SHELL A ORD EUR0.07
SHELL A ORD EUR0.07
Open: -
Change: -
Volume: -
Low: -
High: -
High / Low range: -
Type: Stocks
Ticker: RDSA
ISIN: GB00B03MLX29

Royal Dutch Shell Plc 1st Quarter 2018 Unaudited Results

  • 42
Royal Dutch Shell Plc 1st Quarter 2018 Unaudited Results

PR Newswire

THE HAGUE, Netherlands, April 26, 2018 /PRNewswire/ --


   

    SUMMARY OF UNAUDITED RESULTS
                     $ million                                   Quarters
                                   Definition     Q1 2018 Q4 2017  Q1 2017    %1
    Income/(loss) attributable
    to shareholders                                 5,899   3,807    3,538   +67
    CCS earnings attributable
    to shareholders                  Note 2         5,703   3,082    3,381   +69
    Of which: Identified items        [A]             381 (1,221)    (373)
    CCS earnings attributable
    to shareholders excluding
    identified items                                5,322   4,303    3,754   +42
    Add: CCS earnings
    attributable to
    non-controlling interest                          121      94      109
    CCS earnings excluding
    identified items                                5,443   4,397    3,863   +41
    Of which:
    Integrated Gas                                  2,439   1,636    1,181
    Upstream                                        1,551   1,650      540
    Downstream                                      1,687   1,396    2,489
    Corporate                                       (234)   (285)    (347)
    Cash flow from operating
    activities                                      9,427   7,275    9,508   -1
    Cash flow from investing
    activities                                    (4,249)   (665)  (4,324)
    Free cash flow                     H            5,178   6,610    5,184
    Basic earnings per share
    ($)                                              0.71    0.46     0.43   +65
    Basic CCS earnings per
    share ($)                         [B]            0.69    0.37     0.41   +68
    Basic CCS earnings per
    share excl. identified
    items ($)                                        0.64    0.52     0.46   +39
    Dividend per share ($)                           0.47    0.47     0.47    -
    1. Q1 on Q1 change.

Compared with the first quarter 2017, CCS earnings attributable to shareholders excluding identified items increased by $1.6 billion, mainly driven by higher contributions from Integrated Gas and Upstream, partly offset by lower earnings in Downstream.

Cash flow from operating activities for the first quarter 2018 was $9.4 billion, which included negative working capital movements of $0.9 billion, compared with $9.5 billion in the first quarter 2017, which included negative working capital movements of $1.6 billion[1].

________________________________________
[1] Revised from negative working capital movements of $1.8 billion. See Note 7 and Definition I.

Total dividends distributed to shareholders in the quarter were $4.0 billion.

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented: "Shell's strong earnings this quarter were underpinned by higher oil and gas prices, the continued growth and very good performance of our Integrated Gas business, and improved profitability in our Upstream business. Less favourable refining market conditions and lower contributions from trading impacted the earnings of our Downstream business.

We continue to upgrade our portfolio through performance improvement, new projects, divestments and the development of new businesses. Competitiveness and resilience - now and through the energy transition - are key features of our world-class investment case. 

We have a strong financial framework. Our commitment to capital discipline is unchanged, we are making good progress with our $30 billion divestment programme and our outlook for free cash flow - which covered our cash dividend and interest this quarter and over the last year - is consistent with our intent to buy back at least $25 billion of our shares over the period 2018-2020." 


   

    ADDITIONAL PERFORMANCE MEASURES
                     $ million                                   Quarters
                                   Definition       Q1 2018    Q4 2017   Q1 2017    %[1]
    Capital investment                [C]             5,183      6,778     4,720
    Divestments                        D              1,288      6,474        29
    Total production available
    for sale (thousand boe/d)                         3,839      3,756     3,752    +2
    Global liquids realised
    price ($/b)                                       60.66      55.28     48.36   +25
    Global natural gas realised
    price ($/thousand scf)                             4.86       4.40      4.29   +13
    Operating expenses                [G]             9,719      9,776     9,282    +5
    Underlying operating
    expenses                          [G]             9,786      9,839     9,181    +7
    ROACE                             [E]              6.4%       5.8%      4.0%
    ROACE (CCS basis excluding
    identified items)                 [E]              6.0%       5.6%      3.3%
    Gearing[2]                        [F]             24.7%      25.0%     28.3%
    1. Q1 on Q1 change.

    2. With effect from 2018, the net debt calculation has been amended (see
    Definition F). Gearing as previously published at December 31, 2017, and at
    March 31, 2017, was 24.8% and 27.2% respectively.

Changes to the Interim Financial Statements are described in Notes 1, 6 and 7, while revised definitions are explained in Definitions A, F and I.

Supplementary financial and operational disclosure for this quarter is available at http://www.shell.com/investor.

FIRST QUARTER 2018 PORTFOLIO DEVELOPMENTS

Integrated Gas  

During the quarter, Shell announced the sale of its shares in Shell entities in New Zealand to OMV for $578 million.

Upstream 

During the quarter, Shell announced one of its largest US Gulf of Mexico exploration finds in the past decade from the Whale deep-water well (Shell share 60%). The discovery is under evaluation.

In the deep-water bid round in Mexico in January for the Gulf of Mexico, Shell won four exploration blocks on its own, four with its partner Qatar Petroleum and one with its partner Pemex Exploración y Producción. Shell will be the operator of all nine blocks.

Shell won four additional deep-water exploration blocks in Brazil, one block on its own, and three in joint bids with Chevron, Petrobras and Galp. Shell will be the operator of two blocks.

In March, the Dutch cabinet decided to reduce NAM's production (Shell interest 50%) from the Groningen field to zero by 2030. It is expected that this decision, if fully implemented, will reduce Shell's proved reserves by an estimated 0.5 to 0.65 billion boe in 2018.

In March, Shell completed the sale of its 19.6% interest in the West Qurna 1 oil field in Iraq to Itochu Corporation. Divestments completed in the quarter totalled $574 million.

In April, Shell announced a final investment decision to develop the Vito deep-water field in the US Gulf of Mexico. Vito (Shell interest 63.1%) is expected to reach an average peak production of 100 thousand boe/d.

