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 three and nine month periods ended September 30, 2005 Unaudited Condensed Interim Financial Report.

The Unaudited Condensed Interim Financial Report contains the Unaudited Condensed Consolidated Interim Financial Statements of the Registrant and its consolidated subsidiaries for the three and nine month periods ended September 30, 2005 and the Operational and Financial Review and Results of Operations in respect of such periods. The Unaudited Condensed Consolidated Interim Financial Statements, including condensed notes, are presented on the same basis that such information was announced by press release on October 27, 2005, that was furnished to the Commission by the Registrant on Form 6-K (furnished to the Commission on October 27, 2005). This Report on Form 6-K contains the Unaudited Condensed Interim Financial Report with additional information required to keep current our registration statement on Form F-3, including a condensed reconciliation to U.S. GAAP, not included in the press release.

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

a)	the Registration Statement on Form F-3 of Royal Dutch Shell plc and Shell International Finance B.V. (Registration Numbers 333-126726 and 333-126726-01); and
b)	the Registration Statement on Form S-8 of Royal Dutch Shell plc (Registration Number 333-126715).

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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/ MICHIEL BRANDJES

Date: October 31, 2005

 

Exhibit 99.1

Regulatory release

Three and nine month periods ended September 30, 2005

On October 27, 2005, Royal Dutch Shell plc (“Royal Dutch Shell”) released the Unaudited Condensed Interim Financial Report for the three and nine month periods ended September 30, 2005 of Royal Dutch Shell and its consolidated subsidiaries (collectively, the “Shell Group”). This report includes the Unaudited Condensed Consolidated Interim Financial Statements, including condensed notes, for the Shell Group on the same basis that such information was announced by press release on 27 October 2005.

Contact — Investor Relations
UK:		Gerard Paulides		+44 20 7934 6287
Europe:		Bart van der Steenstraten		+31 70 377 3996
USA:		Harold Hatchett		+1 212 218 3112
Contact — Media
UK, International:		Shell Media Contact		+44 20 7934 3505
The Netherlands:		Shell Media Contact		+31 70 377 8750

Table of Contents

Exhibit 99.2

Royal Dutch Shell plc

Three and nine month periods ended September 30, 2005

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Contents

		Page
UNAUDITED CONDENSED INTERIM FINANCIAL REPORT		1
OPERATIONAL AND FINANCIAL REVIEW FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2005		2
STATEMENT OF INCOME		10
BALANCE SHEET		11
STATEMENT OF CHANGES IN EQUITY		12
STATEMENT OF CASH FLOWS		13
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS		14

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Table of Contents

Unaudited Condensed Interim Financial Report

This report contains:

(1)	An Operational and Financial Review 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”) and its consolidated subsidiaries (collectively, with Royal Dutch Shell, the “Shell Group”) for the three and nine month periods ended September 30, 2005; and
(2)	Unaudited Condensed Consolidated Interim Financial Statements for the three and nine month periods ended September 30, 2005.

This report contains forward-looking statements that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business. 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 risk that the Unification of Royal Dutch Petroleum Company (N.V. Koninklijke Nederlandsche Petroleum Maatschappij) (“Royal Dutch”) and The “Shell” Transport and Trading Company, p.l.c. (“Shell Transport”) under Royal Dutch Shell, described below and reflected in the Unaudited Condensed Consolidated Interim Financial Statements attached hereto does not achieve the expected benefits, and factors affecting the Shell Group’s businesses generally, including, but not limited to:

•	price fluctuations in crude oil, natural gas and refined products,
•	changes in demand for the Shell Group’s products,
•	currency fluctuations,
•	drilling and production results,
•	reserve estimates,
•	loss of market and industry competition,
•	environmental risks and 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 and countries subject to international sanctions,
•	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, and
•	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 Annual Report on Form 20-F/ A of Royal Dutch and Shell Transport for the year ending December 31, 2004 for a description of certain important factors, risks and uncertainties that may affect the businesses of the Shell Group.

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Operational and Financial Review for the three and nine month periods ended September 30, 2005

Unification of Royal Dutch and Shell Transport

Pursuant to the terms of the Exchange Offer and the Scheme, holders of ordinary shares of Royal Dutch (“Royal Dutch Ordinary Shares”), holders of 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 applicable to the Royal Dutch Shell Class B ordinary shares. The dividend access mechanism is described more fully in Royal Dutch Shell’s Report on Form 6-K furnished to the U.S. Securities and Exchange Commission on July 20, 2005 (containing the description of the Royal Dutch Shell capital stock).

The Unification Transaction did not result in the formation of a new reporting entity. Immediately after the Unification Transaction each former Royal Dutch and Shell Transport shareholder who participated in the Unification Transaction held the same economic interest in Royal Dutch Shell as the shareholder held in the Shell Group immediately prior to implementation of the Unification Transaction. Accordingly, the Unification Transaction has been accounted for using a carry-over basis of the historical costs of the assets and liabilities of Royal Dutch, Shell Transport and the other companies comprising the Shell Group. For periods prior to the consummation of the Unification Transaction, the financial position and results of Royal Dutch Shell reflects the financial position and results of the Shell Group on a 100% basis without giving effect to any minority interest in Royal Dutch resulting from the Unification Transaction.

On September 20, 2005 the Shell Group announced that it proposes to implement an internal restructuring and merger of certain of its subsidiaries to achieve governance, management and fiscal efficiencies. As part of the restructuring, Royal Dutch would be merged into a subsidiary, Shell Petroleum N.V. (“SPNV”), and the remaining shareholders in Royal Dutch would receive cash or, at the option of eligible UK resident shareholders who so elect, loan notes exchangeable into Royal Dutch Shell A shares. The final terms, including the price to be paid in exchange for each Royal Dutch share held by the Minority, will be determined and announced in the fourth quarter of 2005. Following approval at an extraordinary general meeting (“EGM”), the restructuring is expected to be completed by December 31, 2005.

	Royal Dutch Shell plc
	Unaudited Condensed Interim Financial Report

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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 that would have been accounted for as a business combination under current accounting standards. Since that time, Royal Dutch has owned 60% of the other companies comprising the Shell Group and Shell Transport has owned 40% of the other companies comprising the Shell Group. All operating activities have been conducted through the subsidiaries of Royal Dutch and Shell Transport which have operated as a single economic enterprise. Prior to the consummation of the Unification Transaction, economic interests of the Royal Dutch and Shell Transport shareholders in the other companies comprising the Shell Group reflected the 60:40 economic interests of Royal Dutch and Shell Transport in these companies. The Unification 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 rest of the Shell Group, and the Unification Transaction did not result in the acquisition of any new businesses or operating assets and liabilities. The interest of the minority shareholders in Royal Dutch has also been accounted for using a carry-over basis of the historical costs of its consolidated assets and liabilities. In addition, the Unification Transaction did not affect the proved oil and gas reserve information reported by Royal Dutch and Shell Transport or the other companies comprising the Shell Group.

From August 10, 2005, the existing 1.5% minority interest in Royal Dutch is recorded in the Condensed Consolidated Financial Statements of Royal Dutch Shell as a minority interest, as prior to that time the Royal Dutch minority holders had a right to participate in the Exchange Offer and receive Royal Dutch Shell shares. As a result, the average quarterly net income attributable to the minority has been prorated for the period from August 10, 2005 through September 30, 2005. This presentation for accounting purposes does not affect the entitlement of the Royal Dutch minority holders to the third quarter dividend declared by Royal Dutch, payable on December 15, 2005, or reflect a change in their underlying economic interest in the Shell Group companies. Included in Income attributable to Minority Interests in the Consolidated Statement of Income for the third quarter 2005 and in Minority Interests in the Consolidated Balance Sheet are $46 million and $842 million, respectively, attributable to minority holders in Royal Dutch.

Presented under IFRS (unaudited)										$ million
		Three months ended								Nine months ended
		September 30,								September 30,
		2005				2004				2005				2004
Income from continuing operations			9,484				5,597				21,965				14,450
Income/(loss) from discontinued operations			(93	)			23				(307	)			65
Income for the period			9,391				5,620				21,658				14,515
Attributable to minority interest			359				249				715				546
Income attributable to Shareholders of Royal Dutch Shell plc			9,032				5,371				20,943				13,969

Three months ended September 30, 2005

The Shell Group’s income for the three months ended September 30, 2005 was $9,391 million, an increase of 67% from the comparative period in 2004. The dividend declared for the three months ended September 30, 2005 is equivalent to some $1.9 billion (subject to exchange rates).

Exploration & Production

Segment earnings of $4,977 million were 112% higher than the $2,343 million earnings in the comparative period in 2004, mainly reflecting strong oil and gas price realisations and divestment gains partly offset by lower volumes and higher costs. Segment earnings included a net gain of $1,765 million versus a charge of $183 million a year ago. The net gain in the third quarter of 2005 is mainly from the divestment of pipeline assets held through Gasunie NV in the Netherlands and a gain related to the mark-to-market valuation of certain UK gas contracts ($104 million).

Liquids realisations were 49% higher than a year ago exceeding increases in marker crude Brent of 48% and WTI of 44%. Outside the USA, gas realisations increased by 37% and in the USA, gas realisations increased by 35%.

Hydrocarbon production was 3,207 thousand boe per day reflecting the loss of some 160 thousand boe per day (averaged over the quarter) due to hurricanes in the Gulf of Mexico. Compared to a year ago, excluding the hurricane effect, the end of a production sharing contract in the Middle East of some 100 thousand boe per day, lower entitlements due to higher hydrocarbon prices and the impact of divestment of 30 thousand boe per day, production was 4% lower than a year ago.

Gas & Power

Segment earnings were $556 million compared to $354 million a year ago, reflecting strong LNG prices and favourable Marketing and Trading conditions. Earnings include net gains of $94 million mainly related to asset divestments, versus net gains of $103 million a year ago. LNG volumes of 2.48 million tones were 2% higher due to sales increase in Malaysia, Oman and Australia partly offset by unscheduled operational downtime in Nigeria and Australia. Ongoing LNG project development progress is consistent with the expected 14% average annual capacity increase to 2009.

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Oil Products

In Manufacturing, Supply and Distribution, third quarter 2005 average industry-refining margins increased in Europe and the USA. Refinery intake declined 7% mainly due to refinery divestments. Lost intake from the divested refineries amounted to about 5% of global intake in the third quarter 2004 whereas lower intake due to hurricanes in the Gulf of Mexico amounted to 1%. Refinery utilisation on an Equivalent Distillation Capacity (EDC) basis declined 5.3% to 77.8% mainly due to hurricane related downtime and the Pernis refinery unscheduled downtime in the Netherlands (Shell share 90%).

