TIDMRDSA TIDMRDSB 
 
 
 
   SHELL SETS OUT A COMPELLING INVESTMENT CASE 
 
   The Hague, October 29, 2020 - Shell today announced a cash allocation 
framework that will enable it to reduce debt, increase distributions to 
shareholders, and allow for disciplined growth as it reshapes its 
business for the future of energy. Ongoing work to reshape Shell's 
portfolio is expected to deliver continued cash generation to grow its 
low-carbon businesses as well as to increase shareholder distributions, 
making a compelling investment case. 
 
   In confirming its progressive dividend policy, Shell announces a 
dividend per share growth by around 4% to 16.65 US cents for the third 
quarter 2020 and annually thereafter, subject to Board approval. 
 
   The cash allocation framework includes a target to reduce net debt to 
$65 billion (from $73.5 billion as of September 30, 2020) -- and, on 
achieving this milestone, a target to distribute a total of 20-30% of 
cash flow from operations to shareholders. Increased shareholder 
distributions will be achieved through a combination of Shell's 
progressive dividend and share buybacks. Remaining cash will be 
allocated to disciplined and measured capex growth and further debt 
reduction, targeting AA credit metrics through the cycle. 
 
   Shell's decisive steps this year have significantly strengthened its 
financial resilience, allowing the acceleration of strategic plans and 
providing clarity on cash priorities. These actions support Shell's 
ambition to become a net-zero energy emissions business by 2050 or 
sooner, in step with society and its customers. 
 
   "Our sector-leading cash flows will enable us to grow our businesses of 
the future while increasing shareholder distributions, making us a 
compelling investment case," said Royal Dutch Shell Chief Executive 
Officer, Ben van Beurden. 
 
   "We must continue to strengthen the financial resilience of our 
portfolio as we make the transition to become a net-zero emissions 
energy business. Our decisive actions taken earlier in the year have 
solidified our operational and cash delivery. The strength of our 
performance gives us the confidence to lay out our strategic direction, 
resume dividend growth and to provide clarity on the cash allocation 
framework, with clear parameters to increase shareholder distributions." 
 
   Chair of the Board of Royal Dutch Shell, Chad Holliday commented: "The 
Board has reviewed Shell's recent performance and its plans to grow its 
businesses of the future, and we are confident that Shell can 
sustainably grow its shareholder distributions as well as invest for 
growth. 
 
   As a result, the Board has decided to increase the dividend per share to 
16.65 US cents for the third quarter 2020. The Board has additionally 
approved a cash allocation framework for Shell which, on reducing its 
net debt to $65 billion, will target total shareholder distributions of 
20-30% of cash flow from operations." 
 
   Shell will continue with its strong capital discipline, including annual 
Cash capex of between $19 and $22 billion in the near term and a focus 
on reducing net debt. Shell will continue its relentless high grading of 
the portfolio with expected divestment proceeds of $4 billion a year on 
average. 
 
   LEADING ENERGY TRANSITION STRATEGY AND A STRONG PORTFOLIO 
 
   Shell will reshape its portfolio of assets and products to meet the 
cleaner energy needs of its customers in the coming decades. The key 
elements of Shell's strategic direction include: 
 
   --Ambition to be a net-zero emissions energy business by 2050 or sooner, 
in step with society and its customers. 
 
   --Grow its leading marketing business, further develop the integrated 
power business and commercialise hydrogen and biofuels to support 
customers' efforts to achieve net-zero emissions. 
 
   --Transform the Refining portfolio from the current fourteen sites into 
six high-value energy and chemicals parks, integrated with Chemicals. 
Growth in Chemicals will pivot to more performance chemicals and 
recycled feedstocks. 
 
   --Extend leadership in liquefied natural gas (LNG) to enable 
decarbonisation of key markets and sectors. 
 
   --Focus on value over volume by simplifying Upstream to nine significant 
core positions, generating more than 80% of Upstream cash flow from 
operations. 
 
   --Enhanced value delivery through Trading and Optimisation. 
 
   A comprehensive strategy update, with details on the future shape of the 
Shell portfolio, actions to deliver the net-zero ambition, and a full 
financial outlook will be presented on February 11, 2021. 
 