Downstream 

During the quarter, Shell Midstream Partners, L.P., sold approximately 36 million common units for total gross proceeds of $980 million. Gross proceeds from the public offering were $680 million with $300 million from a private offering with Shell Midstream LP Holdings LLC.

In April, Shell signed an agreement to sell its Downstream business in Argentina to Raízen. The sale includes the Buenos Aires refinery, around 645 retail stations, the global commercial businesses, as well as supply and distribution activities in the country. The businesses acquired by Raízen will continue the relationship with Shell through various commercial agreements.

PERFORMANCE BY SEGMENT


   

    INTEGRATED GAS
                 $ million                                   Quarters
                                             Q1 2018      Q4 2017      Q1 2017     %[1]
    Segment earnings                           2,391          848        1,822     +31
    Of which: Identified items
    (Definition [A])                            (48)        (788)          641
    Earnings excluding identified items        2,439        1,636        1,181    +107
    Cash flow from operating activities        2,561          823        1,951     +31
    Capital investment (Definition C)          1,311        1,043          805     +63
    Liquids production available for
    sale (thousand b/d)                          212          229          169     +25
    Natural gas production available
    for sale (million scf/d)                   4,407        4,364        3,317     +33
    Total production available for sale
    (thousand boe/d)                             972          981          741     +31
    LNG liquefaction volumes (million
    tonnes)                                     8.90         8.52         8.18      +9
    LNG sales volumes (million tonnes)         18.58        17.15        15.84     +17
    1. Q1 on Q1 change.


First quarter identified items primarily reflected an impairment charge of $50 million, a loss on fair value accounting of commodity derivatives of $30 million, and a charge of $26 million related to the impact of the weakening of the Australian dollar on a deferred tax position. Identified items also included a gain of $54 million from a deferred tax adjustment.

Compared with the first quarter 2017, Integrated Gas earnings excluding identified items benefited from increased contributions from trading, higher volumes and higher realised oil, gas and LNG prices. This more than offset the impact of higher operating expenses.

Cash flow from operating activities increased compared with the same quarter a year ago as a result of higher earnings, partly offset by increased cash margining on derivatives. Cash flow from operating activities included negative working capital movements of $384 million, compared with negative movements of $405 million[2] in the same quarter a year ago.

Compared with the first quarter 2017, total production increased by 31%, mainly due to higher volumes from Pearl GTL and Gorgon. Despite the Woodside divestment that was completed in the fourth quarter 2017, LNG liquefaction volumes increased by 9% compared with the first quarter 2017, mainly due to higher volumes from Gorgon and increased feedgas supply across the portfolio.
________________________________________________________________________________________
[2]Revised from negative working capital movements of $590 million. See Note 7 and Definition I.


   

    UPSTREAM
                 $ million                                   Quarters
                                             Q1 2018      Q4 2017      Q1 2017     %[1]
    Segment earnings                           1,854        2,050        (530)    +450
    Of which: Identified items
    (Definition [A])                             303          400      (1,070)
    Earnings excluding identified items        1,551        1,650          540    +187
    Cash flow from operating activities        3,556        3,765        3,849     -8
    Capital investment (Definition C)          2,479        3,485        2,854     -13
    Liquids production available for
    sale (thousand b/d)                        1,573        1,542        1,697     -7
    Natural gas production available
    for sale (million scf/d)                   7,505        7,154        7,618     -1
    Total production available for sale
    (thousand boe/d)                           2,867        2,775        3,011     -5
    1. Q1 on Q1 change.


First quarter identified items primarily reflected a total net gain on sale of assets of $606 million, mainly related to the divestments of Shell's interests in the West Qurna 1 field in Iraq and North Sabah in Malaysia. In addition, as a result of the Dutch cabinet's decision to reduce production from the Groningen field to zero by 2030, Shell's joint venture NAM impaired the Groningen asset. Consequently, Shell's share of results of the NAM joint venture for the first quarter included an impairment of $244 million, resulting in Shell's net investment in NAM now being fully written down to zero. Other impairments totalled $70 million.

Compared with the first quarter 2017, Upstream earnings excluding identified items benefited from higher realised oil and gas prices as well as lower depreciation. This more than offset the impact of lower volumes.

Despite higher earnings, cash flow from operating activities decreased as a result of higher tax payments, portfolio impacts and lower dividends received compared with the same quarter a year ago. Cash flow from operating activities included negative working capital movements of $830 million, compared with negative movements of $671 million[3] in the first quarter 2017.

First quarter production decreased by 5%, compared with the same quarter a year ago, mainly due to the divestments of a package of assets in the UK North Sea, oil sands interests in Canada and onshore assets in Gabon, partly offset by new fields ramping-up. Excluding portfolio impacts, production was 4% higher than in the same quarter a year ago.

____________________________________________________________________________________________
[3] Revised from negative working capital movements of $803 million. See Note 7 and Definition I.


   

    DOWNSTREAM
                 $ million                                   Quarters
                                              Q1 2018     Q4 2017      Q1 2017     %[1]
    Segment earnings[2]                         1,806       1,116        2,580     -30
    Of which: Identified items
    (Definition [A])                              119       (280)           91
    Earnings excluding identified items2        1,687       1,396        2,489     -32
    Of which:
    Oil Products                                1,002         884        1,653     -39
    Refining & Trading                             62          96          715     -91
    Marketing                                     940         788          938      -
    Chemicals                                     685         512          836     -18
    Cash flow from operating activities         3,107       2,649        3,705     -16
    Capital investment (Definition C)           1,369       2,208        1,046     +31
    Refinery processing intake (thousand
    b/d)                                        2,637       2,589        2,630      -
    Oil products sales volumes (thousand
    b/d)                                        6,785       6,861        6,508     +4
    Chemicals sales volumes (thousand
    tonnes)                                     4,514       4,688        4,546     -1
    1. Q1 on Q1 change.

    2. Earnings are presented on a CCS basis (See Note 2).

First quarter identified items primarily reflected a gain on fair value accounting of commodity derivatives of $66 million, as well as a gain of $57 million related to deferred tax remeasurements in non-operated ventures, partly offset by impairments of $37 million.

Compared with the first quarter 2017, Downstream earnings excluding identified items reflected lower contributions from trading, adverse exchange rate effects, as well as weaker refining industry conditions.

