FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

%

2005

2004

%

4,368

4,571

-4

Income attributable to shareholders ¹

25,311

18,540

+37

(1,027)

(649)

Estimated current cost of supplies (CCS) adjustment for Oil Products segment - see note 2

2,371

945

5,395

5,220

+3

CCS earnings ¹

22,940

17,595

+30

8,465

6,349

Cash from operating activities

30,113

26,537

7,344

6,651

Cash from operating activities excluding net working capital movements and taxation paid/accrued - see note 7

35,585

28,278

5,956

5,185

Capital investment

17,436

15,275

3,500

3,837

Upstream production (thousand boe/d) ²

3,518

3,772

1. including discontinued operations –see note 3

2. 100% of Shell companies production plus Shell share of associates production

• Record full year results with basic earnings per share of $3.79 for 2005 and $0.67 for the fourth quarter

• Solid Upstream performance in the quarter captures oil and gas price increases

• Good Oil Products earnings in the quarter reflect operational delivery and favourable market conditions

• 3.52 million barrels of oil equivalent (boe) per day production 2005 in line with guidance

• Fourth quarter dividend of €0.23 per share equivalent to some $1.9 billion (subject to exchange rates)

• $2.6 billion or 1.2% of Royal Dutch Shell shares bought back for cancellation in the fourth quarter and $1.7 billion paid for Royal Dutch shares

FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

%

2005

2004

%

Segment earnings

3,561

2,918

Exploration & Production

14,238

9,823

530

605

Gas & Power

1,573

1,815

1,898

2,338

Oil Products (CCS basis – see note 2)

7,532

6,592

(38)

(20)

Chemicals

991

1,148

(556)

(621)

Other segments/Corporate/Minority interest

(1,394)

(1,783)

_____

5,395

5,220

+3

CCS earnings

22,940

17,595

+30

• Exploration & Production earnings included a net gain of $152 million, mainly related to tax credits, partly offset by a charge related to the mark-to-market valuation of certain UK gas contracts of $154 million, versus a gain of $405 million in 2004 mainly due to the reversal in 2004 of earlier impairments.

• Gas & Power fourth quarter 2004 earnings included a net gain of $157 million related to divestments partly offset by impairment charges.

• Oil Products fourth quarter 2004 earnings included a net gain of $391 million mainly related to divestments.

• Chemicals earnings included net charges of $84 million mainly for legal charges versus a net charge of $353 million in the fourth quarter 2004 for the impairment of the polyolefins joint venture Basell.

• Other Industry and Corporate segments included a net gain of $2 million mainly related to impairment charges of $91 million offset by a net gain from tax and insurance. The fourth quarter 2004 included charges of $101 million.

• Income attributable to shareholders and CCS earnings include a deduction of minority income attributable to the former Royal Dutch shareholders of $36 million (in the third quarter of 2005 this amounted to $46 million). The minority interest was eliminated in the fourth quarter 2005.

Fourth quarter basic earnings per share - see note 9

• Fourth quarter basic earnings per share for Royal Dutch Shell (see note 9) in 2005 were $0.67. Fourth quarter basic CCS earnings per share for Royal Dutch Shell were $0.82.

Fourth quarter and 2005
dividend

• Fourth quarter 2005 dividends have been announced of €0.23 per share for Royal Dutch Shell. For 2005 total dividends are equivalent to an aggregate of €0.92 per share.

Fourth quarter and 2005
dividend

• Fourth quarter reported income of $4,368 million was 4% lower than a year ago.

• Fourth quarter CCS earnings (i.e. on an estimated current cost of supplies basis for the Oil Products segment earnings) were $5,395 million or 3% higher.

2005 Reported income

• Full year 2005 reported income of $25,311 million was 37% higher than a year ago.

2005 CCS earnings - see note 2

• Full year 2005 CCS earnings were $22.94 billion, 30% higher than a year ago. Upstream earnings in Exploration & Production and Gas & Power reflected high price realisations and increased LNG volumes partly offset by lower oil and gas production volumes. Downstream earnings were very strong on good operational performance. Income in 2005 included a net gain of $1.27 billion mainly from divestments partly offset by mark-to-market valuations in Exploration & Production and charges mainly in Chemicals and Gas & Power, versus a net gain of $391 million mainly from divestments included in 2004 earnings.

2005 ROACE – see note 42005 ROACE – see note 4

• Return on average capital employed (ROACE) on a reported income basis (see note 4) was 25.6% for 2005.

2005 Upstream EP
segment earnings

• Exploration & Production 2005 segment earnings of $14,238 million were 45% higher than a year ago mainly reflecting higher prices partly offset by lower volumes and higher costs. Earnings in 2005 included a net gain of $1,727 million, mainly from the divestment gain in the Netherlands (Gasunie), partly offset by a charge related to the mark-to-market valuation of certain UK gas contracts ($492 million).

2005 Production

• Hydrocarbon production in 2005 was 3,518 thousand boe per day in line with guidance for production for 2005. Excluding the loss of production due to hurricanes in the Gulf of Mexico, the end of a production sharing contract in the Middle East, lower entitlements due to higher hydrocarbon prices and the impact of divestments, production would be 3,738 thousand boe per day or 1% lower than a year ago.

2005 Reserves Replacement – see note 10

• During 2005, a total of between 750-850 million boe is expected to be added to proved reserves. Around 75%-85% of these proved reserves are expected to come from Group companies and the remainder from associates. In addition, net proved mineable reserves of 166 million boe were added from Athabasca Oil Sands in 2005. The Reserves Replacement Ratio (see note 10) for 2005 is expected to be in the range of 70%-80%, including mineable reserves from Athabasca Oils Sands and also including year-end pricing impact and acquisitions and divestments. Excluding mineable reserves from Athabasca Oil Sands the Reserves Replacement Ratio is expected to be in the range of 60%-70%. Year-end pricing effects amount to between 40-80 million boe and impact the Reserves Replacement Ratio by 3-6% points.