   Page 1 
 
   NOTES TO EDITOR 
 
   --Our nine core Upstream positions are: Brazil, Brunei, Gulf of Mexico 
(US/Mexico GoM), Kazakhstan, Malaysia, Nigeria, Oman, Permian and UK 
North Sea. 
 
   --The six sites expected to form our energy and chemicals parks include: 
Deer Park (US), Norco (US), Pernis (NL), Pulau Bukom (Singapore), 
Rheinland (Germany) and Scotford (Canada). 
 
   --The chemicals-only production sites, which sit alongside the energy 
and chemicals parks are: CSPC (China- JV with CNOOC), Fife Ethylene 
Plant (Scotland - JV with Exxon), Geismar (US), Jurong Island 
(Singapore), Moerdijk (NL), and Pennsylvania Chemicals (US - under 
construction). 
 
   Page 2 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 
2020 UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
SUMMARY OF UNAUDITED RESULTS 
                    Quarters                             $ million                                     Nine Months 
    Q3 2020       Q2 2020      Q3 2019    %(1)                                Reference            2020          2019     % 
                                                  Income/(loss) 
                                                  attributable to 
      489      (18,131)        5,879      -92     shareholders                               (17,666)        14,878      -219 
                                                  CCS earnings 
                                                  attributable to 
      177      (18,377)        6,081      -97     shareholders                 Note 2        (15,443)        14,399      -207 
      955           638        4,767      -80     Adjusted Earnings(2)            A             4,453        13,530      -67 
                                                  Cash flow from operating 
   10,403         2,563       12,252      -15     activities                                   27,818        31,913      -13 
                                                  Cash flow from investing 
  (2,833)       (2,320)      (2,130)              activities                                  (7,871)      (10,918) 
    7,571           243       10,122              Free cash flow                  G            19,947        20,995 
    3,737         3,617        6,098              Cash capital expenditure        C            12,324        17,036 
                                                  Underlying operating 
    7,854         7,504        8,657       -9     expenses                        F            23,958        27,000      -11 
     (4.9)%        (2.9)%         8.6%            ROACE (Net income basis)        D              (4.9)%          8.6% 
                                                  ROACE (CCS basis 
                                                  excluding identified 
       3.9%          5.3%         8.1%            items)                          D                3.9%          8.1% 
      31.4%         32.7%        27.9%            Gearing                         E               31.4%         27.9% 
                                                  Total production 
                                                  available for sale 
    3,081         3,379        3,563      -14     (thousand boe/d)                              3,392         3,632       -7 
                                                  Basic earnings per share 
     0.06        (2.33)         0.73      -92     ($)                                          (2.27)          1.84      -223 
   0.1665          0.16         0.47      -65     Dividend per share ($)                       0.4865          1.41      -65 
---------    ----------    ---------    --------  ------------------------  -------------  ----------    ----------    -------- 
 
 
   1.     Q3 on Q3 change. 
 
   2.     Adjusted Earnings is defined as income/(loss) attributable to 
shareholders plus cost of supplies adjustment (see Note 2) and excluding 
identified items (see Reference A). 
 
   Income attributable to Royal Dutch Shell plc shareholders was $0.5 
billion for the third quarter 2020, which reflected lower realised 
prices for oil and LNG as well as lower realised refining margins and 
production volumes compared with the third quarter 2019. This was partly 
offset by lower operating expenses, well write-offs, depreciation and 
strong marketing margins. Income attributable to Royal Dutch Shell plc 
shareholders included an impairment charge of $1.1 billion, partly 
offset by gains on fair value accounting of commodity derivatives of 
$0.5 billion. 
 
   Cost of supplies adjustment attributable to Royal Dutch Shell plc 
shareholders for the third quarter 2020 was negative $0.3 billion. 
 
   Adjusted Earnings were $1.0 billion for the third quarter 2020, 
reflecting lower realised prices for oil and LNG as well as lower 
realised refining margins and production volumes compared with the third 
quarter 2019. This was partly offset by lower operating expenses, well 
write-offs, depreciation and strong marketing margins. 
 