Cash flow from operating activities reflected decreased earnings and included negative working capital movements of $29 million, compared with negative movements of $368 million[4] in the same quarter a year ago.

Oil Products 

- Refining & Trading earnings excluding identified items reflected lower contributions from trading and weaker refining industry conditions, compared with the first quarter 2017. Earnings also decreased as a result of portfolio impacts.

Refinery availability decreased to 92% compared with 94 % in the first quarter 2017, mainly due to additional planned maintenance.

- Marketing earnings excluding identified items were at the same level as in the first quarter 2017.

Compared with the first quarter 2017, Oil Products sales volumes were higher due to increased trading volumes.

Chemicals 

- Chemicals earnings excluding identified items reflected less favourable industry conditions, higher operating expenses and adverse exchange rate effects.

Chemicals manufacturing plant availability increased to 94% from 93% in the first quarter 2017, mainly reflecting lower planned maintenance. _____________________________________________________________________________________________
[4]Revised from negative working capital movements of $221 million. See Note 7 and Definition I.


   

    CORPORATE
                 $ million                                          Quarters
                                                          Q1 2018      Q4 2017     Q1 2017
    Segment earnings                                        (227)        (838)       (410)
    Of which: Identified items
    (Definition [A])                                            7        (553)        (63)
    Earnings excluding identified items                     (234)        (285)       (347)
    Cash flow from operating activities                       203           38           3


First quarter identified items mainly reflected a small tax credit related to the impact of the weakening Brazilian real on deferred tax positions related to financing of the Upstream business.

Compared with the first quarter 2017, Corporate earnings excluding identified items benefited from lower net interest expense, partly offset by lower currency exchange gains.

OUTLOOK FOR THE SECOND QUARTER 2018

Compared with the second quarter 2017, Integrated Gas production is expected to be 140 to 160 thousand boe/d higher. This is mainly due to lower maintenance. LNG liquefaction volumes are expected to be at a similar level.

Compared with the second quarter 2017, Upstream production is expected to be 230 to 260 thousand boe/d lower. This is mainly due to portfolio impacts, higher maintenance, lower production at NAM in the Netherlands and field decline more than offsetting project start-ups.

Refinery availability is expected to decrease in the second quarter 2018 compared with the same period a year ago as a result of higher maintenance.

Oil products sales volumes are expected to increase by some 70 thousand boe/d compared with the same period a year ago as a result of the separation of Motiva assets, partly offset by completed divestments.

Chemicals availability is expected to increase in the second quarter 2018 as a result of lower maintenance compared with the same period a year ago.

Corporate earnings excluding identified items are expected to be a net charge of $300 - 350 million in the second quarter and a net charge of around $1.4 - 1.6 billion for the full year 2018. This excludes the impact of currency exchange rate effects and interest rate movements.


UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS


   

    CONSOLIDATED STATEMENT OF INCOME
                 $ million                                          Quarters
                                                          Q1 2018      Q4 2017     Q1 2017
    Revenue[1]                                             89,235       85,422      71,796
    Share of profit of joint ventures
    and associates                                          1,039        1,034       1,198
    Interest and other income                                 840        1,668         317
    Total revenue and other income                         91,114       88,124      73,311
    Purchases                                              66,528       64,095      51,266
    Production and manufacturing
    expenses                                                6,923        6,563       6,658
    Selling, distribution and
    administrative expenses                                 2,588        2,953       2,412
    Research and development                                  208          260         212
    Exploration                                               230          921         443
    Depreciation, depletion and
    amortisation                                            5,334        5,796       7,838
    Interest expense                                          936          984       1,112
    Total expenditure                                      82,747       81,572      69,941
    Income/(loss) before taxation                           8,367        6,552       3,370
    Taxation charge/(credit)[2]                             2,336        2,615       (274)
    Income/(loss) for the period[1]                         6,031        3,937       3,644
    Income/(loss) attributable to
    non-controlling interest                                  132          130         106
    Income/(loss) attributable to Royal
    Dutch Shell plc shareholders                            5,899        3,807       3,538
    Basic earnings per share ($)[3]                          0.71         0.46        0.43
    Diluted earnings per share ($)[3]                        0.70         0.46        0.43
    1. See Note 2 "Segment information".

    2. Fourth quarter 2017 included a charge of $2,014 million primarily related to a
    remeasurement of deferred tax positions following the US tax reform legislation.

    3. See Note 3 "Earnings per share".


   

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                       $ million                                 Quarters
                                                      Q1 2018        Q4 2017       Q1 2017
    Income/(loss) for the period                        6,031          3,937         3,644
    Other comprehensive income/(loss) net of tax:
    Items that may be reclassified to income in
    later periods:
    - Currency translation differences                    464            355         1,222
    - Unrealised gains/(losses) on securities[1]            -            258           129
    - Debt instruments remeasurements[1]                 (12)              -             -
    - Cash flow hedging gains/(losses)                   (68)          (484)            88
    - Deferred cost of hedging[1]                        (93)              -             -
    - Share of other comprehensive income/(loss) of
    joint ventures and associates                          22             46            60
    Total                                                 313            175         1,499
    Items that are not reclassified to income in
    later periods:
    - Retirement benefits remeasurements                1,282        (2,056)         1,753
    - Equity instruments remeasurements[1]              (418)              -             -
    - Share of other comprehensive income/(loss) of
    joint ventures and associates                           1              -             -
    Total                                                 865        (2,056)         1,753
    Other comprehensive income/(loss) for the
    period                                              1,178        (1,881)         3,252
    Comprehensive income/(loss) for the period          7,209          2,056         6,896
    Comprehensive income/(loss) attributable to
    non-controlling interest                               93            133           116
    Comprehensive income/(loss) attributable to
    Royal Dutch Shell plc shareholders                  7,116          1,923         6,780
    1. See Note 1 "Basis of preparation" regarding
    IFRS 9 Financial Instruments.

