e6vk
FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For October 2007
Commission File Number: 1-32575
Royal Dutch Shell plc
(Exact name of registrant as specified in its charter)
England and Wales
(Jurisdiction of incorporation or organization)
30, Carel van Bylandtlaan, 2596 HR The Hague
The Netherlands
Tel No: (011 31 70) 377 9111
(Address of principal executive officers)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b):82-
Royal Dutch Shell plc (the Registrant) is filing the following exhibits on this Report on Form
6-K, each of which is hereby incorporated by reference:
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Exhibit No. |
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Description |
99.1
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Regulatory release. |
99.2
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Royal Dutch Shell plc Three and nine month period ended September 30, 2007 Unaudited
Condensed Interim Financial Report. |
This Unaudited Condensed Interim Financial Report contains the Unaudited Condensed Consolidated
Interim Financial Statements of the Registrant and its consolidated subsidiaries for the three and
nine month period ended September 30, 2007 and Operational and Financial Review and Results of
Operations in respect of such period. The Unaudited Condensed Consolidated Interim Financial
Statements, including condensed notes, are presented on the same basis that such was announced by
press release on October 25, 2007, that was furnished to the Commission by the Registrant on Form
6-K. 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 October 25, 2007 press release.
This Report on Form 6-K is incorporated by reference into:
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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 |
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b) |
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the Registration Statements on Forms S-8 of Royal Dutch Shell plc (Registration Numbers
333-126715 and 333-141397). |
TABLE OF CONTENTS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Royal Dutch Shell plc
(Registrant)
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By:
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Michiel Brandjes /s/
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Name: Michiel Brandjes |
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Title: Company Secretary |
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Date: November 1, 2007
exv99w1
Exhibit 99.1
Regulatory release
Three and nine month periods ended September 30, 2007
Unaudited Condensed Interim Financial Report
On October 25, 2007, Royal Dutch Shell plc (Royal Dutch Shell) released the Unaudited Condensed
Interim Financial Report for the three and nine month period ended September 30, 2007 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 October 25, 2007.
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Contact Investor Relations |
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Europe:
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Tjerk Huysinga
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+31 70 377 3996
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USA:
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Harold Hatchett
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+1 212 218 3112 |
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Contact Media |
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UK, International:
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Shell Media Contact
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+44 20 7934 3505 |
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The Netherlands:
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Shell Media Contact
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+31 70 377 8750 |
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exv99w2
Exhibit 99.2
Royal Dutch Shell plc
Three and nine month periods ended September 30, 2007
Unaudited Condensed Interim Financial Report
Contents
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UNAUDITED CONDENSED INTERIM FINANCIAL REPORT |
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1 |
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OPERATIONAL AND FINANCIAL REVIEW FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2007 |
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2 |
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CONDENSED CONSOLIDATED STATEMENT OF INCOME |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
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12 |
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APPENDIX |
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22 |
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Unaudited Condensed Interim Financial Report
This report contains:
(1) |
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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, 2007; and |
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Unaudited Condensed Consolidated Interim Financial Statements for the three and nine month
periods ended September 30, 2007 and 2006. |
In this report Group is defined as Royal Dutch Shell together with all of its consolidated
subsidiaries. The expressions Shell, Group, Shell Group and Royal Dutch Shell are sometimes
used for convenience where references are made to the Group or Group companies in general.
Likewise, the words we, us and our are also used to refer to Group companies in general or to
those who work for them. These expressions are also used where no useful purpose is served by
identifying the particular company or companies. The expression Group companies as used in this
Report refers to companies in which Royal Dutch Shell either directly or indirectly has control, by
having either a majority of the voting rights or the right to exercise a controlling influence. The
companies in which the Group has significant influence but not control are referred to as
associated companies or associates and companies in which the Group has joint control are
referred to as jointly controlled entities. In this Report, associates and jointly controlled
entities are also referred to as equity accounted investments.
This report contains forward-looking statements concerning the financial condition, results of
operations and businesses of Royal Dutch Shell. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are
statements of future expectations that are based on managements current expectations and
assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in these statements.
Forward-looking statements include, among other things, statements concerning the potential
exposure of Royal Dutch Shell to market risks and statements expressing managements expectations,
beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are
identified by their use of terms and phrases such as anticipate, believe, could, estimate,
expect, intend, may, plan, objectives, outlook, probably, project, will, seek,
target, risks, goals, should and similar terms and phrases. There are a number of factors
that could affect the future operations of Royal Dutch Shell and could cause those results to
differ materially from those expressed in the forward-looking statements included in this Report,
including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in
demand for the Groups products; (c) currency fluctuations; (d) drilling and production results;
(e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical
risks; (h) risks associated with the identification of suitable potential acquisition properties
and targets, and successful negotiation and completion of such transactions; (i) the risk of doing
business in developing countries and countries subject to international sanctions; (j) legislative,
fiscal and regulatory developments including potential litigation and regulatory effects arising
from recategorisation of reserves; (k) economic and financial market conditions in various
countries and regions; (l) political risks, including the risks of expropriation and renegotiation
of the terms of contracts with governmental entities, delays or advancements in the approval of
projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions.
All forward-looking statements contained in this report are expressly qualified in their entirety
by the cautionary statements contained or referred to in this section. Readers should not place
undue reliance on forward-looking statements. Additional factors that may affect future results are
contained in Royal Dutch Shells 2006 20-F (available at www.shell.com/investor and www.sec.gov ).
These factors also should be considered by the reader. Each forward-looking statement speaks only
as of the date of this report, November 1, 2007. Neither Royal Dutch Shell nor any of its
subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as
a result of new information, future events or other information. In light of these risks, results
could differ materially from those stated, implied or inferred from the forward-looking statements
contained in this report.
Please refer to the Annual Report on Form 20-F for the year ended December 31, 2006 for a
description of certain important factors, risks and uncertainties that may affect the businesses of
the Shell Group.
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Royal Dutch Shell plc |
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Unaudited Condensed Interim Financial Report
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1 |
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Operational and Financial Review for the three and nine month periods ended September 30, 2007
Presented under IFRS (unaudited)
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$ million |
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Three months |
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Nine months |
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ended September 30, |
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ended September 30, |
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2007 |
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2006 |
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2007 |
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2006 |
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Income for the period |
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7,041 |
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6,255 |
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23,293 |
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20,798 |
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Attributable to minority interest |
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125 |
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313 |
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429 |
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639 |
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Income attributable to shareholders of Royal Dutch Shell plc |
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6,916 |
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5,942 |
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22,864 |
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20,159 |
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THREE MONTHS ENDED SEPTEMBER 30, 2007
The Groups income for the three months ended September 30, 2007 was $7,041 million, an increase
of 13% compared to 2006 mainly caused by increased earnings in the Oil Products segment. Earnings
included a charge of $110 million related to a one-time impact on past-service pension liabilities
due to implementation of a revised structure for certain employees remuneration, of which the
major elements arose in the Exploration & Production and Oil Products segment earnings.
Exploration & Production
Segment earnings were $3,510 million compared to $3,743 million for the same period last year.
Earnings included a net gain of $130 million, comprising a gain of $143 million related to an
impairment reversal and a combined gain of $228 million related to tax impacts and the benefit of a
tax rate change in Germany. These gains were partly offset by charges of $93 million related to the
mark-to-market valuation impact of certain UK gas contracts, exploration write-offs in Alaska of
$77 million and a $71 million charge related to a one-time pension liability impact. Earnings for
the third quarter 2006 included a net charge of $163 million reflecting a gain of $147 million
related to the mark-to-market valuation of certain UK gas contracts, more than offset by charges of
$310 million related to a UK tax increase effective as from January 1, 2006.
Earnings, when compared to the third quarter 2006, were mainly impacted by lower volumes, higher
tax charges and higher costs, reflecting current industry conditions, partly offset by the impact
of higher oil prices on revenues. In addition, higher exploration expenses, and lower profits from
the Sakhalin project, as a consequence of the partial divestment in the second quarter 2007,
impacted earnings when compared to the third quarter 2006.
Liquids realisations were 9% higher than in the third quarter 2006, following marker crudes Brent
and WTI which were both up 7%. Gas realisations were 4% lower than a year ago. Outside the USA gas
realisations were relatively unchanged whereas in the USA gas
realisations decreased by 11%.
Third
quarter 2007 production was 3,137 thousand barrels of oil equivalent
(boe) per day compared to 3,251
thousand barrels of oil equivalent per day a year ago. Total crude oil production (including oil
sands) was down 9% and total natural gas production was up 6% when compared to the third quarter
2006. Third quarter 2007 production was mainly impacted by field decline rates and divested
volumes, which were partly offset by new fields production and ramp-up volumes when compared to the
same quarter last year.
Production compared to the third quarter 2006 included increased volumes from E8 and B12 (Shell
share 50%) in Malaysia, Pohokura (Shell share 48%) in New Zealand, West Salym (Shell share 50%) in
Russia, Changbei (Shell share 50%) in China, Erha (Shell share 44%) in Nigeria, Merganser (Shell
share 44%) in the UK, Enfield in Australia (Shell share 21%, indirect) and Deimos (Shell share
71.5%) in the USA.
Gas & Power
Segment earnings were $568 million compared to $781 million for the same period last year. Earnings
included a net charge of $4 million, reflecting a gain of $11 million related to a tax rate change
in Germany, which was more than offset by charges of $10 million related to a one-time pension
liability impact and $5 million related to the mark-to-market valuation impact of certain gas
contracts.
Earnings, when compared to the third quarter 2006, reflected lower marketing and trading results
and reduced gas-to-liquids (GTL) sales volumes due to a planned shutdown of the Bintulu GTL plant,
which were partly offset by higher earnings from increased equity liquefied natural gas (LNG) sales
volumes.
LNG equity sales volumes of 3.29 million tonnes were 12% higher than in the same quarter a year
ago, driven by additional sales mainly at Nigeria LNG (Shell interest 26%) due to increased feedgas
supply.
Marketing and trading earnings benefited from storage optimisation in the third quarter 2007.
Earnings, when compared to the same period last year, were lower due to less favourable overall
trading conditions in both Europe and North America.
