FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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 April 2008
Commission File Number: 1-32575
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For April 2008
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)
(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)
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:
Exhibit No.
|
Description | |
99.1
|
Regulatory release. | |
99.2
|
Royal Dutch Shell plc — Three month period ended March 31, 2008 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
month period ended March 31, 2008 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 April 29, 2008, 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.
This Report on Form 6-K is incorporated by reference into:
| a) | the Registration Statement on Form F-3 of Royal Dutch Shell plc and Shell International Finance B.V. (Registration Numbers 333-126726 and 333-126726-01); and | ||
| b) | the Registration Statements on Forms S-8 of Royal Dutch Shell plc (Registration Numbers 333-126715 and 333-141397). |
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)
(Registrant)
By:
|
Michiel Brandjes /s/ | |
| Name: Michiel Brandjes | ||
| Title: Company Secretary |
Date: May 5, 2008
Exhibit 99.1
Regulatory release
Regulatory release
Three month period ended March 31, 2008
Unaudited Condensed Interim Financial Report
Unaudited Condensed Interim Financial Report
On April 29, 2008, Royal Dutch Shell plc (“Royal Dutch Shell”) released the Unaudited Condensed
Interim Financial Report for the three month period ended March 31, 2008 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 April 29, 2008.
Contact — Investor Relations |
||||
Europe:
|
Tjerk Huysinga | +31 70 377 3996 | ||
USA:
|
Harold Hatchett | +1 212 218 3112 | ||
Contact — Media |
||||
UK, International:
|
Shell Media Contact | +44 20 7934 3505 | ||
The Netherlands:
|
Shell Media Contact | +31 70 377 8750 |
Exhibit 99.2
Royal Dutch Shell plc
Three month period ended March 31, 2008
Unaudited Condensed Interim Financial Report
Three month period ended March 31, 2008
Unaudited Condensed Interim Financial Report
Contents
| Page | ||||
UNAUDITED CONDENSED INTERIM FINANCIAL REPORT |
1 | |||
OPERATIONAL AND FINANCIAL REVIEW FOR THE THREE PERIOD ENDED MARCH 31, 2008 |
2 | |||
CONDENSED CONSOLIDATED STATEMENT OF INCOME |
6 | |||
CONDENSED CONSOLIDATED BALANCE SHEET |
7 | |||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
8 | |||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
9 | |||
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
10 | |||
APPENDIX |
12 | |||
Unaudited Condensed Interim Financial Report
This report contains:
| (1) | An Operational and Financial Review and Results of Operations with respect to Royal Dutch Shell plc, a publicly-listed company incorporated in England and Wales and headquartered and tax resident in the Netherlands (“Royal Dutch Shell”) and its consolidated subsidiaries (collectively, with Royal Dutch Shell, the “Shell group”) for the three month period ended March 31, 2008; and | |
| (2) | Unaudited Condensed Consolidated Interim Financial Statements for the three month period ended March 31, 2008 and 2007. |
In this Report “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience
where references are made to Royal Dutch Shell and its subsidiaries in general. Likewise, the words
“we”, “us” and “our” are also used to refer to subsidiaries 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. “Subsidiaries”, “Shell subsidiaries” and “Shell companies” as
used in this Report refer 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 Shell has significant influence but not control are referred to
as “associated companies” or “associates” and companies in which Shell 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 management’s current expectations and
assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in these statements.
Forward-looking statements include, among other things, statements concerning the potential
exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations,
beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are
identified by their use of terms and phrases such as “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 Shell’s 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 Shell’s 2007 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, May 5, 2008. 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, 2007 for a
description of certain important factors, risks and uncertainties that may affect the businesses of
the Shell group.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
1 |
Operational and Financial Review for the three month period ended March 31, 2008
Presented under IFRS (unaudited)
| Three months | ||||||||
| ended March 31, | ||||||||
| 2008 | 2007 | |||||||
Income for the period |
9,201 | 7,441 | ||||||
Income attributable to minority interest |
118 | 160 | ||||||
Income attributable to shareholders of Royal Dutch Shell plc |
9,083 | 7,281 | ||||||
THREE MONTHS ENDED MARCH 31,2008
Shell’s income for the three months ended March 31, 2008 was $9,201 million, an increase of 24%
compared to 2007 mainly reflecting higher earnings in Exploration & Production and Oil Products
partially offset by lower earnings in Chemicals and Corporate.
