6-k
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 August 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)
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 |
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No. |
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Description |
99.1
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Regulatory release. |
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99.2
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Royal Dutch Shell plc Three and six month period ended June
30, 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 and
six month period ended June 30, 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 July 31, 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:
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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 authorised.
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:
August 4, 2008
exv99w1
Exhibit 99.1
Regulatory release
Three and six month period ended June 30, 2008
Unaudited Condensed Interim Financial Report
On July 31, 2008, Royal Dutch Shell plc (Royal Dutch Shell) released the Unaudited Condensed
Interim Financial Report for the three and six month period ended June 30, 2008 of Royal Dutch
Shell and its consolidated subsidiaries (collectively Shell). This report includes the Unaudited
Condensed Consolidated Interim Financial Statements, including condensed notes, for Shell on the
same basis that such information was announced by press release on July 31, 2008.
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Contact - Investor |
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Relations |
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Europe:
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Tjerk Huysinga
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+31 70 377 3996 |
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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Europe:
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Shell Media Contact
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+44 20 7934 3505 |
exv99w2
Exhibit 99.2
Royal Dutch Shell plc
Three and six month period ended June 30, 2008
Unaudited Condensed Interim Financial Report
Contents
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Page |
UNAUDITED CONDENSED INTERIM FINANCIAL REPORT |
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OPERATIONAL AND FINANCIAL REVIEW FOR THE THREE AND SIX MONTH
PERIOD ENDED JUNE 30, 2008 |
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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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APPENDIX |
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16 |
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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, Shell) for the
three and six month period ended June 30, 2008; and |
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Unaudited Condensed Consolidated Interim Financial Statements for the
three and six month period ended June 30, 2008 and 2007. |
In this report, excluding in the financial statements, we have aggregated our equity position in
projects for both direct and indirect interest.
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 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 Shells 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. Each forward-looking statement speaks only as of the
date of this report, August 4, 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.
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Royal Dutch Shell plc |
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Unaudited Condensed Interim Financial Report
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Please refer to the Annual Report and Form 20-F for the year ended December 31, 2007 for a
description of certain important factors, risks and uncertainties that may affect Shells
businesses.
Operational and Financial Review for the three and six month period ended June 30, 2008
Presented under IFRS (unaudited)
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$ million |
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Three months |
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Six months |
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ended June 30, |
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ended June 30, |
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2008 |
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2007 |
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2008 |
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2007 |
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Income for the period |
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11,754 |
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8,811 |
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20,955 |
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16,252 |
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Attributable to minority interest |
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198 |
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144 |
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316 |
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304 |
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Income attributable to shareholders of Royal Dutch Shell plc |
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11,556 |
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8,667 |
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20,639 |
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15,948 |
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THREE MONTHS ENDED JUNE 30, 2008
Shells income for the three months ended June 30, 2008 was $11,754 million, an increase of 33%
compared to 2007 mainly reflecting higher earnings in Exploration & Production.
Exploration & Production
Segment earnings were $5,881 million compared to $3,099 million a year ago. In 2008 earnings
included a net gain of $98 million, reflecting a gain from divestments of $487 million, which was
partly offset by a charge of $312 million related to the mark-to-market valuation of certain UK gas
contracts and net tax charges of $77 million. Earnings for the second quarter 2007 included a net
gain of $153 million reflecting a gain from divestment of $226 million and a gain of $19 million
related to the mark-to-market valuation of certain UK gas contracts, which were partly offset by
tax charges of $92 million.
Earnings compared to the second 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, higher royalty expenses and higher operating costs.
Global liquids realisations were 74% higher than in the second quarter 2007, compared with marker
crudes Brent and West Texas Intermediate increases of 76% and 91% respectively. Global gas
realisations were 54% higher than a year ago. Outside the USA gas realisations increased by 57%
whereas in the USA gas realisations increased by 53%.
Second
quarter 2008 production (excluding oil sands bitumen production) was 3,054 thousand barrels of oil equivalent per day (boe/d)
compared to 3,087 thousand boe/d a year ago. Crude oil production was down 6% and natural gas
production was up 6% compared to the second quarter 2007.
Production compared to the second quarter 2007 included additional volumes principally from Ormen
Lange (Shell share 17%) in Norway, West Salym (Shell share 50%) in Russia, Stybarrow (Shell share
17.1%) in Australia, Changbei (Shell share 50%) in China, Deimos (Shell share 71.5%) in the USA,
Starling (Shell share 28%), Caravel (Shell share 71%) and Shamrock (Shell share 100%) in the United
Kingdom and Champion West Phase 3B/C (Shell share 50%) in Brunei.
Gas & Power
Segment earnings were $625 million compared to $779 million a year ago. Earnings for the second
quarter 2007 included a gain from divestments of $247 million.
In the second quarter 2008 marketing and trading earnings were reduced by non-cash charges of
around $300 million as a result of fair value accounting of commodity derivatives associated with
long-term contracts.