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Royal Dutch Shell plc |
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Unaudited Condensed Interim Financial Report
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Oil Products
Segment earnings were $2,153 million compared to $1,214 million for the same period last year. The
impact of price volatility on inventory had a positive impact on third quarter earnings of $502
million compared with a negative impact of $946 million in the third quarter of 2006.
Earnings for the third quarter 2007 included a net gain of $121 million, reflecting a gain of
$149 million related to a tax rate change in Germany, which was partly offset by a charge of $28
million related to a one-time pension liability impact.
When compared to the third quarter of 2006, earnings were mainly impacted by lower realised
refining margins, lower contribution from trading and higher operating costs, which were partly
offset by a gain related to a tax rate change in Germany.
In Manufacturing, Supply and Distribution industry refining margins, when compared to the same
period a year ago, were higher in the eastern hemisphere and in US Gulf Coast, whilst US West Coast
margins declined. Refining margins in Europe were essentially unchanged when compared to the levels
of the third quarter of 2006. Despite the hurricane impact in the US Gulf Coast, refinery
availability remained relatively stable at 93% when compared to 94% in the third quarter of 2006.
In marketing, when compared to the same period a year ago, earnings were relatively stable due
continued strong retail, lubricants and B2B earnings.
Marketing sales volumes were in line with volumes in the third quarter 2006. The negative impact of
divestments was offset mainly because of higher retail sales.
Chemicals
Segment earnings were $397 million compared to $251 million for the same period last year. Earnings
included a net gain of $18 million, reflecting a gain of $19 million related to a tax rate change
in Germany, which was partly offset by a charge of $1 million related to a one-time pension
liability impact.
Earnings
reflected improved margins, which were mostly offset by a reduced
trading contribution.
Chemicals
manufacturing plant availability increased to 94%, some 6% points higher than in the
third quarter 2006, which was impacted by a heavy planned maintenance programme in the USA and
Europe.
Corporate
Segment earnings were $413 million compared to $266 million for the same period last year. Earnigns for the
third quarter 2006 included $86 million related to tax credits.
When compared to the third quarter 2006, earnings reflected higher insurance underwriting income,
improved net interest income and positive results from exchange rate movements which were partly
offset by lower tax credits.
NINE MONTHS ENDED SEPTEMBER 30, 2007
The
Groups income for the nine months ended September 30, 2007
was $23,293 million, an increase of
12% compared to 2006.
Exploration & Production
Segment earnings were $10,319 million compared to $11,485 million for the same period last year,
mainly reflecting lower volumes, higher exploration expenses, higher costs, reflecting current
industry conditions and tax impacts. Earnings included a net gain of $387 million mainly from gains
from divestments of $352 million, a combined gain of $136 million related to tax impacts including
the benefit of a tax rate change in Germany and a gain of $143 million related to an impairment
reversal, partially offset charges of $96 million related to the mark-to-market valuation impact of
certain UK gas contracts, the write-off of exploration costs in Alaska of $77 million and a $71
million charge related to a one-time pension liability impact. Earnings in the comparative period
of 2006 included a net gain of $254 million mainly from a net gain in respect of the mark-to-market
valuation impact of certain UK gas contracts, the impact of Canadian tax revisions and the
resolution of certain contractual issues, partially offset by charges related to a UK tax increase
effective as from January 1, 2006.
Liquids realisations were 1% higher than a year ago, compared to a Brent price that remained flat
and a decrease in WTI of 3%. Outside the USA gas realisations decreased by 2%. In the USA, gas
realisations decreased by 11%.
Hydrocarbon production was 3,273 thousand boe per day, 4% lower than a year ago (3,415 thousand
boe per day).
Gas & Power
Segment earnings were $2,150 million compared to $2,054 million for the same period last year.
Earnings included net gains of $282 million related to divestments, a charge related to gas contracts
mark-to-market valuation, a gain related to a tax rate change in Germany and a charge related to a
one-time pension liability. Earnings reflected lower marketing and trading results, which were
partly offset by higher Liquefied Natural Gas (LNG) sales volumes and LNG dividends.
LNG equity sales volumes of 9.84 million tonnes were 12% higher than a year ago. The increase was
mainly related to the Nigeria LNG venture (Shell interest 26%), as a result of increased feedgas
supply.
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Oil Products
Segment earnings were $7,883 million compared to $6,334 million for the same period last year. The
impact of price volatility on inventory had a positive impact on earnings of $1,808 million
compared with $776 million for the same period last year.
Earnings included a net gain of $150 million resulting from gains related to a tax rate change
in Germany and divestments, partially offset by a charge related to a one-time pension liability
impact and impairment of certain assets. Earnings in the first nine months of 2006 included net
charges of $65 million related to restructuring of employee retirement plans in France, partially
offset by the impact of a reduction in deferred taxes in Canada arising from reduced tax rates.
Improved earnings reflected strong refining margins, particularly in the second quarter, and
marketing margins, partially offset by lower trading results and higher operating and legal costs
when compared to the first nine months of 2006.
In Manufacturing, Supply and Distribution, industry refining margins were higher. Refinery
availability declined to 90.8% from 91.6% compared to the first nine months of 2006.
In Marketing, earnings increased compared to the first nine months of 2006 mainly due to higher
retail marketing margins and strong finished lubricants margins.
Marketing sales volumes declined compared to the volumes in the first nine months of 2006 due to
the impact of divestments.
Chemicals
Segment earnings were $1,550 million compared to $880 million for the same period last year mainly
due to improved margins and higher earnings from equity accounted investments. Earnings from equity
accounted investments were impacted last year by the fact that the Nanhai petrochemicals complex in
China (Shell share 50%) started-up during the first quarter and attained full operational status
during the second quarter.
Sales volumes were 5% lower than last year and reflected mainly a reduction in sales of lower
margin products, including aromatics trading.
Chemicals manufacturing plant availability was 92.3%, in line with last year.
Corporate
Segment earnings were $1,391 million compared to
$45 million a year ago. Corporate segment earnings in this
period included a gain on the sale of the equity portfolio held by the Group insurance companies of $404
million while in 2006 earnings included the recognition of a $500 million provision in respect of litigation.
Earnings reflected higher insurance underwriting income and improved net interest income,
partly offset by higher corporate costs when compared to a year ago.
PORTFOLIO DEVELOPMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007
Exploration & Production
In China, Shell and PetroChina started commercial production and gas delivery from the Changbei gas
field.
In New Zealand, Shell delivered first offshore gas from the Pohokura field in the first quarter of
2007. This follows the delivery of onshore gas achieved in September 2006.
Shell sold 45% of the newly created Shell Technology Ventures Fund 1 BV (STV), an energy technology
fund, to Coller Capital. Shell remains the majority shareholder in the fund, which will focus
on investing in non-exclusive Shell and third party exploration and production technologies.
In the United Kingdom, the Group announced its intention to sell its equity interests in a number
of northern North Sea assets.
In April the Group completed the disposal to OAO Gazprom of a 50% stake (plus 1 share) in the
Sakhalin project in Russia. In addition, the Ministry of Natural Resources of the Russian
Federation announced its approval of the revised Environmental Action Plan.
In Austria, Shell announced that it has signed a Sale and Purchase Agreement for the sale of its
25% equity holding in Austrian oil and gas producer, Rohol-Aufsuchungs AG (RAG) with completion
expected late 2007 or early 2008.
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In Norway, Shell announced that it has entered into an agreement with E.ON Ruhrgas Norge AS to sell
its 28% equity interests in the undeveloped Skarv and Idun fields for $893 million. The sale is
subject to the relevant regulatory approval and is expected to be completed by end 2007.
In Russia, Shell and Rosneft Open Joint Stock Company have concluded an agreement on Strategic
Cooperation, which provides for a joint implementation of upstream and downstream oil and gas
projects both in Russia and elsewhere.
Also in Russia, Shell and JSC Tatneft concluded an agreement for a Strategic Partnership to devise
a programme for heavy oil development in Tatarstan as well as other potential joint activities,
including the acquisition of new licences for hydrocarbon exploration in Tatarstan and elsewhere in
Russia.
In the USA, Shell announced first production from the Deimos (Shell share 71.5%) discovery in the
Gulf of Mexico Mars Basin with a peak production capacity for Phase I of 30 thousand barrels of oil
equivalent per day.
In Norway, first gas was produced from the Ormen Lange field (Shell share 17%) with a peak
production capacity of some 420 thousand barrels of oil equivalent per day.
The Group made four material exploration discoveries, with two in
Australia and further discoveries in Nigeria and Malaysia. The Group also significantly increased
its overall acreage position with new exploration licences in Australia and the USA.
Gas & Power
In Australia, the North West Shelf venture (Shell direct and indirect interest, 22%) completed the
renewal of long-term LNG purchase commitments with eight Japanese customers, totaling 4.3 million
tonnes per annum over 6 to 8 years as from 2009.
Also in Australia, the final investment decision was taken by Woodside Petroleum Ltd. (Shell interest
34.27%) for the development of the Pluto LNG project in North-West Australia. The Australian
Federal Ministry for the Environment issued government approval for the Pluto project in October.
Shell and Petrochina concluded a binding Heads of Agreement for the supply of 1 million tonnes per
annum of LNG, for 20 years, from the Gorgon project in North-West Australia, conditional on a final
investment decision being taken by the Gorgon Joint Venture partners. Gorgon received State and
Federal environmental approval during the third quarter.
In South America, the Group signed an agreement for the sale of certain gas transportation and
power generation assets in Bolivia and Brazil. The transaction is expected to close before
year-end, pending regulatory approvals.
In the USA, the sale of the Groups participation in the common units of Enterprise Product
Partners L.P., a natural gas processing company, was concluded mainly through private placement
sales.
In Qatar, Shell and Qatar Petroleum announced the formation of Qatar Liquefied Gas Company Limited
(4), a joint venture of Qatar Petroleum (70%) and Shell (30%), which signed a Sale and Purchase
Agreement with Shell as the buyer of all the LNG volumes produced by the joint venture. An
agreement was also signed with Qatargas Transport Company Limited (Nakilat), in which Shell was
appointed as the shipping and maritime services provider for Nakilats fleet of at least 25 newly
built liquefied natural gas carriers.