• The Group continues to target 100% Reserves Replacement over the period 2004-2008. Most proved reserves are expected to be added in the latter part of the period as new projects are developed and brought on stream.

2005 Resources

• The exploration discoveries, appraisals programme and new business development in 2005 added over 2 billion boe resources.

2005 Upstream GP
segment earnings

• Gas & Power segment earnings were $1,573 million in 2005, compared to $1,815 million in 2004. 2005 earnings reflected record LNG volumes and strong prices, and favourable Marketing and Trading conditions. Earnings in 2005 included net charges of $84 million mainly related to divestments including the power generation assets held through the joint venture company InterGen. Earnings in 2004 included net gains of $444 million also mainly related to divestments.

2005 Downstream OP
segment earnings

• Full year 2005 Oil Products CCS earnings were $7,532 million, up $940 million from earnings of $6,592 million in 2004, reflecting strong refining margins and operational performance. Earnings included $427 million of net gains from divestments in 2005 compared to net gains of $540 million last year. Increased refining earnings and higher trading profits were partially offset by lower marketing results.

2005 Downstream Chemicals segment earnings

• Full year 2005 Chemicals segment earnings were $991 million and included $565 million of net charges, mainly from the divestment of the polyolefins joint venture Basell and legal provisions. 2004 earnings were $1,148 million and included charges of $368 million mainly from impairments. Excluding these effects, 2005 earnings were 3% higher than a year ago reflecting improved margins and chemicals feedstock trading partly offset by the loss of earnings from discontinued operations.

2005 Cash flow from operations

• Cash flow from operating activities, excluding net working capital movements, taxation and taxation paid, was $35.6 billion, compared to $28.3 billion a year ago.

2005 Proceeds from divestments

• The 2004-2006 divestment target of $12-$15 billion has been achieved ahead of plan in 2005. Proceeds from the divestment programme to date were $14.3 billion, with proceeds of $6.6 billion in 2005.

2005 Gearing and allocation of cash

• Gearing, including other commitments such as operating leases and retirement benefits, and net of cash holdings minus operational cash requirements, was 12.0% versus, on a comparable Royal Dutch Shell basis, 15.4% at the end of 2004. In 2005 cash and cash equivalents increased by $2.5 billion to $11.7 billion and debt decreased by $1.7 billion. Total cash returned to shareholders was over $17 billion.

2005 Capital investment

• Capital investment for 2005 was $15.6 billion (excluding the minority share of Sakhalin of $1.8 billion). Increases reflected exploration expenditure of $2.1 billion, including Australia and Canada.

2005 Share buy back

• Share purchases for cancellation amounted to $5 billion (or 2.3% of shares) plus $1.7 billion for the cash payment for the minority interest in Royal Dutch in 2005.

Royal Dutch merger completed

• In December 2005 the restructuring of certain of Royal Dutch Shell's subsidiaries, including the merger of Royal Dutch Petroleum Company (Royal Dutch) and Shell Petroleum N.V. (SPNV) was completed. As a result of the merger of Royal Dutch and SPNV, former minority shareholders in Royal Dutch were paid €52.21 per Royal Dutch share held (or the equivalent in exchangeable loan notes of SPNV) in consideration for their shares. The total cash amount paid to minority shareholders was $1.7 billion and subsequently, in January 2006, the loan notes were exchanged into 4,827,974 new Royal Dutch Shell A shares or approximately 0.07% of the total A and B shares outstanding at the time.

2006 Share buy back

• Share buyback plans will be reviewed periodically, and are subject to market conditions and the capital requirements of the company. Royal Dutch Shell currently expects to return up to $5 billion to shareholders via buy back of shares for cancellation in 2006. In line with the financial framework, the target for gearing over time in the 20%-25% range remains unchanged, including other commitments such as operating leases, contingent liabilities and retirement benefits and operating cash requirements.

2006 Upstream production

• Including the impact on production from the hurricanes in the Gulf of Mexico in 2005, the production outlook for 2006 is unchanged from earlier guidance and in the lower half of the range of 3.5 to 3.8 million boe per day. Due to the hurricanes in the Gulf of Mexico in 2005, 7-8 million barrels (Shell share) are expected to be deferred in the first quarter 2006. The Mars platform is expected to start production by the middle of 2006 with full production restored in the second half of 2006.

2006 Upstream LNG sales

• LNG sales are expected to benefit from recently completed expansions in Nigeria and Oman. LNG capacity growth remains in line with guidance of 14% average annual increase for 2004 to 2009.

2006 Capital investment

• Guidance for 2006 capital expenditure is $19 billion excluding the minority share of Sakhalin and reflects new project opportunities under development, existing project progress and market conditions.

Upstream:
Exploration & Production;
Gas & Power

Upstream portfolio developments during the quarter:

In Nigeria, Shell started oil production from the Bonga offshore deepwater field (Shell share 55%) which is expected to ramp up production to over 200 thousand barrels of oil per day in 2006. The Bonga development and the discoveries in and around the Bonga Main facility are likely to develop over 1 billion barrels of recoverable resources.

In the USA, Shell exchanged its interest of 17% in the Tahiti field, deepwater Gulf of Mexico, for Total’s 100% interest in four producing natural gas fields in South Texas with current production of 107 million standard cubic feet (scf) per day. The swap will be completed in the first quarter of 2006.

In Russia, Salym Petroleum Development (Shell share 50%) achieved commercial production in West Salym, when the Central Processing Facility (CPF) and the oil export pipeline commenced operations on schedule. In 2006, Upper Salym and Vadelyp will be tied-in to the CPF. The production is expected to ramp up with the development of fields over the coming years. The Sakhalin II project (Shell share 55%) is proceeding in line with earlier guidance.