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Royal Dutch Shell plc |
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Unaudited Condensed Interim Financial Report
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Earnings compared to the second quarter 2007 reflected strong LNG prices, which were partly offset
by lower LNG sales volumes and lower marketing and trading contributions.
LNG related earnings for the second quarter 2008 were approximately 50% higher than in the same
quarter a year ago, mainly reflecting strong LNG prices.
LNG sales volumes of 3.08 million tonnes (Shell share) were 5% lower than in the same quarter a
year ago, mainly as a consequence of lower feedgas supplies, planned maintenance shutdowns and
changed lifting schedules of cargoes compared to the same quarter last year.
Marketing and trading earnings, non-LNG related, were lower than in the same quarter a year ago,
reflecting lower earnings in North America, which was partly offset by higher European
contributions.
Oil Sands
Segment earnings were $351 million compared to $202 million in the same quarter last year. Earnings
compared to the second quarter 2007 reflected the impact of higher oil prices on revenues, which
were partly offset by lower production volumes and higher operating costs.
Bitumen production decreased by 21% compared to the same quarter last year mainly as a consequence
of the execution of the mine tailings management plan which has temporarily led to lower ore grade
being mined and due to planned and unplanned maintenance. Upgrader availability was 96%, unchanged
compared to the same quarter last year.
Oil Products
Segment earnings were $4,539 million compared to $3,928 million for the same period last year.
Earnings benefited from the impact of increasing crude prices on our inventory by $3,464 million in
the second quarter 2008 compared to a benefit of $992 million in the second quarter 2007. In the
second quarter 2008 earnings included a gain of $181 million, reflecting a divestment gain of $167
million and a tax credit of $14 million. Earnings for the second quarter 2007 included a divestment
gain of $205 million. In addition, second quarter 2008 marketing and trading earnings were impacted
by a non-cash charge of around $450 million as a result of fair value accounting of commodity
derivatives.
After taking into account the impact of rising crude prices and fair value accounting of commodity
derivatives, earnings, when compared to the second quarter 2007, reflected substantially lower
realised refining margins, higher operating costs, mainly as a result of exchange rate movements,
and lower trading contributions.
Industry refining margins compared to the same quarter a year ago were lower in Europe, declined
significantly in the US Gulf Coast and US West Coast and were higher in the Asia-Pacific region.
Refinery availability remained at 92%, the same level as in the second quarter of 2007.
Marketing earnings compared to the same period a year ago declined due to higher operating costs
and lower lubricants margins. In addition, retail margins, net of exchange rate movements,
declined, which were partly offset by higher B2B margins.
Oil Products (marketing and trading) sales volumes increased by 2% compared to the same quarter
last year. Marketing sales volumes were 1% lower than in the second quarter 2007 and excluding the
impact of divestments were 2% higher mainly because of increased aviation, marine and commercial
fuels sales.
Chemicals
Segment earnings were $157 million compared to $626 million for the same period last year. Second
quarter 2008 earnings included a net charge of $206 million, reflecting impairment of assets and
provisions of $265 million, which were partly offset by a
divestment gain of $59 million.
Earnings,
when compared to the second quarter 2007, reflected lower realised margins, higher operating costs
and lower income from equity-accounted investments. In addition, the
impairment of assets and provisions, which were partly offset by a
divestment gain, impacted earnings in the second quarter 2008.
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Unaudited Condensed Interim Financial Report
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Chemicals
manufacturing plant availability increased to 95%, some
2 percentage points higher than in
the second quarter 2007.
Corporate
Segment earnings were $201 million compared to $177 million for the same period last year. Earnings
for the second quarter 2007 included a gain of $55 million related to the sale of property in the
United Kingdom.
Earnings compared to the second quarter 2007 reflected higher tax credits and lower shareholder
costs, which were partly offset by lower net underwriting income and lower net interest income.
SIX MONTHS ENDED JUNE 30, 2008
Shells income for the six months ended June 30, 2008 was $20,955 million, an increase of 29%
compared to 2007 mainly reflecting higher earnings in Exploration & Production and Oil Products
partly offset by lower earnings in Chemicals and Corporate.
Exploration & Production
Segment earnings were $11,024 million compared to $6,492 for the same period last year. In 2008
earnings included a net gain of $32 million mainly from gains from divestments of $571 million,
partly offset by a charge of $462 million related to the mark-to-market valuation of certain UK gas
contracts and tax charges of $77 million. In the comparative period of 2007 earnings included a net
gain of $257 million mainly from gains from divestments of $352 million, partly offset by a charge
of $3 million related to the mark-to-market valuation of certain UK gas contracts and tax charges
of $92 million.
Earnings, when compared to the same period in 2007, mainly 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, higher royalty expenses and higher operating costs.
Liquid realisations were 71% higher than a year ago, compared to an increase in the industry
benchmarks Brent of 72% and West Texas Intermediate of 80%. Outside the USA gas realisations
increased by 40%. In the USA, gas realisations increased by 43% compared to an increase in industry
benchmark Henry Hub of 35%.