Oil Products
In the USA, Shell completed the transaction to sell the Los Angeles Refinery, Wilmington Products
Terminal and approximately 250 retail sites and supply agreements in and around Los Angeles and San
Diego to Tesoro Corporation.
Also in the USA, Shell announced, through Motiva Enterprises (Shell share 50%) the final investment
decision to proceed with a 325,000 barrels per day capacity expansion at the Port Arthur Refinery,
making it the largest refinery in the USA with a total crude oil
throughput capacity of 600,000 barrels per day.
Shell completed the sale of its LPG businesses in Bulgaria, the Czech Republic, Germany, Spain and
Switzerland. The sale of the LPG business in Romania, which is subject to regulatory approval, is expected to close
later this year.
In France,
Shell has signed a Letter of Intent for the possible sale of its Petit Couronne
and Reichstett Vendenheim refineries. The sale, amounting to some $875 million, with completion
expected during 2008, is subject to staff consultation and regulatory approval.
Also in France, Shell has received an offer for the sale of its Berre-lEtang refinery site complex
and associated infrastructure and businesses. A purchase price of $700 million has been agreed with
completion to be expected in early 2008. The sale is subject to staff consultation and regulatory
approval.
Shell announced a strategic review of the Yabucoa petrochemical feedstock refinery in Puerto Rico,
which has a capacity of 79 thousand barrels per day (Shell share 100%).
In Ukraine, Shell and OJSC Alliance Group announced a commitment to establish a joint venture to
operate 150 Shell branded retail sites. Shell has a 51% share of the joint venture. Start-up
of operations commenced in the third quarter.
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In third
quarter, the Group acquired 100% of shares in the wholly-owned subsidiary of
ConocoPhillips, Conoco Jet in Malaysia, comprising 44 ProJet branded retail service stations and 14
vacant land sites in the key growth markets of Malaysia.
In Scandinavia, Shell has signed an agreement which will result in the rebranding of a planned 269
service stations across Norway, Sweden and Denmark.
LIQUIDITY AND CAPITAL RESOURCES
Three months ended September 30, 2007
Cash flow provided by operating activities in the three month period to September 30, 2007 was $9.1
billion compared to $10.1 billion a year ago.
Capital investment[A] for the three months ended September 30, 2007 was $6.8 billion of
which $5.3 billion was invested in the Exploration & Production and Gas & Power segments. Capital
investment in the same period of 2006 was $6.1 billion (including the minority share of Sakhalin)
of which $4.9 billion was invested in the Exploration & Production and Gas & Power segments.
Gross proceeds from divestments in the three month period to September 30, 2007 were $0.2 billion
compared to $0.3 billion a year ago.
Dividends of $0.36 per share were declared on October 25, 2007 in respect of the third quarter.
These dividends are payable on December 12, 2007. In the case of the Class B shares, the dividends
will be payable through the dividend access mechanism and are expected to be treated as UK-source
rather than Dutch-source. See the Annual Report on Form 20-F for additional information on the
dividend access mechanism.
During the third quarter 2007 $1.5 billion or 0.6% of Royal Dutch Shell shares were bought back for
cancellation.
Nine months ended September 30, 2007
Cash flow provided by operating activities in the nine month period to September 30, 2007 was $29.2
billion compared to $25.7 billion a year ago.
Cash and cash equivalents amounted to $14.1 billion at the end of the period (2006: $11.2 billion).
Total short and long-term debt amounted to $17.3 billion (2006: $14.1 billion).
Capital investment[A] for the nine months ended September 30, 2007 was $18.5 billion
(including the minority share of Sakhalin) of which $15.0 billion was invested in the Exploration &
Production and Gas & Power segments. Capital investment in the same period of 2006 (including the
minority share of Sakhalin) was $17.4 billion of which $14.6 billion was invested in the
Exploration & Production and Gas & Power segments.
In the nine months ended September 30, 2007 the Group has paid cash of $7.1 billion for the
acquisition of the shares in Shell Canada that it did not already own. As a result of this
transaction, the consolidated financial statements of Royal Dutch Shell plc reflect some $7.1
billion decrease in shareholders equity, causing a $1,639 million decrease in minority interest,
being the book value of the item acquired, with the excess of the purchase price over the book
value of $5,445 million being taken to retained earnings. Partially offsetting the cash flow impact
of the Shell Canada acquisition were increases in other minority interests.
Gross proceeds from divestments in the nine month period to September 30, 2007 were $7.7 billion
compared to $1.1 billion a year ago. Dividends of $0.36 per share were declared on May 3, 2007,
July 26, 2007 and October 25, 2007 totaling $1.08 per share in respect of the first, second and
third quarters.
During the first nine months of 2007 $2.8 billion or 1.2% of Royal Dutch Shell shares were bought
back for cancellation.
[A] |
|
Capital investment includes capital expenditure (adjusted for non-cash items and the
pre-funding of working capital within jointly controlled assets), investments in equity accounted
investments and exploration expense (excluding depreciation and release of currency translation
differences). |
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
6 |
|
Royal Dutch Shell plc
Three and nine month periods ended September 30, 2007
Unaudited Condensed Consolidated Interim Financial Statements
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
7 |
|
Condensed Consolidated Statement of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
|
Revenue[A] |
|
|
90,703 |
|
|
|
84,254 |
|
|
|
249,079 |
|
|
|
243,345 |
|
Cost of sales |
|
|
76,713 |
|
|
|
70,383 |
|
|
|
206,094 |
|
|
|
200,143 |
|
|
Gross profit |
|
|
13,990 |
|
|
|
13,871 |
|
|
|
42,985 |
|
|
|
43,202 |
|
Selling, distribution and administrative expenses |
|
|
3,843 |
|
|
|
4,126 |
|
|
|
11,741 |
|
|
|
11,968 |
|
Exploration |
|
|
608 |
|
|
|
401 |
|
|
|
1,330 |
|
|
|
932 |
|
Share of profit of equity accounted investments |
|
|
1,912 |
|
|
|
1,358 |
|
|
|
5,858 |
|
|
|
5,010 |
|
Net finance costs and other (income)/expense |
|
|
(38 |
) |
|
|
(60 |
) |
|
|
(1,416 |
) |
|
|
(168 |
) |
|
Income before taxation |
|
|
11,489 |
|
|
|
10,762 |
|
|
|
37,188 |
|
|
|
35,480 |
|
Taxation |
|
|
4,448 |
|
|
|
4,507 |
|
|
|
13,895 |
|
|
|
14,682 |
|
|
Income for the period |
|
|
7,041 |
|
|
|
6,255 |
|
|
|
23,293 |
|
|
|
20,798 |
|
|
|
|
Income attributable to minority interest |
|
|
125 |
|
|
|
313 |
|
|
|
429 |
|
|
|
639 |
|
|
Income attributable to shareholders of Royal Dutch Shell plc |
|
|
6,916 |
|
|
|
5,942 |
|
|
|
22,864 |
|
|
|
20,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
Basic earnings per share (see Note 4) |
|
|
1.10 |
|
|
|
0.93 |
|
|
|
3.64 |
|
|
|
3.13 |
|
Continuing operations |
|
|
1.10 |
|
|
|
0.93 |
|
|
|
3.64 |
|
|
|
3.13 |
|
|
Diluted earnings per share (see Note 4) |
|
|
1.10 |
|
|
|
0.93 |
|
|
|
3.63 |
|
|
|
3.12 |
|
Continuing operations |
|
|
1.10 |
|
|
|
0.93 |
|
|
|
3.63 |
|
|
|
3.12 |
|
|
[A] |
|
Revenue is stated after deducting sales taxes, excise duties and similar levies of $20,830
million in the third quarter 2007 ($57,128 million cumulatively) and $18,472 million in the third
quarter 2006 ($53,165 million cumulatively). |
The Notes on pages 12 to 21 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
8 |
|
Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Sept 30, 2007 |
|
|
Dec 31, 2006 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets |
|
|
5,307 |
|
|
|
4,808 |
|
Property, plant and equipment |
|
|
96,611 |
|
|
|
100,988 |
|
Investments: |
|
|
|
|
|
|
|
|
equity accounted investments |
|
|
28,717 |
|
|
|
20,740 |
|
financial assets |
|
|
2,987 |
|
|
|
4,493 |
|
Deferred tax |
|
|
3,375 |
|
|
|
2,968 |
|
Pre-paid pension costs |
|
|
5,045 |
|
|
|
3,926 |
|
Other |
|
|
5,903 |
|
|
|
5,468 |
|
|
|
|
|
147,945 |
|
|
|
143,391 |
|
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
|
|
27,906 |
|
|
|
23,215 |
|
Accounts receivable |
|
|
61,636 |
|
|
|
59,668 |
|
Cash and cash equivalents |
|
|
14,092 |
|
|
|
9,002 |
|
|
|
|
|
103,634 |
|
|
|
91,885 |
|
|
Total assets |
|
|
251,579 |
|
|
|
235,276 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Debt |
|
|
12,660 |
|
|
|
9,713 |
|
Deferred tax |
|
|
13,665 |
|
|
|
13,094 |
|