In Malaysia, Shell delivered first gas from the Shallow Clastics field which, once fully developed, is expected to produce 430 million scf per day to the E11 hub integrated gas project (Shell share 50%). The E11 hub will be further developed to reach a capacity of 2 billion scf per day (100%) from various new and existing fields.

In the Ukraine, a cooperation agreement was signed with the National Oil Company (NAK) for a farm-in by Shell into 10 NAK licences in the Dniepr-Donets Basin. Shell will acquire a 50% interest in a Joint Activity Agreement in these licences (excluding producing fields) by committing to a seismic and exploration drilling programme.

Shell Canada acquired unconventional gas leases in the Athabasca area covering 66,400 acres in the deep basin area near Hinton, Alberta and an interest in approximately 20,000 acres in the northeastern British Columbia foothills with conventional gas prospects.

In Brazil, Shell acquired interests in five offshore exploration blocks in the Espírito Santos Basin.

In the fourth quarter 2005, 20 successful exploration and exploratory appraisal wells were drilled in Australia, Brazil, Brunei, Egypt, Germany, Malaysia, Netherlands, Nigeria, Oman, UK and USA. The overall success rate in 2005 was 72%. Seismic operations started in Libya in the Sirte basin.

In 2005, Shell drilled or participated in 15 Big Cat prospects, of which 3 were still being drilled at year-end. Hydrocarbons were found in seven of the 12 Big Cat wells that reached target depth at year-end.

In Qatar, the final investment decision for the Qatargas 4 LNG project (Shell share 30%) was taken in December 2005. Qatargas 4 will produce 1.4 billion scf per day of natural gas including an average of approximately 70 thousand barrels per day of associated natural gas liquids from Qatar’s North Field over the 25-year life of the project. The project comprises the integrated development of upstream gas production facilities, a single LNG train yielding approximately 7.8 mtpa of LNG and associated shipping. LNG deliveries are expected to commence around the end of the decade.

In the USA, Shell acquired, subject to the U.S. Federal Energy Regulatory Commission’s approval, additional capacity at the Elba Island LNG import terminal bringing Shell’s total regasification capacity at Elba to 0.9 billion scf per day. The capacity is intended to be utilised to import Qatargas 4 LNG volumes.

In Nigeria, production commenced from the two train ‘NLNG Plus’ expansion project (Shell share 26%). The first cargo from Train 4 was loaded in January 2006 for delivery to North America. Production from Train 5 is expected in the first quarter of 2006. The expansion project was completed within budget and schedule expectations. Completion of Trains 4 and 5 increases Nigeria LNG’s production capacity from 9.6 mtpa to over 17 mtpa.

The 3.7 mtpa Qalhat LNG plant in Oman (Shell share 11% indirect) commenced production in the quarter. The project was delivered within budget and ahead of schedule.

Shell's equity LNG production capacity increased 13% during 2005, from 11.0 mtpa at the end of 2004, to 12.4 mtpa at the end of 2005, consistent with the outlook to deliver 14% average annual increase in LNG equity capacity from 2004 to 2009.

Shell completed the exit from InterGen (Shell share 68%) with the sale of its interest in the remaining power projects in Turkey and Colombia.

Downstream:
Oil Products;
Chemicals

Downstream portfolio developments during the quarter:

Shell completed the sale of its marketing and distribution business in the Republic of Ireland and Northern Ireland as well as the sale of the refining, marketing and distribution business in the French Antilles and French Guyana. Combined proceeds from these sales amounted to some $220 million.

The exchange of Shell’s 20% interest in its Rome refinery for Total’s 18% interest in the Reichstett refinery in France was completed. The transaction increased Shell’s ownership interest in the Reichstett refinery to 83%.

Shell started operations of its first retail site in Indonesia. Shell is the first international oil company to re-enter this retail fuels market. Indonesia is one of Shell’s key strategic markets targeted for growth.

Agreements were signed relating to the sale of the marketing and distribution businesses in Uruguay and Paraguay, the retail and commercial fuels marketing business and lubricants blending and distribution business in Colombia and Shell’s retail business in Ecuador. Agreement was also reached regarding divestments of Oil Products businesses in Rwanda, Cameroon, the Carribean (Bahamas, Turks and Caicos and Jamaica) and in Papua New Guinea. These sales are expected to be completed in 2006 with total combined proceeds of some $350 million.

In China, the CNOOC and Shell Petrochemicals Company Limited joint venture (Shell share 50%) completed the construction of the Nanhai petrochemicals complex at Daya Bay, Guangdong, within the expected schedule and budget. Start-up of the complex is in progress; when fully operational, Nanhai is expected to produce 2.3 mtpa of petrochemical products.

Shell completed the sale of the 50% share in the ethylene cracker and the butadiene business and assets at Berre in France and various related logistic assets.

FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

%

2005

2004

%

3,561

2,918

+22

Segment earnings

14,238

9,823

+45

1,986

2,163

-8

Crude oil production (thousand b/d)¹

2,093

2,253

-7

8,784

9,710

-10

Natural gas production available for sale (million scf/d) ¹

8,263

8,808

-6

1. 100% of Shell companies production plus Shell share of associates production

Exploration &
Production

In the fourth quarter of 2005, Shell restored Gulf of Mexico production (operated and non-operated) to 340 thousand boe per day (Shell share) of the approximately 450 thousand boe per day (Shell share) prior to hurricane Katrina and Rita and up from a level of 200 thousand boe per day at the end of the third quarter. Approximately 16 million barrels (Shell share) were deferred in the fourth quarter 2005, an improvement on earlier guidance of 18 million barrels for the quarter. In the first quarter 2006, 7-8 million barrels (Shell share) are expected to be deferred. The Mars platform is expected to start production by the middle of 2006 with full production restored in the second half of 2006.