    CONDENSED CONSOLIDATED BALANCE SHEET
               $ million
                                                        Mar 31, 2018   Dec 31, 2017
    Assets
    Non-current assets
    Intangible assets                                         24,312         24,180
    Property, plant and equipment                            226,328        226,380
    Joint ventures and associates                             28,852         27,927
    Investments in securities                                  7,023          7,222
    Deferred tax                                              13,247         13,791
    Retirement benefits                                        3,256          2,799
    Trade and other receivables                                8,371          8,475
    Derivative financial
    instruments[1]                                             1,284            919
                                                             312,673        311,693
    Current assets
    Inventories                                               25,014         25,223
    Trade and other receivables                               45,071         44,565
    Derivative financia[l]
    instruments1                                               6,034          5,304
    Cash and cash equivalents                                 21,927         20,312
                                                              98,046         95,404
    Total assets                                             410,719        407,097
    Liabilities
    Non-current liabilities
    Debt                                                      73,630         73,870
    Trade and other payables                                   3,131          3,447
    Derivative financial
    instruments[1]                                               883            981
    Deferred tax                                              13,131         13,007
    Retirement benefits                                       12,319         13,247
    Decommissioning and other
    provisions                                                24,723         24,966
                                                             127,817        129,518
    Current liabilities
    Debt                                                      14,392         11,795
    Trade and other payables                                  49,405         51,410
    Derivative financial
    instruments[1]                                             5,283          5,253
    Taxes payable                                              8,657          7,250
    Retirement benefits                                          454            594
    Decommissioning and other
    provisions                                                 3,398          3,465
                                                              81,589         79,767
    Total liabilities                                        209,406        209,285
    Equity attributable to Royal
    Dutch Shell plc shareholders                             197,331        194,356
    Non-controlling interest                                   3,982          3,456
    Total equity                                             201,313        197,812
    Total liabilities and equity                             410,719        407,097
    1. See Note 6 "Derivative financial instruments and debt excluding finance lease
    liabilities".



   

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                        Equity attributable to Royal Dutch
                              Shell plc shareholders
                                                                          

                               Shares   Other                       Non-
                     Share     held in reserves  Retained         controlling   Total
       $ million    capital[1]  trust     [2]    earnings  Total   interest     equity
    At January 1,
    2018 (as
    previously                                                                   
    published)           696   (917)   16,932    177,645  194,356    3,456     197,812
    Impact of IFRS
    9 [3]                  -      -     (138)       88      (50)        -         (50)
    At January 1,
    2018 (as                                                              
    revised)             696   (917)   16,794   177,733    194,306    3,456     197,762
    Comprehensive
    income/(loss)
    for the period         -       -    1,217     5,899      7,116       93       7,209
    Transfer from
    other
    comprehensive
    income                 -       -     (37)       37       -           -        -
                                                                          
    Dividends              -       -        -    (3,971)    (3,971)   (208)     (4,179)
    Share-based
    compensation[4]         -   (119)    (238)     191       (166)      -       (166)
    Other changes
    in
    non-controlling
    interest               -       -        -       46          46      641       687
    At March 31,                                                          
    2018                 696 (1,036)   17,736  179,935      197,331    3,982   201,313
    At January 1,                                                         
    2017                 683   (901)   11,298  175,566      186,646    1,865   188,511
    Comprehensive
    income/(loss)
    for the period         -       -    3,242    3,538        6,780      116     6,896
                                                                          
    Dividends              -       -        -   (3,903)      (3,903)    (31)    (3,934)
    Scrip dividends        4       -      (4)    1,249        1,249      -       1,249
    Share-based
    compensation           -     557    (510)      (1)          46       -          46
    Other changes
    in
    non-controlling
    interest               -       -        -      (1)          (1)     (14)      (15)
    At March 31,                                                          
    2017                 687   (344)   14,026  176,448      190,817     1,936   192,753
    1. See Note 4 "Share capital".

    2. See Note 5 "Other reserves".

    3. See Note 1 "Basis of preparation".

    4. The amendments to IFRS 2 Share-based Payment became effective January 1,
    2018. Following adoption of the amendments, components of share-based
    payments that were previously classified as cash-settled are now classified
    as equity-settled. This resulted in an increase of $172 million in the share
    plan reserve within other reserves and a net increase of $125 million in
    retained earnings.

  1. 
       
    
        CONSOLIDATED STATEMENT OF CASH FLOWS
                   $ million                                   Quarters
                                                Q1 2018        Q4 2017                 Q1 2017
        Income/(loss) for the period              6,031          3,937                   3,644
        Adjustment for:
        - Current tax                             2,169          1,467                   1,882
        - Interest expense (net)                    737            817                     952
        - Depreciation, depletion and
        amortisation                              5,334          5,796                   7,838
        - Exploration well write-offs[1]            109            541                     284
        - Net (gains)/losses on sale
        and revaluation of non-current
        assets and businesses                     (607)        (1,319)                      70
        - Share of (profit)/loss of
        joint ventures and associates           (1,039)        (1,034)                 (1,198)
        - Dividends received from joint
        ventures and associates                     750          1,647                     776
        - (Increase)/decrease in
        inventories                                 281        (1,368)                     266
        - (Increase)/decrease in
        current receivables[1]                    (683)        (2,544)                     721
        - Increase/(decrease) in
        current payables[1]                       (484)          2,040                 (2,552)
        - Derivative financial
        instruments[1]                            (763)          (140)                      49
        - Deferred tax, retirement
        benefits, decommissioning and
        other provisions[1]                        (51)            167                 (2,143)
        - Other[1]                                  12          (367)                       9
        Tax paid                                (2,369)        (2,365)                 (1,090)
        Cash flow from operating
        activities                                9,427          7,275                   9,508
        Capital expenditure                     (4,789)        (5,861)                 (4,306)
        Investments in joint ventures
        and associates                            (415)          (202)                   (194)
        Proceeds from sale of property,
        plant and equipment and
        businesses                                  747          2,866                     122
        Proceeds from sale of joint
        ventures and associates                      21            221                       1
        Interest received                           156            157                     123
        Other                                        31          2,154                    (70)
        Cash flow from investing
        activities                              (4,249)          (665)                 (4,324)
        Net increase/(decrease) in debt
        with maturity period
        within three months                       2,707            543                   (290)
        Other debt:
        - New borrowings                            241            120                     364
        - Repayments                            (1,390)        (4,103)                 (1,322)
        Interest paid                             (889)          (840)                   (850)
        Change in non-controlling
        interest                                    674              6                       2
        Cash dividends paid to:
        - Royal Dutch Shell plc
        shareholders                            (3,971)        (2,266)                 (2,654)
        - Non-controlling interest                (124)           (97)                    (31)
        Repurchases of shares                         -              -                       -
        Shares held in trust: net
        sales/(purchases) and dividends
        received                                  (894)          (443)                    (60)
        Cash flow from financing
        activities                              (3,646)        (7,080)                 (4,841)
        Currency translation
        differences relating to cash
        and
        cash equivalents                             83             83                     122
        Increase/(decrease) in cash and
        cash equivalents                          1,615          (387)                     465
        Cash and cash equivalents at
        beginning of period                      20,312         20,699                  19,130
        Cash and cash equivalents at
        end of period                            21,927         20,312                  19,595
    
    

1. Prior period comparatives within Cash flow from operating activities have been revised to conform with current year presentation. Overall, the revisions do not have an impact on the previously published Cash flow from operating activities. See Note 7 "Change in presentation of Consolidated Statement of Cash Flows".


NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. Basis of preparation

These unaudited Condensed Consolidated Interim Financial Statements ("Interim Statements") of Royal Dutch Shell plc ("the Company") and its subsidiaries (collectively referred to as "Shell") have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board and as adopted by the European Union, and on the basis of the same accounting principles as those used in the Annual Report and Form 20-F for the year ended December 31, 2017 (pages 142 to 148) as filed with the U.S. Securities and Exchange Commission, except for the adoption of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers on January 1, 2018, and should be read in conjunction with that filing.

IFRS 9 sets out the requirements for recognising and measuring financial assets, financial liabilities and certain contracts to buy or sell non-financial items. Furthermore, the standard facilitates use of hedge accounting and also results in different income recognition upon the sale of certain investments in securities. The adoption of IFRS 9 resulted in a decrease of $83 million in equity at January 1, 2018, mainly representing the recognition of additional provisions for impairment of receivables under the expected loss model. In addition, changing the measurement basis from amortised cost to fair value for certain financial assets resulted in an increase of $33 million in equity at January 1, 2018. Furthermore, a reclassification within equity between other reserves and retained earnings, primarily representing deferred cost of hedging, was recognised.  

IFRS 15 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations, and revenue from contracts with customers that is distinguished from other sources. Shell has adopted IFRS 15 with effect from January 1, 2018, and has elected to apply the modified retrospective transition approach. Although IFRS 15 does not generally represent a change from Shell's current practice, the accounting for certain contracts, such as those with provisional pricing or take-or-pay arrangements, and underlifts and overlifts, has been identified as an area of change. However, these do not have a significant effect on Shell's accounting or disclosures, and therefore no transition adjustment is presented.

The financial information presented in the Interim Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 ("the Act"). Statutory accounts for the year ended December 31, 2017 were published in Shell's Annual Report and Form 20-F and a copy was delivered to the Registrar of Companies for England and Wales. The auditor's report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.

2. Segment information

Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. 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 therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.


   

    INFORMATION BY SEGMENT
              $ million                              Quarters
                                                      Q4
                                          Q1 2018   2017                Q1 2017
    Third-party revenue
    Integrated Gas                         10,721  8,205                  8,419
    Upstream                                2,572  2,644                  1,609
    Downstream                             75,926 74,561                 61,752
    Corporate                                  16     12                     16
    Total third-party revenue[1]           89,235 85,422                 71,796
    Inter-segment revenue
    Integrated Gas                          1,088  1,199                    805
    Upstream                                8,904  8,258                  8,661
    Downstream                                794  1,281                    726
    Corporate                                   -      -                      -
    CCS earnings
    Integrated Gas                          2,391    848                  1,822
    Upstream                                1,854  2,050                  (530)
    Downstream                              1,806  1,116                  2,580
    Corporate                               (227)  (838)                  (410)
    Total                                   5,824  3,176                  3,462
    1. First quarter 2018 includes $ 534 million of revenue from
    sources other than from contracts with customers.

    RECONCILIATION OF INCOME FOR THE PERIOD to CCS EARNINGS
              $ million                        Quarters
                                          Q1 2018      Q4 2017          Q1 2017
           Income/(loss) attributable
           to Royal Dutch Shell plc
           shareholders                     5,899        3,807            3,538
           Income/(loss) attributable
           to non-controlling interest        132          130              106
           Income/(loss) for the period     6,031        3,937            3,644
           Current cost of supplies
           adjustment:
           Purchases                        (274)      (1,022)            (217)
           Taxation                            67          287              60
           Share of profit/(loss) of
           joint ventures and
           associates                           -         (26)             (25)
           Current cost of supplies
           adjustment1                      (207)        (761)            (182)
           CCS earnings                     5,824        3,176            3,462
           of which:
           CCS earnings attributable to
           Royal Dutch Shell plc
           shareholders                     5,703        3,082            3,381
           CCS earnings attributable to
           non-controlling interest           121           94              109
    1. The adjustment attributable to Royal Dutch Shell plc shareholders
    is a negative $196 million in the first quarter 2018
   (Q4 2017: negative $725 million; Q1 2017: negative $157 million).


3. Earnings per share


   

    EARNINGS PER SHARE
                                                           Quarters
                                            Q1 2018        Q4 2017       Q1 2017
    Income/(loss) attributable to
    Royal Dutch Shell plc
    shareholders
    ($ million)                               5,899          3,807         3,538
    Weighted average number of
    shares used as the basis for
    determining:
    Basic earnings per share
    (million)                               8,304.6        8,274.6        8,154.8
    Diluted earnings per share
    (million)                               8,377.2        8,354.5        8,222.9


4. Share capital


   

    ISSUED AND FULLY PAID ORDINARY SHARES OF EUR0.07 EACH[1]
                             Number of shares           Nominal value ($ million)
                              A            B                 A           B       Total
                        
    At January 1, 2018  4,597,136,050 3,745,486,731         387         309       696
                         
    At March 31, 2018   4,597,136,050 3,745,486,731         387         309       696

                         
    At January 1, 2017  4,428,903,813 3,745,486,731         374         309       683
    Scrip dividends        47,791,678            -            4           -         4
                         
    At March 31, 2017   4,476,695,491 3,745,486,731         378         309        687
    1. Share capital at March 31, 2018 also included 50,000 issued and fully paid
    sterling deferred shares of GBP1 each.