Exploration & Production
Segment earnings were $5,143 million compared to $3,393 million a year ago. Earnings included a net
charge of $66 million, reflecting a gain from divestments of $84 million, which was offset by a
charge of $150 million related to the mark-to-market valuation of certain UK gas contracts.
Earnings in the first quarter 2007 included a net gain of $104 million reflecting both a gain from
divestments of $126 million and a charge of $22 million related to the mark-to-market valuation of
certain UK gas contracts.
Earnings, when compared to the first quarter 2007, reflected higher gas production volumes and the
benefit of higher oil and gas prices on revenues, which were partly offset by lower oil production
volumes mainly in the USA and Europe and by higher exploration expenses.
Global liquids realisations were 66% higher than in the first quarter 2007, following marker crudes
Brent and WTI increases of 67% and 69% respectively. Global gas realisations were 25% higher than a
year ago. Outside the USA gas realisations increased by 24% whereas in the USA gas realisations
increased by 32%.
First quarter 2008 production (excluding oil sands bitumen production) was 3,438 thousand barrels
of oil equivalent per day (boe/d) compared to 3,413 thousand boe/d a year ago. Crude oil production
was down 6% and natural gas production was up 9% compared to the first quarter 2007.
Production compared to the first quarter 2007 included additional volumes principally from Ormen
Lange (Shell share 17%) in Norway, West Salym (Shell share 50%) in Russia, Changbei (Shell share
50%) in China, Deimos (Shell share 71.5%) in the USA, Stybarrow (indirect Shell share 17.1%) in
Australia, Chipmunk, Cliffdale and Orion (Shell share 100%) in Canada and Starling (Shell share
28%) in the United Kingdom.
Gas & Power
Segment earnings were $948 million compared to $803 million a year ago. Earnings included a charge
of $11 million related to the mark-to-market valuation impact of certain gas contracts. Earnings
for the first quarter 2007 included a net gain of $39 million, reflecting gains of $110 million
related to divestments and a charge of $71 million related to the mark-to-market valuation of
certain gas contracts.
Earnings, when compared to the first quarter 2007, reflected strong liquefied natural gas (LNG) and
gas to liquids (GTL) product prices, increased LNG volumes, higher income from LNG cargo diversion
opportunities and continued strong operational performance.
LNG equity sales volumes of 3.51 million tonnes were 6% higher than in the same quarter a year ago.
Sales were higher in all five operating LNG ventures, with the largest increase coming from Nigeria
LNG (Shell interest 26%).
Marketing and trading earnings, non-LNG related, were similar to the same quarter a year ago.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
2 |
Oil Sands
Segment earnings were $249 million compared to $115 million in the quarter last year. Earnings,
when compared to the first quarter 2007, reflected the impact of higher oil prices on revenues and
a refund of royalty charges, which were partly offset by lower production volumes and higher costs.
The royalty calculation methodology applicable to the Athabasca Oil Sands Project (AOSP) was
revised during the quarter, allowing the inclusion of additional eligible costs to the project. Due
to this revision the project cost payout timeframe for royalty calculation purposes was extended
beyond July 2007 when payout of the project was initially achieved. The royalty rate for the
project was revised back to 1% (from 25% since July 2007) until achievement of the project cost
payout. As a consequence, the adjustment related to prior quarters’ bitumen production had an
impact of 12 thousand barrels per day on the first quarter 2008.
Bitumen production decreased by 13% compared to the same quarter last year. Excluding the effect of
the royalty revision, net production decreased by 25% due to operational issues at the mine related
to extreme cold weather conditions and unplanned maintenance at the Scotford Upgrader. Upgrader
availability increased to 94% compared to 93% in the first quarter 2007.
Oil Products
Segment earnings were $2,367 million compared to $1,802 million for the same period last year.
Segment earnings benefited from the impact of increasing crude prices on our inventory by $1,173
million in the first quarter 2008 compared to a benefit of $ 314 million in the first quarter
2007. Earnings for the first quarter 2007 included a charge of $176 million related to impairment
of certain assets.
After taking into account the impact of rising crude prices, earnings, when compared to the first
quarter 2007, were mainly impacted by lower realised refining margins and higher operating costs,
which were partly offset by higher marketing margins. In addition, trading contributions increased
compared to those in the first quarter 2007.