Upstream cost after tax (Shell share) associated with hurricane evacuation, people displacement, and repairs to assets and facilities is expected to be between $250 and $300 million, prior to insurance recovery. Costs after tax were $130 million in 2005, with the remainder expected to be spent in 2006.

Fourth quarter segment earnings of $3,561 million were 22% higher than a year ago ($2,918 million), mainly reflecting strong oil and gas price realisations partly offset by lower volumes.

Exploration & Production earnings included a net gain of $152 million, mainly from tax credits offset by a charge related to the mark-to-market valuation of certain UK gas contracts ($154 million) versus a gain of $405 million in 2004. Segment unit earnings, calculated as segment earnings divided by production for the quarter, are $11.06 per boe. Excluding the net gains described above earnings increased by 36% compared to a year ago and on the same basis unit earnings were $10.59 per boe or 49 % higher than in the same quarter a year ago.

Liquids realisations were 31% higher than a year ago, exceeding increases in marker crudes Brent of 29% and WTI of 24%. Outside the USA, gas realisations increased by 47% and in the USA, gas realisations increased by 71%.

Fourth quarter 2005 production was 3,500 thousand boe per day, reflecting the loss of production from hurricanes in the Gulf of Mexico. Excluding the hurricane loss of production of some 129 thousand boe per day compared to the same quarter last year, the end of a production sharing contract in the Middle East of some 100 thousand boe per day, the impact of divestments and lower entitlements due to higher hydrocarbon prices, production was 1% lower than a year ago.

Production included first contributions from new fields at Bonga (Shell share 55%) in Nigeria, West Salym (Shell share 50%) in Russia, E11 (Shell share 50%) in Malaysia and the ramp-up of additional production mainly in Goldeneye (Shell share 49%) in the UK and Holstein (Shell share 50%) in the USA added 63 thousand boe per day versus the same quarter a year ago. Versus the same quarter a year ago, field declines were 134 thousand boe per day, mainly in the USA, Norway and the UK. Operational downtime, excluding the impact of hurricanes, was up 38 thousand boe per day mainly in the North Sea.

Capital investment in the fourth quarter of $3.8 billion, excluding the minority share of Sakhalin and including exploration expense of $0.4 billion, was 35% higher than in the corresponding period last year.

Full year segment earnings of $14,238 million were 45% higher than a year ago ($9,823 million), mainly reflecting strong oil and gas price realisations partly offset by lower volumes and higher costs.

The earnings included a net gain of $1,727 million versus a net charge of $4 million a year ago. The 2005 net gain is attributable mainly to divestment gains ($2,027 million) in the Netherlands (Gasunie), the UK, Norway and Australia, partly offset by a cumulative loss related to the mark-to-market valuation of certain UK gas contracts ($492 million). Excluding these effects earnings increased by 27% compared to a year ago.

Segment unit earnings, calculated as segment earnings divided by production for the year are $11.09 per boe. Excluding the effects described above, unit earnings were $9.74 per boe and increased by 37% compared to a year ago.

Liquids realisations in 2005 were 41% higher than a year ago in line with increases in marker crudes Brent of 43% and WTI of 36%. Gas realisations outside the USA increased by 37% and in the USA increased by 33%.

Hydrocarbon production in 2005 was 3,518 thousand boe per day. Excluding the loss of production due to hurricanes in the Gulf of Mexico of 60 thousand boe per day compared to last year, 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 divestments, production was 1% lower than a year ago.

Production benefited from new fields, mainly from Goldeneye (Shell share 49%) in the UK, Jintan (Shell share 37.5%) in Malaysia and Holstein (Shell share 50%) in the USA and ramp-up of production in the USA, totalling some 131 thousand boe per day versus a year ago. Field declines were 145 thousand boe per day, mainly in the USA, Brazil, Norway and the UK. Operational downtime, excluding the impact of hurricanes, was an additional 66 thousand boe per day versus last year, mainly in the North Sea.

Cost increases reflect increased market rates and commodity prices, the build-up of new production and the development of future projects.

Capital investment of $10.8 billion, excluding the minority share of Sakhalin and including exploration expenditure of $2.1 billion, was 25% higher than last year.

FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

%

2005

2004

%

530

605

-12

Segment earnings

1,573

1,815

-13

2.81

2.76

+2

Equity LNG sales volume (million tonnes)

10.65

10.15

+5

Gas & Power

Fourth quarter Gas & Power segment earnings were $530 million compared to $605 million a year ago, reflecting record fourth quarter LNG volumes of 2.81 million tonnes, strong LNG prices and continued favourable Marketing and Trading conditions in the USA. Earnings in 2004 included net gains of $157 million mainly related to asset divestments partly offset by impairment charges. Excluding these effects earnings were up 18%. LNG volumes increased by 2% due to higher production in Brunei and Oman.

Full year Gas & Power segment earnings were $1,573 million, compared to $1,815 million in 2004. 2005 reflected record LNG volumes and strong prices, and favourable Marketing and Trading conditions. 2005 earnings included net charges of $84 million mainly related to divestments including the power generation assets held through the joint venture company InterGen. Earnings in 2004 included net gains of $444 million also mainly related to divestments.

Record LNG sales volumes were up 5% on last year driven by the ramp up of the fourth train at the North West Shelf project (Shell share 22%) in Australia. Marketing and Trading benefited from price volatility and favourable trading conditions.

FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

%

2005

2004

%

828

1,673

-51

Segment earnings

9,982

7,597

+31

1,070

665

CCS adjustment – see note 2

(2,450)

(1,005)

1,898

2,338

-19

Segment CCS earnings

7,532

6,592

+14

3,978

4,124

-4

Refinery intake (thousand b/d)

3,981

4,162

-4

6,695

7,699

-13

Oil product sales (thousand b/d)¹

7,057

7,600

-7

¹Certain contracts are classified as held for trading purposes and reported net rather than gross with effect from Q3 2005.
The effect in Q4 2005 is a reduction in Total Oil products sales of approximately 820 thousand b/d.

Oil Products

In the fourth quarter of 2005, lost refinery intake due to the hurricanes was some 3.3 million barrels (Shell share) versus earlier guidance of 4.5 million barrels (Shell share). Downstream costs after tax and prior to insurance recovery associated with the hurricanes were around $50 million (Shell share). All assets are back to normal operations except for some onshore product pipeline sections.

Fourth quarter segment earnings were $828 million compared to $1,673 million for the same period last year.

Fourth quarter CCS earnings were $1,898 million compared to $2,338 million for the fourth quarter of 2004 which included net gains of $391 million. The fourth quarter 2005 reflected higher trading profits offset by lower refining and lower marketing earnings.

In Manufacturing, Supply and Distribution, fourth quarter 2005 average industry refining margins declined in Europe, Asia Pacific and on the US West Coast. Refinery intake increased 0.5% excluding refineries divested in 2004 and 2005 which amounted to about 4% of global intake in the fourth quarter of 2004. Lower intake due to hurricanes in the Gulf of Mexico amounted to 1%. Despite hurricane related downtime at the start of the fourth quarter, refinery utilisation on an Equivalent Distillation Capacity (EDC) basis increased to 78.9%.

In Marketing including Lubricants and B2B, earnings declined in the fourth quarter of 2005 compared to the same period a year ago. The decrease was due to lower volumes, lower bitumen and LPG margins and higher costs in Lubricants. These were partially offset by higher earnings in Commercial Fuels, Aviation and Marine due to higher margins. Marketing sales volumes declined 4.2% compared to the fourth quarter of 2004 including an impact from divested volumes of 1.3%.

Full year segment earnings were $9,982 million compared to $7,597 million for the same period last year.

Full year CCS earnings were $7,532 million, up $940 million from earnings of $6,592 million in 2004 reflecting strong refining margins and operational performance. Earnings included $427 million of net gains from divestments in 2005 compared to net gains of $540 million last year. Increased refining earnings and higher trading profits were partially offset by lower marketing results.

In Manufacturing, Supply and Distribution, average industry refining margins for the year increased in all regions, with the most significant increases in the USA. Refinery intake increased by almost 1% compared to a year ago excluding lost intake from divested refineries in 2004 and 2005, which amounted to some 5% of global intake in 2004. Refinery utilisation on an EDC basis was at 79.6% versus 80.0% in 2004. Overall unplanned downtime excluding hurricanes improved to 4.0% compared to 4.4% last year reflecting improved asset performance and operational excellence initiatives.

In Marketing including Lubricants and B2B, earnings declined in 2005 compared to 2004 mainly due to lower retail margins in the USA and Europe, lower earnings from Lubricants and lower volumes mainly due to divestments. Marketing sales volumes declined 3.6% compared to 2004 largely due to divestments in 2004 and 2005 which accounted for 2.2 percentage points of the reduction.

FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

%

2005

2004

%

(38)

(20)

Segment earnings

991

1,148

-14

5,729

5,964

-4

Sales volumes (thousand tonnes)

22,826

24,160

-6

Chemicals

In the fourth quarter the impact of the hurricanes in the USA reduced asset utilisation by 3.4%, above the earlier expected range of 2-3%. All assets were back to normal operations by the end of the quarter.

Fourth quarter Chemicals segment earnings were a loss of $38 million and included net charges of $84 million mainly from legal provisions, compared to a loss of $20 million in the same quarter last year, which included the $353 million impairment of the investment in Basell.

Compared to the same quarter a year ago lower earnings reflected reduced sales volumes and lower margins, higher fixed costs and the loss of earnings from discontinued operations. Asset utilisation was below last year as operations in the USA recovered from the disruptions caused by the hurricanes. Although industry margins improved compared to third quarter, production downtime combined with inventory effects resulted in higher cost of sales impacting margin realisations. Trading results increased versus a year ago but were $43 million lower than the strong third quarter. The fourth quarter 2005 included costs of some $90 million mainly related to progress in project development, portfolio changes and tax. The estimated effect of changing prices negatively impacted fourth quarter earnings as reported on a first-in, first-out (FI FO) inventory valuation basis, by $46 million.

Full year Chemicals segment earnings were $991 million and included $565 million of net charges, mainly from the divestment of the polyolefins joint venture Basell and legal provisions. 2004 earnings were $1,148 million and included charges of $368 million mainly from impairments.

Excluding these effects 2005 earnings were 3% higher than a year ago reflecting higher margins and improved chemicals feedstock trading partly offset by the loss of earnings ($155 million) from discontinued operations.

Asset utilisation declined by some 3% mainly due to the impact of the hurricanes on operations in the USA. Sales volumes declined by 6%, however, excluding product trading they were in line with last year.

FOURTH
QUARTER

$ million

FULL YEAR

2005

2004

2005

2004

(110)

(82)

Other Industry segment earnings

(202)

(145)

(167)

(354)

Corporate segment earnings

(321)

(983)

(277)

(436)

Other Industry and Corporate segments earnings

(523)

(1,128)

Other Industry &
Corporate segments

Fourth quarter Other Industry and Corporate segments results were a loss of $277 million and included a net gain of $2 million mainly related to impairment charges ($91 million) offset by a net gain from tax and insurance, compared to a loss of $436 million a year ago which included charges of $101 million. Net interest income reflected improved cash balances and lower debt levels.