In Marketing, including Lubricants and B2B (business to business), earnings declined in the third quarter 2005 compared to the same period a year ago. In the USA, gross retail margins came under severe pressure due to higher crude feedstock costs. Retail margins in Asia Pacific and Europe were also down compared to the third quarter 2004. Higher wholesale fuels earnings in Europe partially offset the decline in retail. Marketing sales volumes declined 4% compared to volumes in the third quarter 2004 and increased about 1% relative to the second quarter 2005.

Chemicals

Operating rates declined by 10 percentage points relative to a year ago and sales volumes were lower, reflecting primarily hurricane-related downtime, and supply constraints. Feedstock and energy costs increased significantly from last year, impacting margins.

Corporate and Other

Nine months ended September 30, 2005

The Shell Group’s income for the nine months ended September 30, 2005 was $21,658 million, an increase of 49% from the comparative period in 2004.

Exploration & Production

Liquids realisations were 45% higher than a year ago, compared to an increase in Brent of 48% and WTI of around 41%. Outside the USA, gas realisations increased by 33%. In the USA, gas realisations increased by 23% compared to an increase in Henry Hub of 33%.

Hydrocarbon production was 3,523 thousand boe per day 6% lower than a year ago (3,749 thousand boe per day). Excluding the hurricane effect, the end of a production sharing contract in the Middle East of some 100 thousand boe per day, lower entitlements due to higher hydrocarbon prices and the impact of divestment of 23 thousand boe per day, production was 1% lower than a year ago.

Gas & Power

LNG sales volumes were up 6% as a result of the LNG expansion in the North West Shelf project which came on stream late 2004, offset partially by planned major LNG plant shut downs elsewhere and unscheduled operational downtime in Nigeria and Australia.

Oil Products

In Manufacturing, Supply and Distribution, industry-refining margins increased in the USA, Europe, and Asia Pacific leading to higher earnings in the first three quarters of 2005 compared to the same period last year. Refining margins benefited from wide light heavy crude differentials, and in Europe from middle distillates strength. Refinery intake declined overall but increased comparatively after adjusting for divestments over the past year.

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In Marketing, including Lubricants and B2B (business-to-business), earnings declined in the first three quarter of 2005 compared to the same period last year. Margins were compressed due to the impact of rising product cost that could not be fully recovered in the marketplace. Marketing sales volumes declined mainly as a result of divestments in 2004 and the first quarter of 2005.

Chemicals

Higher earnings reflected higher margins especially in the first quarter of 2005, and improved operating rates compared to a year ago when earnings were impacted during the first quarter by planned and unplanned cracker downtime and start up cost of the expanded ethylene cracker at Deer Park in the USA. With effect from the first quarter 2005, earnings from the polyolefins joint venture Basell which was held for sale were no longer included in earnings.

Corporate and Other

Portfolio developments for the nine months ended September 30, 2005

Exploration & Production

In Kazakhstan, the Shell Group increased its equity interest in the North Caspian Sea Production Sharing Agreement (NCPSA), which includes the Kashagan Project, by 1.85% to 18.52% following the sale by BG Group.

In Australia, the Shell Group’s divestment of the mature Laminaria (22% share interest) and Corallina (25% share interest) oil fields, was completed in the second quarter of 2005.

The Shell Group signed a Memorandum of Understanding with Gazprom under which Gazprom would acquire up to 25% plus one share in the Sakhalin II venture and the Shell Group would acquire a 50% interest in the Western Siberia Zapolyarnoye Necomian field in addition to other assets and cash, subject to valuation.

Sakhalin Energy Investment Company (SEIC), in which Shell Group currently holds a 55% share, provisionally anticipates that Phase 2 project investment costs could be of the order of $20 billion, covering all planned development activity including drilling activity through to 2014, with LNG deliveries starting in the summer of 2008. The estimates remain subject to SEIC shareholders review and confirmation. SEIC has over 75% of its LNG capacity sold under long-term contracts.

The Shell Group signed an integrated gas deal with the Libyan National Oil Corporation for the redevelopment and possible expansion of an LNG facility and exploration rights in five blocks in the Sirte Basin.

Together with PetroChina, the Shell Group will proceed to develop the Changbei gas field. The field will be operated by the Shell Group under a production-sharing contract and is expected to deliver 1.5 billion cubic metres per annum (0.14 billion cubic feet (bcf) per day) of natural gas starting in 2007 rising to 3 billion cubic metres per annum (0.29 bcf per day) by 2008 (Shell Group share 50%).

The Shell Group, with Chevron, was awarded rights to four deepwater exploration blocks in the Carnarvon Basin offshore Western Australia. In Alaska, Shell was awarded 84 blocks in Lease Sale 195 for the Beaufort Sea. In the Gulf of Mexico, Shell was awarded nine blocks in Lease Sale 194. In Canada, Shell Canada acquired a 20% interest in eight existing exploration licences in the Orphan Basin under a farm-in agreement. In Algeria, an exploration contract was awarded to Shell in the Reggane and Timimoun basins covering some 30,000 square kilometres (sq km). In Egypt, Shell acquired 30% of four Western Desert concessions covering some 60,000 sq km of exploration acreage.

Shell in Ireland acquired an exploration licence, located in deepwater of the Irish Rockall Trough, some 150 kilometres off the coast. In the 23rd offshore licensing round in the UK Continental Shelf, Shell was awarded a new exploration licence. In Alaska, Shell acquired 19 leases in the western Beaufort Sea adding to the Beaufort leases acquired earlier in Lease Sale 195.

In Malaysia, Shell logged a significant hydrocarbon column in high quality reservoir rock in the deepwater Ubah 2 big cat exploration prospect (Shell share 35%). Big cat exploration prospects are defined as those with a scope for recovery potential of 100 million boe or greater (Shell share).

In the third quarter 2005, 15 successful exploration and exploratory appraisal wells were drilled in Australia, Brunei, Malaysia, Netherlands, Nigeria, UK, US, Kazakhstan and Oman, with a success rate year to date of 72%.

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Gas & Power

The Sakhalin II LNG joint venture (Shell Group share 55%) and Malaysia Tiga LNG (Shell Group share 15%) concluded 20-years sales commitments with Kogas, the Korean gas company to supply 1.5 to 2.0 mtpa each beginning in 2008.

The Gorgon Joint Venture Partners (Shell Group share 25%) agreed to commence the Front End Engineering and Design phase of the greenfield integrated LNG project. The initial development is expected to have a total capacity of 10 mtpa with LNG sales volumes expected in Asia Pacific and also in North America through the Shell Group’s secured capacity in the Energia Costa Azul LNG terminal in Baja California, Mexico.

The North West Shelf LNG Venture (Shell Group share 22%) took the final investment decision to expand its LNG facilities in Western Australia with a fifth LNG train increasing capacity (100%) by 4.2 million tonnes per annum (mtpa) to 15.9 mtpa.

The Shell Group received approval from the US Maritime Administration for a 7.7 mtpa (initial capacity) offshore LNG import terminal (Gulf Landing) in the Gulf of Mexico. In Europe, the Shell Group announced plans for the development of a 5.8 mtpa LNG import terminal in Sicily, Italy (Shell Group share 50%).

In April 2005, the Shell Group signed a Memorandum of Understanding with the Nigerian National Petroleum Corporation (NNPC) and partners for the joint development of a greenfield LNG project (Olokola LNG) in Nigeria. The project is expected to include a joint venture infrastructure and operating company, and initially up to four 5 mtpa LNG trains. Two of the four trains will be owned by NNPC and the Shell Group. The intended markets are North America and Europe.

The Train 4 and 5 expansion at Nigeria LNG Ltd (Shell share 26%) is in line with expectation. First production from Train 4 expected in the fourth quarter 2005 and construction of Train 5 is more than 90% complete. These two trains will bring Nigeria LNG’s overall production capacity to over 17 million tonnes per annum (mtpa) of LNG. Train 6 (4 mtpa) is on schedule for start up in late 2007.

The 3.7 mtpa Qalhat LNG project (Shell indirect share 11%) in Oman is on schedule. Commissioning is in progress with first production expected to commence around year-end 2005.

The divestment of the majority of the assets of the InterGen joint venture contributed proceeds exceeding $1 billion. The divestment of the two remaining InterGen assets (in Turkey and Colombia) is progressing according to schedule.

Oil Products

In China, the joint venture (Shell Group share 40%) with Sinopec started operating its first retail stations. At the end of the quarter over 200 retail stations were in operation. The joint venture is expected to build and operate 500 retail outlets in the Jiangsu Province.

The Shell Group completed a sale of shares representing 5% ownership in the Oil Products refining and marketing company Showa Shell Sekiyu KK in Japan to Saudi Aramco following the earlier sale representing 10% in 2004. As a result, Saudi Aramco now holds 15% of Showa Shell shares, while the Shell Group continues to hold some 35%.

The Shell Group announced the sale of its marketing and distribution businesses in the Republic of Ireland and Northern Ireland. Completion of the sale is expected by the end of the year.

The divestment of Oil Products refining, marketing and distribution businesses in the French Antilles and French Guyana was announced. The sale is to take place by the end of 2005. Shell and Turcas Petrol A.S. signed an agreement relating to a joint venture to combine their marketing and distribution activities in Turkey. Furthermore Koc and Shell participated in the privatization bid for 51% of Turkiye Petrol Rafinerileri A.S. (“Tupras”) a Turkish refining company; Shell will be a minority shareholder in Tupras. The purchase is subject to approval by the Turkish government.

An agreement was signed for the exchange of Shell’s 20% interest in its Rome refinery for Total’s 18% interest in the Reichstett refinery in France. The transaction is subject to regulatory approval and pre-emptive rights by existing partners. The exchange increases Shell’s ownership interest in the Reichstett refinery to 83%.

Chemicals

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In August, BASF and the Shell Group completed the sale of their 50-50 joint venture Basell, one of the world’s leading manufacturers of polyolefins, to Nell Acquisition S.a.r.l., an affiliate of New York-based Access Industries. The sale price totalled $4.4 billion, including debt. The net after debt proceeds to Shell of over $1 billion were reported as part of the Royal Dutch Shell third quarter results.

Liquidity and capital resources

Three months ended September 30, 2005

Capital investment for the three months ended September 30, 2005 was $4.1 billion (including the minority share of Sakhalin) of which $3.2 billion was invested in the Exploration & Production and Gas & Power segments. Capital Investment in the same period 2004 (including the minority share of Sakhalin) was $3.5 billion of which $2.7 billion was invested in the Exploration and Production and Gas & Power segments.

Gross proceeds from divestments in the three-month period to September 30, 2005 were $4.3 billion compared to $0.8 billion a year ago.

Nine months ended September 30, 2005

Capital investment was $11.5 billion (including the minority share of Sakhalin) in 2005 of which $9 billion was invested in the Exploration and Production and Gas & Power segments. Capital Investment in the same period 2004 (including the minority share of Sakhalin) was $10.1 billion of which $7.9 billion was invested in the Exploration and Production and Gas & Power segments.

