts:

contract/notional amount ($ millions)

1,843

397

49

13

–

–

2,302

390

Volume (million barrels “m bbl”)

54

13

2

*

–

–

average pay

34.3

31.5

32.6

36.4

–

–

average receive

39.6

39.3

38.0

37.9

–

–

(c) Buy variable price/sell fixed price contracts:

contract/notional amount ($ millions)

2,304

286

38

10

–

–

2,638

(350

)

Volume (million barrels “m bbl”)

64

9

1

*

–

–

average pay

40.3

38.7

37.8

37.9

–

–

average receive

36.1

30.7

32.9

36.3

–

–

Crude oil basis swaps

(a) Buy variable/sell variable price contracts

contract/notional amount ($ millions)

53

–

–

–

–

–

53

(8

)

Volume (million barrels “m bbl”)

34

–

–

–

–

–

average pay

3.9

–

–

–

–

–

average receive

1.8

–

–

–

–

–

(b) Sell variable/buy variable price contracts

contract/notional amount ($ millions)

2

–

–

–

–

–

2

–

Volume (million barrels “m bbl”)

*

–

–

–

–

–

average pay

4.0

–

–

–

–

–

average receive

4.5

–

–

–

–

–

Crude oil freight swaps

(a) Buy fixed price/sell variable price contracts

contract/notional amount ($ millions)

53

–

–

–

–

–

53

(7

)

Volume (million barrels “m bbl”)

29

–

–

–

–

–

average pay

1.9

–

–

–

–

–

average receive

1.7

–

–

–

–

–

(b) Buy variable price/sell fixed price contracts

contract/notional amount ($ millions)

63

–

–

–

–

–

63

1

Volume (million barrels “m bbl”)

47

–

–

–

–

–

average pay

1.3

–

–

–

–

–

average receive

1.4

–

–

–

–

–

Oil products swaps

(a) Buy fixed price/sell variable price contracts

contract/notional amount ($ millions)

3,055

106

–

–

–

–

3,161

(111

)

Volume (million barrels “m bbl”)

117

3

–

–

–

–

average pay

26.0

39.4

–

–

–

–

average receive

25.1

40.3

–

–

–

–

(b) Buy variable price/sell fixed price contracts:

contract/notional amount ($ millions)

3,193

158

–

–

–

11

3,362

95

Volume (million barrels “m bbl”)

121

4

–

–

–

*

average pay

25.5

39.6

–

–

–

41.3

average receive

26.3

37.5

–

–

–

38.4

(c) Buy variable/sell variable price contracts

contract/notional amount ($ millions)

810

15

–

–

–

–

825

1

Volume (million barrels “m bbl”)

16

*

–

–

–

–

average pay

49.3

48.5

–

–

–

–

average receive

49.4

48.6

–

–

–

–

	Royal Dutch Shell plc
	Financial Report 2004

---

 