Retirement benefit obligations |
|
|
6,449 |
|
|
|
6,096 |
|
Other provisions |
|
|
12,467 |
|
|
|
10,355 |
|
Other |
|
|
3,797 |
|
|
|
4,325 |
|
|
|
|
|
49,038 |
|
|
|
43,583 |
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Debt |
|
|
4,683 |
|
|
|
6,060 |
|
Accounts payable and accrued liabilities |
|
|
63,224 |
|
|
|
62,556 |
|
Taxes payable |
|
|
12,144 |
|
|
|
6,021 |
|
Retirement benefit obligations |
|
|
338 |
|
|
|
319 |
|
Other provisions |
|
|
2,126 |
|
|
|
1,792 |
|
|
|
|
|
82,515 |
|
|
|
76,748 |
|
|
Total liabilities |
|
|
131,553 |
|
|
|
120,331 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Equity attributable to shareholders of Royal Dutch Shell plc |
|
|
118,194 |
|
|
|
105,726 |
|
Minority interest |
|
|
1,832 |
|
|
|
9,219 |
|
|
Total equity |
|
|
120,026 |
|
|
|
114,945 |
|
|
Total liabilities and equity |
|
|
251,579 |
|
|
|
235,276 |
|
|
The Notes on pages 12 to 21 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
9 |
|
Condensed Consolidated Statement of Changes in Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Equity attributable to shareholders of Royal Dutch Shell plc |
|
|
|
|
|
|
|
|
|
Ordinary |
|
|
Treasury |
|
|
Other |
|
|
Retained |
|
|
|
|
|
Minority |
|
|
|
|
|
|
share capital |
|
|
shares |
|
|
reserves[A] |
|
|
earnings |
|
|
Total |
|
|
interest |
|
|
Total equity |
|
|
At January 1, 2007 |
|
|
545 |
|
|
|
(3,316 |
) |
|
|
8,820 |
|
|
|
99,677 |
|
|
|
105,726 |
|
|
|
9,219 |
|
|
|
114,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(expense) recognised directly in equity |
|
|
|
|
|
|
|
|
|
|
3,513 |
|
|
|
|
|
|
|
3,513 |
|
|
|
(33 |
) |
|
|
3,480 |
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,864 |
|
|
|
22,864 |
|
|
|
429 |
|
|
|
23,293 |
|
|
Total recognised income/(expense) for the period |
|
|
|
|
|
|
|
|
|
|
3,513 |
|
|
|
22,864 |
|
|
|
26,377 |
|
|
|
396 |
|
|
|
26,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital contributions from minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
802 |
|
|
|
802 |
|
Acquisition of Shell Canada[B] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,445 |
) |
|
|
(5,445 |
) |
|
|
(1,639 |
) |
|
|
(7,084 |
) |
Partial divestment of Sakhalin[B] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,711 |
) |
|
|
(6,711 |
) |
Other changes in minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
6 |
|
|
|
(49 |
) |
|
|
(43 |
) |
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,683 |
) |
|
|
(6,683 |
) |
|
|
(186 |
) |
|
|
(6,869 |
) |
Treasury shares: net sales/(purchases) and dividends received |
|
|
|
|
|
|
752 |
|
|
|
|
|
|
|
|
|
|
|
752 |
|
|
|
|
|
|
|
752 |
|
Shares repurchased for cancellation |
|
|
(6 |
) |
|
|
|
|
|
|
6 |
|
|
|
(2,849 |
) |
|
|
(2,849 |
) |
|
|
|
|
|
|
(2,849 |
) |
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
310 |
|
|
|
|
|
|
|
310 |
|
|
|
|
|
|
|
310 |
|
|
At September 30, 2007 |
|
|
539 |
|
|
|
(2,564 |
) |
|
|
12,649 |
|
|
|
107,570 |
|
|
|
118,194 |
|
|
|
1,832 |
|
|
|
120,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2006 |
|
|
571 |
|
|
|
(3,809 |
) |
|
|
3,584 |
|
|
|
90,578 |
|
|
|
90,924 |
|
|
|
7,000 |
|
|
|
97,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(expense) recognised directly in equity |
|
|
|
|
|
|
|
|
|
|
2,528 |
|
|
|
|
|
|
|
2,528 |
|
|
|
73 |
|
|
|
2,601 |
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,159 |
|
|
|
20,159 |
|
|
|
639 |
|
|
|
20,798 |
|
|
Total recognised income/(expense) for the period |
|
|
|
|
|
|
|
|
|
|
2,528 |
|
|
|
20,159 |
|
|
|
22,687 |
|
|
|
712 |
|
|
|
23,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital contributions from minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,233 |
|
|
|
1,233 |
|
Effect of Unification |
|
|
|
|
|
|
|
|
|
|
154 |
|
|
|
|
|
|
|
154 |
|
|
|
|
|
|
|
154 |
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,012 |
) |
|
|
(6,012 |
) |
|
|
(258 |
) |
|
|
(6,270 |
) |
Treasury shares: net sales/(purchases) and dividends received |
|
|
|
|
|
|
375 |
|
|
|
|
|
|
|
|
|
|
|
375 |
|
|
|
|
|
|
|
375 |
|
Shares repurchased for cancellation |
|
|
(22 |
) |
|
|
|
|
|
|
22 |
|
|
|
(6,811 |
) |
|
|
(6,811 |
) |
|
|
|
|
|
|
(6,811 |
) |
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
287 |
|
|
|
|
|
|
|
287 |
|
|
|
|
|
|
|
287 |
|
|
At September 30, 2006 |
|
|
549 |
|
|
|
(3,434 |
) |
|
|
6,575 |
|
|
|
97,914 |
|
|
|
101,604 |
|
|
|
8,687 |
|
|
|
110,291 |
|
|
|
|
|
[A] |
|
See Note 2. |
|
[B] |
|
See Note 3. |
The Notes on pages 12 to 21 are an integral part of
these Consolidated Financial Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
10 |
|
Condensed Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Nine months ended September 30, |
|
|
|
2007 |
|
|
2006 |
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Income for the period |
|
|
23,293 |
|
|
|
20,798 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Current taxation |
|
|
14,525 |
|
|
|
14,181 |
|
Interest (income)/expense |
|
|
454 |
|
|
|
498 |
|
Depreciation, depletion and amortisation |
|
|
9,340 |
|
|
|
9,309 |
|
(Profit)/loss on sale of assets |
|
|
(1,550 |
) |
|
|
(279 |
) |
Decrease/(increase) in net working capital |
|
|
(2,831 |
) |
|
|
(4,695 |
) |
Share of profit of equity accounted investments |
|
|
(5,858 |
) |
|
|
(5,010 |
) |
Dividends received from equity accounted investments |
|
|
4,673 |
|
|
|
4,066 |
|
Deferred taxation and other provisions |
|
|
(47 |
) |
|
|
1,614 |
|
Other |
|
|
(777 |
) |
|
|
(317 |
) |
|
Cash flow from operating activities (pre-tax) |
|
|
41,222 |
|
|
|
40,165 |
|
Taxation paid |
|
|
(12,054 |
) |
|
|
(14,428 |
) |
|
Cash flow from operating activities |
|
|
29,168 |
|
|
|
25,737 |
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
(16,563 |
) |
|
|
(15,857 |
) |
Investments in equity accounted investments |
|
|
(1,333 |
) |
|
|
(534 |
) |
Proceeds from sale of assets |
|
|
6,824 |
|
|
|
1,006 |
|
Proceeds from sale of equity accounted investments |
|
|
451 |
|
|
|
81 |
|
Proceeds from sale of/(additions to) financial assets |
|
|
1,175 |
|
|
|
(33 |
) |
Interest received |
|
|
872 |
|
|
|
759 |
|
|
Cash flow from investing activities |
|
|
(8,574 |
) |
|
|
(14,578 |
) |
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net increase/(decrease) in debt with maturity period within three months |
|
|
(290 |
) |
|
|
(49 |
) |
Other debt: |
|
|
|
|
|
|
|
|
New borrowings |
|
|
4,396 |
|
|
|
2,073 |
|
Repayments |
|
|
(3,122 |
) |
|
|
(1,360 |
) |
Interest paid |
|
|
(923 |
) |
|
|
(952 |
) |
Change in minority interest |
|
|
(6,705 |
) |
|
|
1,070 |
|
Net issue/(repurchase) of shares |
|
|
(2,849 |
) |
|
|
(6,657 |
) |
Dividends paid to: |
|
|
|
|
|
|
|
|
Shareholders of Royal Dutch Shell plc |
|
|
(6,683 |
) |
|
|
(6,012 |
) |
Minority interest |
|
|
(186 |
) |
|
|
(258 |
) |
Treasury shares: net sales/(purchases) and dividends received |
|
|
752 |
|
|
|
375 |
|
|
Cash flow from financing activities |
|
|
(15,610 |
) |
|
|
(11,770 |
) |
|
Currency translation differences relating to cash and cash equivalents |
|
|
106 |
|
|
|
121 |
|
|
Increase/(decrease) in cash and cash equivalents |
|
|
5,090 |
|
|
|
(490 |
) |
Cash and cash equivalents at January 1 |
|
|
9,002 |
|
|
|
11,730 |
|
|
Cash and cash equivalents at September 30 |
|
|
14,092 |
|
|
|
11,240 |
|
|
The Notes on pages 12 to 21 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
11 |
|
Notes to the Condensed Consolidated Interim Financial Statements
1. Basis of preparation
These Condensed Consolidated Interim Financial Statements of Royal Dutch Shell and its subsidiaries
(collectively known as the Shell Group, Group or Group Companies) are prepared on the same
basis as, and should be read in conjunction with, the Annual Report on Form 20-F for the year ended
December 31, 2006 (pages 108 to 112) as filed with the Securities and Exchange Commission.
With effect from the first quarter 2007, Wind and Solar are reported within the Gas & Power segment
and all other activities within Other industry segments are reported within the Corporate segment.
Prior period financial statements have been reclassified accordingly.
Purchases of minority interest in Group companies, and disposals of shares in Group companies
whilst retaining control, are accounted for as transactions within equity. The difference between
the purchase price/disposal proceeds and the relevant proportion of the minority interest is
reported in retained earnings as a movement in the Group share of equity.
The three and nine month periods ended September 30, 2007 Condensed Consolidated Interim Financial
Statements of Royal Dutch Shell and its consolidated subsidiaries have been prepared in accordance
with International Accounting Standard (IAS) 34 Interim Financial Reporting.
