ROYAL DUTCH SHELL PLC - RDS 4TH QUARTER AND FULL YEAR 2012 RESULTS

Released : 31 Jan 2013

ROYAL DUTCH SHELL PLC - RDS 4TH QUARTER AND FULL YEAR 2012 RESULTS

ROYAL DUTCH SHELL PLC - RDS 4TH QUARTER AND FULL YEAR 2012 RESULTS

PR Newswire

4TH QUARTER AND FULL YEAR 2012 UNAUDITED RESULTS

  * Royal Dutch Shell's fourth quarter 2012 earnings, on a current cost of
    supplies (CCS) basis (see Note 1), were $7.3 billion compared with $6.5
    billion in the same quarter a year ago. Full year 2012 CCS earnings were
    $27.0 billion compared with $28.6 billion in 2011.
  * Fourth quarter 2012 CCS earnings, excluding identified items (see page 4),
    were $5.6 billion compared with $4.8 billion in the fourth quarter 2011, an
    increase of 15%. Full year 2012 CCS earnings excluding identified items
    were $25.1 billion compared with $24.7 billion in 2011, an increase of 2%.
  * Basic CCS earnings per share excluding identified items increased by 14%
    versus the same quarter a year ago. Basic CCS earnings per share excluding
    identified items for the full year 2012 increased by 1% versus 2011.
  * Cash flow from operating activities was $9.9 billion in the fourth quarter
    2012 and $46.1 billion for the full year. Excluding movements in working
    capital, cash flow from operating activities was $8.9 billion in the fourth
    quarter 2012 and $42.7 billion for the full year.
  * Gearing at the end of 2012 was 9.2% versus 13.1% at the end of 2011.
  * A fourth quarter 2012 dividend has been announced of $0.43 per ordinary
    share and $0.86 per American Depositary Share (ADS), an increase of 2.4%
    compared with the fourth quarter 2011.
  * The first quarter 2013 dividend is expected to be declared at $0.45 per
    share and $0.90 per ADS, an increase of 4.7% compared with the first
    quarter 2012.
SUMMARY OF UNAUDITED RESULTS                                                    
                                                                                
Quarters                   $ million                         Full year          
                                                                                
Q4             Q4                                                               
2012   Q3 2012 2011   %1                                     2012   2011    %   
                                                                                
                           Income attributable to                               
6,671  7,139   6,500  +3   shareholders                      26,592 30,918  -14 
                                                                                
                           Current cost of supplies (CCS)                       
623    (1,012) (41)        adjustment for Downstream         452    (2,293)     
                                                                                
7,294  6,127   6,459  +13  CCS earnings                      27,044 28,625  -6  
                                                                                
1,712  (432)   1,613       Less: Identified items2           1,905  3,938       
                                                                                
                           CCS earnings excluding identified                    
5,582  6,559   4,846  +15  items                             25,139 24,687  +2  
                                                                                
                            Of which:                                           
                                                                                
4,377  4,888   5,107         Upstream                        20,025 20,600      
                                                                                
1,163  1,731   (278)         Downstream                      5,311  4,274       
                                                                                
                             Corporate and Non-controlling                      
42     (60)    17          interest                          (197)  (187)       
                                                                                
                           Cash flow from operating                             
9,913  9,483   6,465  +53  activities                        46,140 36,771  +25 
                                                                                
1.16   0.98    1.04   +12  Basic CCS earnings per share ($)  4.32   4.61    -6  
                                                                                
2.32   1.96    2.08        Basic CCS earnings per ADS ($)    8.64   9.22        
                                                                                
                           Basic CCS earnings per share                         
0.89   1.05    0.78   +14  excl. identified items ($)        4.02   3.97    +1  
                                                                                
                           Basic CCS earnings per ADS excl.                     
1.78   2.10    1.56        identified items ($)              8.04   7.94        
                                                                                
0.43   0.43    0.42   +2   Dividend per share ($)            1.72   1.68    +2  
                                                                                
0.86   0.86    0.84        Dividend per ADS ($)              3.44   3.36        
                                                                                
1 Q4 on Q4 change.                                                              
                                                                                
2 See page 4.                                                                   
                                                                                

Royal Dutch Shell Chief Executive Officer Peter Voser commented:

"With the first year of our 2012-2015 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year.

'Shell is competitive and innovative. We are delivering a strategy that others can't easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment."

FOURTH QUARTER 2012 PORTFOLIO DEVELOPMENTS

Upstream

In Australia, Shell completed the acquisition of Chevron's 16.7% interest in East Browse and Chevron's 20% interest in West Browse in exchange for Shell's 33.3% interest in Clio-Acme and cash.

Also in Australia, Shell acquired an additional 2% interest in the Crux gas and condensate field from Nexus Energy, increasing Shell's interest to 82%.

Front-end engineering and design contracts were awarded for the 2.5 million tonnes per annum capacity floating LNG facility and the major subsurface production facilities for the development of the Abadi LNG project (Shell share 30%) in Indonesia.