Industry refining margins declined worldwide compared to the same period a year ago. Refinery
availability increased to 92% compared to 85% in the first quarter of 2007 mainly due to lower
planned maintenance activities.
Marketing earnings, compared to the same period a year ago, increased mainly due to higher retail,
B2B and finished lubricants margins, which were partly offset by lower lubricants base oil margins.
Oil Products (marketing and trading) sales volumes increased by 7% compared to the same quarter
last year. Marketing sales volumes were 1% higher than in the first quarter 2007 and excluding the
impact of divestments 2% higher mainly because of increased aviation and retail sales.
Chemicals
Segment earnings were $348 million compared to $527 million for the same period last year.
Earnings, when compared to the first quarter 2007, reflected lower margins, higher operating costs
and lower income from equity-accounted investments. In addition, earnings were impacted by reduced
trading contributions.
Chemicals manufacturing plant availability increased to 95%, some 4 percent-points higher than in
the first quarter 2007.
Corporate
Segment earnings were $146 million compared to $801 million for the same period last year. Earnings
for the first quarter 2007 included a gain of $404 million related to the realisation of gains on
the sale of the equity portfolio held by Shell insurance companies.
Earnings, when compared to the first quarter 2007, reflected lower interest income and currency
exchange rate results, reduced tax credits and higher shareholder costs.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
3 |
PORTFOLIO DEVELOPMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008
Exploration & Production
In Australia, Shell reached an agreement with Woodside for the sale of various interests in
North West Shelf assets, with current production of approximately 8 thousand boe/d, for some $0.3
billion.
In the USA, Shell was awarded 141 blocks and was the apparent high bidder on another 134 blocks,
with high bids totalling $2.1 billion, offshore Alaska in the Chukchi Sea.
In Kazakhstan, the international members of the Kashagan consortium agreed to sell their
participating interests proportionally, allowing KazMunaiGas’s stake to increase to match that of
the four major shareholders. Assuming conclusion of the deal, Shell’s interest will change from
18.5% to 16.8%.
In Nigeria, Shell reached an agreement, amounting to some $0.6 billion, for the sale of offshore
deepwater blocks OML 134 and OML 125, with current production of approximately 7 thousand boe/d.
Gas & Power
In China, during the first quarter, binding sales and purchase agreements were progressed with
Qatargas 4 and PetroChina, leading to the long-term supply of LNG from Qatar to China, totalling 3
million tonnes per annum over 25 years. Agreements were signed on April 10, 2008.
Oil Products
In France, on March 31, 2008, Shell concluded the sale of the Petit Couronne and Reichstett
Vendenheim refineries, with a combined capacity of some 220 thousand barrels per day.
Also in France, on April 1, 2008, Shell concluded the sale of the Berre-l’Etang refining and
petrochemical complex, with a refining capacity of 80 thousand barrels per day.
The combined cash proceeds expected from the above-mentioned sales amount to approximately $1.8
billion, which will be received after the end of the first quarter 2008.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow provided by operating activities in the three month period to March 31, 2008 was $16.9 billion compared to $11.2 billion a year ago.
Capital investment for the three months ended March 31, 2008 was $8.1 billion of which $6.4 billion
was invested in the Exploration & Production and Gas & Power segments. Capital investment in the
same period 2007 was $6.0 billion of which $4.6 billion was invested in the Exploration &
Production and Gas & Power segments.
Gross proceeds from divestments in the three month period to March 31, 2008 were $0.5 billion
compared to $0.4 billion a year ago.
Dividends of $0.40 per share were declared on April 29, 2008 in respect of the first quarter. These
dividends are payable on June 11, 2008. 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 2007 for additional information on the
dividend access mechanism.