2004 continued																																			$ million
																											2010 and				Total contract/				Estimated
							2005				2006				2007				2008				2009				after				notional amount				fair value
Oil products basis swaps
(a) Buy variable/sell variable price contracts
	contract/notional amount ($ millions)							1,020				30				–				–				–				–				1,050				(8	)
	Volume (million barrels “m bbl”)							170				4				–				–				–				–
	average pay							5.8				8.5				–				–				–				–
	average receive							5.7				8.6				–				–				–				–
(b) Sell variable/buy variable price contracts
	contract/notional amount ($ millions)							137				–				–				–				–				–				137				23
	Volume (million barrels “m bbl”)							18				–				–				–				–				–
	average pay							7.5				–				–				–				–				–
	average receive							8.7				–				–				–				–				–
Electricity swaps
(a) Buy fixed price/sell variable price contracts:
	contract/notional amount ($ millions)							3,268				1,296				341				25				2				–				4,932				(2	)
	Volume (thousand megawatt hours)							57				24				7				0				0				–
	average pay							57.0				55.0				52.4				64.3				60.5				–
	average receive							55.8				56.6				56.4				65.1				56.5				–
(b) Buy variable price/sell fixed price contracts:
	contract/notional amount ($ millions)							3,250				1,245				391				54				6				–				4,946				(14	)
	Volume (thousand megawatt hours)							57				23				7				1				*				–
	average pay							56.1				56.4				57.0				60.6				57.3				–
	average receive							57.4				55.3				53.3				59.6				61.3				–
Natural gas swaps
(a) Buy fixed price/sell variable price contracts:
	contract/notional amount ($ millions)							5,947				1,350				308				312				70				–				7,987				188
	Volume (thousand million cubic feet “bcf”)							923				223				53				55				13				–
	average pay ($/thousand cf)							6.4				6.1				5.8				5.2				4.6				–
	average receive ($/thousand cf)							6.4				6.5				6.0				5.5				5.1				–
(b) Buy variable price/sell fixed price contracts:
	contract/notional amount ($ millions)							6,267				1,005				426				409				206				57				8,370				123
	Volume (thousand million cubic feet “bcf”)							954				162				70				69				37				11
	average pay ($/thousand cf)							6.4				6.6				6.0				5.7				5.5				5.2
	average receive ($/thousand cf)							6.6				6.2				6.1				5.9				5.6				5.1
(c) Buy variable price/sell variable price contracts:
	contract/notional amount ($ millions)							404				8				–				–				–				–				412				7
	Volume (thousand million cubic feet “bcf”)							64				1				–				–				–				–
	average pay ($/thousand cf)							6.4				6.6				–				–				–				–
	average receive ($/thousand cf)							6.5				6.6				–				–				–				–
Natural gas basis swaps
(a) Buy variable price/sell variable price
	contract/notional amount ($ millions)							455				184				60				35				22				10				766				(134	)
	Volume (thousand million cubic feet “bcf”)							903				365				116				72				43				24
	average pay ($/thousand cf)							0.5				0.6				0.7				0.6				0.6				0.5
	average receive ($/thousand cf)							0.4				0.4				0.5				0.5				0.5				0.3
(b) Sell variable price/buy variable price
	contract/notional amount ($ millions)							388				135				20				18				4				3				568				139
	Volume (thousand million cubic feet “bcf”)							827				281				56				56				18				15
	average pay ($/thousand cf)							0.3				0.3				0.3				0.3				0.0				0.0
	average receive ($/thousand cf)							0.4				0.5				0.5				0.4				0.3				0.2
																																43,433				325

Royal Dutch Shell plc

Financial Report 2004	55

---

 

2003

$ million

Total contract/

Estimated

2004

2005

2006

2007

2008

notional amount

fair value

Crude oil swaps

(a) Variable price to variable price contracts:

contract/notional amount ($ million)

2,671

13

–

–

–

2,684

(3

)

Volume (million barrels “m bbl”)

84

*

–

–

–

average pay ($/bbl)

31.9

26.3

–

–

–

average receive ($/bbl)

31.9

26.3

–

–

–

(b) Buy fixed price/sell variable price contracts:

contract/notional amount ($ million)

1,452

272

63

–

–

1,787

230

Volume (m bbl)

58

11

3

–

–

average pay ($/bbl)

25.0

24.3

24.2

–

–

average receive ($/bbl)

28.3

28.0

26.1

–

–

(c) Buy variable price/sell fixed price contracts:

contract/notional amount ($ million)

1,364

241

13

–

–

1,618

(160

)

Volume (m bbl)

58

10

1

–

–

average pay ($/bbl)

28.9

24.5

26.7

–

–

average receive ($/bbl)

27.1

23.2

23.8

–

–

Crude oil basis swaps

(a) Buy variable price/sell variable price contracts:

contract/notional amount ($ million)

2

–

–

–

–

2

–

Volume (m bbl)

5

–

–

–

–

average pay ($/bbl)

1.0

–

–

–

–

average receive ($/bbl)

0.3

–

–

–

–

(b) Sell variable price/buy variable price contracts:

contract/notional amount ($ million)

3

–

–

–

–

3

(1

)

Volume (m bbl)

2

–

–

–

–

average pay ($/bbl)