At Royal Dutch Shell plc's Annual General Meeting on May 23, 2017, the Board was authorised to allot ordinary shares in Royal Dutch Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Royal Dutch Shell plc, up to an aggregate nominal amount of €190 million (representing 2,714 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 23, 2018, and the end of the Annual General Meeting to be held in 2018, unless previously renewed, revoked or varied by Royal Dutch Shell plc in a general meeting.

5. Other reserves


   

    OTHER RESERVES
                                                                     Accumulated
                                      Share     Capital                 other
                           Merger    premium   redemption Share plan comprehensi
          $ million        reserve   reserve    reserve    reserve    ve income    Total
    At January 1, 2018
    (as previously
    published)               37,298        154         84      1,440    (22,044)    16,932
    Impact of IFRS 9              -          -          -          -       (138)     (138)
    At January 1, 2018
    (as revised)             37,298        154         84      1,440    (22,182)    16,794
    Other comprehensive
    income/(loss)
    attributable to Royal
    Dutch Shell plc
    shareholders                  -          -          -          -       1,217     1,217
    Transfer from other
    comprehensive income          -          -          -          -        (37)      (37)
    Share-based
    compensation                  -          -          -      (238)           -     (238)
    At March 31, 2018        37,298        154         84      1,202    (21,002)    17,736
    At January 1, 2017       37,311        154         84      1,644    (27,895)    11,298
    Other comprehensive
    income/(loss)
    attributable to Royal
    Dutch Shell plc
    shareholders                  -          -          -          -       3,242     3,242
    Scrip dividends             (4)          -          -          -           -       (4)
    Share-based
    compensation                  -          -          -      (510)           -     (510)
    At March 31, 2017        37,307        154         84      1,134    (24,653)    14,026


The merger reserve and share premium reserve were established as a consequence of Royal Dutch Shell plc becoming the single parent company of Royal Dutch Petroleum Company and The "Shell" Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Royal Dutch Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.

6. Derivative financial instruments and debt excluding finance lease liabilities


As disclosed in the Consolidated Financial Statements for the year ended December 31, 2017, presented in the Annual Report and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at March 31, 2018 are consistent with those used in the year ended December 31, 2017, and the carrying amounts of derivative financial instruments measured using predominantly unobservable inputs have not changed materially since that date.

With effect from 2018, current and non-current derivative assets and liabilities are no longer presented as part of "Trade and other receivables" and "Trade and other payables", but separately disclosed on the Balance Sheet to provide more insight.  

The table below provides the comparison of the fair value with the carrying amount of debt excluding finance lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.


   

    DEBT EXCLUDING FINANCE LEASE LIABILITIES
                   $ million                    Mar 31, 2018   Dec 31, 2017
    Carrying amount                                   73,350         70,140
    Fair value[1]                                     76,581         74,650
    1. Mainly determined from the prices quoted for these securities.

7. Change in presentation of Consolidated Statement of Cash Flows

With effect from 2018, the reconciliation from "Income for the period" to "Cash flow from operating activities" has been revised to provide more insight and improve correlation with the Balance Sheet and Statement of Income. "Cash flow from operating activities" itself remains unchanged.

Exploration well write-offs, previously presented under "Other", are shown separately. Changes in current and non-current derivative financial instruments, previously presented under "Decrease/(increase) in working capital" and "Other", are presented under a new line item "Derivative financial instruments". Changes in current retirement benefits and decommissioning provisions, previously included in "Increase/(decrease) in payables", are presented under "Deferred tax, retirement benefits, decommissioning and other provisions", together with changes in non-current balances. The impact of these changes is presented below.


   

               $ million                                        Quarters
                                                                                 Full year
                                     Q1 2017      Q2 2017    Q3 2017    Q4 2017       2017
    Working capital movements (as
    previously published)              (1,828)      2,258    (2,467)    (1,121)    (3,158)
    Impact of working capital
    definition changes on:
    - (Increase)/decrease in
    current receivables                (1,087)      (238)      1,018      (585)      (892)
    - Increase/(decrease) in
    current payables                     1,350        444        172      (166)      1,800
    Working capital movements (as
    revised) (I)                       (1,565)      2,464    (1,277)    (1,872)    (2,250)

    Cash flow from operating
    activities excluding working
    capital movements (as
    previously published)               11,336      9,027     10,049      8,396     38,808
    Impact of working capital
    definition changes on:
    - Exploration well write-offs          284         25         47        541        897
    - Derivative financial
    instruments                             49        128    (1,076)      (140)    (1,039)
    - Deferred tax, retirement
    benefits, decommissioning and
    other provisions                     (104)      (129)      (161)         12      (382)
    - Other                              (492)      (230)          -        338      (384)
    Cash flow from operating
    activities excluding working
    capital movements (as revised)
    (II)                                11,073      8,821      8,859      9,147     37,900
    Cash flow from operating
    activities (unchanged) (I +
    II)                                  9,508     11,285      7,582      7,275     35,650


DEFINITIONS

A. Identified items


Identified items comprise: divestment gains and losses, impairments, fair value accounting of commodity derivatives and certain gas contracts, redundancy and restructuring, the impact of exchange rate movements on certain deferred tax balances, and other items. These items, either individually or collectively, can cause volatility to net income, in some cases driven by external factors, which may hinder the comparative understanding of Shell's financial results from period to period. The impact of identified items on Shell's CCS earnings is shown below.