During the first quarter 2008 $1.1 billion or 0.5% of Royal Dutch Shell shares were bought back for
cancellation.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
4 |
Royal Dutch Shell plc
Three month periods ended March 31, 2008
Unaudited Condensed Consolidated Interim Financial Statements
Three month periods ended March 31, 2008
Unaudited Condensed Consolidated Interim Financial Statements
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
5 |
Condensed Consolidated Statement of Income
| $ million | ||||||||
| Three months ended March 31, | ||||||||
| 2008 | 2007 | |||||||
Revenue[A] |
114,302 | 73,480 | ||||||
Cost of sales |
96,780 | 60,666 | ||||||
Gross profit |
17,522 | 12,814 | ||||||
Selling, distribution and administrative expenses |
3,969 | 3,778 | ||||||
Exploration |
325 | 272 | ||||||
Share of profit of equity-accounted investments |
2,425 | 1,808 | ||||||
Net finance costs and other (income)/expense |
(53 | ) | (901 | ) | ||||
Income before taxation |
15,706 | 11,473 | ||||||
Taxation |
6,505 | 4,032 | ||||||
Income for the period |
9,201 | 7,441 | ||||||
Income attributable to minority interest |
118 | 160 | ||||||
Income attributable to shareholders of Royal Dutch Shell plc |
9,083 | 7,281 | ||||||
Basic earnings per share (see Note 3) |
1.47 | 1.16 | ||||||
Diluted earnings per share (see Note 3) |
1.46 | 1.15 | ||||||
[A] Revenue is stated after deducting sales taxes, excise duties and similar levies of $22,920 in
the first quarter 2008 and $17,305 in the first quarter 2007.
The Notes on pages 10 to 11 are an integral part of these Condensed Consolidated Interim Financial
Statements.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
6 |
Condensed Consolidated Balance Sheet
| $ million | ||||||||
| March 31, 2008 | Dec 31, 2007 | |||||||
ASSETS |
||||||||
Noncurrent assets |
||||||||
Intangible assets |
5,282 | 5,366 | ||||||
Property, plant and equipment |
105,806 | 101,521 | ||||||
Investments: |
||||||||
equity-accounted investments |
31,198 | 29,153 | ||||||
financial assets |
3,333 | 3,461 | ||||||
Deferred tax |
3,409 | 3,253 | ||||||
Pre-paid pension costs |
5,878 | 5,559 | ||||||
Other |
6,406 | 5,760 | ||||||
| 161,312 | 154,073 | |||||||
Current assets |
||||||||
Inventories |
32,184 | 31,503 | ||||||
Accounts receivable |
87,507 | 74,238 | ||||||
Cash and cash equivalents |
14,417 | 9,656 | ||||||
| 134,108 | 115,397 | |||||||
Total assets |
295,420 | 269,470 | ||||||
LIABILITIES |
||||||||
Noncurrent liabilities |
||||||||
Debt |
11,378 | 12,363 | ||||||
Deferred tax |
13,473 | 13,039 | ||||||
Retirement benefit obligations |
6,304 | 6,165 | ||||||
Other provisions |
14,016 | 13,658 | ||||||
Other |
4,189 | 3,893 | ||||||
| 49,360 | 49,118 | |||||||
Current liabilities |
||||||||
Debt |
5,684 | 5,736 | ||||||
Accounts payable and accrued liabilities |
89,531 | 75,697 | ||||||
Taxes payable |
14,412 | 9,733 | ||||||
Retirement benefit obligations |
455 | 426 | ||||||
Other provisions |
2,815 | 2,792 | ||||||
| 112,897 | 94,384 | |||||||
Total liabilities |
162,257 | 143,502 | ||||||
EQUITY |
||||||||
Equity attributable to shareholders of Royal Dutch Shell plc |
131,130 | 123,960 | ||||||
Minority interest |
2,033 | 2,008 | ||||||
Total equity |
133,163 | 125,968 | ||||||
Total liabilities and equity |
295,420 | 269,470 | ||||||
The Notes on pages 10 to 11 are an integral part of these Condensed Consolidated Interim Financial
Statements.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
7 |
Condensed Consolidated Statement of Changes in Equity
| $ million | ||||||||||||||||||||||||||||
| Equity attributable to shareholders of Royal Dutch Shell plc | ||||||||||||||||||||||||||||
| Ordinary | ||||||||||||||||||||||||||||
| share | Treasury | Other | Retained | Minority | Total | |||||||||||||||||||||||
| capital | shares | reserves[A] | earnings | Total | interest | equity | ||||||||||||||||||||||
At January 1, 2008 |
536 | (2,392 | ) | 14,148 | 111,668 | 123,960 | 2,008 | 125,968 | ||||||||||||||||||||