0.5

–

–

–

–

average receive ($/bbl)

1.5

–

–

–

–

Crude oil freight swaps

(a) Buy fixed price/sell variable price contracts:

contract/notional amount ($ million)

10

–

–

–

–

10

1

Volume (m bbl)

9

–

–

–

–

average pay ($/bbl)

1.2

–

–

–

–

average receive ($/bbl)

1.4

–

–

–

–

(b) Buy variable price/sell fixed price contracts:

contract/notional amount ($ million)

53

–

–

–

–

53

(9

)

Volume (m bbl)

79

–

–

–

–

average pay ($/bbl)

0.8

–

–

–

–

average receive ($/bbl)

0.7

–

–

–

–

Oil products swaps

(a) Buy fixed price/sell variable price contracts:

contract/notional amount ($ million)

853

19

–

–

–

872

42

Volume (m bbl)

34

1

–

–

–

average pay ($/bbl)

25.4

19.9

–

–

–

average receive ($/bbl)

26.4

22.2

–

–

–

(b) Buy variable price/sell fixed price contracts:

contract/notional amount ($ million)

934

4

11

–

–

949

(46

)

Volume (m bbl)

40

*

1

–

–

average pay ($/bbl)

24.3

23.8

24.3

–

–

average receive ($/bbl)

23.2

22.6

21.7

–

–

	Royal Dutch Shell plc
	Financial Report 2004

---

 

2003 continued																															$ million
																							2009				Total contract/				Estimated
			2004				2005				2006				2007				2008				and after				notional amount				fair value
Oil products basis swaps
(a) Buy variable price/sell variable price contracts:
	contract/notional amount ($ million)			268				–				–				–				–				–				268				(16	)
	Volume (m bbl)			94				–				–				–				–				–
	average pay ($/bbl)			1.8				–				–				–				–				–
	average receive ($/bbl)			2.9				–				–				–				–				–
(b) Sell variable price/buy variable price contracts:
	contract/notional amount ($ million)			95				–				–				–				–				–				95				13
	Volume (m bbl)			20				–				–				–				–				–
	average pay ($/bbl)			0.2				–				–				–				–				–
	average receive ($/bbl)			5.4				–				–				–				–				–
Electricity swaps
(a) Buy fixed price/sell variable price contracts:
	contract/notional amount ($ million)			832				177				147				88				12				–				1,256				35
	Volume (thousand megawatt hours “MMwh”)			17				3				3				2				**				–
	average pay ($/Mwh)			50.5				51.3				50.4				51.9				66.3				–
	average receive ($/Mwh)			52.9				51.4				49.0				51.0				61.3				–
(b) Buy variable price/sell fixed price contracts:
	contract/notional amount ($ million)			803				188				120				124				33				–				1,268				1
	Volume (MMwh)			16				3				2				2				1				–
	average pay ($/Mwh)			54.1				54.9				53.8				53.5				59.5				–
	average receive ($/Mwh)			54.9				53.1				52.3				52.2				56.4				–
Natural gas swaps
(a) Buy fixed price/sell variable price contracts:
	contract/notional amount ($ million)			5,212				485				135				47				–				–				5,879				750
	Volume (thousand million cubic feet “bcf”)			1,005				109				32				9				–				–
	average pay ($/thousand cf)			5.2				4.5				4.1				5.0				–				–
	average receive($/thousand cf)			5.8				5.2				4.8				5.0				–				–
(b) Buy variable price/sell fixed price contracts:
	contract/notional amount ($ million)			5,362				391				27				4				4				7				5,795				(711	)
	Volume (bcf)			1,025				83				445				1				1				2
	average pay ($/thousand cf)			5.9				5.2				4.7				4.7				4.7				4.6
	average receive ($/thousand cf)			5.2				4.7				4.8				4.2				4.2				4.2
Natural gas basis swaps
(a) Buy variable price/sell variable price contracts:
	contract/notional amount ($ million)			325				97				50				32				14				19				537				(180	)
	Volume (bcf)			829				210				109				62				33				46
	average pay ($/thousand cf)			1.81				0.58				0.60				1.33				0.49				0.43
	average receive ($/thousand cf)			2.57				0.46				0.46				1.05				0.42				0.42
(b) Sell variable price/buy variable price contracts:
	contract/notional amount ($ million)			255				59				22				9				5				6				356				196
	Volume (m bcf)			743				145				54				30				20				23
	average pay ($/thousand cf)			0.15				0.20				0.16				0.11				0.11				0.09
	average receive ($/thousand cf)			0.34				0.41				0.40				0.31				0.23				0.25
Total																												23,432				142