2. Other reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger |
|
|
redemption |
|
|
Share premium |
|
|
Share plan |
|
|
|
|
|
|
|
|
|
reserve[A] |
|
|
reserve |
|
|
reserve |
|
|
reserve |
|
|
Other |
|
|
Total |
|
|
At January 1, 2007
|
|
|
3,444 |
|
|
|
39 |
|
|
|
154 |
|
|
|
736 |
|
|
|
4,447 |
|
|
|
8,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative currency translation differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,326 |
|
|
|
4,326 |
|
Unrealised gains/(losses) on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(734 |
) |
|
|
(734 |
) |
Unrealised gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(79 |
) |
|
|
(79 |
) |
|
Income/(expense) recognised directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,513 |
|
|
|
3,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased for cancellation
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
Share-based compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
310 |
|
|
|
|
|
|
|
310 |
|
|
At September 30, 2007
|
|
|
3,444 |
|
|
|
45 |
|
|
|
154 |
|
|
|
1,046 |
|
|
|
7,960 |
|
|
|
12,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2006
|
|
|
3,444 |
|
|
|
13 |
|
|
|
|
|
|
|
351 |
|
|
|
(224 |
) |
|
|
3,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative currency translation differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,161 |
|
|
|
2,161 |
|
Unrealised gains/(losses) on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
255 |
|
|
|
255 |
|
Unrealised gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
112 |
|
|
|
112 |
|
|
Income/(expense) recognised directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,528 |
|
|
|
2,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Unification
|
|
|
|
|
|
|
|
|
|
|
154 |
|
|
|
|
|
|
|
|
|
|
|
154 |
|
Shares repurchased for cancellation
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22 |
|
Share-based compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
287 |
|
|
|
|
|
|
|
287 |
|
|
At September 30, 2006
|
|
|
3,444 |
|
|
|
35 |
|
|
|
154 |
|
|
|
638 |
|
|
|
2,304 |
|
|
|
6,575 |
|
|
|
|
|
[A] |
|
The merger reserve was established as, in 2005, Royal Dutch Shell plc (Royal Dutch Shell)
became the single parent company of Royal Dutch Petroleum Company (Royal Dutch) and of Shell
Transport and Trading Company Limited (previously known as The Shell Transport and Trading
Company, p.l.c.) (Shell Transport) the two former public parent companies of the Group. It
relates primarily to the difference between the nominal value of Royal Dutch Shell plc shares
issued and the nominal value of Royal Dutch Petroleum Company and Shell Transport and Trading
Company Limited shares received. |
3. Equity
Consistent with the accounting policies disclosed in Note 1, the acquisition of the minority
interest in Shell Canada in 2007 was accounted for as a transaction between shareholders with the
impact reflected in the equity section of the balance sheet. The Group paid cash of $7.1 billion
for shares in Shell Canada that it did not already own. As a result of this transaction, the
consolidated financial statements of Royal Dutch Shell plc, with effect of the second quarter 2007,
reflect some $7.1 billion decrease in shareholders equity, causing a $1,639 million decrease in
minority interest, being the book value of the item acquired, with the excess of the purchase price
over the book value of $5,445 million being taken to retained earnings. In addition to the share
purchase price, $0.4 billion of Shell Canada share options were exchanged for a corresponding
amount of Royal Dutch Shell plc share options.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
12 |
|
On April 18, 2007, Royal Dutch Shell completed the sale and purchase agreement with OAO Gazprom for
the transfer of 50% of its shares in Sakhalin Energy Investment Company Ltd, representing 27.5% of
the total outstanding shares, for a sales price of $4.1 billion. As of the end of the first quarter
2007, 100% of the Sakhalin project net assets of approximately
$15 billion (property, plant and equipment $15.7 billion) were presented in the
Group balance sheet, offset by a minority interest of $6.7 billion representing the partners 45%
interest in the project. As a result of this transaction, the consolidated financial statements
of Royal Dutch Shell plc no longer include the separate assets, liabilities and associated minority
interest of the Sakhalin project and resulted in a net gain of $0.2 billion which is included in
the income statement. The Groups net asset position in the project is now accounted for as a
single line item equity accounted investment.
4. Earnings per share
Basic earnings per share amounts are calculated by dividing the income attributable to the
shareholders of Royal Dutch Shell plc for the period by the weighted average number of Class A and
B shares outstanding during the period.
The diluted earnings per share is based on the same income figures. The weighted average number of
shares outstanding during the period is adjusted for the number of shares related to share option
schemes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share are identical for Class A and Class B shares. |
|
|
|
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Income attributable to shareholders of Royal
Dutch Shell plc ($ million) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
6,916 |
|
|
|
5,942 |
|
|
|
22,864 |
|
|
|
20,159 |
|
Continuing operations |
|
|
6,916 |
|
|
|
5,942 |
|
|
|
22,864 |
|
|
|
20,159 |
|
|
Basic weighted average number of ordinary shares |
|
|
6,261,705,157 |
|
|
|
6,373,944,405 |
|
|
|
6,276,730,073 |
|
|
|
6,446,602,707 |
|
Diluted weighted average number of ordinary shares |
|
|
6,285,823,218 |
|
|
|
6,399,752,630 |
|
|
|
6,296,501,450 |
|
|
|
6,470,891,921 |
|
|
5. Information by business segment
With effect from the first quarter 2007, Wind and Solar are reported within the Gas & Power segment
and all other activities within Other industry segments are reported within the Corporate segment.
Prior period financial statements have been reclassified accordingly.
Three months ended September 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Eliminations |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
third party |
|
|
7,192 |
|
|
|
3,816 |
|
|
|
69,220 |
|
|
|
10,465 |
|
|
|
10 |
|
|
|
|
|
|
|
90,703 |
|
inter-segment |
|
|
10,214 |
|
|
|
222 |
|
|
|
924 |
|
|
|
1,285 |
|
|
|
|
|
|
|
(12,645 |
) |
|
|
|
|
|
Total |
|
|
17,406 |
|
|
|
4,038 |
|
|
|
70,144 |
|
|
|
11,750 |
|
|
|
10 |
|
|
|
(12,645 |
) |
|
|
90,703 |
|
|
Segment result |
|
|
6,866 |
|
|
|
116 |
|
|
|
2,197 |
|
|
|
328 |
|
|
|
32 |
|
|
|
|
|
|
|
9,539 |
|
Share of profit of equity accounted investments |
|
|
733 |
|
|
|
471 |
|
|
|
515 |
|
|
|
174 |
|
|
|
19 |
|
|
|
|
|
|
|
1,912 |
|
Net finance
costs and other (income)/expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38 |
) |
Taxation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,448 |
|
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,041 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
13 |
|
Three months ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Eliminations |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
third party |
|
|
4,864 |
|
|
|
3,519 |
|
|
|
66,679 |
|
|
|
9,313 |
|
|
|
(121 |
) |
|
|
|
|
|
|
84,254 |
|
inter-segment |
|
|
8,243 |
|
|
|
260 |
|
|
|
751 |
|
|
|
1,145 |
|
|
|
|
|
|
|
(10,399 |
) |
|
|
|
|
|
Total |
|
|
13,107 |
|
|
|
3,779 |
|
|
|
67,430 |
|
|
|
10,458 |
|
|
|
(121 |
) |
|
|
(10,399 |
) |
|
|
84,254 |
|
|
Segment result |
|
|
7,655 |
|
|
|
452 |
|
|
|
1,200 |
|
|
|
113 |
|
|
|
(76 |
) |
|
|
|
|
|
|
9,344 |
|
Share of profit of equity accounted investments |
|
|
574 |
|
|
|
375 |
|
|
|
291 |
|
|
|
155 |
|
|
|
(37 |
) |
|
|
|
|
|
|
1,358 |
|
Net finance
costs and other (income)/expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(60 |
) |
Taxation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,507 |
|
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,255 |
|
|
Nine months ended September 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Eliminations |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
third party |
|
|
14,247 |
|
|
|
11,352 |
|
|
|
194,000 |
|
|
|
29,430 |
|
|
|
50 |
|
|
|
|
|
|
|
249,079 |
|
inter-segment |
|
|
28,506 |
|
|
|
757 |
|
|
|
2,410 |
|
|
|
3,408 |
|
|
|
|
|
|
|
(35,081 |
) |
|
|
|
|
|
Total |
|
|
42,753 |
|
|
|
12,109 |
|
|
|
196,410 |
|
|
|
32,838 |
|
|
|
50 |
|
|
|
(35,081 |
) |
|
|
249,079 |
|
|
Segment result |
|
|
19,610 |
|
|
|
280 |
|
|
|
8,778 |
|
|
|
1,343 |
|
|
|
(97 |
) |
|
|
|
|
|
|
29,914 |
|
Share of profit of equity accounted investments |
|
|
2,305 |
|
|
|
1,319 |
|
|
|
1,706 |
|
|
|
529 |
|
|
|
(1 |
) |
|
|
|
|
|
|
5,858 |
|
Net finance
costs and other (income)/expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,416 |
) |
Taxation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,895 |
|
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,293 |
|
|
Nine months ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Eliminations |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
third party |
|
|
12,837 |
|
|
|
12,026 |
|
|
|
191,072 |
|
|
|
27,234 |
|
|
|
176 |
|
|
|
|
|
|
|
243,345 |
|