Hydrocarbon production was 3,246 thousand boe/d, in line with 3,250 thousand boe/d a year ago or 1%
higher adjusting for the impact of pricing effects from production sharing contracts. Production in
the first six months of 2008 compared to 2007 was negatively impacted by field decline, divestments
and pricing effects of production sharing contracts, offset by volumes from new fields and higher
gas demand in north west Europe mainly as a consequence of colder weather.
Gas & Power
Segment earnings were $1,573 million compared to $1,582 million for the same period last year. In
2008 earnings included a charge of $11 million related to the mark-to-market valuation of certain
gas contracts. In 2007 earnings included gains from divestments of $357 million and a charge of $71
million related to the mark-to-market valuation of certain gas contracts.
Earnings
for the first six months of 2008 also included non-cash charges of
some $450 million
related to fair value accounting of commodity derivatives associated with long-term contracts.
Earnings, when compared to the same period in 2007, reflected strong LNG prices and LNG diversion
opportunities and continued strong operational performance.
LNG sales volumes for the first half-year of 2008 were 6.59 million tonnes (Shell share) compared
to 6.55 million tonnes a year ago. Higher feed gas supply was offset by higher maintenance activity
when compared to the same period in 2007.
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Unaudited Condensed Interim Financial Report
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Oil Sands
Segment earnings were $600 million compared to $317 million for the same period last year.
Earnings, when compared to the same period in 2007, reflected improved margins and higher profits
due to higher overall average realised oil price and a refund of royalty charges earlier in the
year, which were partly offset by higher operating costs.
Sales volumes declined mainly as a consequence of a reduction in production at the mine, which was
driven by a lower ore grade as a result of the execution of the mine tailings management plan,
planned and unplanned maintenance and extreme weather conditions. Oil Sands mechanical
availability, when compared to the same period last year, was lower by 1 percentage point at each
site with the mine mechanical availability at 92% and the upgrader at 94%. The reduction was mainly
driven by unplanned maintenance work earlier in the year.
Oil Products
Segment earnings were $6,906 million compared to $5,730 million for the same period last year.
Earnings benefited from the impact of increasing crude prices on our inventory by $4,637 million
compared to a benefit of $1,306 million in the same period last year. In 2008 earnings included a
gain of $181 million, reflecting a divestment gain of $167 million and a tax credit of $14 million.
In 2007 earnings included a divestment gain of $205 million partly offset by a charge of $176
million related to impairment of certain assets. In addition, marketing and trading earnings were
reduced by a non-cash charge of around $400 million as a result of fair value accounting of
commodity derivatives.
After taking into account the impact of rising crude prices, earnings, when compared to the same
period last year, were mainly impacted by lower realised refining margins, and higher operating
costs, mainly as a result of exchange rate movements, and lower trading contributions, which were
partly offset by higher marketing margins.
Industry refining margins declined worldwide compared to the same period a year ago. Refinery
availability increased to 92% compared to 89% in the same period last year mainly due to lower
planned maintenance activities.
Marketing earnings, when compared to the same period a year ago, declined due to higher operating
costs, mainly as a result of exchange rate movements, and lower lubricants margins. These declines
were partly offset by higher B2B and retail margins.
Oil
Products (marketing and trading) sales volumes increased by 4%
compared to the same period
last year. Marketing sales volumes were 0.1% higher than in the same period last year and excluding
the impact of divestments 2.2% higher, mainly because of increased aviation, retail and commercial
fuels sales.
Chemicals
Segment earnings were $505 million compared to $1,153 million for the same period last year. In
2008 earnings included net charges of $206 million, reflecting impairment of assets and provisions
of $265 million, which was partly offset by a divestment gain of $59 million.
Earnings reflected lower margins, higher operating costs and lower income from equity-accounted
investments.
Chemicals manufacturing plant availability increased to 95%, some 3 percentage points higher than
in the same period last year.
Corporate
Segment earnings were $347 million compared to $978 million a year ago. Earnings in the comparative
period of 2007 included gains on the sale of the equity portfolio held by the insurance companies
of $404 million and the sale of property in the United Kingdom of $55 million.
Earnings, when compared to the same period in 2007, mainly reflected lower net interest income and
increased exchange rate losses, partly offset by higher tax credits.
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PORTFOLIO DEVELOPMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2008
Exploration & Production
In Australia, Shell reached an agreement with Woodside Petroleum Ltd. 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.
Also in
Australia, Shell signed a preliminary agreement with Arrow Energy
Ltd. to acquire 30% stake in Arrows coal bed methane acreage in
Queensland, and a 10% stake in Arrow International, for a cost of up
to $0.7 billion. Shell and Arrow plan to jointly develop projects to
extract clean-burning natural gas from coal deposits. Completion of a
definitive agreement is expected by the end of 2008.
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 in principle to sell
their participating interests proportionally, allowing KazMunaiGass stake to increase to match
that of the four major shareholders. Assuming conclusion of the deal, Shells 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.