*	less than one million barrels
**	less than one thousand megawatt hours

Shell Group companies also held chemical product and natural gas liquid swaps at December 21, 2004 with a contract/notional amount of $102 million (2003: $10 million) and an estimated fair value of $(1) million (2003: $(1) million) and expected maturity in 2005 – 2007 (2004).

Commodity swaps held for purposes other than trading

Royal Dutch Shell plc

Financial Report 2004	57

---

 

Commodity options held for trading purposes

2004																															$ million
											2005				2006				2007				2008				Total contract/				Estimated
																							and after				notional amount				fair value
Crude oil buy calls
	contract/notional amount ($ million)											870				143				11				–				1,024				(37	)
	volume (m bbl)											19				4				*				–
	average strike price ($/bbl)											44.7				33.2				39.7				–
Crude oil sell calls
	contract/notional amount ($ million)											873				145				–				–				1,018				46
	volume (m bbl)											20				4				–				–
	average strike price ($/bbl)											42.9				32.8				–				–
Crude oil buy put
	contract/notional amount ($ million)											917				97				3				–				1,017				10
	volume (m bbl)											27				3				*				–
	average strike price ($/bbl)											34.5				32.0				29.7				–
Crude oil sell put
	contract/notional amount ($ million)											972				103				20				–				1,095				(27	)
	volume (m bbl)											28				3				1				–
	average strike price ($/bbl)											34.2				33.4				31.2				–
Oil products buy put option
	contract/notional amount ($ million)											177				132				–				–				309				15
	volume (m bbl)											158				128				–				–
	average strike price ($/bbl)											1.1				1.0				–				–
Oil products sell put option
	contract/notional amount ($ million)											193				131				–				–				324				(14	)
	volume (m bbl)											158				128				–				–
	average strike price ($/bbl)											1.2				1.0				–				–
Oil products buy call option
	contract/notional amount ($ million)											176				51				–				–				227				–
	volume (m bbl)											50				42				–				–
	average strike price ($/bbl)											3.5				1.2				–				–
Oil products sell call option
	contract/notional amount ($ million)											128				51				–				–				179				(1	)
	volume (m bbl)											49				42				–				–
	average strike price ($/bbl)											2.6				1.2				–				–
Natural gas buy call
	contract/notional amount ($ million)											10,740				1,354				60				–				12,154				583
	volume (bcf)											1,493				180				9				–
	average strike price ($/thousand cf)											7.2				7.5				6.6				–
Natural gas sell call
	contract/notional amount ($ million)											9,309				1,060				22				6				10,397				(455	)
	volume (bcf)											1,312				158				4				*
	average strike price ($/thousand cf)											7.1				6.7				6.3				6.3
Natural gas buy put
	contract/notional amount ($ million)											8,332				942				25				14				9,313				674
	volume (bcf)											1,757				201				4				3
	average strike price ($/thousand cf)											4.7				4.7				5.5				4.8
Natural gas sell put
	contract/notional amount ($ million)											9,547				986				44				21				10,598				(818	)
	volume (bcf)											1,996				209				8				5
	average strike price ($/thousand cf)											4.8				4.7				5.8				5.7
Electricity buy call option
	contract/notional amount ($ million)											290				–				–				–				290				3
	volume (million MWh)											6				–				–				–
	average strike price ($/MWh)											48.4				–				–				–
Electricity sell call option
	contract/notional amount ($ million)											379				–				–				–				379				(7	)
	volume (million MWh)											8				–				–				–
	average strike price ($/MWh)											48.6				–				–				–
Electricity buy put option
	contract/notional amount ($ million)											486				–				–				–				486				8
	volume (million MWh)											12				–				–				–
	average strike price ($/MWh)											41.3				–				–				–
Electricity sell put option
	contract/notional amount ($ million)											204				–				–				–				204				1
	volume (million MWh)											5				–				–				–
	average strike price ($/MWh)											38.2				–				–				–
Total																												49,014				(19	)