inter-segment |
|
|
25,368 |
|
|
|
1,037 |
|
|
|
2,151 |
|
|
|
3,556 |
|
|
|
|
|
|
|
(32,112 |
) |
|
|
|
|
|
Total |
|
|
38,205 |
|
|
|
13,063 |
|
|
|
193,223 |
|
|
|
30,790 |
|
|
|
176 |
|
|
|
(32,112 |
) |
|
|
243,345 |
|
|
Segment result |
|
|
22,413 |
|
|
|
1,025 |
|
|
|
6,892 |
|
|
|
794 |
|
|
|
(822 |
) |
|
|
|
|
|
|
30,302 |
|
Share of profit of equity accounted investments |
|
|
2,271 |
|
|
|
1,095 |
|
|
|
1,431 |
|
|
|
301 |
|
|
|
(88 |
) |
|
|
|
|
|
|
5,010 |
|
Net finance
costs and other (income)/expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(168 |
) |
Taxation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,682 |
|
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,798 |
|
|
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 Groups annual Financial
Statements to comply with SFAS 131.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
14 |
|
Income for the period by segment Three months ended September 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
& |
|
|
Gas & |
|
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Power |
|
|
Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Segment
result - IAS 14 |
|
|
6,866 |
|
|
|
116 |
|
|
|
2,197 |
|
|
|
328 |
|
|
|
32 |
|
|
|
9,539 |
|
Share of profit of equity accounted investments |
|
|
733 |
|
|
|
471 |
|
|
|
515 |
|
|
|
174 |
|
|
|
19 |
|
|
|
1,912 |
|
Net finance costs and other (income)/expense |
|
|
114 |
|
|
|
(2 |
) |
|
|
|
|
|
|
1 |
|
|
|
(151 |
) |
|
|
(38 |
) |
Taxation |
|
|
3,975 |
|
|
|
21 |
|
|
|
559 |
|
|
|
104 |
|
|
|
(211 |
) |
|
|
4,448 |
|
|
Segment result OFR |
|
|
3,510 |
|
|
|
568 |
|
|
|
2,153 |
|
|
|
397 |
|
|
|
413 |
|
|
|
7,041 |
|
|
Income for the period by segment Three months ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
& |
|
|
Gas & |
|
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Power |
|
|
Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Segment
result - IAS 14 |
|
|
7,655 |
|
|
|
452 |
|
|
|
1,200 |
|
|
|
113 |
|
|
|
(76 |
) |
|
|
9,344 |
|
Share of profit of equity accounted investments |
|
|
574 |
|
|
|
375 |
|
|
|
291 |
|
|
|
155 |
|
|
|
(37 |
) |
|
|
1,358 |
|
Net finance costs and other (income)/expense |
|
|
79 |
|
|
|
(59 |
) |
|
|
(10 |
) |
|
|
2 |
|
|
|
(72 |
) |
|
|
(60 |
) |
Taxation |
|
|
4,407 |
|
|
|
105 |
|
|
|
287 |
|
|
|
15 |
|
|
|
(307 |
) |
|
|
4,507 |
|
|
Segment result OFR |
|
|
3,743 |
|
|
|
781 |
|
|
|
1,214 |
|
|
|
251 |
|
|
|
266 |
|
|
|
6,255 |
|
|
Income for the period by segment Nine months ended September 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
& |
|
|
Gas & |
|
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Power |
|
|
Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Segment
result - IAS 14 |
|
|
19,610 |
|
|
|
280 |
|
|
|
8,778 |
|
|
|
1,343 |
|
|
|
(97 |
) |
|
|
29,914 |
|
Share of profit of equity accounted investments |
|
|
2,305 |
|
|
|
1,319 |
|
|
|
1,706 |
|
|
|
529 |
|
|
|
(1 |
) |
|
|
5,858 |
|
Net finance costs and other (income)/expense |
|
|
336 |
|
|
|
(740 |
) |
|
|
(22 |
) |
|
|
18 |
|
|
|
(1,008 |
) |
|
|
(1,416 |
) |
Taxation |
|
|
11,260 |
|
|
|
189 |
|
|
|
2,623 |
|
|
|
304 |
|
|
|
(481 |
) |
|
|
13,895 |
|
|
Segment result OFR |
|
|
10,319 |
|
|
|
2,150 |
|
|
|
7,883 |
|
|
|
1,550 |
|
|
|
1,391 |
|
|
|
23,293 |
|
|
Income for the period by segment Nine months ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
& |
|
|
Gas & |
|
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Power |
|
|
Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Segment
result - IAS 14 |
|
|
22,413 |
|
|
|
1,025 |
|
|
|
6,892 |
|
|
|
794 |
|
|
|
(822 |
) |
|
|
30,302 |
|
Share of profit of equity accounted investments |
|
|
2,271 |
|
|
|
1,095 |
|
|
|
1,431 |
|
|
|
301 |
|
|
|
(88 |
) |
|
|
5,010 |
|
Net finance costs and other (income)/expense |
|
|
246 |
|
|
|
(209 |
) |
|
|
8 |
|
|
|
9 |
|
|
|
(222 |
) |
|
|
(168 |
) |
Taxation |
|
|
12,953 |
|
|
|
275 |
|
|
|
1,981 |
|
|
|
206 |
|
|
|
(733 |
) |
|
|
14,682 |
|
|
Segment result OFR |
|
|
11,485 |
|
|
|
2,054 |
|
|
|
6,334 |
|
|
|
880 |
|
|
|
45 |
|
|
|
20,798 |
|
|
6. Ordinary share capital
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
September 30, 2007 |
|
|
December 31, 2006 |
|
|
Allotted, called up and fully paid |
|
|
|
|
|
|
|
|
Class A ordinary shares |
|
|
306 |
|
|
|
312 |
|
Class B ordinary shares |
|
|
233 |
|
|
|
233 |
|
Sterling deferred |
|
|
|
|
|
|
|
|
|
|
|
|
539 |
|
|
|
545 |
|
|
The number of shares outstanding at September 30, 2007 and December 31, 2006, were as follows:
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
September 30, 2007 |
|
|
December 31, 2006 |
|
|
Shares of
0.07 each |
|
|
|
|
|
|
|
|
Class A |
|
|
3,621,935,000 |
|
|
|
3,695,780,000 |
|
Class B |
|
|
2,759,360,000 |
|
|
|
2,759,360,000 |
|
Shares of
£1 each |
|
|
|
|
|
|
|
|
Sterling deferred |
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
15 |
|
7. Reconciliation from IFRS to US GAAP
Reconciliation of statement of income from IFRS to US GAAP Nine months ended September 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
|
|
|
|
|
|
|
|
|
Minority |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
Reclassi- |
|
|
Retirement |
|
|
Share based |
|
|
translation |
|
|
|
|
|
|
Reversals of |
|
|
interest |
|
|
|
|
|
|
|
|
|
IFRS |
|
|
operations |
|
|
fications |
|
|
benefits |
|
|
compensation |
|
|
differences |
|
|
Impairments |
|
|
impairments |
|
|
buy-out |
|
|
Other |
|
|
US GAAP |
|
|
Revenue |
|
|
249,079 |
|
|
|
(7,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14 |
) |
|
|
241,782 |
|
Cost of sales |
|
|
206,094 |
|
|
|
(6,293 |
) |
|
|
(416 |
) |
|
|
346 |
|
|
|
5 |
|
|
|
207 |
|
|
|
(64 |
) |
|
|
143 |
|
|
|
151 |
|
|
|
38 |
|
|
|
200,211 |
|
|
Gross profit |
|
|
42,985 |
|
|
|
(990 |
) |
|
|
416 |
|
|
|
(346 |
) |
|
|
(5 |
) |
|
|
(207 |
) |
|
|
64 |
|
|
|
(143 |
) |
|
|
(151 |
) |
|
|
(52 |
) |
|
|
41,571 |
|
Selling, distribution and adminstrative expenses |
|
|
11,741 |
|
|
|
(274 |
) |
|
|
|
|
|
|
403 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9 |
) |
|
|
11,869 |
|
Exploration |
|
|
1,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,330 |
|
Research and development |
|
|
|
|
|
|
|
|
|
|
781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
781 |
|
Share of profit of equity accounted investments |
|
|
5,858 |
|
|
|
(2 |
) |
|
|
|
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
9 |
|
|
|
5,866 |
|
Net finance
costs and other (income)/expense |
|
|
(1,416 |
) |
|
|
(2 |
) |
|
|
(365 |
) |
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(80 |
) |
|
|
(1,857 |
) |
|
Income before taxation |
|
|
37,188 |
|
|
|
(716 |
) |
|
|
|
|
|
|
(770 |
) |
|
|
(5 |
) |
|
|
(221 |
) |
|
|
64 |
|
|
|
(121 |
) |
|
|
(151 |
) |
|
|
46 |
|
|
|
35,314 |
|
Taxation |
|
|
13,895 |
|
|
|
(280 |
) |
|
|
|
|
|
|
(365 |
) |
|
|
3 |
|
|
|
|
|
|
|
(18 |
) |
|
|
|
|
|
|
(43 |
) |
|
|
138 |
|
|
|
13,330 |
|
Income attributable to minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
428 |
|
|
|
428 |
|
|
Income from continuing operations |
|
|
23,293 |
|
|
|
(436 |
) |
|
|
|
|
|
|
(405 |
) |
|
|
(8 |
) |
|
|
(221 |
) |
|
|
82 |
|
|
|
(121 |
) |
|
|
(108 |
) |
|
|
(520 |
) |
|
|
21,556 |
|
Income/(loss) from discontinued operations |
|
|
|
|
|
|
436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
436 |
|
|
Income for the period |
|
|
23,293 |
|
|
|
|
|
|
|
|
|
|
|
(405 |
) |
|
|
(8 |
) |
|
|
(221 |
) |
|
|
82 |
|
|
|
(121 |
) |
|
|
(108 |
) |
|
|
(520 |
) |
|
|
21,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to minority interest |
|
|
429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(429 |
) |
|
|
|
|
|
Income attibutable to shareholders of Royal
Dutch Shell plc |
|
|
22,864 |
|
|
|
|
|
|
|
|
|
|
|
(405 |
) |
|
|
(8 |
) |
|
|
(221 |
) |
|
|
82 |
|
|
|
(121 |
) |
|
|
(108 |
) |
|
|
(91 |
) |
|
|
21,992 |
|
|
Earnings per share under US GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Basic earnings per share |
|
|
1.08 |
|
|
|
0.89 |
|
|
|
3.50 |
|
|
|
3.07 |
|
Continuing operations |
|
|
1.08 |
|
|
|
0.89 |
|
|
|
3.43 |
|
|
|
3.05 |
|
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
0.07 |
|
|
|
0.02 |
|
|
Diluted earnings per share |
|
|
1.07 |
|
|
|
0.89 |
|
|
|
3.49 |
|
|
|
3.06 |
|
Continuing operations |
|
|
1.07 |
|
|
|
0.89 |
|
|
|
3.42 |
|
|
|
3.04 |
|
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
0.07 |
|
|
|
0.02 |
|
|
The principles of the calculation and the number of shares used are given in Note 4.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
16 |
|
Reconciliation of balance sheet from IFRS to US GAAP as at September 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
|
|
|
|
Retirement |
|
|
|
|
|
|
Reversals of |
|
|
|
|
|
|
Minority interest |
|
|
|
|
|
|
|
|
|
IFRS |
|
|
benefits |
|
|
Impairments |
|
|
impairments |
|
|
Investments |
|
|
buy-out |
|
|
Other |
|
|
US GAAP |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
5,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
907 |
|
|
|
2 |
|
|
|
6,216 |
|
Property, plant and equipment |
|
|
96,611 |
|
|
|
|
|
|
|
682 |
|
|
|
(143 |
) |
|
|
|
|
|
|
7,173 |
|
|
|
51 |
|
|
|
104,374 |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity accounted investments |
|
|
28,717 |
|
|
|
(105 |
) |
|
|
|
|
|