In Peru, Shell signed a preliminary agreement with BPZ Energy Inc. to jointly explore for oil and
gas in the northern part of the country.
During the first half of 2008, Shell had four notable exploration discoveries in offshore Nigeria,
Australia and Brunei and onshore USA. Shell also significantly increased its overall acreage
position through acquisitions of new exploration licences offshore northwest Australia, in the
Chukchi Sea and the Gulf of Mexico in the USA.
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.
In the Middle East, an agreement was reached with Qatargas 4 and the Dubai Government for the
supply of LNG during the summer months for 15 years. The LNG will be delivered from Qatargas 4 and
Shells portfolio of other LNG volumes.
In Germany, the sale of the BEB Erdgas and Erdoel GmbH gas transport business (Shell share 50%) to
NV Nederlandse Gasunie was closed on July 1, 2008, with all required approvals in place. Proceeds
have been mainly received in July 2008, with a remaining payment expected by the end of the year.
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-lEtang 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 of which $1.5 billion was received in the second quarter 2008.
In Qatar, a Letter of Intent was signed with Qatar Petroleum International and PetroChina to build
an integrated refinery and petrochemical manufacturing complex in China.
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Unaudited Condensed Interim Financial Report
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LIQUIDITY AND CAPITAL RESOURCES
Three months ended June 30, 2008
Cash flow provided by operating activities in the three month period to June 30, 2008 was $4.2
billion compared to $8.8 billion a year ago mainly reflecting an increase in net working capital of
$11.8 billion in the second quarter of 2008. This increase mainly relates to higher cost-valued
inventory and increased net accounts receivable.
Capital investment for the three months ended June 30, 2008 was $8.0 billion of which $5.8 billion
was invested in the Exploration & Production and Gas & Power segments. Capital investment in the
same period of 2007 was $5.8 billion of which $4.3 billion was invested in the Exploration &
Production and Gas & Power segments.
Gross proceeds from divestments in the three month period to June 30, 2008 were $2.3 billion
compared to $7.1 billion a year ago.
Dividends of $0.40 per share were declared on July 31, 2008 in respect of the second quarter. These
dividends are payable on September 10, 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 for additional information on the dividend
access mechanism.
During the second quarter 2008 $1.4 billion or 0.6% of Royal Dutch Shell shares were bought back
for cancellation.
Six months ended June 30, 2008
Cash flow provided by operating activities in the six month period to June 30, 2008 was $21.0
billion compared to $20.0 billion a year ago. Net working capital increased mainly due to higher
cost-valued inventory and increased net accounts receivable.
Cash and cash equivalents amounted to $9.0 billion at the end of the period (2007: $15.1 billion).
Total short and long-term debt amounted to $16.4 billion (2007: $17.5 billion).
Capital investment for the six months ended June 30, 2008 was $16.1 billion of which $12.1 billion
was invested in the Exploration & Production and Gas & Power segments. Capital investment in the
same period of 2007 (including the minority share of Sakhalin) was $11.8 billion of which $8.9
billion was invested in the Exploration & Production and Gas & Power segments.
In the six months ended June 30, 2007 Shell paid cash of $7.1 billion for the acquisition of the
shares in Shell Canada that it did not already own. The Shell Canada acquisition was partly offset
by the sale of a portion of Shells ownership in Sakhalin Energy Investment Company Ltd.
Gross proceeds from divestments in the six month period to June 30, 2008 were $2.7 billion compared
to $7.5 billion a year ago.
Dividends of $0.40 per share were declared on April 29, 2008 and July
31, 2008 totaling $0.80 per share in respect of the first and second quarters.
During the first six months of 2008 $2.4 billion or 1% of Royal Dutch Shell shares were bought back
for cancellation.
RECENT DEVELOPMENTS
On July 17, 2008 Royal Dutch Shell, through its wholly owned subsidiary Shell Canada Limited,
launched an offer to acquire all of the outstanding shares of Duvernay Oil Corp. (Duvernay) at a
total price of C$5.9 billion, including debt. The offer is subject to certain conditions and
regulatiory approvals.