   Cash flow from operating activities for the third quarter 2020 was $10.4 
billion, which included positive working capital movements of $1.4 
billion. Cash flow from investing activities for the quarter was an 
outflow of $2.8 billion, driven mainly by capital expenditure, partly 
offset by proceeds from divestments. 
 
   Gearing was 31.4% at the end of the third quarter 2020, compared with 
32.7% at the end of the second quarter 2020, mainly driven by strong 
cash flow generation in the quarter. 
 
   Total dividends distributed to Royal Dutch Shell plc shareholders in the 
quarter were $1.2 billion. 
 
   Shell announces a dividend per share growth by around 4% to 16.65 US 
cents for the third quarter 2020 and annually thereafter, subject to 
Board approval. 
 
   Supplementary financial and operational disclosure and a separate press 
release for this quarter are available at www.shell.com/investor1. 
 
   Page 3 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   1. Not incorporated by reference. 
 
   Page 4 
 
   THIRD QUARTER 2020 PORTFOLIO DEVELOPMENTS 
 
   Integrated Gas 
 
   During the quarter, the CrossWind consortium, a joint venture between 
Shell (79.9% interest) and Eneco (20.1% interest), was awarded the 
tender for the subsidy-free offshore wind farm Hollandse Kust (noord) in 
the Netherlands. The wind farm has a planned installed capacity of 759 
MW and is expected to help meet the objectives of the Dutch Climate 
Accord and the EU's Green Deal. Both companies have already taken their 
final investment decisions on the project. This investment is part of 
Shell's ambition for a new wind-to-hydrogen value chain. 
 
   Upstream 
 
   During the quarter, Shell completed the sale of its Appalachia shale gas 
position in the USA for $541 million paid fully in cash, less closing 
adjustments. The transaction has an effective date of January 1, 2020. 
 
   In August, Shell took the final investment decision to contract the 
Mero-3 floating production, storage and offloading (FPSO) vessel to be 
deployed at the Mero field within the offshore Santos Basin in Brazil. 
This production system has a daily operational capacity rate of 180,000 
barrels of oil equivalent, with production coming online over the next 
four years. 
 
   Page 5 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   PERFORMANCE BY SEGMENT 
 
 
 
 
 
 
INTEGRATED GAS 
                 Quarters                                            $ million                                     Nine Months 
  Q3 2020      Q2 2020    Q3 2019    %(1)                                                                      2020        2019     % 
  (151)      (7,959)      2,597      -106    Segment earnings                                             (6,298)       6,731      -194 
  (920)      (8,321)       (77)                Of which: Identified items (Reference A)                   (9,572)       (237) 
    768          362      2,674      -71     Adjusted Earnings                                              3,274       6,968      -53 
  2,323        2,663      4,224      -45     Cash flow from operating activities                            8,972      11,854      -24 
                                             Cash flow from operating activities excluding working 
  2,396        2,871      4,271      -44     capital movements (Reference H)                                8,619      10,811      -20 
  1,020          736        894              Cash capital expenditure (Reference C)                         2,638       2,976 
    143          151        166      -14     Liquids production available for sale (thousand b/d)             152         154       -1 
                                             Natural gas production available for sale (million 
  4,067        4,369      4,586      -11      scf/d)                                                        4,343       4,397       -1 
    844          904        957      -12     Total production available for sale (thousand boe/d)             901         912       -1 
   7.80         8.36       8.95      -13     LNG liquefaction volumes (million tonnes)                      25.03       26.34       -5 
  17.13        16.65      18.90       -9     LNG sales volumes (million tonnes)                             52.78       54.36       -3 
-------    ---------    -------    --------  ---------------------------------------------------------  ---------    --------    -------- 
 
 
 
   1.     Q3 on Q3 change. 
 
   Third quarter segment earnings were a loss of $151 million. This 
included an impairment charge of $924 million mainly related to the 
Prelude floating LNG operations in Australia. Also included were a 
divestment gain of $118 million related to a lease liability 
remeasurement and a charge of $126 million related to provisions for an 
onerous contract. These charges are part of identified items (see 
Reference A). 
 