Income/(expense) recognised directly in equity |
— | — | 1,656 | — | 1,656 | (35 | ) | 1,621 | ||||||||||||||||||||
Income for the period |
— | — | — | 9,083 | 9,083 | 118 | 9,201 | |||||||||||||||||||||
Total recognised income/(expense) for the period |
— | — | 1,656 | 9,083 | 10,739 | 83 | 10,822 | |||||||||||||||||||||
Capital contributions/(repayments) from minority shareholders |
— | — | — | — | — | (7 | ) | (7 | ) | |||||||||||||||||||
Dividends paid |
— | — | — | (2,329 | ) | (2,329 | ) | (51 | ) | (2,380 | ) | |||||||||||||||||
Shares issued |
— | — | — | — | — | — | -- | |||||||||||||||||||||
Treasury shares: net sales/(purchases) and dividends received |
— | 200 | — | — | 200 | — | 200 | |||||||||||||||||||||
Shares repurchased for cancellation |
(2 | ) | — | 2 | (1,327 | ) | (1,327 | ) | (1,327 | ) | ||||||||||||||||||
Share-based compensation |
— | — | (113 | ) | — | (113 | ) | — | (113 | ) | ||||||||||||||||||
At March 31, 2008 |
534 | (2,192 | ) | 15,693 | 117,095 | 131,130 | 2,033 | 133,163 | ||||||||||||||||||||
At January 1, 2007 |
545 | (3,316 | ) | 8,820 | 99,677 | 105,726 | 9,219 | 114,945 | ||||||||||||||||||||
Income/(expense) recognised directly in equity |
— | — | 50 | — | 50 | (128 | ) | (78 | ) | |||||||||||||||||||
Income for the period |
— | — | — | 7,281 | 7,281 | 160 | 7,441 | |||||||||||||||||||||
Total recognised income/(expense) for the period |
— | — | 50 | 7,281 | 7,331 | 32 | 7,363 | |||||||||||||||||||||
Capital contributions/(repayments) from minority shareholders |
— | — | — | — | — | 869 | 869 | |||||||||||||||||||||
Acquisition of Shell Canada |
— | — | — | (5,445 | ) | (5,445 | ) | (1,656 | ) | (7,101 | ) | |||||||||||||||||
Other changes in minority interest |
— | — | — | 22 | 22 | (34 | ) | (12 | ) | |||||||||||||||||||
Dividends paid |
— | — | — | (2,100 | ) | (2,100 | ) | (25 | ) | (2,125 | ) | |||||||||||||||||
Shares issued |
— | — | — | — | — | — | -- | |||||||||||||||||||||
Treasury shares: net sales/(purchases) and dividends received |
— | (16 | ) | — | — | (16 | ) | — | (16 | ) | ||||||||||||||||||
Shares repurchased for cancellation |
(1 | ) | — | 1 | (486 | ) | (486 | ) | (486 | ) | ||||||||||||||||||
Share-based compensation |
— | — | 73 | — | 73 | — | 73 | |||||||||||||||||||||
At March 31, 2007 |
544 | (3,332 | ) | 8,944 | 98,949 | 105,105 | 8,405 | 113,510 | ||||||||||||||||||||
[A] See Note 2.
The Notes on pages 10 to 11 are an integral part of these Consolidated Financial Statements.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
8 |
Condensed Consolidated Statement of Cash Flows
| $ million | ||||||||
| Three months ended March 31, | ||||||||
| 2008 | 2007 | |||||||
Cash flow from operating activities: |
||||||||
Income for the period |
9,201 | 7,441 | ||||||
Adjustment for: |
||||||||
Current taxation |
6,405 | 4,267 | ||||||
Interest (income)/expense |
178 | 198 | ||||||
Depreciation, depletion and amortisation |
3,146 | 3,260 | ||||||
(Profit)/loss on sale of assets |
(281 | ) | (362 | ) | ||||
Decrease/(increase) in net working capital |
2,784 | (399 | ) | |||||
Share of profit of equity-accounted investments |
(2,425 | ) | (1,808 | ) | ||||
Dividends received from equity-accounted investments |
1,752 | 1,587 | ||||||
Deferred taxation and other provisions |
322 | (152 | ) | |||||
Other |
94 | (447 | ) | |||||
Cash flow from operating activities (pre-tax) |
21,176 | 13,585 | ||||||
Taxation paid |
(4,314 | ) | (2,404 | ) | ||||
Cash flow from operating activities |
16,862 | 11,181 | ||||||
Cash flow from investing activities: |
||||||||
Capital expenditure |
(7,429 | ) | (5,361 | ) | ||||
Investments in equity-accounted investments |
(616 | ) | (370 | ) | ||||
Proceeds from sale of assets |
445 | 380 | ||||||
Proceeds from sale of equity-accounted investments |
61 | 115 | ||||||
Proceeds from sale of/(additions to) financial assets |
10 | 555 | ||||||
Interest received |
285 | 285 | ||||||