In Malaysia, Shell took the final investment decision for the development of the deep-water oil field Malikai, part of the Block G production-sharing contract (Shell share 35%), offshore Sabah. The Shell-operated project is expected to produce some 60 thousand barrels of oil equivalent per day ("boe/ d") at peak production.

Also in Malaysia, the Shell-operated deep-water Gumusut-Kakap field (Shell share 33%) commenced early oil production via a tie-back of two production wells to the nearby Kikeh production facility. This interim measure is expected to produce some 25 thousand barrels per day of oil until the Gumusut-Kakap floating production system is on stream.

In Qatar, Shell completed the ramp-up of the Pearl GTL project.

In the United Kingdom, Shell agreed to acquire 75% of Hess Corporation's interests in the Beryl area fields and SAGE infrastructure. This transaction was completed in January 2013, lifting Shell's production in the Beryl area fields from 9 thousand boe/d to 20 thousand boe/d.

Also in the United Kingdom, Shell agreed to acquire an additional 5.9% interest in the offshore Schiehallion field from Murphy Schiehallion Limited. Following completion of this transaction, expected in 2013, Shell's interest in the field will be 55%.

Upstream divestment proceeds totalled some $1.7 billion in the fourth quarter 2012. Divestments mainly included Shell's 30% interest in Oil Mining Lease 30 (Shell share of production 11 thousand boe/d) in the Niger Delta, Shell's 50% interest in the Holstein field (Shell share of production 5 thousand boe/d) in the Gulf of Mexico and Shell's interest in the Seal area (Shell share of production 2 thousand boe/d) within the Peace River oil sands of Alberta, Canada.

During the fourth quarter 2012, Shell participated in the Arnhem-1, Pinhoe-1 (Shell share 50%) gas discoveries in the outer Exmouth and the Satyr-4 (Shell share 25%) gas discovery in the Gorgon area offshore Australia and the Zabazaba-3 oil discovery (Shell share 50%) offshore Nigeria. Shell also had successful drilling programmes in liquids-rich shales in North America and coal bed methane in Australia.

As part of its global exploration programme Shell added new acreage positions during the fourth quarter 2012, including the Zitong tight-gas block onshore China, deep-water positions in the Gulf of Mexico and offshore New Zealand. New acreage positions were also added offshore Canada, Colombia and Malaysia, onshore Egypt, Russia and in liquids-rich shales in North America.

Downstream

In Poland, Shell agreed to acquire Neste Oil Corporation's network of 105 retail sites. The transaction, which is subject to regulatory approvals, is expected to be completed in 2013.

Downstream divestment proceeds totalled some $0.2 billion. Divestments mainly included Shell's LPG business in Malaysia and the majority of Shell's shareholding in its downstream businesses in Botswana, Kenya and Namibia.

KEY FEATURES OF THE FOURTH QUARTER AND FULL YEAR 2012

  * Fourth quarter 2012 CCS earnings (see Note 1) were $7,294 million, 13%
    higher than in the same quarter a year ago. Full year 2012 CCS earnings
    were $27,044 million, 6% lower than in 2011.
  * Fourth quarter 2012 CCS earnings excluding identified items (see page 4)
    were $5,582 million compared with $4,846 million in the fourth quarter
    2011, an increase of 15%. Full year 2012 CCS earnings excluding identified
    items were $25,139 million, 2% higher than in 2011.
  * Basic CCS earnings per share increased by 12% versus the same quarter a
    year ago. Full year 2012 basic CCS earnings per share decreased by 6%
    compared with 2011.
  * Basic CCS earnings per share excluding identified items increased by 14%
    versus the same quarter a year ago. Full year 2012 basic CCS earnings per
    share excluding identified items increased by 1% compared with 2011.
  * Cash flow from operating activities for the fourth quarter 2012 was $9.9
    billion, compared with $6.5 billion in the same quarter last year.
    Excluding movements in working capital, cash flow from operating activities
    in the fourth quarter 2012 was $8.9 billion, compared with $7.2 billion in
    the same quarter last year.

Full year 2012 cash flow from operating activities was $46.1 billion, compared with $36.8 billion in 2011. Excluding movements in working capital, cash flow from operating activities in 2012 was $42.7 billion, compared with $43.2 billion in 2011.

  * Net capital investment (see Note 1) for the fourth quarter 2012 was $10.9
    billion, bringing the full year 2012 total to $29.8 billion. Capital
    investment was $12.8 billion for the fourth quarter 2012 and $36.8 billion
    for the full year. Proceeds from divestments were $1.9 billion for the
    fourth quarter 2012 and $7.0 billion for the full year.
  * Return on average capital employed (see Note 3) for 2012 on a reported
    income basis was 12.7%.
  * Gearing was 9.2% at the end of 2012 versus 13.1% at the end of 2011.
  * Total dividends distributed in the fourth quarter 2012 were $2.8 billion,
    of which some $1.1 billion were settled by issuing some 34.2 million Class
    A shares under the Scrip Dividend Programme for the third quarter 2012.
    Under our share buyback programme some 13.0 million Class B shares were
    bought back for cancellation during the quarter for a consideration of $0.5
    billion.