   Compared with the third quarter 2019, Integrated Gas Adjusted Earnings 
of $768 million primarily reflected lower realised prices for LNG, oil 
and gas and lower contributions from trading and optimisation, partly 
offset by lower operating expenses. 
 
   Cash flow from operating activities for the quarter was $2,323 million, 
primarily driven by Adjusted Earnings before non-cash expenses including 
depreciation, as well as cash inflows from commodity derivatives. 
 
   Compared with the third quarter 2019, total production decreased by 12% 
mainly due to more maintenance activities and lower well performance, 
partly offset by the transfer in the first quarter 2020 of the Rashpetco 
operations in Egypt from the Upstream segment. LNG liquefaction volumes 
decreased mainly as a result of more maintenance activities in 
Australia. 
 
   Nine Months segment earnings were a loss of $6,298 million. This 
included an impairment charge of $9,135 million mainly related to the 
Queensland Curtis LNG and Prelude floating LNG operations in Australia. 
Also included was a net charge of $450 million due to the fair value 
accounting of commodity derivatives. These charges are part of 
identified items (see Reference A). 
 
   Compared with the first nine months of 2019, Integrated Gas Adjusted 
Earnings of $3,274 million primarily reflected lower realised prices for 
LNG, oil and gas, lower contributions from trading and optimisation, 
higher well write-offs and unfavourable deferred tax movements, partly 
offset by lower operating expenses. 
 
   Cash flow from operating activities for the first nine months of 2020 
was $8,972 million, primarily driven by Adjusted Earnings before 
non-cash expenses including depreciation and well write-offs. 
 
   Compared with the first nine months of 2019, total production decreased 
by 1% mainly due to more maintenance activities and lower well 
performance, partly offset by the transfer in the first quarter 2020 of 
the Rashpetco operations in Egypt from the Upstream segment. LNG 
liquefaction volumes decreased mainly as a result of feedgas 
availability, cargo timing and more maintenance activities. 
 
   Page 6 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
UPSTREAM 
                  Quarters                                             $ million                                     Nine Months 
    Q3 2020      Q2 2020    Q3 2019    %(1)                                                                      2020        2019     % 
  (1,110)      (6,721)      1,651      -167    Segment earnings                                             (8,694)       4,709      -285 
    (226)      (5,209)        818                Of which: Identified items (Reference A)                   (6,590)         966 
    (884)      (1,512)        833      -206    Adjusted Earnings                                            (2,104)       3,743      -156 
    2,101          319      4,334      -52     Cash flow from operating activities                            8,026      15,090      -47 
                                               Cash flow from operating activities excluding working 
    2,629          548      4,597      -43     capital movements (Reference H)                                6,894      15,112      -54 
    1,245        1,876      2,625              Cash capital expenditure (Reference C)                         5,642       7,437 
    1,520        1,609      1,652       -8     Liquids production available for sale (thousand b/d)           1,619       1,652       -2 
    3,960        4,673      5,224      -24     Natural gas production available for sale (million             4,768       5,904      -19 
                                                scf/d) 
    2,203        2,415      2,553      -14     Total production available for sale (thousand boe/d)           2,441       2,669       -9 
---------    ---------    -------    --------  ---------------------------------------------------------  ---------    --------    -------- 
 
 
 
   1.    Q3 on Q3 change. 
 
   Third quarter segment earnings amounted to a loss of $1,110 million, 
which reflected lower prices as a result of unfavourable macroeconomic 
conditions, as well as lower production volumes mainly driven by OPEC+ 
restrictions and severe weather conditions affecting US Gulf of Mexico 
production compared with the third quarter 2019. This was partly offset 
by comparatively lower well write-offs. Segment earnings included 
impairment charges of $101 million and divestment losses of $100 
million. These charges are part of identified items (see Reference A). 
 
   Compared with the third quarter 2019, Upstream Adjusted Earnings were a 
loss of $884 million, reflecting lower oil and gas prices as a result of 
unfavourable macroeconomic conditions, as well as lower production 
volumes mainly driven by OPEC+ restrictions and severe weather 
conditions affecting US Gulf of Mexico production. This was partly 
offset by comparatively lower well write-offs. 
 