Duvernay is a leading acreage holder in the Western Canadian Sedimentary Basin. The company has
some 1,800 square kilometers (approximately 450,000 acres) of landholdings there. Duvernay has
reported over 25,000 boe/d of production, predominantly in natural gas.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
7 |
|
Royal Dutch Shell plc
Three and six month period ended June 30, 2008
Unaudited Condensed Consolidated Interim Financial Statements
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
8 |
|
Condensed Consolidated Statement of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue[A] |
|
|
131,419 |
|
|
|
84,896 |
|
|
|
245,721 |
|
|
|
158,376 |
|
Cost of sales |
|
|
109,261 |
|
|
|
68,715 |
|
|
|
206,041 |
|
|
|
129,381 |
|
|
Gross profit |
|
|
22,158 |
|
|
|
16,181 |
|
|
|
39,680 |
|
|
|
28,995 |
|
Selling, distribution and administrative expenses |
|
|
4,444 |
|
|
|
4,120 |
|
|
|
8,413 |
|
|
|
7,898 |
|
Exploration |
|
|
408 |
|
|
|
450 |
|
|
|
733 |
|
|
|
722 |
|
Share of profit of equity-accounted investments |
|
|
2,671 |
|
|
|
2,138 |
|
|
|
5,096 |
|
|
|
3,946 |
|
Net finance costs and other (income)/expense |
|
|
(140 |
) |
|
|
(477 |
) |
|
|
(193 |
) |
|
|
(1,378 |
) |
|
Income before taxation |
|
|
20,117 |
|
|
|
14,226 |
|
|
|
35,823 |
|
|
|
25,699 |
|
Taxation |
|
|
8,363 |
|
|
|
5,415 |
|
|
|
14,868 |
|
|
|
9,447 |
|
|
Income for the period |
|
|
11,754 |
|
|
|
8,811 |
|
|
|
20,955 |
|
|
|
16,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income attributable to minority interest |
|
|
198 |
|
|
|
144 |
|
|
|
316 |
|
|
|
304 |
|
|
Income attributable to shareholders of Royal Dutch Shell plc |
|
|
11,556 |
|
|
|
8,667 |
|
|
|
20,639 |
|
|
|
15,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (see Note 3) |
|
|
1.87 |
|
|
|
1.38 |
|
|
|
3.34 |
|
|
|
2.54 |
|
Diluted earnings per share (see Note 3) |
|
|
1.87 |
|
|
|
1.38 |
|
|
|
3.33 |
|
|
|
2.53 |
|
|
|
|
|
[A] |
|
Revenue is stated after deducting sales taxes, excise duties and similar levies of $25,462
million in the second quarter 2008 ($48,382 million cumulatively) and $18,993 million in the second
quarter 2007 ($36,298 million cumulatively). |
The Notes on pages 13 to 15 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
9 |
|
Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
June 30, 2008 |
|
|
Dec 31, 2007 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets |
|
|
5,336 |
|
|
|
5,366 |
|
Property, plant and equipment |
|
|
109,191 |
|
|
|
101,521 |
|
Investments: |
|
|
|
|
|
|
|
|
equity-accounted investments |
|
|
32,514 |
|
|
|
29,153 |
|
financial assets |
|
|
2,975 |
|
|
|
3,461 |
|
Deferred tax |
|
|
4,089 |
|
|
|
3,253 |
|
Pre-paid pension costs |
|
|
6,215 |
|
|
|
5,559 |
|
Other |
|
|
6,504 |
|
|
|
5,760 |
|
|
|
|
|
166,824 |
|
|
|
154,073 |
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
|
|
39,624 |
|
|
|
31,503 |
|
Accounts receivable |
|
|
127,241 |
|
|
|
74,238 |
|
Cash and cash equivalents |
|
|
8,990 |
|
|
|
9,656 |
|
|
|
|
|
175,855 |
|
|
|
115,397 |
|
|
Total assets |
|
|
342,679 |
|
|
|
269,470 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Debt |
|
|
11,072 |
|
|
|
12,363 |
|
Deferred tax |
|
|
13,994 |
|
|
|
13,039 |
|
Retirement benefit obligations |
|
|
6,162 |
|
|
|
6,165 |
|
Other provisions |
|
|
14,086 |
|
|
|
13,658 |
|
Other |
|
|
4,857 |
|
|
|
3,893 |
|
|
|
|
|
50,171 |
|
|
|
49,118 |
|
Current liabilities |
|
|
|
|
|
|
|
|
Debt |
|
|
5,352 |
|
|
|
5,736 |
|
Accounts payable and accrued liabilities |
|
|
126,246 |
|
|
|
75,697 |
|
Taxes payable |
|
|
15,895 |
|
|
|
9,733 |
|
Retirement benefit obligations |
|
|
419 |
|
|
|
426 |
|
Other provisions |
|
|
2,687 |
|
|
|
2,792 |
|
|
|
|
|
150,599 |
|
|
|
94,384 |
|
|
Total liabilities |
|
|
200,770 |
|
|
|
143,502 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Equity attributable to shareholders of Royal Dutch Shell plc |
|
|
139,809 |
|
|
|
123,960 |
|
Minority interest |
|
|
2,100 |
|
|
|
2,008 |
|
|
Total equity |
|
|
141,909 |
|
|
|
125,968 |
|
|
Total liabilities and equity |
|
|
342,679 |
|
|
|
269,470 |
|
|
The Notes on pages 13 to 15 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
10 |
|
Condensed Consolidated Statement of Changes in Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Equity attributable to shareholders of Royal Dutch Shell plc |