Cash flow from investing activities |
(7,244 | ) | (4,396 | ) | ||||
Cash flow from financing activities: |
||||||||
Net Increase/(decrease) in debt with maturity period within three months |
(863 | ) | 341 | |||||
Other Debt: |
||||||||
New borrowings |
185 | 2,762 | ||||||
Repayments |
(664 | ) | (1,613 | ) | ||||
Interest paid |
(298 | ) | (351 | ) | ||||
Change in minority interest |
(7 | ) | (3,110 | ) | ||||
Net issue/(repurchase) of shares |
(1,073 | ) | (486 | ) | ||||
Dividends paid to: |
||||||||
Shareholders of Royal Dutch Shell plc |
(2,329 | ) | (2,100 | ) | ||||
Minority interest |
(51 | ) | (42 | ) | ||||
Treasury shares: net sales/(purchases) and dividends received |
200 | (16 | ) | |||||
Cash flow from financing activities |
(4,900 | ) | (4,615 | ) | ||||
Currency translation differences relating to cash and cash equivalents |
43 | 12 | ||||||
Increase/(decrease) in cash and cash equivalents |
4,761 | 2,182 | ||||||
Cash and cash equivalents at January 1 |
9,656 | 9,002 | ||||||
Cash and cash equivalents at March 31 |
14,417 | 11,184 | ||||||
The Notes on pages 10 to 12 are an integral part of these Condensed Consolidated Interim Financial
Statements.
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
9 |
Notes to the Condensed Consolidated Interim Financial Statements
1. Basis of preparation
These Condensed Consolidated Interim Financial Statements of Royal Dutch Shell plc and its
subsidiaries (collectively known as “Shell” or the “Shell group”) 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, 2007 (pages 117 to 121) as filed with the Securities and Exchange Commission.
The Oil Sands operations, which were previously reported within the Exploration & Production segment, are reported as a separate segment with effect from the fourth quarter 2007. Prior period financial statements have been reclassified accordingly.
The three month period ended March 31, 2008 Condensed Consolidated Interim Financial Statements of
Royal Dutch Shell plc and its consolidated subsidiaries have been prepared in accordance with
International Accounting Standard (IAS) 34 Interim Financial Reporting.
2. Other reserves
| $ million | ||||||||||||||||||||||||
| Capital | Share | |||||||||||||||||||||||
| Merger | redemption | premium | Share plan | |||||||||||||||||||||
| reserve[A] | reserve | reserve | reserve | Other | Total | |||||||||||||||||||
At January 1, 2008 |
3,444 | 48 | 154 | 1,122 | 9,380 | 14,148 | ||||||||||||||||||
Cumulative currency translation differences |
— | — | — | — | 1,733 | 1,733 | ||||||||||||||||||
Unrealised gains/(losses) on securities |
— | — | — | — | (106 | ) | (106 | ) | ||||||||||||||||
Unrealised gains/(losses) on cash flow hedges |
— | — | — | — | 29 | 29 | ||||||||||||||||||
Income/(expense) recognised directly in equity |
— | — | — | — | 1,656 | 1,656 | ||||||||||||||||||
Share repurchased for cancellation |
— | 2 | — | — | — | 2 | ||||||||||||||||||
Share-based compensation |
— | — | — | (113 | ) | — | (113 | ) | ||||||||||||||||
At March 31, 2008 |
3,444 | 50 | 154 | 1,009 | 11,036 | 15,693 | ||||||||||||||||||
At January 1, 2007 |
3,444 | 39 | 154 | 736 | 4,447 | 8,820 | ||||||||||||||||||
Cumulative currency translation differences |
— | — | — | — | 653 | 653 | ||||||||||||||||||
Unrealised gains/(losses) on securities |
— | — | — | — | (529 | ) | (529 | ) | ||||||||||||||||
Unrealised gains/(losses) on cash flow hedges |
— | — | — | — | (74 | ) | (74 | ) | ||||||||||||||||
Income/(expense) recognised directly in equity |
— | — | — | — | 50 | 50 | ||||||||||||||||||
Share repurchased for cancellation |
— | 1 | — | — | — | 1 | ||||||||||||||||||
Share-based compensation |
— | — | — | 73 | — | 73 | ||||||||||||||||||
At March 31, 2007 |
3,444 | 40 | 154 | 809 | 4,497 | 8,944 | ||||||||||||||||||
[A] The merger reserve was established as a consequence of the Unification (see Note 1). 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, p.l.c.
shares received.