Full year Other Industry and Corporate segments results were a loss of $523 million and included charges of $154 million, compared to a loss of $1,128 million a year ago which included charges of $221 million. Net interest expense reflected lower debt levels resulting from strong cash generation and divestment of debt in divested associates, InterGen and Basell, which more than offset currency exchange losses.

QUARTERS

$ million

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

% ¹

2005

2004

%

92,840

94,717

95,122

-2

Sales proceeds

379,008

338,756

+12

17,344

18,282

18,821

Less: Sales taxes, excise duties and similar levies

72,277

72,370

___________

___________

___________

___________

___________

75,496

76,435

76,301

-1

Revenue

306,731

266,386

+15

63,889

60,704

65,358

Cost of sales

252,622

223,259

___________

___________

___________

___________

___________

11,607

15,731

10,943

+6

Gross profit

54,109

43,127

+25

4,263

3,763

4,406

Selling, distribution and administrative expenses

15,482

15,098

502

275

515

Exploration

1,286

1,809

1,389

3,081

1,519

Share of profit of equity accounted investments

7,123

5,015

56

(268)

(392)

Net finance costs and other (income)/expense

(103)

(424)

___________

___________

___________

___________

___________

8,175

15,042

7,933

+3

Income before taxation

44,567

31,659

+41

3,572

5,558

2,893

Taxation²

17,999

12,168

___________

___________

___________

___________

___________

4,603

9,484

5,040

Income from continuing operations

26,568

19,491

-

(93)

(299)

Income from discontinued operations

(307)

(234)

___________

___________

___________

___________

___________

4,603

9,391

4,741

-3

Income for the period

26,261

19,257

+36

==========

==========

==========

==========

==========

235

359

170

Income attributable to minority interests

950

717

___________

___________

___________

___________

___________

4,368

9,032

4,571

-4

Income attributable to shareholders

25,311

18,540

+37

___________

___________

___________

___________

___________

¹ Q4 on Q4 change
² Includes UK taxation of $1,209 million for full year 2005 and $646 million for full year 2004

QUARTERS

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

2005

2004

0.67

1.35

0.68

Income per share ($)

3.79

2.74

0.82

1.10

0.77

CCS earnings per share ($)

3.44

2.60

QUARTERS

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

2005

2004

0.66

1.35

0.68

Income per share ($)

3.78

2.74

0.82

1.10

0.77

CCS earnings per share ($)

3.43

2.60

QUARTERS

$ million

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

% ¹

2005

2004

%

Exploration & Production:

2,836

4,051

1,832

+55

World outside USA

10,541

6,511

+62

725

926

1,086

-33

USA

3,697

3,312

+12

___________

___________

___________

___________

___________

3,561

4,977

2,918

+22

14,238

9,823

+45

___________

___________

___________

___________

___________

Gas & Power:

465

469

847

-45

World outside USA

1,526

2,011

-24

65

87

(242)

USA

47

(196)

___________

___________

___________

___________

___________

530

556

605

-12

1,573

1,815

-13

___________

___________

___________

___________

___________

Oil Products:

1,583

1,229

1,683

-6

World outside USA

5,787

4,926

+17

315

497

655

-52

USA

1,745

1,666

+5

___________

___________

___________

___________

___________

1,898

1,726

2,338

-19

7,532

6,592

+14

___________

___________

___________

___________

___________

Chemicals:

140

291

50

+180

World outside USA

932

1,023

-9

(178)

30

(70)

USA

59

125

-53

___________

___________

___________

___________

___________

(38)

321

(20)

991

1,148

-14

___________

___________

___________

___________

___________

(110)

(76)

(82)

Other industry segments

(202)

(145)

___________

___________

___________

___________

___________

5,841

7,504

5,759

+1

TOTAL OPERATING SEGMENTS

24,132

19,233

+25

___________

___________

___________

___________

___________

Corporate:

51

71

(231)

Interest income/(expense)

(22)

(744)

(145)

126

42

Currency exchange gains/(losses)

(65)

68

(73)

(24)

(165)

Other - including taxation

(234)

(307)

___________

___________

___________

___________

___________

(167)

173

(354)

(321)

(983)

___________

___________

___________

___________

___________

(279)

(308)

(185)

Minority interests

(871)

(655)

___________

___________

___________

___________

___________

5,395

7,369

5,220

+3

CCS EARNINGS

22,940

17,595

+30

___________

___________

___________

___________

___________

(1,027)

1,663

(649)

CCS adjustment for Oil Products

2,371

945

___________

___________

___________

___________

___________

4,368

9,032

4,571

-4

Income attributable to shareholders

25,311

18,540

+37

___________

___________

___________

___________

___________

¹ Q4 on Q4 change

$ million

Dec 31

Sep 30

Dec 31

ASSETS

2005

2005

2004

Non-current assets:

Property, plant and equipment

87,558

85,601

87,918

Intangible assets

4,350

4,361

4,528

Investments:

Equity accounted investments

16,905

17,138

20,493

Financial assets

3,672

3,236

2,700

Deferred tax

2,562

3,039

2,789

Employee benefit assets

2,486

2,453

2,479

Other

4,091

4,102

4,490

___________

___________

___________

121,624

119,930

125,397

___________

___________

___________

Current assets:

Inventories

19,776

21,490

15,375

Accounts receivable

66,386

83,812

37,473

Cash and cash equivalents

11,730

15,998

9,201

___________

___________

___________

97,892

121,300

62,049

___________

___________

___________

___________

___________

___________

TOTAL ASSETS

219,516

241,230

187,446

___________

___________

___________

LIABILITIES

Non-current liabilities:

Debt

7,578

7,795

8,858

Deferred tax

10,763

12,411

12,930

Employee benefit obligations

5,807

6,018

6,795

Other provisions

7,385

7,114

6,828

Other

5,095

4,395

5,800

___________

___________

___________

36,628

37,733

41,211

___________

___________

___________

Current liabilities:

Debt

5,338

6,714

5,734

Accounts payable and accrued liabilities

69,013

82,912

37,909

Taxes payable

8,782

12,510

9,058

Employee benefit obligations

282

302

339

Other provisions

1,549

1,254

1,812

___________

___________

___________

84,964

103,692

54,852

___________

___________

___________

___________

___________

___________

TOTAL LIABILITIES

121,592

141,425

96,063

___________

___________

___________

Equity attributable to shareholders

90,924

92,353

86,070

Minority interests

7,000

7,452

5,313

___________

___________

___________

TOTAL EQUITY

97,924

99,805

91,383

___________

___________

___________

TOTAL LIABILITIES AND EQUITY

219,516

241,230

187,446

___________

___________

___________

QUARTERS

$ million

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

2005

2004

CASH FLOW FROM OPERATING ACTIVITIES:

4,603

9,391

4,741

Income for the period

26,261

19,257

Adjustment for:

4,490

5,548

3,537

Taxation

19,435

13,081

148

120

158

Interest (income)/expense

632

803

2,787

2,903

4,190

Depreciation, depletion and amortisation

11,981

12,845

(210)

(352)

(2,228)

(Profit)/loss on sale of assets

(1,313)

(3,087)

3,295

(5,490)

175

Decrease/(increase) in net working capital

(5,664)

(4,062)

(1,389)

(3,073)

(1,220)

Share of profit of equity accounted investments

(6,901)

(4,782)

1,441

2,761

1,459

Dividends received from equity accounted investments

6,709

4,190

(869)

(112)

(864)

Deferred taxation and other provisions

(1,515)

(1,007)

833

(1,159)

415

Other

(269)

59

___________

___________

___________

___________

___________

15,129

10,537

10,363

Cash flow from operating activities (pre-tax)

49,356

37,297

___________

___________

___________

___________

___________

(6,664)

(3,891)

(4,014)

Taxation paid

(19,243)

(10,760)

___________

___________

___________

___________

___________

8,465

6,646

6,349

Cash flow from operating activities

30,113

26,537

___________

___________

___________

___________

___________

CASH FLOW FROM INVESTING ACTIVITIES:

(5,447)

(3,787)

(4,655)

Capital expenditure

(15,904)

(13,566)

396

416

3,842

Proceeds from sale of assets

2,310

5,142

Proceeds from sales/(additions):

73

3,734

638

Equity accounted investments

3,608

258

(1)

113

670

Investments: financial assets

362

1,739

245

251

131

Interest received

863

463

___________

___________

___________

___________

___________

(4,734)

727

626

Cash flow from investing activities

(8,761)

(5,964)

___________

___________

___________

___________

___________

CASH FLOW FROM FINANCING ACTIVITIES:

(1,994)

1,138

(1,526)

Net increase/(decrease) in debt

(1,555)

(4,489)

(311)

(284)

(291)

Interest paid

(1,124)

(962)

250

90

(48)

Change in minority interests

1,143

812

(2,555)

(1,937)

-

Net issue/(repurchase) of shares

(4,988)

(698)

Dividends paid to:

(1,732)

(1,910)

79

Shareholders of Royal Dutch Shell

(10,556)

(7,230)

(58)

(130)

(62)

Minority interests

(293)

(264)

(1,651)

-

-

Cash payment to former Royal Dutch shareholders

(1,651)

-

Treasury shares:

52

125

(23)

Net sales/(purchases) and dividends received

451

(761)

___________

___________

___________

___________

___________

(7,999)

(2,908)

(1,871)

Cash flow from financing activities

(18,573)

(13,592)

___________

___________

___________

___________

___________

-

13

149

Currency translation differences relating to cash and cash equivalents

(250)

112

___________

___________

___________

___________

___________

(4,268)

4,478

5,253

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

2,529

7,093

___________

___________

___________

___________

___________

15,998

11,520

3,948

Cash and cash equivalents at beginning of period

9,201

2,108

11,730

15,998

9,201

Cash and cash equivalents at end of period

11,730

9,201

QUARTERS

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

%¹

2005

2004

%

thousand b/d

CRUDE OIL PRODUCTION

thousand b/d

510

516

565

Europe

541

580

370

370

372

Africa

373

399

227

222

219

Asia Pacific

228

243

455

512

467

Middle East, Russia, CIS

443

471

243

289

383

USA

333

375

75

70

94

Other Western Hemisphere

80

105

___________

___________

___________

_________

_________

1,880

1,979

2,100

Total crude oil production excluding oil sands

1,998

2,173

106

98

63

Oil sands

95

80

___________

___________

___________

_________

_________

1,986

2,077

2,163

-8

Total crude oil production including oil sands

2,093

2,253

-7

___________

___________

___________

_________

_________

million scf/d ²

NATURAL GAS PRODUCTION

million scf/d ²

AVAILABLE FOR SALE

4,266

2,268

4,559

Europe

3,659

3,739

397

341

383

Africa

377

375

2,436

2,267

2,256

Asia Pacific

2,325

2,132

255

231

676

Middle East, Russia, CIS

253

691

919

948

1,302

USA

1,150

1,332

511

496

534

Other Western Hemisphere

499

539

___________

___________

___________

_________

_________

8,784

6,551

9,710

-10

8,263

8,808

-6

___________

___________

___________

_________

_________

thousand b/d³

BARRELS OF OIL EQUIVALENT

thousand b/d³

1,246

907

1,351

Europe

1,172

1,224

438

429

438

Africa

438

464

647

613

608

Asia Pacific

629

611

499

552

584

Middle East, Russia, CIS

487

590

401

453

607

USA

531

605

163

155

186

Other Western Hemisphere

166

198

___________

___________

___________

_________

_________

3,394

3,109

3,774

Total production excluding oil sands

3,423

3,692

106

98

63

Oil sands

95

80

___________

___________

___________

_________

_________

3,500

3,207

3,837

-9

Total production including oil sands

3,518

3,772

-7

___________

___________

___________

_________

_________

¹ Q4 on Q4 change

² scf/d = standard cubic feet per day; 1 standard cubic feet = 0.0283 cubic metre