|
(257 |
) |
|
|
(82 |
) |
|
|
|
|
|
|
134 |
|
|
|
28,407 |
|
financial assets |
|
|
2,987 |
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
(1,153 |
) |
|
|
|
|
|
|
32 |
|
|
|
1,857 |
|
Deferred tax |
|
|
3,375 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(333 |
) |
|
|
3,086 |
|
Other |
|
|
10,948 |
|
|
|
6,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(96 |
) |
|
|
16,914 |
|
|
|
|
|
147,945 |
|
|
|
5,992 |
|
|
|
682 |
|
|
|
(400 |
) |
|
|
(1,235 |
) |
|
|
8,080 |
|
|
|
(210 |
) |
|
|
160,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
27,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,906 |
|
Accounts receivable |
|
|
61,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
61,638 |
|
Cash and cash equivalents |
|
|
14,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,092 |
|
|
|
|
|
103,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
103,636 |
|
|
Total assets |
|
|
251,579 |
|
|
|
5,992 |
|
|
|
682 |
|
|
|
(400 |
) |
|
|
(1,235 |
) |
|
|
8,080 |
|
|
|
(208 |
) |
|
|
264,490 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
12,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(119 |
) |
|
|
12,541 |
|
Deferred tax |
|
|
13,665 |
|
|
|
1,463 |
|
|
|
204 |
|
|
|
(94 |
) |
|
|
|
|
|
|
2,051 |
|
|
|
(126 |
) |
|
|
17,163 |
|
Provisions |
|
|
18,916 |
|
|
|
885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(78 |
) |
|
|
19,723 |
|
Other |
|
|
3,797 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,776 |
|
|
|
5,619 |
|
|
|
|
|
49,038 |
|
|
|
2,394 |
|
|
|
204 |
|
|
|
(94 |
) |
|
|
|
|
|
|
2,051 |
|
|
|
1,453 |
|
|
|
55,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
4,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6 |
) |
|
|
4,677 |
|
Accounts payable, accrued liabilities and provisions |
|
|
65,688 |
|
|
|
(82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
471 |
|
|
|
66,077 |
|
Taxes payable |
|
|
12,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,872 |
) |
|
|
10,272 |
|
|
|
|
|
82,515 |
|
|
|
(82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,407 |
) |
|
|
81,026 |
|
|
Total liabilities |
|
|
131,553 |
|
|
|
2,312 |
|
|
|
204 |
|
|
|
(94 |
) |
|
|
|
|
|
|
2,051 |
|
|
|
46 |
|
|
|
136,072 |
|
|
Minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,837 |
|
|
|
1,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to shareholders of Royal Dutch
Shell plc |
|
|
118,194 |
|
|
|
3,680 |
|
|
|
478 |
|
|
|
(306 |
) |
|
|
(1,235 |
) |
|
|
6,029 |
|
|
|
(259 |
) |
|
|
126,581 |
|
Minority interest |
|
|
1,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,832 |
) |
|
|
|
|
|
Total equity |
|
|
120,026 |
|
|
|
3,680 |
|
|
|
478 |
|
|
|
(306 |
) |
|
|
(1,235 |
) |
|
|
6,029 |
|
|
|
(2,091 |
) |
|
|
126,581 |
|
|
Total liabilities and equity |
|
|
251,579 |
|
|
|
5,992 |
|
|
|
682 |
|
|
|
(400 |
) |
|
|
(1,235 |
) |
|
|
8,080 |
|
|
|
(208 |
) |
|
|
264,490 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
17 |
|
Reconciliation of statement of income from IFRS to US GAAP Nine months ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
Reclassi- |
|
|
Retirement |
|
|
Share based |
|
|
translation |
|
|
|
|
|
|
Reversals of |
|
|
|
|
|
|
|
|
|
IFRS |
|
|
operations |
|
|
fications |
|
|
benefits |
|
|
compensation |
|
|
differences |
|
|
Impairments |
|
|
Impairments |
|
|
Other |
|
|
US GAAP |
|
|
Revenue |
|
|
243,345 |
|
|
|
(7,550 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
|
|
|
235,811 |
|
Cost of sales |
|
|
200,143 |
|
|
|
(7,082 |
) |
|
|
(296 |
) |
|
|
371 |
|
|
|
(10 |
) |
|
|
70 |
|
|
|
30 |
|
|
|
(105 |
) |
|
|
|
|
|
|
193,121 |
|
|
Gross profit |
|
|
43,202 |
|
|
|
(468 |
) |
|
|
296 |
|
|
|
(371 |
) |
|
|
10 |
|
|
|
(70 |
) |
|
|
(30 |
) |
|
|
105 |
|
|
|
16 |
|
|
|
42,690 |
|
Selling, distribution and adminstrative expenses |
|
|
11,968 |
|
|
|
(264 |
) |
|
|
|
|
|
|
194 |
|
|
|
|
|
|
|
(39 |
) |
|
|
|
|
|
|
|
|
|
|
(15 |
) |
|
|
11,844 |
|
Exploration |
|
|
932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
932 |
|
Research and development |
|
|
|
|
|
|
|
|
|
|
557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
557 |
|
Share of profit of equity accounted investments |
|
|
5,010 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24 |
|
|
|
10 |
|
|
|
5,045 |
|
Net finance
costs and other (income)/expense |
|
|
(168 |
) |
|
|
(5 |
) |
|
|
(261 |
) |
|
|
|
|
|
|
|
|
|
|
120 |
|
|
|
|
|
|
|
|
|
|
|
(25 |
) |
|
|
(339 |
) |
|
Income before taxation |
|
|
35,480 |
|
|
|
(199 |
) |
|
|
|
|
|
|
(564 |
) |
|
|
10 |
|
|
|
(151 |
) |
|
|
(30 |
) |
|
|
129 |
|
|
|
66 |
|
|
|
34,741 |
|
Taxation |
|
|
14,682 |
|
|
|
(44 |
) |
|
|
|
|
|
|
(213 |
) |
|
|
(50 |
) |
|
|
|
|
|
|
(10 |
) |
|
|
(1 |
) |
|
|
116 |
|
|
|
14,480 |
|
Income attributable to minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
639 |
|
|
|
639 |
|
|
Income from continuing operations |
|
|
20,798 |
|
|
|
(155 |
) |
|
|
|
|
|
|
(351 |
) |
|
|
60 |
|
|
|
(151 |
) |
|
|
(20 |
) |
|
|
130 |
|
|
|
(689 |
) |
|
|
19,622 |
|
Income/ (loss) from discontinued operations |
|
|
|
|
|
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155 |
|
|
Income for the period |
|
|
20,798 |
|
|
|
|
|
|
|
|
|
|
|
(351 |
) |
|
|
60 |
|
|
|
(151 |
) |
|
|
(20 |
) |
|
|
130 |
|
|
|
(689 |
) |
|
|
19,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to minority interest |
|
|
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(639 |
) |
|
|
|
|
|
Income attibutable to shareholders
of Royal Dutch Shell plc |
|
|
20,159 |
|
|
|
|
|
|
|
|
|
|
|
(351 |
) |
|
|
60 |
|
|
|
(151 |
) |
|
|
(20 |
) |
|
|
130 |
|
|
|
(50 |
) |
|
|
19,777 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
18 |
|
Reconciliation of balance sheet from IFRS to US GAAP as at December 31, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
IFRS |
|
|
Retirement benefits |
|
|
Impairments |
|
|
Reversals of impairments |
|
|
Investments |
|
|
Other |
|
|
US GAAP |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
4,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
4,810 |
|
Property, plant and equipment |
|
|
100,988 |
|
|
|
|
|
|
|
613 |
|
|
|
|
|
|
|
|
|
|
|
(38 |
) |
|
|
101,563 |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity accounted investments |
|
|
20,740 |
|
|
|
(80 |
) |
|
|
|
|
|
|
(290 |
) |
|
|
(82 |
) |
|
|
83 |
|
|
|
20,371 |
|
financial assets |
|
|
4,493 |
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
(1,232 |
) |
|
|
37 |
|
|
|
3,290 |
|
Deferred tax |
|
|
2,968 |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(264 |
) |
|
|
2,809 |
|
Other |
|
|
9,394 |
|
|
|
6,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(128 |
) |
|
|
15,357 |
|
|
|
|
|
143,391 |
|
|
|
6,108 |
|
|
|
613 |
|
|
|
(290 |
) |
|
|
(1,314 |
) |
|
|
(308 |
) |
|
|
148,200 |
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
23,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,215 |
|
Accounts receivable |
|
|
59,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,668 |
|
Cash and cash equivalents |
|
|
9,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,002 |
|
|
|
|
|
91,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,885 |
|
|
Total assets |
|
|
235,276 |
|
|
|
6,108 |
|
|
|
613 |
|
|
|
(290 |
) |
|
|
(1,314 |
) |
|
|
(308 |
) |
|
|
240,085 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
9,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(125 |
) |
|
|
9,588 |
|
Deferred tax |
|
|
13,094 |
|
|
|
1,604 |
|
|
|
221 |
|
|
|
(105 |
) |
|
|
|
|
|
|
35 |
|
|
|
14,849 |
|
Provisions |
|
|
16,451 |
|
|
|
1,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(234 |
) |
|
|
17,251 |
|
Other |
|
|
4,325 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169 |
|
|
|
4,540 |
|
|
|
|
|
43,583 |
|
|
|
2,684 |
|
|
|
221 |
|
|
|
(105 |
) |
|
|
|
|
|
|
(155 |
) |
|
|
46,228 |
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
|
6,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43 |
) |
|
|
6,017 |
|
Accounts payable, accrued liabilities and provisions |
|
|
64,667 |
|
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19 |
|
|
|
64,603 |
|
Taxes payable |
|
|
6,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
6,022 |
|
|
|
|
|
76,748 |
|
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23 |
) |
|
|
76,642 |
|
|
Total liabilities |
|
|
120,331 |
|
|
|
2,601 |
|
|
|
221 |
|
|
|
(105 |
) |
|
|
|
|
|
|
(178 |
) |
|
|
122,870 |
|
|
Minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,197 |
|
|
|
9,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to shareholders of Royal Dutch Shell plc |
|
|
105,726 |
|
|
|
3,534 |
|
|
|
392 |
|
|
|
(185 |
) |
|
|
(1,313 |
) |
|
|
(136 |
) |
|
|
108,018 |
|
Minority interest |
|
|
9,219 |
|
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(9,191 |
) |
|
|
|
|
|
Total equity |
|
|
114,945 |
|
|
|
3,507 |
|
|
|
392 |
|
|
|
(185 |
) |
|
|
(1,314 |
) |
|
|
(9,327 |
) |
|
|
108,018 |
|
|
Total liabilities and equity |
|
|
235,276 |
|
|
|
6,108 |
|
|
|
613 |
|
|
|
(290 |
) |
|
|
(1,314 |
) |
|
|
(308 |
) |
|
|
240,085 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
19 |
|
The
Condensed Consolidated Interim Financial Statements of the Shell Group are prepared in accordance with
IFRS, which differs in certain respects from US Generally Accepted Accounting Principles (US GAAP).