Total dividends distributed in the full year 2012 were $11.0 billion, of which some $3.6 billion were settled by issuing some 103.8 million Class A shares under the Scrip Dividend Programme. Some 43.7 million Class B shares were bought back for cancellation during 2012 for a consideration of $1.5 billion.

* When final volumes are reported in the 2012 Annual Report and Form 20-F,

Shell expects that proved oil and gas reserves additions before taking into

account production on an SEC basis will be around 0.5 billion boe.

With 2012 production of some 1.2 billion boe, our headline proved Reserves Replacement Ratio for the year on an SEC basis is expected to be around 44%. Our Organic Reserves Replacement Ratio, which excludes the impact of oil and gas price movements in the year (mainly due to low gas prices in North America), acquisitions and divestments, is expected to be around 85%.

At the end of 2012, total proved reserves on an SEC basis are expected to be around 13.6 billion boe, after taking into account 2012 production.

The 3 year average headline proved Reserves Replacement Ratio on an SEC basis is expected to be around 84%. Our 3 year average Organic Reserves Replacement Ratio, which excludes the impact of oil and gas price movements in the year, acquisitions and divestments, is expected to be around 115%.

Further information will be provided in our Annual Report and Form 20-F, which is expected to be filed in March 2013.

* Supplementary financial and operational disclosure for the fourth quarter

2012 is available at www.shell.com/investor .

SUMMARY OF IDENTIFIED ITEMS

Earnings in the fourth quarter 2012 reflected the following items, which in aggregate amounted to a net gain of $1,712 million (compared with a net gain of $1,613 million in the fourth quarter 2011), as summarised in the table below:

  * Upstream earnings included a net gain of $1,801 million, reflecting gains
    of $1,756 million mainly related to divestments, and the mark-to-market
    valuation of certain gas contracts (see Note 2). Upstream earnings for the
    fourth quarter 2011 included a net gain of $1,458 million.
  * Downstream earnings included a net charge of $89 million, reflecting losses
    related to divestments, partly offset by a tax credit. Downstream earnings
    for the fourth quarter 2011 included a net gain of $34 million.
  * Corporate results and Non-controlling interest did not include any
    identified items in the fourth quarter of 2012. Corporate results and
    Non-controlling interest for the fourth quarter 2011 included a net gain of
    $121 million.
SUMMARY OF IDENTIFIED ITEMS                                                    
                                                                               
Quarters                   $ million                        Full year          
                                                                               
Q4 2012  Q3 2012  Q4 2011                                   2012      2011     
                                                                               
                           Segment earnings impact of                          
                           identified items:                                   
                                                                               
1,801    (298)    1,458     Upstream                        2,137     3,855    
                                                                               
(89)     (134)    34        Downstream                      39        15       
                                                                               
                            Corporate and Non-controlling                      
-        -        121      interest                         (271)     68       
                                                                               
1,712    (432)    1,613    Earnings impact                  1,905     3,938    
                                                                               

These identified items generally relate to events with an impact of more than $50 million on Royal Dutch Shell's CCS earnings and are shown to provide additional insight into segment earnings and income attributable to shareholders. Further comments on the business segments are provided in the section 'Earnings by Business Segment' on pages 5 to 7.

EARNINGS BY BUSINESS SEGMENT

UPSTREAM                                                                       
                                                                               
Quarters                  $ million                          Full year         
                                                                               
Q4     Q3     Q4                                                               
2012   2012   2011   %1                                      2012   2011   %   
                                                                               
                          Upstream earnings excluding                          
4,377  4,888  5,107  -14  identified items                   20,025 20,600 -3  
                                                                               
6,178  4,590  6,565  -6   Upstream earnings                  22,162 24,455 -9  
                                                                               
                          Upstream cash flow from operating                    
6,165  8,278  6,485  -5   activities                         33,061 30,579 +8  
                                                                               
9,323  6,932  7,363  +27  Upstream net capital investment    25,320 19,083 +33 
                                                                               
                          Liquids production available for                     
1,640  1,599  1,644  -    sale (thousand b/d)                1,633  1,666  -2  
                                                                               
                          Natural gas production available                     
10,288 8,022  9,633  +7   for sale (million scf/d)           9,449  8,986  +5  
                                                                               
                          Total production available for                       
3,414  2,982  3,305  +3   sale (thousand boe/d)              3,262  3,215  +1  
                                                                               
                          Equity LNG sales volumes (million                    
5.49   4.97   4.84   +13  tonnes)                            20.20  18.83  +7  
                                                                               
1 Q4 on Q4 change                                                              
                                                                               

Fourth quarter Upstream earnings excluding identified items were $4,377 million compared with $5,107 million a year ago. Identified items were a net gain of $1,801 million, compared with a net gain of $1,458 million in the fourth quarter 2011 (see page 4).

Compared with the fourth quarter 2011, Upstream earnings excluding identified items benefited from the contribution of Integrated Gas, reflecting the ramp-up of Pearl GTL in Qatar, higher equity LNG sales volumes and realisations as well as increased LNG trading contributions. Earnings were lower than in the fourth quarter 2011 mainly due to increased operating expenses, higher depreciation and higher exploration expenses. Earnings were also impacted by lower liquids and synthetic crude oil realisations in the Americas, which incurred a loss.