   

     IDENTIFIED ITEMS
               $ million                                  Quarters
                                         Q1 2018       Q4 2017                    Q1 2017
     Identified items before tax
     - Divestment gains/(losses)             625         1,220                       (70)
     - Impairments                         (417)         (426)                    (2,444)
     - Fair value accounting of
     commodity derivatives and
     certain gas contracts                    66         (652)                        573
     - Redundancy and
     restructuring                            63         (135)                       (76)
     - Other                                  53           356                       (89)
     Total identified items before
     tax                                     390           363                    (2,106)
     Tax impact
     - Divestment gains/(losses)            (10)            55                        267
     - Impairments                            16           105                        919
     - Fair value accounting of
     commodity derivatives and
     certain gas contracts                   (8)           111                       (69)
     - Redundancy and
     restructuring                          (16)            28                         31
     - Impact of exchange rate
     movements on tax balances              (45)         (111)                        535
     - Other                                  54       (1,772)                         22
     Total tax impact                        (9)       (1,584)                      1,705
     Identified items after tax
     - Divestment gains/(losses)             615         1,275                        197
     - Impairments                         (401)         (321)                    (1,525)
     - Fair value accounting of
     commodity derivatives and
     certain gas contracts                    58         (541)                        504
     - Redundancy and
     restructuring                            47         (107)                       (45)
     - Impact of exchange rate
     movements on tax balances              (45)         (111)                        535
     - Other                                 107       (1,416)                       (67)
     Impact on CCS earnings                  381       (1,221)                      (401)
     Of which:
     Integrated Gas                         (48)         (788)                        641
     Upstream                                303           400                    (1,070)
     Downstream                              119         (280)                         91
     Corporate                                 7         (553)                       (63)
     Impact on CCS earnings
     attributable to
     non-controlling interest                  -             -                       (28)
     Impact on CCS earnings
     attributable to shareholders            381       (1,221)                      (373)


The categories above represent the nature of the items identified irrespective of whether the items relate to Shell subsidiaries or joint ventures and associates. The after-tax impact of identified items of joint ventures and associates is fully reported within "Share of profit of joint ventures and associates" on the Consolidated Statement of Income, and fully reported as "identified items before tax" in the table above. Identified items related to subsidiaries are consolidated and reported across appropriate lines of the Consolidated Statement of Income. Only pre-tax identified items reported by subsidiaries are taken into account in the calculation of "underlying operating expenses" (Definition G).

Fair value accounting of commodity derivatives and certain gas contracts: In the ordinary course of business, Shell enters into contracts to supply or purchase oil and gas products as well as power and environmental products. Derivative contracts are entered into for mitigation of resulting economic exposures (generally price exposure) and these 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; 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 contracts 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 are reported as identified items.

Impacts of exchange rate movements on tax balances represent the impact on tax balances of exchange rate movements arising on (a) the conversion to dollars of the local currency tax base of non-monetary assets and liabilities, as well as losses (this primarily impacts the Integrated Gas and Upstream segments) and (b) the conversion of dollar-denominated inter-segment loans to local currency, leading to taxable exchange rate gains or losses (this primarily impacts the Corporate segment).

Other identified items represent other credits or charges Shell's management assesses should be excluded to provide additional insight, such as the impact arising from the US tax reform legislation and certain provisions for onerous contracts or litigation.

B. Basic CCS earnings per share

Basic CCS earnings per share is calculated as CCS earnings attributable to Royal Dutch Shell plc shareholders (see Note 2), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 3).

C. Capital investment

Capital investment is a measure used to make decisions about allocating resources and assessing performance. It comprises capital expenditure, new investments in joint ventures and associates, exploration expense excluding well write-offs, new finance leases and investments in Integrated Gas, Upstream and Downstream equity securities, all of which on an accruals basis.

The reconciliation of "Capital expenditure" to "Capital investment" is as follows.


   

              $ million                                   Quarters
                                           Q1 2018        Q4 2017                  Q1 2017
    Capital expenditure                      4,789          5,861                    4,306
    Investments in joint ventures
    and associates                             415            202                      194
    Exploration expense, excluding
    exploration wells written off              122            380                      157
    Finance leases                             182            330                       41
    Other1                                   (325)              5                       22
    Capital investment                       5,183          6,778                    4,720
    Of which:
    Integrated Gas                           1,311          1,043                      805
    Upstream                                 2,479          3,485                    2,854
    Downstream                               1,369          2,208                    1,046
    Corporate                                   24             42                       15
    1. First quarter 2018 includes a payment of $380 million related to a payable
    position that formed part of the acquisition of Marathon Oil Canada Corporation in
    Canada in the second quarter 2017.


D. Divestments


Divestments is a measure used to monitor the progress of Shell's divestment programme. This measure comprises proceeds from sale of property, plant and equipment and businesses, joint ventures and associates, and other Integrated Gas, Upstream and Downstream investments in equity securities, reported in "Cash flow from investing activities", adjusted onto an accruals basis and for any share consideration received or contingent consideration initially recognised upon the related divestment, as well as proceeds from the sale of interests in entities while retaining control (for example, proceeds from sale of interest in Shell Midstream Partners, L.P.), which are included in "Change in non-controlling interest" within "Cash flow from financing activities".

In future periods, the proceeds from any disposal of shares received as divestment consideration, and proceeds from realisation of contingent consideration, will be included in "Cash flow from investing activities".

The reconciliation of "Proceeds from sale of property, plant and equipment and businesses" to "Divestments" is as follows.

  1. 
       
    
                     $ million                                   Quarters
                                                     Q1 2018          Q4 2017          Q1 2017
        Proceeds from sale of property,
        plant and equipment and businesses               747            2,866              122
        Proceeds from sale of joint
        ventures and associates                           21              221                1
        Share and contingent consideration1                -              217                -
        Proceeds from sale of interests in
        entities while retaining contro[l]               673                -                -
        Other[2]                                        (153)            3,170             (94)
        Divestments                                    1,288            6,474               29
        Of which:
        Integrated Gas                                    14            3,021               12
        Upstream                                         574            3,254               17
        Downstream                                       700              199                -
        Corporate                                          -                -                -
        1. This is valued at the date of the related divestment, instead of when these
        shares are disposed of or the contingent consideration is realised.
    
        2. Fourth quarter 2017 includes proceeds of $2,635 million from the sale of shares
        in Woodside Petroleum Limited.
    

E. Return on average capital employed


Return on average capital employed (ROACE) measures the efficiency of Shell's utilisation of the capital that it employs. In this calculation, ROACE is defined as income for the current and previous three quarters, 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.


   

              $ million                                   Quarters
                                           Q1 2018        Q4 2017                  Q1 2017
    Income for current and
    previous three quarters                 15,822         13,435                    7,966
    Interest expense after tax               2,645          2,995                    3,268
    Income before interest expense          18,467         16,430                   11,234
    Capital employed - opening             284,382        280,988                  278,887
    Capital employed - closing             289,335        283,477                  284,382
    Capital employed - average             286,859        282,233                  281,635
    ROACE                                     6.4%           5.8%                     4.0%


Return on average capital employed on a CCS basis excluding identified items is defined as the sum of CCS earnings attributable to shareholders excluding identified items for the current and previous three quarters, as a percentage of the average capital employed for the same period.