   Cash flow from operating activities for the quarter was $2,101 million, 
primarily driven by Adjusted Earnings before non-cash expenses including 
depreciation. 
 
   Compared with the third quarter 2019, total production decreased by 14%, 
mainly due to the impact of OPEC+ restrictions, lower production in the 
NAM joint venture and severe weather conditions in the US Gulf of 
Mexico. Divestments and field declines were largely offset by new fields 
and ramp-ups. 
 
   Nine Months segment earnings amounted to a loss of $8,694 million. This 
included an impairment charge of $5,175 million mainly related to 
unconventional assets in North America, offshore assets in Brazil and 
Europe, a project in Nigeria (OPL245), and an asset in the US Gulf of 
Mexico. Also included were a net charge of $985 million related to the 
impact of the weakening Brazilian real on a deferred tax position, and 
redundancy and restructuring costs of $170 million. These net charges 
are part of identified items (see Reference A). 
 
   Compared with the first nine months of 2019, Upstream Adjusted Earnings 
amounted to a loss of $2,104 million, primarily reflecting lower 
realised oil and gas prices. 
 
   Cash flow from operating activities for the first nine months of 2020 
was $8,026 million, primarily driven by Adjusted Earnings before 
non-cash expenses including depreciation. 
 
   Compared with the first nine months of 2019, total production decreased 
by 9%, mainly due to the impact of lower production in the NAM joint 
venture and OPEC+ restrictions. Divestments and field declines were 
largely offset by new fields and ramp-ups mainly in Brazil. 
 
   Page 7 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
OIL PRODUCTS 
                    Quarters                                               $ million                                      Nine Months 
     Q3 2020         Q2 2020    Q3 2019    %(1)                                                                         2020       2019     % 
  2,092         (3,023)         2,433      -14     Segment earnings(2)                                            1,281         4,956      -74 
    411         (5,433)           430                Of which: Identified items (Reference A)                   (4,174)           226 
  1,680           2,411         2,003      -16     Adjusted Earnings(2)                                           5,454         4,730      +15 
                                                     Of which: 
     55           1,500           522      -90           Refining & Trading                                       1,713           995      +72 
  1,626             911         1,481      +10           Marketing                                                3,742         3,735       -- 
  5,131           (362)         3,137      +64     Cash flow from operating activities                            9,647         3,807      +153 
                                                   Cash flow from operating activities excluding working 
  3,476           2,430         2,948      +18     capital movements (Reference H)                                6,259         7,618      -18 
    832             606         1,308              Cash capital expenditure (Reference C)                         2,019         3,279 
  1,972           1,944         2,522      -22     Refinery processing intake (thousand b/d)                      2,104         2,606      -19 
  4,740  (3)      4,041  (3)    6,731      -30     Oil Products sales volumes (thousand b/d)                      4,686  (3)    6,603      -29 
-------  ---  ---------  ---  -------    --------  ---------------------------------------------------------  ---------  ---  -------    -------- 
 
 
   1.    Q3 on Q3 change. 
 
   2.    Earnings are presented on a CCS basis (see Note 2). 
 
   3.    With effect from January 1, 2020, the reporting of Oil Products 
sales volumes has changed (see Note 2). Sales volumes would be 5,413 
thousand b/d in the third quarter 2020 on a comparable basis with 2019. 
 
   Third quarter segment earnings were $2,092 million, which reflected 
lower realised refining margins and lower marketing sales volumes due to 
a weak macroeconomic environment and the COVID-19 pandemic compared with 
the third quarter 2019. This was partly offset by lower operating 
expenses, strong marketing margins and favourable deferred tax 
movements. Segment earnings included a gain of $542 million due to the 
fair value accounting of commodity derivatives and impairment charges of 
$117 million. These net gains are part of identified items (see 
Reference A). 
 
   Compared with the third quarter 2019, Oil Products Adjusted Earnings of 
$1,680 million for the quarter reflected lower realised refining margins 
and lower marketing sales volumes due to a weak macroeconomic 
environment and the COVID-19 pandemic. This was partly offset by lower 
operating expenses, strong marketing margins and favourable deferred tax 
movements. 
 