Gross proceeds from divestments were $6 billion compared to $2.8 billion a year ago.

Recent Developments

Litigation Update

Outlook

Share buy back and Royal Dutch shares

Royal Dutch Shell expects to return $5 billon to shareholders via buy back of shares for cancellation in 2005, with any incremental financial consideration paid to the remaining minority shareholders in Royal Dutch to be additional to this figure.

Divestments

Production outlook

Gulf of Mexico

Upstream cost after tax (Shell share) associated with hurricane evacuation, people displacement, and repairs to assets and facilities is expected to be around $300 million, prior to insurance recovery. In the third quarter 2005, costs after tax were $27 million and approximately $100 million (after tax) will be spent in the fourth quarter 2005, with the remainder in 2006.

In Downstream, following Hurricane Katrina the Convent and Norco refineries were back on line within two weeks after a full shutdown. Following Hurricane Rita, the Deer Park refinery was out of operation for 10 days and the Port Arthur refinery is expected to be back on line shortly. Overall, lost refinery intake was some 4.9 million barrels (Shell share) in the third quarter 2005 was some 4.5 million barrels (Shell share) is expected to be lost in the fourth quarter 2005. Chemicals overall asset utilisation was impacted by 7% in the third quarter with fourth quarter 2005 impacted estimated at some 2% to 3%. Downstream costs after tax and prior to insurance

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Total Upstream and Downstream costs after tax for hurricane related items are expected to be around $350 million (Shell share) over the period 2005 to 2006. Insurance recovery from external insurers will be available for a significant portion of these costs. However it is to early in the process to provide an estimate for how much that recovery will be.

Capital investment

Royal Dutch merger

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Royal Dutch Shell plc

Three and nine month periods ended September 30, 2005

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Statement of Income										$ million
		Three months ended September 30,								Nine months ended September 30,
		2005				2004				2005				2004
Sales proceeds			94,717				89,006				286,168				243,634
Less: Sales taxes, excise duties and similar levies			18,282				18,321				54,933				53,549
Revenue			76,435				70,685				231,235				190,085
Cost of sales			60,704				58,604				188,733				157,901
Gross profit			15,731				12,081				42,502				32,184
Selling and distribution expenses			3,150				3,110				9,462				9,046
Administrative expenses			613				533				1,757				1,646
Exploration			275				294				784				1,294
Share of profit of equity accounted investments			3,081				1,254				5,734				3,496
Net finance costs and other income			(268	)			11				(159	)			(32	)
Income before taxation			15,042				9,387				36,392				23,726
Taxation			5,558				3,790				14,427				9,276
Income from continuing operations			9,484				5,597				21,965				14,450
Income/(loss) from discontinued operations (see Note 7)			(93	)			23				(307	)			65
Income for the period			9,391				5,620				21,658				14,515
Attributable to minority interest			359				249				715				546
Income attributable to Shareholders of Royal Dutch Shell plc			9,032				5,371				20,943				13,969
Earnings per share (see Note 5)			1.35				0.80				3.12				2.06
— Continuing operations			1.37				0.79				3.17				2.05
— Discontinued operations			(0.01	)			0.00				(0.05	)			0.01
Diluted earnings per share (see Note 5)			1.35				0.79				3.11				2.06
— Continuing operations			1.36				0.79				3.16				2.05
— Discontinued operations			(0.01	)			0.00				(0.05	)			0.01

The Notes on pages 14 to 35 are an integral part of these Condensed Consolidated Interim Financial Statements.

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Balance Sheet				$ million
				Sept 30,				Dec 31,
				2005				2004
ASSETS
Non-current assets
	Property, plant and equipment				85,601				87,918
	Intangible assets				4,361				4,528
	Investments:
		equity accounted investments			17,138				20,493
		financial assets			3,236				2,700
	Deferred tax				3,039				2,789
	Employee benefit assets				2,453				2,479
	Other				4,102				4,490
					119,930				125,397
Current assets
	Inventories				21,490				15,375
	Accounts receivable				83,812				37,473
	Cash and cash equivalents				15,998				9,201
					121,300				62,049
Total assets					241,230				187,446
LIABILITIES
Non-current liabilities
	Debt				7,795				8,858
	Deferred tax				12,411				12,930
	Employee benefit obligations				6,018				6,795
	Other provisions				7,114				6,828
	Other				4,395				5,800
					37,733				41,211
Current liabilities
	Debt				6,714				5,734
	Accounts payable and accrued liabilities				82,912				37,909
	Taxes payable				12,510				9,058
	Employee benefit obligations				302				339
	Other provisions				1,254				1,812
					103,692				54,852
Total liabilities					141,425				96,063
EQUITY
Equity share capital (see Note 9)					578				584
Non-equity share capital (see Note 9)					–				20
Additional paid-in capital					5,675				5,546
Treasury shares					(3,772	)			(4,187	)
Other reserves					103				3,319
Retained earnings					89,769				80,788
Equity attributable to Shareholders of Royal Dutch Shell plc					92,353				86,070
Minority interest					7,452				5,313
Total equity					99,805				91,383
Total liabilities and equity					241,230				187,446

The Notes on pages 14 to 35 are an integral part of these Condensed Consolidated Interim Financial Statements.

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Statement of Changes in Equity																																		$ million
		Equity attributable to shareholders of Royal Dutch Shell plc
						Preference				Additional
		Equity share				share				paid in				Treasury				Other				Retained								Minority				Total
		capital1				capital1				capital				shares				reserves2				earnings				Total				interests3				equity
At January 1, 2005			584				20				5,546				(4,187	)			3,319				80,788				86,070				5,313				91,383
IAS 32/39 transition			–				(20	)			–				–				823				(7	)			796				–				796
Income for the period			–				–				–				–				–				20,943				20,943				715				21,658
Income/(expense) recognised directly in equity			–				–				124				–				(4,039	)			4				(3,911	)			92				(3,819	)
Change in minority interest			–				–				–				–				–				–				–				732				732
Effect of Unification3			–				–				–				–				–				(835	)			(835	)			835				–
Dividends			–				–				–				–				–				(8,687	)			(8,687	)			(235	)			(8,922	)
(Purchase)/release of treasury shares, net of dividends			–				–				–				415				–				–				415				–				415
Shares repurchased for cancellation			(6	)			–				5				–				–				(2,437	)			(2,438	)			–				(2,438	)
At September 30, 2005			578				–				5,675				(3,772	)			103				89,769				92,353				7,452				99,805
At January 1, 2004			587				20				5,432				(3,428	)			512				70,412				73,535				3,408				76,943
Income for the period			–				–				–				–				–				13,969				13,969				547				14,516
Income/(expense) recognised directly in equity			–				–				91				–				(857	)			–				(766	)			17				(749	)
Change in minority interest			–				–				–				–								–				–				964				964
Dividends			–				–				–				–				–				(7,390	)			(7,390	)			(202	)			(7,592	)
(Purchase)/release of treasury shares, net of dividends			–				–				–				(740	)			–				–				(740	)			–				(740	)
Shares repurchased for cancellation			(3	)			–				–				–				–				(792	)			(795	)			–				(795	)
At September 30, 2004			584				20				5,523				(4,168	)			(345	)			76,199				77,813				4,734				82,547

1	See Note 9.
2	See Note 4.
3	Creation of minority interest as an effect of Unification.

The Notes on pages 14 to 35 are an integral part of these Condensed Consolidated Interim Financial Statements.

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Statement of Cash Flows			$ million
			Nine months ended
			September 30,
			2005				2004
Cash flow from operating activities:
Income for the period				21,658				14,515
Adjustment for:
	Taxation accrued			14,945				9,544
	Interest accrued			484				645
	Depreciation, depletion and amortisation			9,194				8,655
	(Profit)/loss on sale of assets			(1,103	)			(859	)
	Decrease/(increase) in net working capital			(8,959	)			(4,237	)
	Share of profit of equity accounted investments			(5,512	)			(3,562	)
	Dividends received from equity accounted investments			5,268				2,731
	Deferred taxation and other provisions			(646	)			(142	)
	Other			(1,102	)			(356	)
Cash flow from operating activities (pre-tax)				34,227				26,934
Taxation paid				(12,579	)			(6,746	)
Cash flow from operating activities				21,648				20,188
Cash flow from investing activities:
Capital expenditure				(10,457	)			(8,911	)
Proceeds from sale of assets				1,914				1,300
Proceeds from sales and (additions):
	equity accounted investments			3,535				(380	)
	investments: financial assets			363				1,069
Interest received				618				332
Cash flow from investing activities				(4,027	)			(6,590	)
Cash flow from financing activities:
Net increase/(decrease) in debt				439				(2,963	)
Interest paid				(813	)			(671	)
Change in minority interest				893				860
Net issue/ (repurchase) of shares				(2,433	)			(698	)
Dividends paid to:
	Shareholders of Royal Dutch Shell plc			(8,824	)			(7,309	)
	Minority interest			(235	)			(202	)
Treasury shares: net sales/(purchases) and dividends received				399				(738	)
Cash flow from financing activities				(10,574	)			(11,721	)
Currency translation differences relating to cash and cash equivalents				(250	)			(37	)
Increase/(decrease) in cash and cash equivalents				6,797				1,840
Cash and cash equivalents at beginning of period				9,201				2,108
Cash and cash equivalents at end of period				15,998				3,948

The Notes on pages 14 to 35 are an integral part of these Condensed Consolidated Interim Financial Statements.

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Notes to the Condensed Consolidated Interim Financial Statements

1. Unification of Royal Dutch and Shell Transport

Pursuant to the terms of the Exchange Offer and the Scheme, holders of ordinary shares of Royal Dutch (“Royal Dutch Ordinary Shares”), holders of 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 Condensed Consolidated Interim Financial Statements are considered historical and give retroactive effect for all periods presented to the Unification Transaction, which has been accounted for using a carry-over basis of the historical costs of the assets and liabilities of Royal Dutch, Shell Transport and other companies comprising the Shell Group. For periods prior to the consummation of the Unification Transaction the financial position and results of Royal Dutch Shell reflects the financial position and results of the Shell Group on a 100% basis without giving effect to any minority interest in Royal Dutch resulting from the Unification Transaction. The interest of the minority shareholders in Royal Dutch has also been accounted for using a carry-over basis of the historical costs of its consolidated assets and liabilities.

From August 10, 2005, the existing 1.5% minority interest in Royal Dutch is recorded in the Condensed Consolidated Financial Statements of Royal Dutch Shell as a minority interest, as prior to that time the Royal Dutch minority holders had a right to participate in the Exchange Offer and receive Royal Dutch Shell shares. As a result, the average quarterly net income attributable to the minority has been prorated for the period from August 10, 2005 through September 30, 2005. Included in Income attributable to Minority Interests in the Consolidated Statement of Income for the third quarter 2005 and in Minority Interests in the Consolidated Balance Sheet are $46 million and $842 million, respectively, attributable to minority holders in Royal Dutch.