³ Natural gas converted to oil equivalent at 5.8 million scf/d = thousand b/d

QUARTERS

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

%¹

2005

2004

%

million tonnes

LIQUEFIED NATURAL GAS (LNG)

million tonnes

2.81

2.48

2.76

+2

Equity LNG sales volume

10.65

10.15

+5

$/bbl

Realised Oil Prices

$/bbl

52.74

56.89

40.08

WOUSA

50.56

35.53

53.10

56.24

40.68

USA

48.94

36.15

52.77

56.83

40.16

Global

50.36

35.61

$/thousand scf

Realised Gas Prices

$/thousand scf

5.73

4.24

4.09

Europe

4.99

3.76

4.47

3.70

3.05

WOUSA (including Europe)

3.84

2.81

12.40

8.35

7.27

USA

8.43

6.33

5.78

4.59

3.94

Global

4.77

3.59

¹ Q4 on Q4 change

QUARTERS

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

%¹

2005

2004

%

thousand b/d

thousand b/d

REFINERY PROCESSING INTAKE

1,861

1,774

1,767

Europe

1,804

1,770

847

853

940

Other Eastern Hemisphere

849

962

916

909

1,031

USA

953

1,055

354

374

386

Other Western Hemisphere

375

375

_________

_________

_________

_________

_________

3,978

3,910

4,124

-4

3,981

4,162

-4

_________

_________

_________

_________

_________

OIL SALES

2,271

2,230

2,773

Gasolines

2,404

2,760

791

770

842

Kerosines

811

833

2,154

2,142

2,537

Gas/Diesel oils

2,296

2,398

814

783

801

Fuel oil

844

849

665

700

746

Other products

702

760

_________

_________

_________

_________

_________

6,695

6,625

7,699

-13

Total oil products*²

7,057

7,600

-7

2,404

2,864

4,837

Crude oil²

3,695

5,160

_________

_________

_________

_________

_________

9,099²

9,489

12,536

-27

Total oil sales

10,752

12,760

-16

_________

_________

_________

_________

_________

*comprising

2,119

2,094

2,122

Europe

2,093

2,112

1,219

1,236

1,299

Other Eastern Hemisphere

1,232

1,320

1,551

1,558

2,500

USA²

2,013

2,516

714

722

745

Other Western Hemisphere

708

744

1,092

1,015

1,033

Export sales

1,011

908

thousand tonnes

CHEMICAL SALES VOLUMES BY MAIN PRODUCT CATEGORY³**

thousand tonnes

3,455

3,324

3,575

Base chemicals

13,710

14,184

2,154

2,238

2,252

First line derivatives

8,891

9,499

120

27

137

Other

225

477

_________

_________

_________

_________

_________

5,729

5,589

5,964

-4

22,826

24,160

-6

_________

_________

_________

_________

_________

**comprising

2,506

2,495

2,376

Europe

10,018

10,159

1,362

1,305

1,348

Other Eastern Hemisphere

5,252

5,526

1,693

1,630

2,079

USA

6,893

7,819

168

159

161

Other Western Hemisphere

663

656

$ million

CHEMICAL SALES - NET PROCEEDS⁴

$ million

2,271

2,092

2,244

Europe

8,981

7,873

1,177

1,123

1,327

Other Eastern Hemisphere

4,640

4,530

1,703

1,512

1,863

USA

6,564

6,159

192

174

182

Other Western Hemisphere

735

616

_________

_________

_________

_________

_________

5,343

4,901

5,616

-5

20,920

19,178

+9

730

709

591

By-products

2,998

2,311

_________

_________

_________

_________

_________

6,073

5,610

6,207

-2

23,918

21,489

+11

_________

_________

_________

_________

_________

¹ Q4 on Q4 change

² Certain contracts are classified as held for trading purposes and reported net rather than gross with effect from Q3 2005.
The effect in Q3 2005 is a reduction in Total oil products sales of approximately 850 thousand b/d and
a reduction on Crude oil sales of 2,000 thousand b/d and in Q4 2005 820 thousand b/d and 1,490 thousand b/d respectively.

³ Excluding volumes sold by equity accounted investments, chemical feedstock trading and by-products.

⁴ Excluding proceeds from equity accounted investments and chemical feedstock trading.

QUARTERS

$ million

FULL YEAR

Q4

Q3

Q4

2005

2005

2004

2005

2004

Capital expenditure:

Exploration & Production:

3,271

2,276

2,494

World outside USA

9,633

7,638

450

318

273

USA

1,225

1,061

___________

___________

___________

___________

___________

3,721

2,594

2,767

10,858

8,699

___________

___________

___________

___________

___________

Gas & Power:

440

334

298

World outside USA

1,564

1,325

2

-

4

USA

4

32

___________

___________

___________

___________

___________

442

334

302

1,568

1,357

___________

___________

___________

___________

___________

Oil Products:

Refining:

359

290

344

World outside USA

1,107

937

119

56

109

USA

272

338

___________

___________

___________

___________

___________

478

346

453

1,379

1,275

___________

___________

___________

___________

___________

Marketing:

554

317

749

World outside USA

1,254

1,326

77

34

94

USA

177

160

___________

___________

___________

___________

___________

631

351

843

1,431

1,486

___________

___________

___________

___________

___________

Chemicals:

48

52

111

World outside USA

170

247

44

46

92

USA