|
|
|
Ordinary |
|
|
Treasury |
|
|
Other |
|
|
Retained |
|
|
Total |
|
|
Minority |
|
|
Total equity |
|
|
|
share capital |
|
|
shares |
|
|
reserves[A] |
|
|
earnings |
|
|
|
|
|
interest |
|
|
|
|
|
At January 1, 2008 |
|
|
536 |
|
|
|
(2,392 |
) |
|
|
14,148 |
|
|
|
111,668 |
|
|
|
123,960 |
|
|
|
2,008 |
|
|
|
125,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(expense) recognised
directly in equity |
|
|
|
|
|
|
|
|
|
|
1,853 |
|
|
|
|
|
|
|
1,853 |
|
|
|
(110 |
) |
|
|
1,743 |
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,639 |
|
|
|
20,639 |
|
|
|
316 |
|
|
|
20,955 |
|
|
Total recognised income/(expense)
for the period |
|
|
|
|
|
|
|
|
|
|
1,853 |
|
|
|
20,639 |
|
|
|
22,492 |
|
|
|
206 |
|
|
|
22,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital contributions from
minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
|
|
27 |
|
Changes in minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59 |
|
|
|
59 |
|
|
|
25 |
|
|
|
84 |
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,818 |
) |
|
|
(4,818 |
) |
|
|
(166 |
) |
|
|
(4,984 |
) |
Treasury shares: net
sales/(purchases) and dividends
received |
|
|
|
|
|
|
442 |
|
|
|
|
|
|
|
|
|
|
|
442 |
|
|
|
|
|
|
|
442 |
|
Shares repurchased for cancellation |
|
|
(5 |
) |
|
|
|
|
|
|
5 |
|
|
|
(2,237 |
) |
|
|
(2,237 |
) |
|
|
|
|
|
|
(2,237 |
) |
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
(107 |
) |
|
|
18 |
|
|
|
(89 |
) |
|
|
|
|
|
|
(89 |
) |
|
At June 30, 2008 |
|
|
531 |
|
|
|
(1,950 |
) |
|
|
15,899 |
|
|
|
125,329 |
|
|
|
139,809 |
|
|
|
2,100 |
|
|
|
141,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2007 |
|
|
545 |
|
|
|
(3,316 |
) |
|
|
8,820 |
|
|
|
99,677 |
|
|
|
105,726 |
|
|
|
9,219 |
|
|
|
114,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(expense) recognised
directly in equity |
|
|
|
|
|
|
|
|
|
|
1,397 |
|
|
|
|
|
|
|
1,397 |
|
|
|
(101 |
) |
|
|
1,296 |
|
Income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,948 |
|
|
|
15,948 |
|
|
|
304 |
|
|
|
16,252 |
|
|
Total recognised income/(expense)
for the period |
|
|
|
|
|
|
|
|
|
|
1,397 |
|
|
|
15,948 |
|
|
|
17,345 |
|
|
|
203 |
|
|
|
17,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital contributions from
minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
819 |
|
|
|
819 |
|
Acquisition of Shell Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,445 |
) |
|
|
(5,445 |
) |
|
|
(1,639 |
) |
|
|
(7,084 |
) |
Sakhalin partial divestment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,711 |
) |
|
|
(6,711 |
) |
Other changes in minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
7 |
|
|
|
(49 |
) |
|
|
(42 |
) |
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,400 |
) |
|
|
(4,400 |
) |
|
|
(119 |
) |
|
|
(4,519 |
) |
Treasury shares: net
sales/(purchases) and dividends
received |
|
|
|
|
|
|
552 |
|
|
|
|
|
|
|
|
|
|
|
552 |
|
|
|
|
|
|
|
552 |
|
Shares repurchased for cancellation |
|
|
(3 |
) |
|
|
|
|
|
|
3 |
|
|
|
(1,386 |
) |
|
|
(1,386 |
) |
|
|
|
|
|
|
(1,386 |
) |
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
222 |
|
|
|
|
|
|
|
222 |
|
|
|
|
|
|
|
222 |
|
|
At June 30, 2007 |
|
|
542 |
|
|
|
(2,764 |
) |
|
|
10,442 |
|
|
|
104,401 |
|
|
|
112,621 |
|
|
|
1,723 |
|
|
|
114,344 |
|
|
The Notes on pages 13 to 15 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
11 |
|
Condensed Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Six months ended June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Income for the period |
|
|
20,955 |
|
|
|
16,252 |
|
Adjustment for: |
|
|
|
|
|
|
|
|
Current taxation |
|
|
15,106 |
|
|
|
9,727 |
|
Interest (income)/expense |
|
|
447 |
|
|
|
328 |
|
Depreciation, depletion and amortisation |
|
|
6,585 |
|
|
|
6,498 |
|
(Profit)/loss on sale of assets |
|
|
(1,038 |
) |
|
|
(1,495 |
) |
Decrease/(increase) in net working capital |
|
|
(8,967 |
) |
|
|
(2,103 |
) |
Share of profit of equity-accounted investments |
|
|
(5,096 |
) |
|
|
(3,946 |
) |
Dividends received from equity-accounted investments |
|
|
4,199 |
|
|
|
3,106 |
|
Deferred taxation and other provisions |
|
|
170 |
|
|
|
62 |
|
Other |
|
|
104 |
|
|
|
(1,123 |
) |
|
Cash flow from operating activities (pre-tax) |
|
|