On September 20, 2005 the Shell Group announced that it proposes to implement an internal restructuring and merger of certain of its subsidiaries to achieve governance, management and fiscal efficiencies. As part of the restructuring, Royal Dutch would be merged into a subsidiary, Shell Petroleum N.V. (“SPNV”), and the remaining shareholders in Royal Dutch would receive cash or, at the option of eligible UK resident shareholders who so elect, loan notes exchangeable into Royal Dutch Shell A shares. The final terms, including the price to be paid in exchange for each Royal Dutch share held by the Minority, will be determined and announced in the fourth quarter

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of 2005. Following approval at an extraordinary general meeting (“EGM”), the restructuring is expected to be completed by December 31, 2005.

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 that would have been accounted for as a business combination under current accounting standards. Since that time, Royal Dutch owned 60% of the other companies comprising the Shell Group and Shell Transport owned 40% of the other companies comprising the Shell Group. All operating activities have been conducted through the subsidiaries of Royal Dutch and Shell Transport which have operated as a single economic enterprise. Prior to the consummation of the Unification Transaction, economic interests of the Royal Dutch and Shell Transport shareholders in the other companies comprising the Shell Group reflected the 60:40 economic interests of Royal Dutch and Shell Transport in these companies. The Unification 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 rest of the Shell Group, and the Unification Transaction did not result in the acquisition of any new businesses or operating assets and liabilities. In addition, the Unification Transaction did not affect the proved oil and gas reserve information reported by Royal Dutch, Shell Transport or the other companies comprising the Shell Group.

2. Basis of preparation

The Company will adopt IFRS for the first time in its Financial Statements for the year ending December 31, 2005, which will include comparative Financial Statements for the year ended December 31, 2004. IFRS 1 First-time Adoption of International Financial Reporting Standards requires that an entity develop accounting policies based on the standards and related interpretations effective at the reporting date of its first annual IFRS Financial Statements (December 31, 2005). IFRS 1 also requires that those policies be applied as of the date of transition to IFRS (January 1, 2004) and throughout all periods presented in the first IFRS Financial Statements. The accompanying interim financial information as of and for the nine month periods ended September 30, 2005 and 2004, has been prepared in accordance with those IASB standards and IFRIC interpretations issued and effective, or issued and early-adopted, as at the date of this report. The IASB standards and IFRIC interpretations that will be applicable at December 31, 2005, including those that will be applicable on an optional basis, are not known with certainty at the time of preparing this interim financial information. As a result, the accounting policies used to prepare these Financial Statements are subject to change up to the reporting date of the Company’s first IFRS Financial Statements.

The Shell Group’s first application of IFRS and the accounting policies are set out in Note 3 below. Royal Dutch Shell’s Consolidated Financial Statements for 2004 had been prepared in accordance with US Generally Accepted Accounting Principles (US GAAP); accounting policies were set out in Note 3 to those Financial Statements. US GAAP differs in certain respects from IFRS and comparative figures for 2004 have been restated as necessary in accordance with IFRS. Reconciliations and descriptions of the effect of the transition from US GAAP to IFRS on equity and income are given below in Note 12, including a description of the nature of the changes in accounting policies. As part of the Shell Group’s adoption of IFRS, the following elections were made under IFRS 1 First-time Adoption of International Financial Reporting Standards as at January 1, 2004:

•	cumulative currency translation differences were eliminated by transfer to retained earnings.
•	cumulative previously unrecognised actuarial gains and losses on post-employment benefits were recognised.
•	prior business combinations have not been restated.
•	IFRS 2 Share-based Payment has only been applied to options issued after November 7, 2002 and not vested by January 1, 2005.

The policies set out in Note 3 below have been consistently applied to all periods presented except, as explained in the Note, for those relating to the classification and measurement of financial instruments to the extent that IFRS differs from US GAAP. The Shell Group has taken the exemption available under IFRS 1 to apply IAS 32 and IAS 39 from January 1, 2005 and the impact on transition is described in Notes 4 and 8.

The Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention as modified by the revaluation of certain financial assets and liabilities.

The preparation of interim financial information in conformity with IFRS requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the Shell Group’s accounting policies. Actual results could differ from those estimates.

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The Condensed Consolidated Interim Financial Statements should be read in conjunction with the 2004 Royal Dutch Shell Consolidated Financial Statements set out in Royal Dutch Shell’s report on Form 6-K dated July 20, 2005.

3. Accounting policies

Revenue recognition

Revenue resulting from the production of oil and natural gas properties in which the Shell Group has an interest with other producers is recognised on the basis of the Shell Group’s working interest (entitlement method). Gains and losses on derivatives contracts and contracts involved in energy trading and risk management are shown net in the Statement of Income if these contracts are held for trading purposes. Purchase and sale of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstock utilised in the Shell Group’s refinery operations are shown net in the Statement of Income. Sales between Shell Group companies, as disclosed in the segment information, are based on prices generally equivalent to commercially available prices.

The group enters in to certain contracts that are classified and held for trading purposes. Revenue and costs associated with such contracts are reported on a net basis in the Statement of Income.

Segmental reporting

Property, plant and equipment and intangible assets

Property, plant and equipment and intangible assets are subsequently recognised at cost less accumulated depreciation and impairment.

(b) Depreciation, depletion and amortisation

Goodwill is not amortised but instead tested for impairment annually. Other intangible assets are amortised on a straight-line basis over their estimated useful lives (for periods up to forty years).

(c) Impairment of assets

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amount which is the higher of fair value less costs to sell and value in use. For this purpose, assets are grouped based on separately identifiable and largely independent cash flows. Assets held for sale are recognised at the lower of the carrying amount and fair value less costs to sell. No further provision for depreciation is charged on such assets.

Estimates of future cash flows used in the evaluation for impairment of 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.

Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed.

Exploration costs

Associated companies and joint ventures

Inventories

Deferred taxation

Deferred tax assets are recognised where future recovery is probable. Deferred tax assets and liabilities are presented separately in the Balance Sheet except where there is a right of set-off within fiscal jurisdictions.

Deferred tax is not provided for taxes on possible future distributions of retained earnings of Shell Group companies and equity accounted investments where the timing of the distribution can be controlled and it is probable that the retained earnings will be reinvested by the companies concerned.

Employee benefits

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.

Unrecognised gains and losses at the date of transition to IFRS have been recognised in the 2004 opening balance sheet. The Shell Group recognises actuarial gains and losses that arise subsequent to January 1, 2004 using the corridor method. Under this method, to the extent that any cumulative unrecognised actuarial gain or loss exceeds 10% of the greater of the present value of the defined benefit obligation and the fair value of plan assets, that portion is recognised in income over the expected average remaining working lives of the employees participating in the plan. Otherwise, the actuarial gain or loss is not recognised.

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

(b) Postretirement benefits other than pensions

The expected costs of postretirement benefits other than pensions are accrued over the periods employees render service to the Shell Group. Unrecognised gains and losses at the date of transition to IFRS have been recognised in the 2004 opening balance sheet. The Shell Group recognises actuarial gains and losses that arise subsequent to January 1, 2004 using the corridor method.

(c) Share-based compensation plans

Leases

Financial instruments and other derivative contracts

(a) Financial assets

Securities of a trading nature

Securities held to maturity

Available for sale securities

Fair value is based on market prices where available, otherwise it is calculated as the net present value of expected future cash flows.

From January 1, 2005 this has resulted in certain unquoted equity securities being recognised at fair value compared with recognition at cost under US GAAP and the impact on transition is disclosed in Note 8. This change in accounting has no impact on the timing of recognition of income arising from these investments.

Securities forming part of a portfolio which is required to be held long-term are classified under investments.

Interest on debt securities is accounted for in income by applying the effective interest method. Dividends on equity securities are accounted for in income when receivable.

Receivables

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Cash and cash equivalents

(b) Financial liabilities

Interest expense, other than interest capitalised, is accounted for in income using the effective interest method.

(c) Derivative contracts

Those derivatives qualifying and designated as hedges are either: (1) a “fair value” hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment, or (2) a “cash flow” hedge of the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecasted transaction.

A change in the fair value of a hedging instrument designated as 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 fair value of a derivative designated as a cash flow hedge is recognised directly in equity, until income reflects the variability of underlying cash flows; any ineffective portion 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 hedge transactions. The effectiveness of a hedge is also continually assessed and when it ceases, hedge accounting is discontinued.

Certain contracts to purchase and sell commodities are required to be recognised at fair value, generally based on market prices (with gains and losses taken to income). These are contracts which can be net settled or sales contracts containing volume optionality.

Certain embedded derivatives within contracts are required to be separated from their host contract and recognised at fair value, generally based on market prices (with gains and losses taken to income), if the economic characteristics and risks of the embedded derivative are not closely related to that of the host contract.

These policies are very similar to those applied until the end of 2004 under US GAAP and the impact of transition on January 1, 2005 is shown in Note 8.

Provisions

Estimated decommissioning and restoration costs are based on current requirements, technology and price levels and are stated at fair value, and the associated asset retirement costs are capitalised as part of the carrying amount of the related property, plant and equipment. The liability, once an obligation (whether legal or constructive) crystallises, is recognised with a corresponding amount of property, plant and equipment in the period when a reasonable estimate of the fair value can be made. The fair value is calculated using amounts discounted over the useful economic life of the assets. The effects of changes resulting from revisions to the timing or the amount of the original estimate of the provision are incorporated on a prospective basis.

Provisions for environmental remediation resulting from ongoing or past operations or events are recognised in the period in which an obligation, legal or constructive, to a third party arises and the amount can be reasonably estimated. Measurement of liabilities is based on current legal requirements and existing technology. Recognition of any joint and several liability is based upon Shell Group companies’ best estimate of their final pro rata share of the liability. Liabilities are determined independently of expected insurance recoveries. Recoveries are recognised and reported as separate events and brought into account when reasonably certain of realisation. The carrying amount of provisions is regularly reviewed and adjusted for new facts or changes in law or technology.

Treasury shares

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Administrative expenses

Research and development

Discontinued operations

Business combinations

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 income.