Global liquids realisations were 1% lower than in the fourth quarter 2011. In Canada, synthetic crude oil realisations were 19% lower than in the same period last year. Global natural gas realisations were 3% higher than in the same quarter a year ago, with a 4% decrease in the Americas and a 3% increase outside the Americas.

Fourth quarter 2012 production was 3,414 thousand boe/d compared with 3,305 thousand boe/d a year ago, an increase of 3%. Liquids production was in line with the fourth quarter 2011, while natural gas production increased by 7%.

New field start-ups and the continuing ramp-up of fields, in particular Pearl GTL in Qatar and Pluto LNG in Australia, contributed some 235 thousand boe/d to production in the fourth quarter 2012, which more than offset the impact of field declines.

Equity LNG sales volumes of 5.49 million tonnes were 13% higher than in the same quarter a year ago. Equity LNG sales volumes reflected the contribution from Pluto LNG and higher volumes from Qatargas 4 LNG.

Full year Upstream earnings excluding identified items were $20,025 million compared with $20,600 million in 2011. Identified items were a net gain of $2,137 million, compared with a net gain of $3,855 million in 2011.

Compared with 2011, Upstream earnings excluding identified items benefited from the contribution of Integrated Gas, reflecting the ramp-up of Pearl GTL in Qatar, higher LNG realisations as well as increased LNG trading contributions and equity LNG sales volumes. Earnings also reflected higher gas realisations outside the Americas. These items were more than offset by reduced contributions of the Americas, mainly as a result of higher depreciation, increased operating expenses, higher exploration expenses and lower gas realisations.

Global liquids realisations were 1% higher than in 2011. In Canada, synthetic crude oil realisations were 11% lower than in 2011. Global natural gas realisations were 1% higher than in 2011, with a 31% decrease in the Americas and a 9% increase outside the Americas.

Full year 2012 production was 3,262 thousand boe/d compared with 3,215 thousand boe/d for 2011. Liquids production was down 2% and natural gas production increased by 5% compared with 2011. Excluding the impact of divestments and exits, production volumes in 2012 were 3% higher than in 2011.

New field start-ups and the continuing ramp-up of fields, in particular the ramp-up of Pearl GTL in Qatar and Pluto LNG in Australia, contributed some 225 thousand boe/d to production in 2012, which more than offset the impact of field declines.

Equity LNG sales volumes of 20.20 million tonnes were 7% higher than in 2011, mainly reflecting the successful ramp-up of Qatargas 4 LNG in Qatar and the start-up of Pluto LNG in Australia.

DOWNSTREAM                                                                    
                                                                              
Quarters                  $ million                         Full year         
                                                                              
Q4     Q3     Q4                                                              
2012   2012   2011   %1                                     2012   2011   %   
                                                                              
                          Downstream CCS earnings excluding                   
1,163  1,731  (278)  -    identified items                  5,311  4,274  +24 
                                                                              
1,074  1,597  (244)  -    Downstream CCS earnings           5,350  4,289  +25 
                                                                              
                          Downstream cash flow from                           
4,303  335    324    -    operating activities              11,111 4,921  +126
                                                                              
1,471  1,051  2,362  -38  Downstream net capital investment 4,275  4,342  -2  
                                                                              
                          Refinery processing intake                          
2,804  2,880  2,666  +5   (thousand b/d)                    2,819  2,845  -1  
                                                                              
                          Oil products sales volumes                          
6,367  6,290  6,155  +3   (thousand b/d)                    6,235  6,196  +1  
                                                                              
                          Chemicals sales volumes (thousand                   
4,620  4,699  4,440  +4   tonnes)                           18,669 18,831 -1  
                                                                              
1 Q4 on Q4 change                                                             
                                                                              

Fourth quarter Downstream earnings excluding identified items were $1,163 million compared with a loss of $278 million in the fourth quarter 2011. Identified items were a net charge of $89 million, compared with a net gain of $34 million in the fourth quarter 2011 (see page 4).

Compared with the fourth quarter 2011, Downstream earnings excluding identified items benefited from higher realised refining margins and Shell's improved operating performance, as well as increased contributions from marketing and trading. Chemicals earnings were lower, mainly as a result of higher operating expenses and, in the United States, supply constraints of advantaged feedstock.

Oil products sales volumes were 3% higher compared with the same period a year ago, mainly as a result of increased trading volumes.

Chemicals sales volumes increased by 4% compared with the same quarter last year, due to improved operating performance and demand. Chemicals manufacturing plant availability was 91% compared with 86% in the fourth quarter 2011, mainly due to lower planned maintenance activities.

Refinery intake volumes were 5% higher compared with the fourth quarter 2011. Excluding portfolio impacts, refinery intake volumes were 8% higher than in the same period a year ago. Refinery availability was 92%, in line with the fourth quarter 2011.

In the United States, the crude distillation unit at the expansion of Motiva's refinery (Shell share 50%) in Port Arthur, Texas was restarted in January 2013 and is expected to ramp-up during early 2013.