32,465 |
|
|
|
27,306 |
|
Taxation paid |
|
|
(11,435 |
) |
|
|
(7,277 |
) |
|
Cash flow from operating activities |
|
|
21,030 |
|
|
|
20,029 |
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
(14,781 |
) |
|
|
(11,013 |
) |
Investments in equity-accounted investments |
|
|
(1,137 |
) |
|
|
(689 |
) |
Proceeds from sale of assets |
|
|
2,471 |
|
|
|
6,650 |
|
Proceeds from sale of equity-accounted investments |
|
|
333 |
|
|
|
394 |
|
Proceeds from sale of/(additions to) financial assets |
|
|
285 |
|
|
|
1,140 |
|
Interest received |
|
|
554 |
|
|
|
580 |
|
|
Cash flow from investing activities |
|
|
(12,275 |
) |
|
|
(2,938 |
) |
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net Increase/(decrease) in debt with maturity period within three months |
|
|
(24 |
) |
|
|
(844 |
) |
Other debt: |
|
|
|
|
|
|
|
|
New borrowings |
|
|
316 |
|
|
|
4,396 |
|
Repayments |
|
|
(2,143 |
) |
|
|
(1,887 |
) |
Interest paid |
|
|
(667 |
) |
|
|
(641 |
) |
Change in minority interest |
|
|
27 |
|
|
|
(6,695 |
) |
Net issue/(repurchase) of shares |
|
|
(2,423 |
) |
|
|
(1,386 |
) |
Dividends paid to: |
|
|
|
|
|
|
|
|
Shareholders of Royal Dutch Shell plc |
|
|
(4,818 |
) |
|
|
(4,400 |
) |
Minority interest |
|
|
(166 |
) |
|
|
(119 |
) |
Treasury shares: net sales/(purchases) and dividends received |
|
|
442 |
|
|
|
552 |
|
|
Cash flow from financing activities |
|
|
(9,456 |
) |
|
|
(11,024 |
) |
|
Currency translation differences relating to cash and cash equivalents |
|
|
35 |
|
|
|
48 |
|
|
Increase/(decrease) in cash and cash equivalents |
|
|
(666 |
) |
|
|
6,115 |
|
Cash and cash equivalents at January 1 |
|
|
9,656 |
|
|
|
9,002 |
|
|
Cash and cash equivalents at June 30 |
|
|
8,990 |
|
|
|
15,117 |
|
|
The Notes on pages 13 to 15 are an integral part of these Condensed Consolidated Interim Financial
Statements.
|
|
|
|
|
Royal Dutch Shell plc |
|
|
Unaudited Condensed Interim Financial Report 12 |
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 and six month period ended June 30, 2008 Condensed Consolidated Interim Financial
Statements of Royal Dutch Shell plc and its subsidiaries have been prepared in accordance with
International Accounting Standard (IAS) 34 Interim Financial Reporting.
These Condensed Consolidated Interim Financial Statements are unaudited; however, in the opinion of
Shell, the interim data includes all adjustments, consisting only of normal recurring adjustments,
necessary for a fair statement of the results for the interim periods.
2. Other reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger |
|
|
redemption |
|
|
Share 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,085 |
|
|
|
2,085 |
|
Unrealised gains/(losses) on securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(249 |
) |
|
|
(249 |
) |
Unrealised gains/(losses) on cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17 |
|
|
|
17 |
|
|
Income/(expense) recognised directly in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,853 |
|
|
|
1,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share repurchased for cancellation |
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
|
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(107 |
) |
|
|
|
|
|
|
(107 |
) |
|
At June 30, 2008 |
|
|
3,444 |
|
|
|
53 |
|
|
|
154 |
|
|
|
1,015 |
|
|
|
11,233 |
|
|
|
15,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2007 |
|
|
3,444 |
|
|
|
39 |
|
|
|
154 |
|
|
|
736 |
|
|
|
4,447 |
|
|
|
8,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative currency translation differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,218 |
|
|
|
2,218 |
|
Unrealised gains/(losses) on securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(738 |
) |
|
|
(738 |
) |
Unrealised gains/(losses) on cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(83 |
) |
|
|
(83 |
) |
|
Income/(expense) recognised directly in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,397 |
|
|
|
1,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share repurchased for cancellation |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
222 |
|
|
|
|
|
|
|
222 |
|
|
At June 30, 2007 |
|
|
3,444 |
|
|
|
42 |
|
|
|
154 |
|
|
|
958 |
|
|
|
5,844 |
|
|
|
10,442 |
|
|
[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.