New accounting standards and interpretations

4. Other reserves

														$ million
														Income/(expense)
										At Jan 1,
										2005
										after IAS
		At Dec 31,				IAS 32/39				32/39								At Sept 30,
		2004				transition				transition				Movement				2005
Cumulative currency translation differences			3,126				–				3,126				(3,843	)			(717	)
Unrealised gains/(losses) on securities			350				–				350				736				1,086
Unrealised gains/(losses) on cash flow hedges			(157	)			823				666				(932	)			(266	)
Total			3,319				823				4,142				(4,039	)			103

						$ million
						Income/(expense)
		At Jan 1,								At Sept 30,
		2004				Movement				2004
Cumulative currency translation differences			–				(403	)			(403	)
Unrealised gains/(losses) on securities			700				(443	)			257
Unrealised gains/(losses) on cash flow hedges			(188	)			(11	)			(199	)
Total			512				(857	)			(345	)

5. Earnings per share

The basic earnings per share amounts shown relates to income attributable to Royal Dutch Shell shareholders. The three months ended September 30, 2005 calculation uses a weighted-average number of shares of 6,676,451,062 (2004: 6,754,760,472). The diluted earnings per share is based on the same profit figures. For this calculation, the following weighted-average number of shares are

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used: 6,703,543,762 (2004: 6,761,413,370). The difference between the basic and diluted number of shares relates to share option schemes.

The nine months ended September 30, 2005 calculation uses a weighted-average number of shares of 6,711,427,612 (2004: 6,781,565,467). For the diluted earnings per share calculation, the following weighted-average number of shares are 6,732,503,894 (2004: 6,786,207,180).

6. Information by business segment

Following a change in business circumstances certain contracts are classified as held for trading purposes and reported net rather than gross with effect from the third quarter of 2005.

Refer to Note 11 for the revenue and cost of sales effect.

Three months ended September 30, 2005																							$ million
			Exploration &																Corporate and								Total
			Production				Gas & Power				Oil Products				Chemicals				Other				Elimination				Shell Group
																							2005
Revenue
	Third party			7,078				3,086				58,877				7,311				83				–				76,435
	Inter-segment			8,603				417				1,709				1,165				–				(11,894	)			–
Total				15,681				3,503				60,586				8,476				83				–				76,435
Segment result				7,136				228				4,241				354				(266	)			–				11,693
Share of profit of equity accounted investments				2,220				271				492				85				13				–				3,081
Net finance costs																												(106	)
Other income																												162
Taxation																												5,558
Income from continuing operations																												9,484
Income/(loss) from discontinued operations				–				–				–				(93	)			–				–				(93	)
Income for the period																												9,391

Three months ended September 30, 2004																							$ million
			Exploration &																Corporate and								Total
			Production				Gas & Power				Oil Products				Chemicals				Other				Elimination				Shell Group
																							2004
Revenue
	Third party			5,640				2,190				55,761				6,915				179				–				70,685
	Inter-segment			6,582				243				1,445				893				–				(9,163	)			–
Total				12,222				2,433				57,206				7,808				179				–				70,685
Segment result				4,737				(16	)			3,087				565				(229	)			–				8,144
Share of profit of equity accounted investments				422				277				466				163				(74	)			–				1,254
Net finance costs																												74
Other income																												63
Taxation																												3,790
Income from continuing operations																												5,597
Income/(loss) from discontinued operations				–				–				–				23				–				–				23
Income for the period																												5,620

Nine months ended September 30, 2005																							$ million
			Exploration and																Corporate and								Total
			Production				Gas & Power				Oil Products				Chemicals				Other				Elimination				Group
																							2005
Revenue
	Third party			17,717				9,221				180,799				22,941				557				–				231,235
	Inter-segment			24,125				1,143				4,765				2,882				–				(32,915	)			–
Total				41,842				10,364				185,564				25,823				557				–				231,235
Segment Result				18,686				299				10,829				1,396				(711	)			–				30,499
Share of profit of equity accounted investments				3,394				630				1,517				329				(136	)			–				5,734
Net finance costs																												76
Other income																												235
Taxation																												14,427
Income from continuing operations																												21,965
Income/(loss) from discontinued operations				–				–				–				(307	)			–				–				(307	)
Income for the period																												21,658

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Nine months ended September 30, 2004																							$ million
			Exploration and																Corporate and								Total
			Production				Gas & Power				Oil Products				Chemicals				Other				Elimination				Group
																							2004
Revenue
	Third party			12,350				6,502				151,442				19,053				738				–				190,085
	Inter-segment			18,324				880				3,815				2,387				4				(25,410	)			–
Total				30,674				7,382				155,257				21,440				742				–				190,085
Segment Result				12,400				87				7,241				1,093				(623	)			–				20,198
Share of profit of equity accounted investments				1,560				854				980				342				(240	)			–				3,496
Net finance costs																												581
Other income																												613
Taxation																												9,276
Income from continuing operations																												14,450
Income/(loss) from discontinued operations				–				–				–				65				–				–				65
Income for the period																												14,515

The information above is provided in accordance with IAS 14 Segment Reporting. Operating segment results are appraised by management on the basis of income including equity accounted investments and certain net finance costs and other (income)/expense and after tax, and this forms the basis of the discussion of segment results in the Operational and Financial Review (OFR). The table below reconciles the foregoing segment information to the information used for management reporting and is consistent with how the information will be presented in the Shell Group’s annual Financial Statements to comply with SFAS 131.

Income for the period by segment — Three months ended September 30, 2005

$ million
		Exploration and																Corporate and				Total
		Production				Gas & Power				Oil Products				Chemicals				Other				Group
																		2005
Segment result — IAS 14			7,136				228				4,241				354				(266	)			11,693
Share of profit of equity accounted investments			2,220				271				492				85				13				3,081
Net finance costs and other (income)/expense			53				(144	)			(3	)			4				(178	)			(268	)
Taxation			4,326				87				1,296				21				(172	)			5,558
Discontinued operations			–				–				–				(93	)			–				(93	)
Segment result — OFR			4,977				556				3,440				321				97				9,391

Income for the period by segment — Three months ended September 30, 2004

$ million
		Exploration and																Corporate and				Total
		Production				Gas & Power				Oil Products				Chemicals				Other				Group
																		2004
Segment result — IAS 14			4,737				(16	)			3,087				565				(229	)			8,144
Share of profit of equity accounted investments			422				277				466				163				(74	)			1,254
Net finance costs and other (income)/expense			(15	)			(12	)			2				8				28				11
Taxation			2,831				(81	)			994				171				(125	)			3,790
Discontinued operations			–				–				–				23				–				23
Segment result — OFR			2,343				354				2,557				572				(206	)			5,620

Income for the period by segment — Nine months ended September 30, 2005

$ million
		Exploration &																Corporate and				Total
		Production				Gas & Power				Oil Products				Chemicals				Other				Group
																		2005
Segment result — IAS 14			18,686				299				10,829				1,396				(711	)			30,499
Share of profit of equity accounted investments			3,394				630				1,517				329				(136	)			5,734
Net finance costs and other (income)/expense			203				(174	)			(16	)			5				(177	)			(159	)
Taxation			11,200				60				3,208				384				(425	)			14,427
Discontinued operations			–				–				–				(307	)			–				(307	)
Segment result — OFR			10,677				1,043				9,154				1,029				(245	)			21,658

Income for the period by segment — Nine months ended September 30, 2004

$ million
		Exploration &																Corporate and				Total
		Production				Gas & Power				Oil Products				Chemicals				Other				Group
																		2004
Segment result — IAS 14			12,400				87				7,241				1,093				(623	)			20,198
Share of profit of equity accounted investments			1,560				854				980				342				(240	)			3,496
Net finance costs and other (income)/expense			38				(245	)			(30	)			13				192				(32	)
Taxation			7,017				(24	)			2,327				319				(363	)			9,276
Discontinued operations			–				–				–				65				–				65
Segment result — OFR			6,905				1,210				5,924				1,168				(692	)			14,515

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7. Discontinued operations

8. Implementation of IAS 32 and IAS 39 Financial Instruments

		$ million
Investments: financial assets			1,018
Non-current assets: deferred tax			5
Current assets			42
Non-current liabilities: deferred tax			(195	)
Non-current liabilities debt			(20	)
Current liabilities			(54	)
			796

Preference share capital of $20 million was recategorised as debt on January 1, 2005 on the adoption of IAS 32 and 39.

9. Share capital

Equity share capital

$ million
		Sept 30				Dec. 31
		2005				2004
Allotted, called up and fully paid
Class A ordinary shares			340				350
Class B ordinary shares			233				234
Euro deferred shares			5				–
			578				584

The number of shares outstanding at September 30, 2005 and December 31, 2004, were as follows:

		Class A				Class B				Euro deferred
Shares outstanding at September 30, 2005			4,020,865,000				2,759,360,000				62,280,114
Shares outstanding at December 31, 2004			4,148,800,000				2,765,552,027				–

Under the terms of the Unification Transaction, Royal Dutch and Shell Transport ordinary shares were exchanged at the agreed ratios set forth in Note 1. The number of shares as of December 31, 2004 reflect 100% of the then outstanding Royal Dutch and Shell Transport share capital as if all ordinary shares of Royal Dutch and Shell Transport had been exchanged at such ratios as of that date.

Non-equity share capital

number of shares

$ million

Sept 30

Dec. 31

Sept 30

Dec. 31

2005

2004

2005

2004

Allotted, called up and fully paid

€448 Priority Shares

–

1,500

–

1

£1 First Preference Shares

–

2,000,000

–

3

£1 Second Preference Shares

–

10,000,000

–

16

–

20

The preference share capital was recategorised as debt on January 1, 2005 on the adoption of IAS 32 and 39.

10. Contingencies and litigation

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 October 27, 2005, there were approximately 64 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 Consolidated Financial Statements if they were ultimately recovered against

Royal Dutch Shell plc

Unaudited Condensed Interim Financial Report	23

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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.

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 United States 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 many critical substantial legal issues remain unresolved. 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 October 27, 2005 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 U.S. 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 United States District Court for the Central District of California because of improper service and attempted enforcement against non-existent entities or entities that were not named in the Nicaraguan judgment. The plaintiffs initially appealed this decision but have subsequently withdrawn their appeal. SOC filed a declaratory judgment action seeking ultimate adjudication of the non-enforceability of this Nicaraguan judgment in the United States 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

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judgment nor a subsidiary of SOC, against whom the Exequatur was filed. The petitions are pending before the Tribunal Suprema de Justicia. As of October 27, 2005, eight additional Nicaraguan judgments had been entered in the collective amount of approximately $398.2 million in favor of 489 plaintiffs jointly against Shell Chemical 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 Shell 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 October 27, 2005, 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 complaint asserted claims under the U.S. securities laws on behalf of all purchasers of Royal Dutch and Shell Transport securities between April 8, 1999 and March 18, 2004.