3. Earnings per share
| $ million | ||||||||||||
| Income attributable | Basic weighted | Diluted weighted | ||||||||||
| to shareholders | average number of | average number of | ||||||||||
| of Royal Dutch | Class A and B | Class A and B | ||||||||||
| Three months ended March 31, | Shell plc | shares | shares | |||||||||
2008 |
9,083 | 6,195,530,313 | 6,211,424,319 | |||||||||
2007 |
7,281 | 6,287,034,275 | 6,306,456,154 | |||||||||
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
10 |
4. Information by business segment
Three months ended March 31, 2008
| $ million | ||||||||||||||||||||||||||||||||
| Exploration & | ||||||||||||||||||||||||||||||||
| Production | Gas & Power | Oil Sands | Oil Products | Chemicals | Corporate | Eliminations | Total | |||||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||||||||||
Third party |
4,878 | 6,226 | 507 | 90,579 | 12,100 | 12 | 114,302 | |||||||||||||||||||||||||
Inter-segment |
10,902 | 320 | 616 | 1,030 | 1,503 | (14,371 | ) | — | ||||||||||||||||||||||||
Total |
15,780 | 6,546 | 1,123 | 91,609 | 13,603 | 12 | (14,371 | ) | 114,302 | |||||||||||||||||||||||
Segment earnings |
5,143 | 948 | 249 | 2,367 | 348 | 146 | 9,201 | |||||||||||||||||||||||||
Three months ended March 31, 2007
| Exploration & | ||||||||||||||||||||||||||||||||
| Production | Gas & Power | Oil Sands | Oil Products | Chemicals | Corporate | Eliminations | Total | |||||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||||||||||
Third party |
2,982 | 4,233 | 282 | 57,251 | 8,698 | 34 | 73,480 | |||||||||||||||||||||||||
Inter-segment |
8,639 | 252 | 322 | 607 | 923 | — | (10,743 | ) | — | |||||||||||||||||||||||
Total |
11,621 | 4,485 | 604 | 57,858 | 9,621 | 34 | (10,743 | ) | 73,480 | |||||||||||||||||||||||
Segment earnings |
3,393 | 803 | 115 | 1,802 | 527 | 801 | 7,441 | |||||||||||||||||||||||||
5. Ordinary share capital
| $ million | ||||||||
| March 31, 2008 | Dec 31, 2007 | |||||||
Allotted, called up and fully paid |
||||||||
Class A ordinary shares |
301 | 303 | ||||||
Class B ordinary shares |
233 | 233 | ||||||
Sterling deferred |
[A] | [A] | ||||||
| 534 | 536 | |||||||
[A] Less than $1 million
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
11 |
Appendix
Ratio of earnings to fixed charges
The following table sets forth, on an IFRS basis for the years ended December 31, 2004, 2005, 2006
and 2007 and the three months ended March 31, 2008, 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
| Three months ended | ||||||||||||||||||||
| March 31, | Years ending December 31, | |||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Ratio of Earnings to Fixed Charges |
24.87 | 21.43 | 19.99 | 23.33 | 19.17 | |||||||||||||||
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, IFRS basis, the unaudited consolidated combined capitalisation and
indebtedness of Royal Dutch Shell as of March 31, 2008. This information is derived from these
Condensed Consolidated Interim Financial Statements.
| $ million | ||||
| March 31, 2008 | ||||
Equity |
||||
Total equity attributable to shareholders of Royal Dutch Shell plc |
131,130 | |||
Total finance debt |
||||
Short-term finance debt |
5,684 | |||
Long-term finance debt[A] |
8,719 | |||
Total finance debt[B] |
14,403 | |||
Total capitalization |
145,533 | |||
| [A] | Long-term finance debt excludes $2.7 billion of certain tolling agreements. |
| [B] | As of March 31, 2008, Shell had outstanding guarantees related to associates of $1.9 billion, of which $0.6 billion related to guarantees in respect of financial indebtedness. $12.6 billion of the finance debt of Shell was unsecured. |
Royal Dutch Shell plc |
||
Unaudited Condensed Interim Financial Report
|
12 |