Full year Downstream earnings excluding identified items were $5,311 million compared with $4,274 million in 2011. Identified items were a net gain of $39 million, compared with a net gain of $15 million in 2011.

Compared with 2011, Downstream earnings excluding identified items reflected higher realised refining margins and lower operating expenses, mainly as a result of favourable currency exchange rate effects. Trading contributions were lower, while marketing contributions were broadly in line with 2011. Chemicals earnings were lower, mainly as a result of the impact of the global economic slowdown and, in the United States, supply constraints of advantaged feedstock and the impact of hurricane Isaac on operations.

Oil products sales volumes were 1% higher compared with 2011. Lower marketing volumes, mainly as a result of portfolio divestments, were more than offset by higher trading volumes. Excluding the impact of divestments and the effect of the formation of the Raízen joint venture, sales volumes were 3% higher than in 2011.

Chemicals sales volumes were 1% lower compared with 2011, as reductions in European manufacturing capacity and rationalisation of the contract portfolio were largely offset by improved operating performance. Chemicals manufacturing plant availability increased to 91% compared with 89% in 2011.

Refinery intake volumes were 1% lower compared with 2012. Excluding portfolio impacts, refinery intake volumes were 4% higher than in 2011. Refinery availability increased to 93% compared with 92% in 2011.

CORPORATE AND NON-CONTROLLING INTEREST                                        
                                                                              
Quarters                $ million                                Full year    
                                                                              
Q4 2012 Q3 2012 Q4 2011                                          2012   2011  
                                                                              
                        Corporate and Non-controlling interest                
42      (60)    17      excl. identified items                   (197)  (187) 
                                                                              
                        Of which:                                             
                                                                              
76      15      24        Corporate                              25     63    
                                                                              
(34)    (75)    (7)       Non-controlling interest               (222)  (250) 
                                                                              
42      (60)    138     Corporate and Non-controlling interest   (468)  (119) 
                                                                              

Fourth quarter Corporate results and Non-controlling interest excluding identified items were $42 million compared with $17 million in the same period of 2011. Identified items in the fourth quarter 2011 were a net gain of $121 million (see page 4).

Corporate results excluding identified items compared with the fourth quarter 2011 mainly reflected favourable currency exchange rate effects and higher tax credits, partly offset by higher net interest expense.

Full year Corporate results and Non-controlling interest excluding identified items were a loss of $197 million compared with a loss of $187 million in 2011. Identified items were a net charge of $271 million, compared with a net gain of $68 million in 2011.

Corporate results excluding identified items compared with 2011 mainly reflected higher net interest expense and increased operating expenses, which were largely offset by higher tax credits and favourable currency exchange rate effects.

FORTHCOMING EVENTS

First quarter 2013 results and first quarter 2013 dividend are scheduled to be announced on May 2, 2013. Second quarter 2013 results and second quarter 2013 dividend are scheduled to be announced on August 1, 2013. Third quarter 2013 results and third quarter 2013 dividend are scheduled to be announced on October 31, 2013.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME                                                
                                                                                
Quarters                    $ million                       Full year           
                                                                                
Q4 2012 Q3 2012 Q4 2011 %1                                  2012    2011    %   
                                                                                
118,047 112,118 115,575     Revenue                         467,153 470,171     
                                                                                
                            Share of profit of                                  
2,127   2,367   2,233       equity-accounted investments    8,948   8,737       
                                                                                
2,437   944     1,320       Interest and other income       5,599   5,581       
                                                                                
122,611 115,429 119,128     Total revenue and other income  481,700 484,489     
                                                                                
93,350  87,265  91,865      Purchases                       369,725 370,044     
                                                                                
                            Production and manufacturing                        
7,339   6,513   6,993       expenses                        26,280  26,458      
                                                                                
                            Selling, distribution and                           
3,759   3,709   3,706       administrative expenses         14,616  14,335      
                                                                                
419     311     404         Research and development        1,314   1,125       
                                                                                
1,167   713     825         Exploration                     3,104   2,266       
                                                                                
                            Depreciation, depletion and                         
3,835   3,875   3,243       amortisation                    14,615  13,228      
                                                                                
379     415     287         Interest expense                1,757   1,373       
                                                                                

12,363 12,628 11,805 +5 Income before taxation 50,289 55,660 -10

                                                                                
5,664   5,389   5,337       Taxation                        23,449  24,475      
                                                                                
6,699   7,239   6,468   +4  Income for the period           26,840  31,185  -14 
                                                                                
                            Income attributable to                              
28      100     (32)        non-controlling interest        248     267         
                                                                                
                            Income attributable to Royal                        

6,671 7,139 6,500 +3 Dutch Shell plc shareholders 26,592 30,918 -14

                                                                                
1 Q4 on Q4 change.                                                              
                                                                                
                                                                                
                                                                                
EARNINGS PER SHARE                                                             
                                                                               
Quarters                   $                                Full year          
                                                                               
Q4 2012  Q3 2012  Q4 2011                                   2012      2011     
                                                                               
1.06     1.14     1.04     Basic earnings per share         4.25      4.98     
                                                                               
1.06     1.14     1.04     Diluted earnings per share       4.24      4.97     
                                                                               
SHARES1                                                                        
                                                                               
Quarters                   Million                          Full year          
                                                                               
Q4 2012  Q3 2012  Q4 2011                                   2012      2011     
                                                                               
                           Weighted average number of                          
                           shares as the basis for:                            
                                                                               