On August 9, 2005, the court ruled on motions to dismiss filed by Shell and other defendants. These motions generally addressed whether plaintiffs’ complaint sufficiently alleges claims and should be allowed to proceed. First, the court dismissed with prejudice the private plaintiffs’ attempts to challenge Shell’s shareholder notifications under section 14(a) of the Securities Exchange Act of 1934. The court ruled that, as a non-U.S. private issuer of securities, Shell is exempt from the provisions of section 14(a). Plaintiffs may not attempt to replead these claims. Second, the court dismissed all claims against seven of Shell’s current and former managing and supervisory directors: non-executive Chairman Aad Jacobs, Executive Committee member Malcolm Brinded, Maarten van den Bergh, Mark Moody-Stuart, Steven Miller, Paul Skinner and Harry Roels (the “Dismissed Individuals”). The plaintiffs were given 30 days to try to file an adequate complaint against these individuals. Third, the court declined to dismiss plaintiffs’ remaining claims against Shell, as well as the claims against its current Chief Executive, Jeroen van der Veer, and three of its former executive directors, Sir Philip Watts, Walter van de Vijver and Judith Boynton. Fourth, the Court decided to permit the class action plaintiffs to proceed with claims on behalf of non-US purchasers of Shell securities who bought their shares on markets outside the United States. Shell had argued that, in this case, the jurisdiction of U.S. courts was limited to those who purchased Shell’s shares on U.S. securities exchanges or who are U.S. citizens. Finally, the court decided to dismiss claims brought by shareholders who purchased Shell shares after the January 9, 2004 announcement of the reserves recategorisation and by shareholders who purchased shares during the class period and still hold those shares. The court ruled that the former group may attempt to replead their claims, but the latter group will not.

On September 19, 2005, plaintiffs filed their Second Consolidated Amended Class Action Complaint (the “Second Amended Complaint”). The substantive allegations remain unchanged from those in the earlier complaint, except that plaintiffs dropped their section 14(a) claims and their claims against the Dismissed Individuals. In addition, the Second Amended Complaint does not name Shell’s current Chief Executive, Jeroen van der Veer, as a defendant, subject to plaintiffs’ reservation of the right to rename him as a defendant in the future. It reinstates claims on behalf of those who purchased shares after the January 9, 2005 announcement of the reserves recategorisation.

Shell has filed a motion for reconsideration on the issue of jurisdiction over non-U.S. purchasers who bought their securities on non-U.S. markets and, alternatively, a motion to certify this issue for appeal to the United States Court of Appeals for the Third Circuit. Plaintiffs have sought reconsideration of the court’s ruling dismissing with prejudice the claims of those who still hold the shares of Royal Dutch and Shell Transport that they purchased during the class period. Because of uncertainties relating to the pending reconsideration and/or certification motions and because of the relatively early stage of the proceedings, the company is currently unable to assess the impact of the ruling on the litigation. Further, the case is at an early stage and subject to substantial uncertainties concerning the outcome of material factual and legal issues relating to the litigation. 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.

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Also in connection with the hydrocarbon reserves recategorisation, a number of putative class actions were filed on behalf of participants in certain employee benefit plans sponsored by Shell Oil Company or one of its United States-based affiliates 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. The parties executed a settlement agreement in July 2005 and, on August 31, 2005, the court approved the settlement. The court’s order has now become final. The settlement agreement requires defendants to pay $90 million to the settlement class, the court-appointed class counsel’s out-of-pocket expenses (which totaled $742,949.13), plus the costs incurred in providing notice of the settlement to class members. The corporate defendants must also require Shell Oil Company to adopt specific procedures regarding the monitoring and training of individuals appointed to be ERISA fiduciaries.

The reserves recategorisation also led to the filing of shareholder derivative actions in 2004. The four suits pending in New York state court, New York federal court and New Jersey federal court demanded Shell Group management and structural changes and sought unspecified damages from certain current and former members of the Boards of Directors of Royal Dutch and Shell Transport. On October 21, 2005, the United States District Court for the District of New Jersey ruled that it would approve the settlement in a forthcoming opinion. Terms of the settlement include payment by the Shell Group of $9.2 million in attorneys’ fees and expenses to counsel for the derivative plaintiffs and the adoption and implementation by the Shell Group of certain corporate governance principles.

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 as announced on August 24, 2004. 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 undertook 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 announced on June 29, 2005 that it had made a determination not to prosecute. Euronext Amsterdam, the Dutch Authority for the Financial Markets (AFM) and the California Department of Corporations are investigating the issues related to the reserves recategorisation. The AFM have announced that their findings do not give rise to any further action from their side at this time. 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.

11. Reconciliation from IFRS to US GAAP

The Group adopted IFRS in 2005, which varies from US GAAP in certain respects, with a date of transition of January 1, 2004 (see Note 13). The reconciliation at transition and for 2004 and 2005 are in Note 11, 12 and 13. The significant differences between IFRS and US GAAP are described below.

Cumulative currency translation differences (CCTD)

Joint ventures

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2004. As of January 1, 2005, these joint ventures are presented as equity accounted investments under US GAAP. This change has no impact on total equity or income.

Major Inspection costs

The cumulative effect of the change of policy ($554 million) has been included in US GAAP net income for the quarter ended March 31, 2005. Consequently, the related reconciling items between IFRS and US GAAP that existed at December 31, 2004 do not exist any more. The impact on income going forward is reflected in lower operating costs and higher depreciation.

Financial instruments and other derivatives contracts

From the same date, certain commodity contracts and embedded derivatives that are not recognised under US GAAP are recognised at fair value under IFRS.

Employee benefits

Under IFRS, the use of the fair value of pension plan assets (rather than market-related value under US GAAP) to calculate annual expected investment returns and the changed approach to amortisation of investment gains/ losses can be expected to increase volatility in income going forward as compared to past IFRS and US GAAP results. Under US GAAP, the pension charge for the nine month period ended September 30, 2005 is $148 million higher (2004: $115 million lower) and for the three month period ended September 30, 2005 of $43 million higher (2004: $47 million lower).

(b) Share-based compensation

Under US GAAP until December 31, 2004 share based compensation expense was recognised based on the intrinsic value method, which required no recognition of compensation expense for plans where the exercise price is not at a discount to the market value at the date of the grant, and the number of options is fixed on the grant date.

Impairments

Reversal of impairments

Other adjustments

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Recent US GAAP accounting pronouncements

EITF Issue no. 04-13 “Accounting for Purchases and Sales of Inventory with the Same Counterparty”, was ratified in September, 2005 and requires “buy/sell” contractual arrangements entered into after March 15, 2006, or modifications or renewals of existing arrangements after that date, to be reported net in the Statement of Income and accounted for as non-monetary transactions; earlier adoption in 2005 is permitted. The Shell Group has implemented EITF 04-13 with effect from July 1, 2005. The implementation of EITF 04-13 does not create a GAAP difference with the Shell Group’s IFRS accounts.

In prior periods the Group has entered into buy/sell agreements which, if reported net under EITF 04-13, would lead to a reduction in revenue and cost of sales for the nine months to September 30, 2005 of $15,720 million and $15,749 million, respectively, (three months to September 30, 2004: $6,422 million and $6,407 million; nine months to September 30, 2004: $18,089 million and $18,186 million) with no impact on net income.

Reconciliation of statement of income from IFRS to US GAAP for Three months ended September 30, 2005
$ million
														Employee benefits
						Discontinued																				Reversals of
		IFRS				operations1				Reclassifications2				(a)				(b)				Impairments				Impairments				Other				US GAAP
Sales proceeds			94,717				–				–				–				–				–				–				45				94,762
less: Sales taxes, excise duties and similar levies			18,282				–				–				–				–				–				–				–				18,282
Revenue			76,435				–				–				–				–				–				–				45				76,480
Cost of sales			60,704				85				(2	)			47				9				11				(203	)			333				60,984
Gross profit			15,731				(85	)			2				(47	)			(9	)			(11	)			203				(288	)			15,496
Selling and distribution expenses			3,150				–				–				10				4				–				–				(7	)			3,157
Administrative expenses			613				–				–				18				1				–				–				–				632
Exploration			275				–				–				–				–				–				–				–				275
Research and development			–				–				71				–				–				–				–				–				71
Share of profit of equity accounted investments			3,081				(8	)			–				(1	)			–				–				9				1				3,082
Net finance costs and other income			(268	)			–				(69	)			–				–				–				–				(21	)			(358	)
Income before taxation			15,042				(93	)			–				(76	)			(14	)			(11	)			212				(259	)			14,801
Taxation			5,558				–				–				(34	)			–				(3	)			(2	)			(67	)			5,452
Income from continuing operations			9,484				(93	)			–				(42	)			(14	)			(8	)			214				(192	)			9,349
Income from discontinued operations			(93	)			93				–				–				–				–				–				–				–
Cumulative effect of change in accounting policy			–				–				–				–				–				–				–				–				–
Income for the period			9,391				–				–				(42	)			(14	)			(8	)			214				(192	)			9,349
Attributable to minority interest			359				–				–				–				–				–				–				–				359
Income attributable to shareholders of Royal Dutch Shell plc			9,032				–				–				(42	)			(14	)			(8	)			214				(192	)			8,990

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Reconciliation of statement of income from IFRS to US GAAP for Nine months ended September 30, 2005
$ million
														Employee benefits
						Discontinued																				Reversals of				Major
		IFRS				operations1				Reclassifications2				(a)				(b)				Impairments				Impairments				inspection costs				Other				US GAAP
Sales proceeds			286,168				(1,374	)			–				–				–				–				–								31				284,825
less: Sales taxes, excise duties and similar levies			54,933				(726	)			–				–				–				–				–								–				54,207
Revenue			231,235				(648	)			–				–				–				–				–								31				230,618
Cost of sales			188,733				(85	)			(64	)			150				23				31				(256	)							263				188,795
Gross profit			42,502				(563	)			64				(150	)			(23	)			(31	)			256								(232	)			41,823
Selling and distribution expenses			9,462				(64	)			–				62				4				–				–								(34	)			9,430
Administrative expenses			1,757				–				–				23				2				–				–								(25	)			1,757
Exploration			784				–				–				–				–				–				–								–				784
Research and development			–				–				303				–				–				–				–								–				303
Share of profit of equity accounted investments			5,734				(222	)			–				(2	)			–				–				129								(13	)			5,626
Net finance costs and other income			(159	)			(1	)			(239	)			–				–				–				–								(21	)			(420	)
Income before taxation			36,392				(720	)			–				(237	)			(29	)			(31	)			385								(165	)			35,595
Taxation			14,427				(35	)			–				(90	)			3				(64	)			(2	)							(70	)			14,169
Income from continuing operations			21,965				(685	)			–				(147	)			(32	)			33				387								95				21,426
Income from discontinued operations			(307	)			685				–				–				–				–				–								–				378
Cumulative effect of change in accounting policy			–				–				–				–				–				–				–				(554	)			–				(554	)
Income for the period			21,658				–				–				(147	)			(32	)			33				387				554				(95	)			22,358
Attributable to minority interest			715				–				–				–				–				60				–								–				775
Income attributable to shareholders of Royal Dutch Shell plc			20,943				–				–				(147	)			(32	)			(27	)			387				554				(95	)			21,583

1	The definition of activities classified as discontinued operations differs from that under US GAAP. Under IFRS equity accounted or other investments are not excluded from this classification, but the activity must be a separate major line of business or geographical area of operations.
2	Reclassifications are differences in line item allocation under IFRS but do not affect income compared with that shown under US GAAP. They mainly comprise impacts from reporting 1) all jointly controlled entities using the equity method, 2) the results of equity accounted investments on a single line (therefore after net finance costs and tax), 3) accretion expense arising on asset retirement obligations as net finance costs rather than as cost of sales, and 4) research and development within cost of sales.