   Cash flow from operating activities for the third quarter 2020 was 
$5,131 million, primarily driven by Adjusted Earnings before 
depreciation, as well as positive working capital movements and cash 
inflows from commodity derivatives. 
 
   With effect from January 1, 2020, certain Oil Products contracts are no 
longer included in sales volumes (see Note 2). Excluding this impact, 
Oil Products sales volumes decreased due to lower refining & trading and 
marketing sales volumes, compared with the third quarter 2019. 
 
   For the third quarter 2020, Refining & Trading contributed 3% of 
Adjusted Earnings, and Marketing contributed 97% of Adjusted Earnings. 
 
   --Refining & Trading Adjusted Earnings reflected lower realised refining 
margins. This was partly offset by lower operating expenses and 
favourable deferred tax movements, compared with the third quarter 2019. 
 
   --Marketing Adjusted Earnings reflected strong retail and global 
commercial margins, lower operating expenses and favourable deferred tax 
movements, despite lower marketing sales volumes, compared with the 
third quarter 2019. 
 
   With effect from January 1, 2020, Shell discloses utilisation instead of 
availability to improve transparency on refinery production volumes. 
Utilisation is defined as the actual usage of the plants as a percentage 
of the rated capacity. Refinery utilisation was 65% compared with 78% in 
the third quarter 2019, mainly due to lower demand and economic 
optimisation of the plants. 
 
   Nine Months segment earnings were $1,281 million. This included an 
impairment charge of $4,205 million, as a result of revised medium- and 
long-term price outlook assumptions in response to the energy market 
demand and supply fundamentals as well as the COVID-19 pandemic and 
macroeconomic conditions. Also included were a net gain of $251 million 
due to the fair value accounting of commodity derivatives and redundancy 
and restructuring costs of $133 million. These net charges are part of 
identified items (see Reference A). 
 
   Page 8 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   Compared with the first nine months of 2019, Oil Products Adjusted 
Earnings of $5,454 million reflected lower operating expenses, strong 
marketing margins and very strong contributions from crude and oil 
products trading and optimisation. This was partly offset by lower 
realised refining margins and lower marketing sales volumes due to the 
weak macroeconomic environment and the COVID-19 pandemic. 
 
   Cash flow from operating activities for the first nine months of 2020 
was $9,647 million, primarily driven by Adjusted Earnings before 
depreciation and positive working capital movements. This was partly 
offset by cost-of-sales adjustments for the first nine months of 2020. 
 
   With effect from January 1, 2020, certain Oil Products contracts are no 
longer included in sales volumes (see Note 2). Excluding this impact, 
Oil Products sales volumes decreased due to lower refining & trading and 
marketing sales volumes, compared with the first nine months of 2019. 
 
   For the first nine months of 2020, Refining & Trading contributed 31% of 
Adjusted Earnings, and Marketing contributed 69% of Adjusted Earnings. 
 
   --Refining & Trading Adjusted Earnings reflected very strong 
contributions from crude and oil products trading and optimisation as 
well as lower operating expenses. This was partly offset by lower 
realised refining margins, compared with the first nine months of 2019. 
 
   --Marketing Adjusted Earnings reflected strong retail and global 
commercial margins and lower operating expenses, despite lower marketing 
sales volumes, compared with the first nine months of 2019. 
 
   With effect from January 1, 2020, Shell discloses utilisation instead of 
availability to improve transparency on refinery production volumes. 
Utilisation is defined as the actual usage of the plants as a percentage 
of the rated capacity. Refinery utilisation was 72% compared with 78% in 
the first nine months of 2019, mainly due to lower demand and economic 
optimisation of the plants. 
 