Discontinued operations
The definition of activities classified as discontinued operations differs from that under IFRS.
Under IFRS the activity must be a separate major line of business or geographical area of
operations and equity accounted or other investments are included in this classification. Under US
GAAP this definition is broadened to include a component of an entity (rather than a separate major
line of business or geographical area of operations) but equity accounted or other investments are
excluded. As a result, all of the items presented as discontinued operations in 2007 and 2006 under
US GAAP are included within continuing operations under IFRS. In 2007 and 2006 in Oil Products
certain refineries have been classified as held for sale and are reported under US GAAP as
discontinued operations.
Reclassifications
Reclassifications are differences in line item allocation under IFRS, which do not affect equity or
income compared with that shown under US GAAP. They comprise research and development costs that
are included in cost of sales under IFRS while these items are separately disclosed under US GAAP,
and accretion expense for asset retirement obligations that is reported as interest expense under
IFRS and as cost of sales under US GAAP.
Retirement benefits
The Group adopted FASB Statement No. 158 Employers Accounting for Defined Benefit Pension and
Other Postretirement Plans an amendment of FASB Statements No. 87, 88, 106, and 132R (FAS 158)
as of December 31, 2006. FAS 158 requires that on a prospective basis all gains and losses related
to defined benefit pension arrangements and other post retirement benefits are recognised on the
balance sheet. The gains or losses and prior service costs or credits that arise during the period
are recognised as a component of accumulated other comprehensive income/(loss), net of tax, but are
not recognised as components of net periodic benefit cost. Under IFRS, all gains and losses related
to defined benefit pension arrangements and other post retirement benefits at the date of
transition to IFRS were recognised in the 2004 opening balance sheet, with a corresponding
reduction in equity. The difference between IFRS and US GAAP therefore mainly relates to the
unrecognised gains and losses under IFRS since January 1, 2004.
Share-based compensation
Under IFRS, share-based compensation awarded after November 7, 2002 and not vested at January 1,
2005 is recognised as an expense based on its fair value. For US GAAP the Group has adopted SFAS
123R as of January 1, 2005 using the modified prospective approach and this will minimise the
difference between US GAAP and IFRS reporting. The remaining difference relates to share-based
compensation not yet vested and granted before November 7, 2002, which under US GAAP is also
recognised as an expense, and the treatment of deferred tax on share-based compensation. Under IFRS
deferred tax is remeasured every reporting period and under US GAAP deferred tax is estimated at
grant date and not subsequently revised.
Cumulative currency translation differences
Under IFRS at January 1, 2004, the balance of cumulative currency translation differences of $1,208
million was eliminated by increasing retained earnings. For US GAAP there is no change in the
accounting for cumulative currency translation differences and the amount is included in
accumulated other comprehensive income. Equity in total under both IFRS and US GAAP was not
impacted.
Upon divestment or liquidation of an entity, cumulative currency translation differences related to
that entity are taken to income under both IFRS and US GAAP. Due to the elimination of the opening
balance as at January 1, 2004, the amounts of cumulative currency translation differences that are
taken to income may differ between IFRS and US GAAP.
Impairments
Impairments under IFRS are based on discounted cash flows. Under US GAAP only if an assets
estimated undiscounted future cash flows are below its carrying amount is a determination required
of the amount of any impairment based on discounted cash flows. There is no undiscounted test under
IFRS.
Reversal of impairments
Under IFRS, a favourable change in the circumstance, which resulted in an impairment of an asset
other than goodwill, would trigger the requirement for a redetermination of the amount of the
impairment and any reversal is recognised in income. Under US GAAP, impairments are not reversed.
Financial instruments
Under IFRS certain unquoted equity securities are recognised at fair value. Under US GAAP these are
recognised at cost. This difference has no impact on the timing of recognition of income arising
from these investments. Also, certain commodity contracts and embedded derivatives that are not
recognised under US GAAP are recognised under IFRS mainly because of pricing or delivery
conditions.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
20 |
|
Minority interest buy-out
Under IFRS, acquisitions of minority interest in Group companies, and disposals of shares in Group
companies whilst retaining control, are accounted for as transactions within equity. The difference
between the purchase price/disposal proceeds and the relevant proportion of the minority interest
is reported in retained earnings as a movement in the Group share of equity. Under US GAAP an
acquisition of minority interest in a Group company is accounted for using the purchase method and
a disposal of shares in a Group company whilst retaining control is accounted for as a disposal.
Other
Other reconciling items include differences between IFRS and US GAAP relating to income taxes and
leases. With effect from January 1, 2007, the main reconciling item relates to the reclassification
within the balance sheet of unrecognised tax benefits as a result of the adoption of FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes an interpretation of FASB
Statement 109 (FIN 48), all of which would affect the Groups effective tax rate if recognised;
the amount reclassified at January 1, 2007 was $1,460 million.
Cash flow statement
The Group compiles the cash flow statement in accordance with International Accounting Standards
(IAS 7). The SECs rules applicable to Annual Reports on Form 20-F permit the compilation of the
cash flow statement under IAS 7.
Recent US GAAP accounting pronouncements
FASB Statement No. 157 Fair Value Measurement (FAS 157) becomes effective for the Group and will
be adopted from January 1, 2008. FAS 157 aims to achieve consistency of approach whenever assets
and liabilities are required to be measured at fair value and introduces certain disclosure
requirements. The Group does not expect any significant impact on the Groups Consolidated
Financial Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
21 |
|
Appendix
Ratio of earnings to fixed charges
The following table sets forth, on a US GAAP basis for the years ended December 31, 2002, 2003,
2004, 2005 and 2006 and the nine months ended September 30, 2007 and on an IFRS basis for the years
ended December 31, 2004, 2005 and 2006 and the nine months ended September 30, 2007, the
consolidated unaudited ratio of earnings to fixed charges of Royal Dutch Shell. The comparative
annual information is derived from the consolidated financial statements of Royal Dutch Shell
contained in the Annual Report on Form 20-F for the year ended December 31, 2006 as filed with the
Securities and Exchange Commission and these Condensed Consolidated Interim Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
|
|
|
|
|
|
|
|
|
|
Years ending December 31, |
|
|
|
|
2007 |
|
|
2006 |
|
|
2005 |
|
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
|
|
Ratio of Earnings to Fixed Charges (IFRS basis) |
|
|
21.43 |
|
|
|
19.99 |
|
|
|
23.33 |
|
|
|
19.17 |
|
|
|
|
|
|
|
|
|
Ratio of Earnings to Fixed Charges (US GAAP basis) |
|
|
25.69 |
|
|
|
23.31 |
|
|
|
26.84 |
|
|
|
17.13 |
|
|
|
15.67 |
|
|
|
11.69 |
|
For the purposes of this table, earnings consists of pre-tax income from continuing operations
before adjustment for minority interest and income from equity investees plus fixed charges
(excluding capitalised interest) less undistributed earnings of equity investees, plus distributed
income from equity interests. Fixed charges consists of expensed and capitalised interest plus
interest within rental expenses plus preference security dividend requirements of consolidated
subsidiaries.
Capitalisation and indebtedness
The following tables set forth, on a US GAAP and IFRS basis, the unaudited consolidated combined
capitalisation and indebtedness of Royal Dutch Shell as of September 30, 2007. This information is
derived from these Condensed Consolidated Interim Financial Statements.
US GAAP basis
|
|
|
|
|
|
|
$ million |
|
|
|
September 30, 2007 |
|
Total equity |
|
|
126,581 |
|
Total finance debt |
|
|
|
|
Short-term finance debt |
|
|
4,677 |
|
Long-term finance debt[A] |
|
|
9,825 |
|
Total finance debt[B] |
|
|
14,502 |
|
|
|
|
|
Total capitalisation |
|
|
141,083 |
|
|
|
|
|
IFRS basis
|
|
|
|
|
|
|
$ million |
|
|
|
September 30, 2007 |
|
Equity |
|
|
|
|
|
|
|
|
|
Total equity attributable to shareholders of Royal
Dutch Shell plc |
|
|
118,194 |
|
Total finance debt |
|
|
|
|
Short-term finance debt |
|
|
4,683 |
|
Long-term finance debt[A] |
|
|
9,944 |
|
Total finance debt[B] |
|
|
14,627 |
|
|
|
|
|
Total capitalisation |
|
|
132,821 |
|
|
|
|
|
|
|
|
[A] |
|
Long-term finance debt excludes $2.7 billion of certain long-term commitments included in
amounts due to banks and other credit institutions. |
|
[B] |
|
As of September 30, 2007, the Shell Group had outstanding guarantees related to Shell Group
associates of $1.3 billion, of which $0.6 billion related to guarantees in respect of
financial indebtedness. $12.9 billion of the finance debt of the Shell Group was unsecured. |
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
22 |
|