RDS 4th Quarter and Full Year 2012 Unaudited Results

Thu Jan 31, 2013 3:18am EST

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THE HAGUE, The Netherlands,  January 31, 2013  /PRNewswire/ --



Royal Dutch Shell's  (NYSE:RDS.A)(NYSE:RDS.B) 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) adjustment for
        623 (1,012)   (41)      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 items[2]    1,905   3,938
                                CCS earnings excluding
      5,582   6,559  4,846 +15  identified 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
         42    (60)     17      Non-controlling interest     (197)   (187)
 
                                Cash flow from operating
      9,913   9,483  6,465 +53  activities                  46,140  36,771 +25
 
                                Basic CCS earnings per
       1.16    0.98   1.04 +12  share ($)                     4.32    4.61  -6
                                Basic CCS earnings per ADS
       2.32    1.96   2.08      ($)                           8.64    9.22
                                Basic CCS earnings per
                                share excl. identified
       0.89    1.05   0.78 +14  items ($)                     4.02    3.97  +1
                                Basic CCS earnings per ADS
       1.78    2.10   1.56      excl. identified items ($)    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  http://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 2012 Q3 2012 Q4 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
      6,165   8,278   6,485  -5  operating activities        33,061 30,579  +8
 
                                 Upstream net capital
      9,323   6,932   7,363 +27  investment                  25,320 19,083 +33
 
                                 Liquids production
                                 available for sale
      1,640   1,599   1,644  -   (thousand b/d)               1,633  1,666  -2
                                 Natural gas production
                                 available for sale (million
     10,288   8,022   9,633  +7  scf/d)                       9,449  8,986  +5
                                 Total production available
      3,414   2,982   3,305  +3  for sale (thousand boe/d)    3,262  3,215  +1
 
                                 Equity LNG sales volumes
       5.49    4.97    4.84 +13  (million 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 2012 Q3 2012 Q4 2011 %[1]                             2012   2011   %
 
                                 Downstream CCS earnings
      1,163   1,731   (278)  -   excluding 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
 
                                 Downstream net capital
      1,471   1,051   2,362 -38  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
      4,620   4,699   4,440  +4  (thousand 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
                                 equity-accounted
      2,127   2,367   2,233      investments                 8,948   8,737
      2,437     944   1,320      Interest and other income   5,599   5,581
                                 Total revenue and other
    122,611 115,429 119,128      income                    481,700 484,489
     93,350  87,265  91,865      Purchases                 369,725 370,044
                                 Production and
      7,339   6,513   6,993      manufacturing 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
      3,835   3,875   3,243      and 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 Dutch Shell plc
      6,671   7,139   6,500   +3 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
    SHARES[1]

           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 EUR0.07 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
    dividends[1]          9       -      (9)    3,565    3,565               -  
 3,565
    Repurchases of
    shares[2]           (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
    dividends[1]         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
                             equity-accounted
       2,655   2,537   3,196 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
       (217)   (789)   (315) equity-accounted 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) of
         (30)    (26)     83 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
         (43)    (93) (1,342)dividends 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
        (289)   1,557 (7,964)and 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
      18,550  18,839  11,292 end 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  http://www.shell.com/investor  and  http://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  http://www.sec.gov. You can also obtain these
forms from the SEC by calling 1-800-SEC-0330.

January 31, 2013



Contacts:

Investor Relations International  + 31(0)70-377-4540;  North America
+1-713-241-1042

Media International:  +44(0)207-934-5550;  USA  +1-713-241-4544

SOURCE   Royal Dutch Shell  plc

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