   Page 9 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
CHEMICALS 
                Quarters                                           $ million                                    Nine Months 
  Q3 2020    Q2 2020    Q3 2019    %(1)                                                                     2020        2019     % 
    131        164        211      -38     Segment earnings(2)                                             441         556      -21 
   (96)       (41)       (13)                Of which: Identified items (Reference A)                    (140)       (250) 
    227        206        224       +1     Adjusted Earnings(2)                                            581         806      -28 
    335        734        181      +85     Cash flow from operating activities                             891       1,438      -38 
                                           Cash flow from operating activities excluding working 
    488        304        346      +41     capital movements (Reference H)                                 981       1,383      -29 
    595        369      1,160              Cash capital expenditure (Reference C)                        1,810       3,067 
  3,823      3,623      3,845       -1     Chemicals sales volumes (thousand tonnes)                    11,318      11,769      -4 
-------    -------    -------    --------  ---------------------------------------------------------  --------    --------    ------- 
 
 
   1.    Q3 on Q3 change. 
 
   2.    Earnings are presented on a CCS basis (see Note 2). 
 
   Third quarter segment earnings were $131 million, which reflected lower 
realised margins due to a weak price environment compounded by the 
COVID-19 pandemic compared with the third quarter 2019. This was offset 
by favourable deferred tax movements. Segment earnings included a charge 
of $104 million mainly due to a legal provision, which is part of 
identified items (see Reference A). 
 
   Compared with the third quarter 2019, Chemicals Adjusted Earnings of 
$227 million reflected lower realised margins due to a weak price 
environment compounded by the COVID-19 pandemic. This was offset by 
favourable deferred tax movements. 
 
   Cash flow from operating activities for the quarter was $335 million, 
primarily driven by Adjusted Earnings before depreciation and partly 
offset by negative working capital movements. 
 
   With effect from January 1, 2020, Shell discloses utilisation instead of 
availability to improve transparency on chemicals production volumes. 
Utilisation is defined as the actual usage of the plants as a percentage 
of the rated capacity. Chemicals manufacturing plant utilisation was 80% 
compared with 78% in the third quarter 2019, mainly due to a higher 
level of maintenance activities in 2019. 
 
   Nine Months segment earnings were $441 million, which reflected lower 
realised margins due to a weak price environment compounded by the 
COVID-19 pandemic compared with the first nine months of 2019. Segment 
earnings included a charge of $104 million due to a legal provision and 
redundancy and restructuring costs of $28 million. These net charges are 
part of identified items (see Reference A). 
 
   Compared with the first nine months of 2019, Chemicals Adjusted Earnings 
of $581 million reflected lower realised margins due to a weak price 
environment compounded by the COVID-19 pandemic. 
 
   Cash flow from operating activities for the first nine months of 2020 
was an inflow of $891 million, primarily driven by Adjusted Earnings 
before depreciation. This was partly offset by cost-of-sales adjustments 
for the first nine months of 2020. 
 
   With effect from January 1, 2020, Shell discloses utilisation instead of 
availability to improve transparency on chemicals production volumes. 
Utilisation is defined as the actual usage of the plants as a percentage 
of the rated capacity. Chemicals manufacturing plant utilisation was 81% 
compared with 78% in the first nine months of 2019, mainly due to higher 
maintenance activities in Asia and Europe in 2019, including the impact 
of strike actions in the Netherlands last year. 
 
   Page 10 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
CORPORATE 
           Quarters                                       $ million                                 Nine Months 
  Q3 2020    Q2 2020    Q3 2019                                                                      2020         2019 
  (739)      (805)      (663)      Segment earnings                                             (1,998)      (2,122) 
     52        (9)        154       Of which: Identified items (Reference A)                        578          185 
  (792)      (796)      (817)      Adjusted Earnings                                            (2,576)      (2,307) 
    514      (791)        375      Cash flow from operating activities                              282        (276) 
   (33)        390       (80)      Cash flow from operating activities excluding working            118        (265) 
                                   capital movements (Reference H) 
-------    -------    -------    -----------------------------------------------------------  ---------    --------- 
 
 
   Third quarter segment earnings were an expense of $739 million. This 
included a gain of $48 million from the impact of the weakening 
Brazilian real on financing positions, which is part of identified items 
(see Reference A). 
 
   Adjusted Earnings were an expense of $792 million, reflecting higher 
operating expenses, largely offset by favourable currency exchange rate 
effects and higher tax credits, compared with the third quarter 2019. 
 