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
13 |
|
3. Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
Income attributable to shareholders of Royal
Dutch Shell plc ($ million) |
|
|
11,556 |
|
|
|
8,667 |
|
|
|
20,639 |
|
|
|
15,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of ordinary shares |
|
|
6,170,325,321 |
|
|
|
6,281,729,128 |
|
|
|
6,182,927,817 |
|
|
|
6,284,367,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of ordinary shares |
|
|
6,189,058,741 |
|
|
|
6,303,110,809 |
|
|
|
6,199,685,973 |
|
|
|
6,303,195,713 |
|
|
4. Information by business segment
With effect from 2007, segment information is reported in accordance with IFRS 8 Operating
Segments, which has replaced IAS 14 Segment Reporting.
Three months ended June 30, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Sands |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party |
|
|
5,776 |
|
|
|
5,753 |
|
|
|
107 |
|
|
|
106,863 |
|
|
|
12,913 |
|
|
|
7 |
|
|
|
131,419 |
|
Inter-segment |
|
|
14,282 |
|
|
|
406 |
|
|
|
1,005 |
|
|
|
1,225 |
|
|
|
1,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings |
|
|
5,881 |
|
|
|
625 |
|
|
|
351 |
|
|
|
4,539 |
|
|
|
157 |
|
|
|
201 |
|
|
|
11,754 |
|
|
Three months ended June 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Sands |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party |
|
|
3,531 |
|
|
|
3,303 |
|
|
|
259 |
|
|
|
67,258 |
|
|
|
10,267 |
|
|
|
7 |
|
|
|
84,625 |
|
Inter-segment |
|
|
8,903 |
|
|
|
283 |
|
|
|
455 |
|
|
|
879 |
|
|
|
1,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings |
|
|
3,099 |
|
|
|
779 |
|
|
|
202 |
|
|
|
3,928 |
|
|
|
626 |
|
|
|
177 |
|
|
|
8,811 |
|
|
Six months ended June 30, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Sands |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party |
|
|
10,654 |
|
|
|
11,979 |
|
|
|
614 |
|
|
|
197,442 |
|
|
|
25,013 |
|
|
|
19 |
|
|
|
245,721 |
|
Inter-segment |
|
|
25,184 |
|
|
|
726 |
|
|
|
1,621 |
|
|
|
2,255 |
|
|
|
3,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings |
|
|
11,024 |
|
|
|
1,573 |
|
|
|
600 |
|
|
|
6,906 |
|
|
|
505 |
|
|
|
347 |
|
|
|
20,955 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
14 |
|
Six months ended June 30, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
Exploration & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
Gas & Power |
|
|
Oil Sands |
|
|
Oil Products |
|
|
Chemicals |
|
|
Corporate |
|
|
Total |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party |
|
|
6,513 |
|
|
|
7,536 |
|
|
|
541 |
|
|
|
124,780 |
|
|
|
18,965 |
|
|
|
40 |
|
|
|
158,375 |
|
Inter-segment |
|
|
17,542 |
|
|
|
535 |
|
|
|
777 |
|
|
|
1,486 |
|
|
|
2,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings |
|
|
6,492 |
|
|
|
1,582 |
|
|
|
317 |
|
|
|
5,730 |
|
|
|
1,153 |
|
|
|
978 |
|
|
|
16,252 |
|
|
5. Ordinary share capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
June 30, 2008 |
|
|
Dec 31, 2007 |
|
|
Allotted, called up and fully paid |
|
|
|
|
|
|
|
|
Class A ordinary shares |
|
|
300 |
|
|
|
303 |
|
Class B ordinary shares |
|
|
231 |
|
|
|
233 |
|
Sterling deferred |
|
|
[A] |
|
|
|
[A] |
|
|
|
|
|
531 |
|
|
|
536 |
|
|
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
15 |
|
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 six months ended June 30, 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 2007.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
Years ending December 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2006 |
|
|
2005 |
|
|
2004 |
|
|
Ratio of earnings to fixed charges |
|
|
27.18 |
|
|
|
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 June 30, 2008. This information is derived from these
Condensed Consolidated Interim Financial Statements.
|
|
|
|
|
|
|
$ million |
|
|
|
June 30, 2008 |
|
|
Equity |
|
|
|
|
Total equity attributable to shareholders of Royal Dutch
Shell plc |
|
|
139,809 |
|
Total finance debt |
|
|
|
|
Short-term finance debt |
|
|
5,352 |
|
Long-term finance debt[A] |
|
|
8,429 |
|
Total finance debt[B] |
|
|
13,781 |
|
|
Total capitalisation |
|
|
153,590 |
|
|
|
|
|
[A] |
|
Long-term finance debt excludes $2.6 billion of certain tolling commitments. |
|
[B] |
|
As of June 30, 2008, Shell had outstanding guarantees of $1.9 billion, of which $0.6 billion
related to project financing. $11.8 billion of the finance debt of Shell was unsecured. |
|
|
|
|
|
|
|
|
|
Royal Dutch Shell plc |
|
|
|
|
|
|
Unaudited Condensed Interim Financial Report
|
|
|
16 |
|