* less than one million barrels

	Royal Dutch Shell plc
	Financial Report 2004

---

 

2003																															$ million
											2004				2005				2006				2007				Total contract/				Estimated
																											notional amount				fair value
Crude oil buy calls
	contract/notional amount ($ million)											397				7				–				–				404				31
	volume (m bbl)											14				*				–				–
	average strike price ($/bbl)											29.6				29.8
Crude oil sell calls
	contract/notional amount ($ million)											389				68				–				–				457				(58	)
	volume (m bbl)											14				2				–				–
	average strike price ($/bbl)											28.3				25.6				–				–
Crude oil buy put
	contract/notional amount ($ million)											570				28				–				–				598				9
	volume (m bbl)											24				1				–				–
	average strike price ($/bbl)											23.8				20.5				–				–
Crude oil sell put
	contract/notional amount ($ million)											455				7				–				–				462				(9	)
	volume (m bbl)											20				*				–				–
	average strike price ($/bbl)											23.4				26.6				–				–
Oil products buy put option
	contract/notional amount ($ million)											261				–				–				–				261				(2	)
	volume (m bbl)											11				–				–				–
	average strike price ($/bbl)											23.1				–				–				–
Oil products sell put option
	contract/notional amount ($ million)											41				–				–				–				41				–
	volume (m bbl)											2				–				–				–
	average strike price ($/bbl)											27.7				–				–				–
Oil products buy call option
	contract/notional amount ($ million)											8				–				–				–				8				–
	volume (m bbl)											*				–				–				–
	average strike price ($/bbl)											42.0				–				–				–
Oil products sell call option
	contract/notional amount ($ million)											274				–				–				–				274				(2	)
	volume (m bbl)											10				–				–				–
	average strike price ($/bbl)											27.2				–				–				–
Natural gas buy call
	contract/notional amount ($ million)											8,112				414				30				–				8,556				692
	volume (bcf)											1,242				74				6				–
	average strike price ($/thousand cf)											6.5				5.6				4.9				–
Natural gas sell call
	contract/notional amount ($ million)											6,788				232				39				1				7,060				(528	)
	volume (bcf)											1,024				36				7				*
	average strike price ($/thousand cf)											6.6				6.4				6.0				4.1
Natural gas buy put
	contract/notional amount ($ million)											6,316				168				63				–				6,547				174
	volume (bcf)											1,479				41				14				–
	average strike price ($/thousand cf)											4.3				4.1				4.5				–
Natural gas sell put
	contract/notional amount ($ million)											7,292				387				47				1				7,727				(252	)
	volume (bcf)											1,648				96				12				*
	average strike price ($ /thousand cf)											4.4				4.1				4.1				5.7
Electricity buy call option
	contract/notional amount ($ million)											409				–				–				–				409				(28	)
	volume (million MWh)											10				–				–				–
	average strike price ($/MWh)											41.6				–				–				–
Electricity sell call option
	contract/notional amount ($ million)											350				–				–				–				350				30
	volume (MWh)											9				–				–				–
	average strike price ($/MWh)											39.3				–				–				–
Electricity buy put option
	contract/notional amount ($ million)											176				–				–				–				176				(11	)
	volume (MWh)											6				–				–				–
	average strike price ($/MWh)											31.1				–				–				–
Electricity sell put option
	contract/notional amount ($ million)											183				–				–				–				183				16
	volume (MWh)											6				–				–				–
	average strike price ($/MWh)											28.8				–				–				–
Total																												33,513				62

*	less than one million barrels

Royal Dutch Shell plc

Financial Report 2004	59

---

 

Shell Group companies also held chemical options at December 31, 2003 with a contract/notional amount of $1 million and estimated fair value less than $1 million and expected maturity in 2004.