  1. 
       
    
                   $ million                                   Quarters
                                                Q1 2018        Q4 2017                 Q1 2017
        CCS earnings excluding
        identified items                         17,332         15,764                   9,386
        Capital employed - average              286,859        282,233                 281,635
        ROACE on a CCS basis excluding
        identified items                           6.0%           5.6%                    3.3%
    
    

F. Gearing


Gearing is a key measure of Shell's capital structure and is defined as net debt as a percentage of total capital. With effect from 2018, the net debt calculation includes the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to debt, and associated collateral balances. Management believes this amendment is useful, because it reduces the volatility of net debt caused by fluctuations in foreign exchange and interest rates, and eliminates the potential impact of related collateral payments or receipts. Debt-related derivative financial instruments are a subset of the derivative financial instrument assets and liabilities presented on the Balance Sheet. Collateral balances are reported under "Trade and other receivables" or "Trade and other payables" as appropriate. Prior period comparatives have been revised to reflect the change in net debt calculation.

  1. 
       
    
                        $ million                                   Quarters
                                                                                Mar 31,
                                                  Mar 31, 2018 Dec 31, 2017        2017
        Current debt                                    14,392       11,795       8,620
        Non-current debt                                73,630       73,870      83,009
        Total debt1                                     88,022       85,665      91,629
        Add: Debt-related derivative
        financial instruments: net
        liability/(asset) 2                                 42          591       3,892
        Less: Cash and cash
        equivalents                                   (21,927)     (20,312)    (19,595)
        Net debt                                        66,137       65,944      75,926
        Add: Total equity                              201,313      197,812     192,753
        Total capital                                  267,450      263,756     268,679
        Gearing3                                         24.7%        25.0%       28.3%
        1. Includes finance lease liabilities of $14,672 million at March 31, 2018,
        $15,524 million at December 31, 2017, and $14,704 million at March 31,
        2017.
    
        2. There were no collateral balances in the quarters presented.
    
        3. Gearing as previously published at December 31, 2017, and at March 31,
        2017, was 24.8% and 27.2% respectively. Gearing as previously published at
        December 31, 2016, was 28.0% (29.1% as per revised net debt calculation).
    
    

G. Operating expenses


Operating expenses is a measure of Shell's cost management performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses. Underlying operating expenses measures Shell's total operating expenses performance excluding identified items.


   

                 $ million                                   Quarters
                                                 Q1 2018          Q4 2017          Q1 2017
    Production and manufacturing
    expenses                                       6,923            6,563            6,658
    Selling, distribution and
    administrative expenses                        2,588            2,953            2,412
    Research and development                         208              260              212
    Operating expenses                             9,719            9,776            9,282
    Less identified items:
    Redundancy and restructuring
    charges/(reversal)                                67            (152)             (73)
    Provisions/(reversal)                              -              215             (28)
                                                      67               63            (101)
    Underlying operating expenses                  9,786            9,839            9,181


H. Free cash flow


Free cash flow is used to evaluate cash available for financing activities, including dividend payments, after investment in maintaining and growing our business. It is defined as the sum of "Cash flow from operating activities" and "Cash flow from investing activities" as shown on page 1.

I. Cash flow from operating activities excluding working capital movements


Working capital movements are defined as the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables.

Cash flow from operating activities excluding working capital movements is a measure used by Shell to analyse its operating cash generation over time excluding the timing effects of changes in inventories and operating receivables and payables from period to period.


   

                 $ million                       Q1 2018          Q4 2017          Q1 2017
    Cash flow from operating activities            9,427            7,275            9,508
    - (Increase)/decrease in
    inventories                                      281          (1,368)              266
    - (Increase)/decrease in current
    receivables1                                   (683)          (2,544)              721
    - Increase/(decrease) in current
    payables1                                      (484)            2,040          (2,552)
    (Increase)/decrease in working
    capital2                                       (886)          (1,872)          (1,565)
    Cash flow from operating activities
    excluding working capital
    movements2                                    10,313            9,147           11,073
    1. See Note 7 "Change in presentation of Consolidated Statement of Cash Flows".

    2. As previously published, working capital increased by $1,121 million in the
    fourth quarter 2017, and by $1,828 million in the first quarter 2017. Cash flow
    from operating activities excluding working capital movements, as previously
    published, was $8,396 million in the fourth quarter 2017, and $11,336 million in
    the first quarter 2017.


CAUTIONARY STATEMENT

All amounts shown throughout this announcement are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this announcement "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 Royal Dutch Shell plc and subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. '‘Subsidiaries'’, "Shell subsidiaries" and "Shell companies" as used in this announcement refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as "joint ventures" and "joint operations", respectively.  Entities over which Shell has significant influence but neither control nor joint control are referred to as "associates". The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as "aim", "ambition", '‘anticipate'’, '‘believe'’, '‘could'’, '‘estimate'’, '‘expect'’, '‘goals'’, '‘intend'’, '‘may'’, '‘objectives'’, '‘outlook'’, '‘plan'’, '‘probably'’, '‘project'’, '‘risks'’, "schedule", '‘seek'’, '‘should'’, '‘target'’, '‘will'’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, 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. No assurance is provided that future dividend payments will match or exceed previous dividend payments.  All forward-looking statements contained in this announcement 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 risk factors that may affect future results are contained in Royal Dutch Shell's Form 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and http://www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this announcement, April 26, 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

This Report contains references to Shell's website. These references are for the readers' convenience only. Shell is not incorporating by reference any information posted on http://www.shell.com .

We may have used certain terms, such as resources, in this announcement that the 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 .

This announcement contains inside information.

April 26, 2018

The information in this Report reflects the unaudited consolidated financial position and results of Royal Dutch Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.

Contacts:
Linda Szymanski
Company Secretary

Investor Relations:
International +31(0)70-377-4540
North America +1-832-337-2034

Media:
International +44(0)207-934-5550
USA +1-832-337-4355

LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70

Classification: Inside Information

SOURCE Royal Dutch Shell plc

PR Newswire
PR Newswire

PR Newswire's news distribution, targeting, monitoring and marketing solutions help you connect and engage with target audiences across the globe.