6,282.8  6,266.3  6,231.3    Basic earnings per share       6,261.2   6,212.5  
                                                                               
6,289.2  6,273.9  6,241.0    Diluted earnings per share     6,267.8   6,221.7  
                                                                               
                           Shares outstanding at the end of                    
6,305.9  6,284.8  6,220.1  the period                       6,305.9   6,220.1  
                                                                               
1 Royal Dutch Shell plc ordinary shares of euro 0.07 each.                     
                                                                               
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                 
                                                                               
Quarters                $ million                            Full year         
                                                                               
Q4 2012 Q3 2012 Q4 2011                                      2012     2011     
                                                                               
6,699   7,239   6,468   Income for the period                26,840   31,185   
                                                                               
                        Other comprehensive income, net of                     
                        tax:                                                   
                                                                               
140     2,424   (1,310)   Currency translation differences   1,644    (3,328)  
                                                                               
                          Unrealised gains/(losses) on                         
(683)   (97)    1,671   securities                           (815)    1,684    
                                                                               
101     (187)   (133)     Cash flow hedging gains/(losses)   31       (222)    
                                                                               
                          Share of other comprehensive                         
                        income/(loss) of                                       
                                                                               
(179)   27      (39)      equity-accounted investments       (222)    60       
                                                                               
                        Other comprehensive income/(loss)                      
(621)   2,167   189     for the period                       638      (1,806)  
                                                                               
6,078   9,406   6,657   Comprehensive income for the period  27,478   29,379   
                                                                               
                        Comprehensive income/(loss)                            
                        attributable to                                        
                                                                               
46      132     (603)   non-controlling interest             300      (348)    
                                                                               
                        Comprehensive income attributable to                   
                                                                               
6,032   9,274   7,260   Royal Dutch Shell plc shareholders   27,178   29,727   
                                                                               
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                             
                                                                                        
                   Equity attributable to Royal Dutch Shell plc                         
                   shareholders                                                         
                                                                                        
                            Shares                                                      
                   Share    held in  Other    Retained          Non-controlling Total   
$ million          capital  trust    reserves earnings Total    interest        equity  
                                                                                        
At January 1, 2012 536      (2,990)  8,984    162,987  169,517  1,486           171,003 
                                                                                        
Comprehensive                                                                           
income for the                                                                          
period             -        -        586      26,592   27,178   300             27,478  
                                                                                        
Capital                                                                                 
contributions                                                                           
from, and other                                                                         
changes in,                                                                             
non-controlling                                                                         
interest           -        -        -        39       39       (61)            (22)    
                                                                                        
Dividends paid     -        -        -        (10,955) (10,955) (292)           (11,247)
                                                                                        
Scrip dividends1   9        -        (9)      3,565    3,565    -               3,565   
                                                                                        
Repurchases of                                                                          
shares2            (3)      -        3        (1,728)  (1,728)  -               (1,728) 
                                                                                        
Shares held in                                                                          
trust: net sales/                                                                       
(purchases) and                                                                         
dividends received -        703      -        150      853      -               853     
                                                                                        
Share-based                                                                             
compensation       -        -        457      (432)    25       -               25      
                                                                                        
At December 31,                                                                         
2012               542      (2,287)  10,021   180,218  188,494  1,433           189,927 
                                                                                        
1 During 2012 some 103.8 million Class A shares, equivalent to $3.6 billion,            
were issued under the Scrip Dividend Programme.                                         
                                                                                        
2 Includes shares committed to repurchase at December 31, 2012.                         
                                                                                        
                   Equity attributable to Royal Dutch Shell plc                         
                   shareholders                                                         
                                                                                        
                            Shares                                                      
                   Share    held in  Other    Retained          Non-controlling Total   
$ million          capital  trust    reserves earnings Total    interest        equity  
                                                                                        
At January 1, 2011 529      (2,789)  10,094   140,179  148,013  1,767           149,780 
                                                                                        
Comprehensive                                                                           
income for the                                                                          
period             -        -        (1,191)  30,918   29,727   (348)           29,379  
                                                                                        
Capital                                                                                 
contributions                                                                           
from, and other                                                                         
changes in,                                                                             
non-controlling                                                                         
interest           -        -        -        41       41       505             546     
                                                                                        
Dividends paid     -        -        -        (10,457) (10,457) (438)           (10,895)
                                                                                        
Scrip dividends1   10       -        (10)     3,580    3,580    -               3,580   
                                                                                        
Repurchases of                                                                          
shares             (3)      -        3        (1,106)  (1,106)  -               (1,106) 
                                                                                        
Shares held in                                                                          
trust: net sales/                                                                       
(purchases) and                                                                         
dividends received -        (201)    -        142      (59)     -               (59)    
                                                                                        
Share-based                                                                             
compensation       -        -        88       (310)    (222)    -               (222)   
                                                                                        