Earnings per share under US GAAP

														$
		Three months ended								Nine months ended
		September 30,								September 30,
		2005				2004				2005				2004
Earnings per share			1.34				0.79				3.21				2.05
— Continuing operations			1.34				0.78				3.07				1.99
— Discontinuing operations			–				0.01				0.06				0.06
— Cumulative effect of change in accounting policy			–				–				0.08				–
Diluted earnings per share			1.33				0.79				3.20				2.05
— Continuing operations			1.33				0.78				3.06				1.99
— Discontinuing operations			–				0.01				0.06				0.06
— Cumulative effect of change in accounting policy			–				–				0.08				–

Details of the number of shares used in these calculations are contained in Note 5. Income from continuing operations is adjusted for income attributable to minority interest.

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Unaudited Condensed Interim Financial Report	29

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Table of Contents

Reconciliation of balance sheet from IFRS to US GAAP as at September 30, 2005

																								$ million
								Employee								Reversals of
				IFRS				benefits				Impairments				Impairments				Other				US GAAP
ASSETS
Non-current assets
	Property, plant and equipment				85,601				–				675				(156	)			(105	)			86,015
	Intangible assets				4,361				349				(5	)			–				(17	)			4,688
	Investments:
		equity accounted investments			17,138				121				(212	)			(53	)			(49	)			16,945
		financial assets			3,236				–				–				–				(385	)			2,851
	Deferred tax				3,039				(991	)			(3	)			–				206				2,251
	Other long term assets				6,555				5,545				–				–				(166	)			11,934
					119,930				5,024				455				(209	)			(516	)			124,684
Current assets
	Inventories				21,490				–				–				–				–				21,490
	Accounts receivable				83,812				–				–				–				(31	)			83,781
	Cash and cash equivalents				15,998				–				–				–				–				15,998
					121,300				–				–				–				(31	)			121,269
Total assets					241,230				5,024				455				(209	)			(547	)			245,953
LIABILITIES
Non-current liabilities
	Debt				7,795				–				–				–				(290	)			7,505
	Deferred tax				12,411				1,428				237				(125	)			16				13,967
	Provisions				13,132				(1,188	)			–				–				(1,279	)			10,665
	Other				4,395				–				–				–				1,360				5,755
					37,733				240				237				(125	)			(193	)			37,892
Current liabilities
	Debt				6,714				–				–				–				(12	)			6,702
	Accounts payable and accrued liabilities				84,468				(22	)			–				–				73				84,519
	Taxes payable				12,510				–				–				–				6				12,516
					103,692				(22	)			–				–				67				103,737
Total liabilities					141,425				218				237				(125	)			(126	)			141,629
Minority interest																					7,495				7,495
Equity attributable to shareholders of Royal Dutch Shell plc					92,353				4,786				218				(84	)			(444	)			96,829
Minority interest					7,452				20				–				–				(7,472	)			–
Total equity					99,805				4,806				218				(84	)			(7,916	)			96,829
Total liabilities and equity					241,230				5,024				455				(209	)			(547	)			245,953

Accumulated Other Comprehensive Income under US GAAP comprises the following amounts:

$ million
		At September 30,
		2005
Currency translation differences			234
Unrealised gains on securities			1,083
Unrealised gains on cash flow hedges			692
Minimum pension liability			(1,645	)
			(1,020	)

An amount of $3.8 billion has been reclassified from accumulated other comprehensive income to retained coming earnings compared to the Form 6-K filed on July 20, 2005.

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Table of Contents

12. Reconciliations from IFRS to US GAAP in 2004

Reconciliation of statement of income from IFRS to US GAAP for Three months ended September 30, 2004																																										$ million
																						Cumulative
														Employee benefits3								currency												Major
						Discontinued																translation								Reversals of				inspection
		IFRS				operations1				Reclassifications2				(a)				(b)				differences3				Impairments3				impairments3				costs3				Other				US GAAP
Sales proceeds			89,006				(1,985	)			453				–				–				–				–				–				–				2				87,476
Less: Sales taxes, excise duties and similar levies			18,321				(690	)			148				–				–				–				–				–				–				–				17,779
Revenue			70,685				(1,295	)			305				–				–				–				–				–				–				2				69,697
Cost of sales			58,604				(1,006	)			6				(76	)			(35	)			(33	)			–				–				15				19				57,494
Gross profit			12,081				(289	)			299				76				35				33				–				–				(15	)			(17	)			12,203
Selling and distribution expenses			3,110				(129	)			–				(4	)			(3	)			28				–				–				–				24				3,026
Administrative expenses			533				(5	)			–				5				(1	)			–				–				–				–				(7	)			525
Exploration			294				(2	)			10				–				–				–				–				–				–				–				302
Research and development			–				–				97				–				–				–				–				–				–				–				97
Share of profit of equity accounted investments			1,254				20				574				(3	)			–				–				–				–				5				(9	)			1,841
Net finance costs and other income			11				(18	)			67				–				–				–				–				–				–				(35	)			25
Income before taxation			9,387				(115	)			699				72				39				5				–				–				(10	)			(8	)			10,069
Taxation			3,790				(22	)			699				26				3				–				–				–				(3	)			81				4,574
Income from continuing operations			5,597				(93	)			–				46				36				5				–				–				(7	)			(89	)			5,495
Income from discontinued operations			23				64				–				–				–				–				–				–				–				–				87
Income for the period			5,620				(29	)			–				46				36				5				–				–				(7	)			(89	)			5,582
Attributable to minority interest			249				(29	)			–				(1	)			1				–				–				–				(5	)			9				224
Income attributable to shareholders of Royal Dutch Shell plc			5,371				–				–				47				35				5				–				–				(2	)			(98	)			5,358

1	The definition of activities classified as discontinued operations differs from that under US GAAP. Under IFRS equity accounted or other investments are not excluded from this classification, but the activity must be a separate major line of business or geographical area of operations. As a result, all of the items presented as discontinued operations in 2004 and 2005 under US GAAP are included within continuing operations under IFRS.
2	Reclassifications are differences in line item allocation under IFRS but do not affect income compared with that shown under US GAAP. They mainly comprise impacts from reporting 1) all jointly controlled entities using the equity method, 2) the results of equity accounted investments on a single line (therefore after net finance costs and tax), 3) accretion expense arising on asset retirement obligations as net finance costs rather than as cost of sales, and 4) research and development within cost of sales.
3	See Note 11.

Reconciliation of statement of income from IFRS to US GAAP for Nine months ended September 30, 2004																																										$ million
																						Cumulative
														Employee benefits3								currency												Major
						Discontinued																translation								Reversals of				inspection
		IFRS				operations1				Reclassifications2				(a)				(b)				differences3				Impairments3				impairments3				costs3				Other				US GAAP
Sales proceeds			243,634				(5,448	)			2,449				–				–				–				–				–				–				5				240,640
Less: Sales taxes, excise duties and similar levies			53,549				(1,981	)			920				–				–				–				–				–				–				–				52,488
Revenue			190,085				(3,467	)			1,529				–				–				–				–				–				–				5				188,152
Cost of sales			157,901				(2,422	)			187				(210	)			(91	)			(21	)			–				–				190				52				155,586
Gross profit			32,184				(1,045	)			1,342				210				91				21				–				–				(190	)			(47	)			32,566
Selling and distribution expenses			9,046				(357	)			–				3				(8	)			28				–				–				–				22				8,734
Administrative expenses			1,646				(21	)			1				22				(2	)			–				–				–				–				(5	)			1,641
Exploration			1,294				(5	)			15				–				–				–				–				–				–				–				1,304
Research and development			–				–				392				–				–				–				–				–				–				–				392
Share of profit of equity accounted investments			3,496				52				1,197				(9	)			–				–				(4	)			–				(17	)			(20	)			4,695
Net finance costs and other income			(32	)			(49	)			4				–				–				–				–				–				–				(66	)			(143	)
Income before taxation			23,726				(561	)			2,127				176				101				(7	)			(4	)			–				(207	)			(18	)			25,333
Taxation			9,275				(134	)			2,127				63				6				–				–				–				(68	)			103				11,372
Income from continuing operations			14,451				(427	)			–				113				95				(7	)			(4	)			–				(139	)			(121	)			13,961
Income from discontinued operations			65				371				–				–				–				–				–				–				–				–				436
Income for the period			14,516				(56	)			–				113				95				(7	)			(4	)			–				(139	)			(121	)			14,397
Attributable to minority interest			545				(56	)			–				(2	)			2				–				–				–				(10	)			6				485
Income attributable to shareholders of Royal Dutch Shell plc			13,969				–				–				115				93				(7	)			(4	)			–				(129	)			(127	)			13,912

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Reconciliation of statement of income from IFRS to US GAAP for the year ended December 31, 2004																																										$ million
																						Cumulative
														Employee benefits3								currency												Major
						Discontinued																translation								Reversals of				inspection
		IFRS				operations1				Reclassifications2				(a)				(b)				differences3				Impairments3				impairments3				costs3				Other				US GAAP
Sales proceeds			338,756				(6,945	)			3,803				–				–				–				–				–				–				7				335,621
Less: Sales taxes, excise duties and similar levies			72,370				(2,529	)			1,499				–				–				–				–				–				–				–				71,340
Revenue			266,386				(4,416	)			2,304				–				–				–				–				–				–				7				264,281
Cost of sales			223,259				(1,810	)			134				(306	)			(128	)			102				(730	)			211				223				54				221,009
Gross profit			43,127				(2,606	)			2,170				306				128				(102	)			730				(211	)			(223	)			(47	)			43,272
Selling and distribution expenses			12,550				(448	)			–				25				(9	)			28				–				–				–				87				12,233
Administrative expenses			2,548				(28	)			3				25				(5	)			–				–				–				–				(1	)			2,542
Exploration			1,809				(5	)			19				–				–				–				–				–				–				–				1,823
Research and development			–				–				553				–				–				–				–				–				–				–				553
Share of profit of equity accounted investments			5,015				(252	)			1,420				(6	)			–				–				(212	)			(258	)			(50	)			(4	)			5,653
Net finance costs and other income			(424	)			(28	)			121				–				–				–				–				–				–				(145	)			(476	)
Income before taxation			31,659				(2,349	)			2,894				250				142				(130	)			518				(469	)			(273	)			8				32,250
Taxation			12,168				(381	)			2,894				77				27				–				258				–				(75	)			120				15,088
Income from continuing operations			19,491				(1,968	)			–				173				115				(130	)			260				(469	)			(198	)			(112	)			17,162
Income from discontinued operations			(234	)			1,880				–				–				–				–				–				–				–				–				1,646
Income for the period			19,257				(88	)			–				173				115				(130	)			260				(469	)			(198	)			(112	)			18,808
Attributable to minority interest			717				(88	)			–				(3	)			–				–				–				–				(2	)			2				626
Income attributable to shareholders of Royal Dutch Shell plc			18,540				–				–				176				115				(130	)			260				(469	)			(196	)			(114	)			18,182

1	The definition of activities classified as discontinued operations differs from that under US GAAP. Under IFRS equity accounted or other investments are not excluded from this classification, but the activity must be a separate major line of business or geographical area of operations. As a result, all of the items presented as discontinued operations in 2004 and 2005 under US GAAP are included within continuing operations under IFRS.
2	Reclassifications are differences in line item allocation under IFRS but do not affect income compared with that shown under US GAAP. They mainly comprise impacts from reporting 1) all jointly controlled entities using the equity method, 2) the results of equity accounted investments on a single line (therefore after net finance costs and tax), 3) accretion expense arising on asset retirement obligations as net finance costs rather than as cost of sales, and 4) research and development within cost of sales.
3	See Note 11.