Commodity options held for purposes other than trading

Commodity futures held for trading purposes

2004																			$ million
															Total contract/				Estimated
			2005				2006				2007				notional amount				fair value
IPE Brent futures
(a) Short contracts:
	contract/notional amount ($ million)			341				26				–				367				66
	volume (m bbl)			8				1				–
	weighted average price ($/bbl)			42.2				34.3				–
(b) Long contracts:
	contract/notional amount ($ million)			561				79				–				640				86
	volume (m bbl)			14				2				–
	weighted average price ($/bbl)			40.9				39.2				–
IPE Gasoil futures
(a) Short contracts:
	contract/notional amount ($ million)			274				–				–				274				17
	volume (m bbl)			6				–				–
	weighted average price ($/bbl)			34.81				–				–
(b) Long contracts:
	contract/notional amount ($ million)			196				2				–				198				(5	)
	volume (m bbl)			4				*				–
	weighted average price ($/bbl)			39.42				32.7				–
IPE Natural gas futures
(a) Short contracts:
	contract/notional amount ($ million)			6				–				–				6				3
	volume (bcf)			1				–				–
	weighted average price ($/thousands cf)			6.0				–				–
(b) Long contracts:
	contract/notional amount ($ million)			4				–				–				4				4
	volume (bcf)			1				–				–
	weighted average price ($/bbl)			5.7				–				–
Nymex crude oil futures
(a) Short contracts:
	contract/notional amount ($ million)			130				132				15				277				(18	)
	volume (m bbl)			3				3				*
	weighted average price ($/bbl)			43.9				39.4				36.4
(b) Long contracts:
	contract/notional amount ($ million)			427				21				10				458				(15	)
	volume (m bbl)			10				1				*
	weighted average price ($/bbl)			44.1				40.5				37.0
Nymex oil product futures
(a) Short contracts:
	contract/notional amount ($ million)			533				–				–				533				(28	)
	volume (m bbl)			11				–				–
	weighted average price ($/bbl)			50.9				–				–
(b) Long contracts:
	contract/notional amount ($ million)			308				4				–				312				–
	volume (m bbl)			6				*				–
	weighted average price ($/bbl)			51.9				47.88				–
Nymex natural gas futures
(a) Short contracts:
	contract/notional amount ($ million)			1,824				121				1				1,946				95
	volume (bcf)			278				19				**
	weighted average price ($/thousand cf)			5.9				6.1				5.7
(b) Long contracts:
	contract/notional amount ($ million)			1,678				77				2				1,757				(70	)
	volume (bcf)			256				13				**
	weighted average price ($/thousand cf)			5.7				5.2				5.8

	Royal Dutch Shell plc
	Financial Report 2004

---

 

2004 continued

$ million

Total contract/

Estimated

2005

2006

2007

notional amount

fair value

Imarex freight futures

(a) Short contracts:

contract/notional amount ($ million)

14

–

–

14

2

volume (million tonnes)

3

–

–

weighted average price ($/tonne)

11.8

–

–

(b) Long contracts:

contract/notional amount ($ million)

7

–

–

7

–

volume (million tonnes)

1

–

–

weighted average price ($/tonne)

12.9

–

–

Nord Pool electricity futures

(a) Short contracts:

contract/notional amount ($ million)

–

–

–

–

–

volume (million MWh)

–

–

–

weighted average price ($/MWh)

–

–

–

(b) Long contracts:

contract/notional amount ($ million)

10

37

–

47

(2

)

volume (million MWh)

***

1

–

weighted average price ($/MWh)

34.7

378

–

Total

6,840

135

*	less than one million barrels
**	less than one billion cubic feet
***	less than one million megawatt hours