At December 31,                                                                         
2011               536      (2,990)  8,984    162,987  169,517  1,486           171,003 
                                                                                        
1 During 2011 some 104.6 million Class A shares, equivalent to $3.6 billion,            
were issued under the Scrip Dividend Programme.                                         
                                                                                        
CONDENSED CONSOLIDATED BALANCE SHEET                                           
                                                                               
                                         $ million                             
                                                                               
                                                      Sept 30,                 
                                         Dec 31, 2012 2012         Dec 31, 2011
                                                                               
Assets                                                                         
                                                                               
Non-current assets:                                                            
                                                                               
Intangible assets                        4,470        4,478        4,521       
                                                                               
Property, plant and equipment            172,293      162,401      152,081     
                                                                               
Equity-accounted investments             38,350       39,033       37,990      
                                                                               
Investments in securities                4,867        5,492        5,492       
                                                                               
Deferred tax                             4,045        4,246        4,732       
                                                                               
Retirement benefits                      12,575       12,461       11,408      
                                                                               
Trade and other receivables              8,991        10,070       9,256       
                                                                               
                                         245,591      238,181      225,480     
                                                                               
Current assets:                                                                
                                                                               
Inventories                              30,781       32,358       28,976      
                                                                               
Trade and other receivables              65,403       70,972       79,509      
                                                                               
Cash and cash equivalents                18,550       18,839       11,292      
                                                                               
                                         114,734      122,169      119,777     
                                                                               
Total assets                             360,325      360,350      345,257     
                                                                               
Liabilities                                                                    
                                                                               
Non-current liabilities:                                                       
                                                                               
Debt                                     29,921       28,078       30,463      
                                                                               
Trade and other payables                 4,175        4,322        4,921       
                                                                               
Deferred tax                             15,590       16,107       14,649      
                                                                               
Retirement benefits                      6,298        6,169        5,931       
                                                                               

Decommissioning and other provisions 17,435 16,262 15,631

                                                                               
                                         73,419       70,938       71,595      
                                                                               
Current liabilities:                                                           
                                                                               
Debt                                     7,833        8,280        6,712       
                                                                               
Trade and other payables                 72,839       77,550       81,846      
                                                                               
Taxes payable                            12,684       14,869       10,606      
                                                                               
Retirement benefits                      402          399          387         
                                                                               

Decommissioning and other provisions 3,221 3,131 3,108

                                                                               
                                         96,979       104,229      102,659     
                                                                               
Total liabilities                        170,398      175,167      174,254     
                                                                               
Equity attributable to Royal Dutch Shell                                       
plc shareholders                         188,494      183,785      169,517     
                                                                               
Non-controlling interest                 1,433        1,398        1,486       
                                                                               
Total equity                             189,927      185,183      171,003     
                                                                               
Total liabilities and equity             360,325      360,350      345,257     
                                                                               
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                                
                                                                              
Quarters                   $ million                         Full year        
                                                                              
Q4 2012  Q3 2012  Q4 2011                                    2012     2011    
                                                                              
                           Cash flow from operating                           
                           activities                                         
                                                                              
6,699    7,239    6,468    Income for the period             26,840   31,185  
                                                                              
                           Adjustment for:                                    
                                                                              
5,966    5,385    5,816    - Current taxation                22,722   23,009  
                                                                              
324      362      275      - Interest expense (net)          1,543    1,164   
                                                                              
                           - Depreciation, depletion and                      
3,835    3,875    3,243    amortisation                      14,615   13,228  
                                                                              
(2,083)  (428)    (1,150)  - Net gain on sales of assets     (4,228)  (4,485) 
                                                                              
                           - Decrease/(increase) in net                       
994      (2,209)  (688)    working capital                   3,391    (6,471) 
                                                                              
                           - Share of profit of                               
(2,127)  (2,367)  (2,233)  equity-accounted investments      (8,948)  (8,737) 
                                                                              
                           - Dividends received from                          
2,655    2,537    3,196    equity-accounted investments      10,573   9,681   
                                                                              
                           - Deferred taxation and                            
                           decommissioning and                                
                                                                              
(365)    (75)     (159)      other provisions                461      1,768   
                                                                              
553      (205)    (550)    - Other                           201      (949)   
                                                                              
                           Net cash from operating                            
16,451   14,114   14,218   activities (pre-tax)              67,170   59,393  
                                                                              
(6,538)  (4,631)  (7,753)  Taxation paid                     (21,030) (22,622)
                                                                              
                           Net cash from operating                            
9,913    9,483    6,465    activities                        46,140   36,771  
                                                                              
                           Cash flow from investing                           
                           activities                                         
                                                                              
(10,674) (8,413)  (9,914)  Capital expenditure               (32,576) (26,301)
                                                                              
                           Investments in equity-accounted                    
(217)    (789)    (315)    investments                       (3,028)  (1,886) 
                                                                              
1,513    786      1,175    Proceeds from sales of assets     6,346    6,990   
                                                                              
                           Proceeds from sales of                             
415      56       43       equity-accounted investments      698      468     
                                                                              
                           Proceeds from sales/(purchases)                    
(30)     (26)     83       of securities (net)               (86)     90      
                                                                              