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Reconciliation of balance sheet from IFRS to US GAAP as at September 30, 2004																								$ million
																Major
												Employee				inspection
				IFRS				Reclassifications1				benefits (a)2				costs2				Other3				US GAAP
ASSETS
Non-current assets
	Property, plant and equipment				85,357				1,222				–				(630	)			(42	)			85,907
	Intangible assets				4,338				15				326				–				(11	)			4,668
	Investments:
		equity accounted investments			20,709				32				97				(138	)			59				20,759
		financial assets			2,435				–				–				–				51				2,486
	Deferred tax2				3,015				–				(541	)			29				(797	)			1,706
	Employee benefit assets				1,975				–				5,305				–				(10	)			7,270
	Other				4,648				9				(103	)			–				(30	)			4,524
					122,477				1,278				5,084				(739	)			(780	)			127,320
Current assets
	Inventories				16,866				13				–				–				–				16,879
	Accounts receivable				37,898				232				–				–				(7	)			38,123
	Cash and cash equivalents				3,948				5				–				–				–				3,953
					58,712				250				–				–				(7	)			58,955
Total assets					181,189				1,528				5,084				(739	)			(787	)			186,275
LIABILITIES
Non-current liabilities
	Debt				9,638				10				–				–				(180	)			9,468
	Deferred tax2				13,459				251				2,040				(229	)			(908	)			14,613
	Employee benefit obligations				6,873				19				(1,920	)			–				11				4,983
	Other provisions				5,525				(1,086	)			–				–				122				4,561
	Other				5,675				1,786				–				–				178				7,639
					41,170				980				120				(229	)			(777	)			41,264
Current liabilities
	Debt				7,173				–				–				–				(3	)			7,170
	Accounts payable and accrued liabilities				38,399				1,310				–				–				17				39,726
	Taxes payable				10,471				588				–				–				–				11,059
	Employee benefit obligations				301				(245	)			(57	)			–				1				–
	Other provisions				1,128				(1,105	)			–				–				(23	)			–
					57,472				548				(57	)			–				(8	)			57,955
Total liabilities					98,642				1,528				63				(229	)			(785	)			99,219
Minority interest																					4,733				4,733
Equity attributable to shareholders of Royal Dutch Shell plc					77,813				–				5,001				(495	)			4				82,323
Minority interest					4,734				–				20				(15	)			(4,739	)			–
Total equity					82,547				–				5,021				(510	)			(4,735	)			82,323
Total liabilities and equity					181,189				1,528				5,084				(739	)			(787	)			186,275

1	Reclassifications are differences in line item allocation under IFRS which do not affect equity compared with that shown under US GAAP. They mainly comprise impacts from reporting all jointly controlled entities using the equity method and separate reporting of all provisions.
2	See Note 11.
3	Includes the impact of the effect of transition to IFRS on cumulative currency translation differences.

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Unaudited Condensed Interim Financial Report	33

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Reconciliation of balance sheet from IFRS to US GAAP as at December 31, 2004																																$ million
																								Major
												Employee								Reversals of				inspection
				IFRS				Reclassifications1				benefits (a)2				Impairments2				impairments2				costs2				Other3				US GAAP
ASSETS
Non-current assets
	Property, plant and equipment				87,918				1,309				–				730				(211	)			(660	)			(146	)			88,940
	Intangible assets				4,528				19				349				–				–				–				(6	)			4,890
	Investments:
		equity accounted investments			20,493				(222	)			99				(212	)			(397	)			(170	)			152				19,743
		financial assets			2,700				–				–				–				–				–				48				2,748
	Deferred tax				2,789				(6	)			(980	)			(12	)			–				31				173				1,995
	Employee benefit assets				2,479				–				5,377				–				–				–				422				8,278
	Other				4,490				8				(98	)			–				–				–				(31	)			4,369
					125,397				1,108				4,747				506				(608	)			(799	)			612				130,963
Current assets
	Inventories				15,375				16				–				–				–				–				–				15,391
	Accounts receivable				37,473				575				–				–				–				–				15				38,063
	Cash and cash equivalents				9,201				6				–				–				–				–				1				9,208
					62,049				597				–				–				–				–				16				62,662
Total assets					187,446				1,705				4,747				506				(608	)			(799	)			628				193,625
LIABILITIES
Non-current liabilities
	Debt				8,858				(26	)			–				–				–				–				(232	)			8,600
	Deferred tax				12,930				206				1,541				246				(139	)			(220	)			280				14,844
	Employee benefit obligations				6,795				21				(1,711	)			–				–				–				(61	)			5,044
	Other provisions				6,828				(1,227	)			–				–				–				–				108				5,709
	Other				5,800				2,014				–				–				–				–				251				8,065
					41,211				988				(170	)			246				(139	)			(220	)			346				42,262
Current liabilities
	Debt				5,734				–				–				–				–				–				28				5,762
	Accounts payable and accrued liabilities				37,909				1,868				–				–				–				–				85				39,862
	Taxes payable				9,058				829				–				–				–				–				(2	)			9,885
	Employee benefit obligations				339				(282	)			(57	)			–				–				–				–				–
	Other provisions				1,812				(1,698	)			–				–				–				–				(114	)			–
					54,852				717				(57	)			–				–				–				(3	)			55,509
Total liabilities					96,063				1,705				(227	)			246				(139	)			(220	)			343				97,771
Minority interest					–				–				–				–				–				–				5,309				5,309
Equity attributable to Shareholders of Royal Dutch Shell plc					86,070				–				4,954				260				(469	)			(564	)			294				90,545
Minority interest					5,313				–				20				–				–				(15	)			(5,318	)			–
Total equity					91,383				–				4,974				260				(469	)			(579	)			(5,024	)			90,545
Total liabilities and equity					187,446				1,705				4,747				506				(608	)			(799	)			628				193,625

1	Reclassifications are differences in line item allocation under IFRS which do not affect equity compared with that shown under US GAAP. They mainly comprise impacts from reporting all jointly controlled entities using the equity method and separate reporting of all provisions. The impact of the reclassification to report all jointly controlled entities using the equity method will also be reflected in the Supplementary information — Oil and Gas (unaudited) in the Shell Group’s 2005 Annual Report.
2	See Note 11.
3	Includes the impact of the effect of transition to IFRS on cumulative currency translation differences.

	Royal Dutch Shell plc
	Unaudited Condensed Interim Financial Report

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13. Transition to IFRS on January 1, 2004

$ million
																Major
												Employee				inspection
				US GAAP				Reclassifications1				benefits (a)2				costs2				Other				IFRS
ASSETS
Non-current assets
	Property, plant and equipment				87,088				(1,350	)			–				440				103				86,281
	Intangible assets				4,735				(16	)			(326	)			–				–				4,393
	Investments:
		equity accounted investments			19,371				(118	)			(109	)			113				(78	)			19,179
		financial assets			3,403				–				–				–				(54	)			3,349
	Deferred tax				2,092				–				935				(17	)			53				3,063
	Employee benefit assets				6,516				–				(5,055	)			–				–				1,461
	Other				2,741				(14	)			119				–				33				2,879
					125,946				(1,498	)			(4,436	)			536				57				120,605
Current assets
	Inventories				12,690				(13	)			–				–				–				12,677
	Accounts receivable				29,013				(328	)			–				–				2				28,687
	Cash and cash equivalents				2,117				(10	)			–				–				–				2,107
					43,820				(351	)			–				–				2				43,471
Total assets					169,766				(1,849	)			(4,436	)			536				59				164,076
LIABILITIES
Non-current liabilities
	Debt				9,100				–				–				–				174				9,274
	Deferred tax				15,185				(257	)			(1,596	)			153				316				13,801
	Employee benefit obligations				4,927				(20	)			2,038				–				–				6,945
	Other provisions				3,955				1,072				–				–				(86	)			4,941
	Other				6,054				(1,838	)			–				–				(194	)			4,022
					39,221				(1,043	)			442				153				210				38,983
Current liabilities
	Debt				10,569				–				–				–				6				10,575
	Accounts payable and accrued liabilities				32,383				(1,553	)			–				–				(15	)			30,815
	Taxes payable				5,927				(561	)			–				–				–				5,366
	Employee benefit obligations				–				259				60				–				–				319
	Other provisions				–				1,049				–				–				26				1,075
					48,879				(806	)			60				–				17				48,150
Total liabilities					88,100				(1,849	)			502				153				227				87,133
Minority interests					3,415				–				(20	)			15				(3,410	)			–
Equity attributable to shareholders of Royal Dutch Shell					78,251				–				(4,918	)			368				(166	)			73,535
Minority interest					–				–				–				–				3,408				3,408
Total equity					78,251				–				(4,918	)			368				3,242				76,943
Total liabilities and equity					169,766				(1,849	)			(4,436	)			536				59				164,076

1	Reclassifications are differences in line item allocation under IFRS which do not affect equity compared with that shown under US GAAP. They mainly comprise impacts from reporting all jointly controlled entities using the equity method and separate reporting of all provisions. The impact of the reclassification to report all jointly controlled entities using the equity method will also be reflected in the Supplementary information — Oil and Gas (unaudited) in the Shell Group’s 2005 Annual Report.
2	See Note 11.

Royal Dutch Shell plc

Unaudited Condensed Interim Financial Report	35