2003																			$ million
			2004				2005				2006				Total contract/				Estimated
															notional amount				fair value
IPE Brent futures
(a) Short contracts:
	contract/notional amount ($ million)			218				15				–				233				–
	volume (m bbl)			8				*				–
	weighted average price ($/bbl)			28.4				26.7				–
(b) Long contracts:
	contract/notional amount ($ million)			510				33				–				543				32
	volume (m bbl)			17				1				–
	weighted average price ($/bbl)			29.9				26.8				–
IPE Gasoil futures
(a) Short contracts:
	contract/notional amount ($ million)			89				21				–				110				(4	)
	volume (m bbl)			2				1				–
	weighted average price ($/bbl)			36.7				30.3				–
(b) Long contracts:
	contract/notional amount ($ million)			92				20				–				112				2
	volume (m bbl)			3				*				–
	weighted average price ($/bbl)			33.9				30.0				–
IPE Natural gas futures
(a) Short contracts:
	contract/notional amount ($ million)			11				–				–				11				(1	)
	volume (bcf)			2				–				–
	weighted average price ($/thousand bcf)			5.8				–				–
(b) Long contracts:
	contract/notional amount ($ million)			75				–				–				75				(3	)
	volume (bcf)			12				–				–
	weighted average price ($/thousand bcf			6.3				–				–
Nymex crude oil futures
(a) Short contracts:
	contract/notional amount ($ million)			82				4				–				86				1
	volume (mbbl)			3				*				–
	weighted average price ($/bbl)			31.6				24.9				–
(b) Long contracts:
	contract/notional amount ($ million)			456				22				–				478				43
	volume (m bbl)			16				1				–
	weighted average price ($/bbl)			28.9				25.2				–

Royal Dutch Shell plc

Financial Report 2004	61

---

 

2003 continued																			$ million
			2004				2005				2006				Total contract/				Estimated
															notional amount				fair value
Nymex oil product futures
(a) Short contracts:
	contract/notional amount ($ million)			350				–				–				350				(6	)
	volume (m bbl)			9				–				–
	weighted average price ($/bbl)			38.4				–				–
(b) Long contracts:
	contract/notional amount ($ million)			71				1				–				72				–
	volume (m bbl)			2				*				–
	weighted average price ($/bbl)			34.8				31.6				–
Nymex natural gas futures
(a) Short contracts:
	contract/notional amount ($ million)			1,983				22				–				2,005				(253	)
	volume (bcf)			384				4				–
	weighted average price ($/thousand cf)			5.2				5.2				–
(b) Long contracts:
	contract/notional amount ($ million)			1,776				81				2				1,859				242
	volume (bcf)			344				18				**
	weighted average price ($/thousand cf)			5.2				4.6				4.4
Nord Pool electricity futures
(a) Short contracts:
	contract/notional amount ($ million)			52				–				–				52				–
	volume (million MWh)			2				–				–
	weighted average price ($/MWh)			31.8				–				–
(b) Long contracts:
	contract/notional amount ($ million)			1,420				222				–				1,642				(5	)
	volume (million MWh)			43				7				–
	weighted average price ($/MWh))			33.0				32.9				–
Total																7,628				48

*	less than one million barrels.
**	less than one billion cubic feet.

Futures contracts shown above represent unmatched positions. The total contract/notional amount of short contracts represents an aggregation of Shell Group companies’ positions where, at December 31, 2004 and 2003 respectively, sales contracts exceed the purchase contracts with the same maturity date. The total contract/notional amount of long contracts represents an aggregation of Shell Group companies’ positions where, at December 31, 2004 and 2003 respectively, purchase contracts exceed the sales contracts with the same maturity date.

	Royal Dutch Shell plc
	Financial Report 2004

 

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS

We hereby consent to the incorporation by reference in the Registration Statement on Form F-4 (No. 333-125037) of Royal Dutch Shell plc, filed on May 18, 2005, of the report dated March 29, 2005, except for Note 1 which is as of July 20, 2005, relating to the consolidated financial statements of Royal Dutch Shell plc, which appears in this Report on Form 6-K of Royal Dutch Shell plc dated July 20, 2005.

/s/ KPMG Accountants N.V.

The Hague — The Netherlands

July 20, 2005

/s/ PricewaterhouseCoopers LLP

London — United Kingdom

July 20, 2005