53       47       11       Interest received                 193      196     
                                                                              
                           Net cash used in investing                         
(8,940)  (8,339)  (8,917)  activities                        (28,453) (20,443)
                                                                              
                           Cash flow from financing                           
                           activities                                         
                                                                              
                           Net (decrease)/increase in debt                    
                           with maturity period                               
                                                                              
(467)    507      (841)    within three months               (165)    (3,724) 
                                                                              
1,813    2,551    5        Other debt: New borrowings        5,108    1,249   
                                                                              
(278)    (182)    (585)      Repayments                      (4,960)  (4,649) 
                                                                              
(283)    (352)    (470)    Interest paid                     (1,428)  (1,665) 
                                                                              
                           Change in non-controlling                          
25       (10)     11       interest                          23       8       
                                                                              
                           Cash dividends paid to:                            
                                                                              
                           - Royal Dutch Shell plc                            
(1,634)  (1,973)  (1,688)  shareholders                      (7,390)  (6,877) 
                                                                              
(26)     (164)    (64)     - Non-controlling interest        (292)    (438)   
                                                                              
(453)    (149)    (289)    Repurchases of shares             (1,492)  (1,106) 
                                                                              
                           Shares held in trust: net sales/                   
                           (purchases) and dividends                          
(43)     (93)     (1,342)  received                          (34)     (929)   
                                                                              
                           Net cash used in financing                         
(1,346)  135      (5,263)  activities                        (10,630) (18,131)
                                                                              
                           Currency translation differences                   
                           relating to cash and                               
                                                                              
84       278      (249)    cash equivalents                  201      (349)   
                                                                              
                           Increase/(decrease) in cash and                    
(289)    1,557    (7,964)  cash equivalents                  7,258    (2,152) 
                                                                              
                           Cash and cash equivalents at                       
18,839   17,282   19,256   beginning of period               11,292   13,444  
                                                                              
                           Cash and cash equivalents at end                   
18,550   18,839   11,292   of period                         18,550   11,292  
                                                                              
EXPLANATORY NOTES
1. Basis of preparation

The unaudited quarterly and full year financial report and tables of Royal Dutch Shell plc and its subsidiaries (collectively known as Shell) are prepared on the basis of the same accounting principles as, and should be read in conjunction with, the Annual Report and Form 20-F for the year ended December 31, 2011 (pages 105 to 110) as filed with the U.S. Securities and Exchange Commission.

The financial information presented does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006. Statutory accounts for the year ended December 31, 2011 were published in Shell's Annual Report and a copy was delivered to the Registrar of Companies in England and Wales. The auditors' report on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.

Segment information

Segment earnings are presented on a current cost of supplies basis (CCS earnings). On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings thus exclude the effect of changes in the oil price on inventory carrying amounts. Net capital investment information is presented as measured based on capital expenditure as reported in the Condensed Consolidated Statement of Cash Flows, adjusted for: proceeds from divestments; exploration expenses excluding exploration wells written off; investments in equity-accounted investments; and leases and other items.

CCS earnings and net capital investment information are the dominant measures used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.

2. Impacts of accounting for derivatives

In the ordinary course of business Shell enters into contracts to supply or purchase oil and gas products, and also enters into derivative contracts to mitigate resulting economic exposures (generally price exposure). Derivative contracts are carried at period-end market price (fair value), with movements in fair value recognised in income for the period. Supply and purchase contracts entered into for operational purposes are, by contrast, recognised when the transaction occurs (see also below); furthermore, inventory is carried at historical cost or net realisable value, whichever is lower.

As a consequence, accounting mismatches occur because: (a) the supply or purchase transaction is recognised in a different period; or (b) the inventory is measured on a different basis.

In addition, certain UK gas contracts held by Upstream are, due to pricing or delivery conditions, deemed to contain embedded derivatives or written options and are also required to be carried at fair value even though they are entered into for operational purposes.

The accounting impacts of the aforementioned are reported as identified items in the quarterly results.

3. Return on average capital employed

Return on average capital employed measures the efficiency of Shell's utilisation of the capital that it employs and is a common measure of business performance. In this calculation, return on average capital employed is defined as the income for the year adjusted for after-tax interest expense as a percentage of the average capital employed for the same period. Capital employed consists of total equity, current debt and non-current debt. The tax rate is derived from calculations at the published segment level.

CAUTIONARY STATEMENT

All amounts shown throughout this Report are unaudited.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this document "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc 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 document 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 document, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This document 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 Shell and the Shell Group 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", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward-looking statements included in this document, 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) reserves estimates; (f) loss of market share 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 regulatory measures addressing climate change; (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 document 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 Shell's Annual Report and Form 20-F for the year ended December 31, 2011 (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 document, January 31, 2013. Neither Shell nor any of its subsidiaries nor the Shell Group 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 document.

We may have used certain terms, such as "Organic Reserves Replacement Ratio", in this report that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

The information in this results announcement reflects the consolidated financial position and results of Royal Dutch Shell plc (“Royal Dutch Shell”). All amounts shown throughout this report are unaudited. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.

January 31, 2013

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