   Nine Months segment earnings were an expense of $1,998 million. This 
included a gain of $578 million from the impact of the weakening 
Brazilian real on financing positions, which is part of identified items 
(see Reference A). 
 
   Adjusted Earnings were an expense of $2,576 million, reflecting adverse 
currency exchange rate effects and lower interest expenses, compared 
with the first nine months of 2019. 
 
   OUTLOOK FOR THE FOURTH QUARTER 2020 
 
   As a result of COVID-19, there continues to be significant uncertainty 
in the macroeconomic conditions with an expected negative impact on 
demand for oil, gas and related products. Furthermore, global 
developments and uncertainty in oil supply have caused volatility in 
2020 in commodity markets. The fourth quarter 2020 outlook provides 
ranges for operational and financial metrics based on current 
expectations, but these are subject to change in the light of current 
evolving market conditions. Due to demand or regulatory requirements 
and/or constraints in infrastructure, Shell may need to take measures to 
curtail or reduce oil and/or gas production, LNG liquefaction as well as 
utilisation of refining and chemicals plants and similarly sales volumes 
could be impacted. Such measures will likely have a variety of impacts 
on our operational and financial metrics. 
 
   Integrated Gas production is expected to be approximately 830 - 870 
thousand boe/d. LNG liquefaction volumes are expected to be 
approximately 7.9 - 8.5 million tonnes. 
 
   Upstream production is expected to be approximately 2,300 - 2,500 
thousand boe/d. 
 
   Refinery utilisation is expected to be approximately 69% - 77%. 
 
   Oil Products sales volumes are expected to be approximately 4,000 - 
5,000 thousand b/d. 
 
   Chemicals manufacturing plant utilisation is expected to be 
approximately 77% - 85%. 
 
   Chemicals sales volumes are expected to be approximately 3,500 - 3,900 
thousand tonnes. 
 
   Corporate Adjusted Earnings are expected to be a net expense of 
approximately $800 - $875 million in the fourth quarter 2020 and a net 
expense of approximately $3,200 - $3,500 million for the full year 2020. 
This excludes the impact of currency exchange rate effects. 
 
   Page 11 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   FORTHCOMING EVENTS 
 
   Fourth quarter 2020 and full year results and dividends are scheduled to 
be announced on February 4, 2021. First quarter 2021 results and 
dividends are scheduled to be announced on April 29, 2021. Second 
quarter 2021 and half year results and dividends are scheduled to be 
announced on July 29, 2021. Third quarter 2021 results and dividends are 
scheduled to be announced on October 28, 2021. 
 
   The Shell Strategy Day is scheduled to take place on February 11, 2021. 
 
   Page 12 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF INCOME 
              Quarters                                       $ million                                Nine Months 
   Q3 2020       Q2 2020     Q3 2019                                                                   2020         2019 
  44,021        32,504      86,592    Revenue(1)                                                  136,554      260,871 
     461         (161)         769    Share of profit of joint ventures and associates              1,154        2,885 
     234           148       2,180    Interest and other income                                       458        3,285 
  44,717        32,491      89,541    Total revenue and other income                              138,167      267,041 
  27,276        18,093      63,900    Purchases                                                    88,582      192,413 
   5,496         5,822       6,002    Production and manufacturing expenses                        17,299       19,191 
   2,366         2,370       2,429    Selling, distribution and administrative expenses             7,130        7,662 
     233           232         219    Research and development                                        708          656 
     222           723         644    Exploration                                                   1,239        1,389 
   7,689        28,089       6,815    Depreciation, depletion and amortisation(2)                  42,871       19,464 
     992         1,070       1,161    Interest expense                                              3,181        3,572 
  44,275        56,398      81,169    Total expenditure                                           161,009      244,346 
     442      (23,907)       8,372    Income/(loss) before taxation                              (22,842)       22,695 
   (104)       (5,806)       2,348    Taxation charge/(credit)                                    (5,265)        7,351 
     546      (18,101)       6,024    Income/(loss) for the period(1)                            (17,578)       15,344 
      57            30         145    Income/(loss) attributable to non-controlling interest           88          466 
                                      Income/(loss) attributable to Royal Dutch Shell plc 
     489      (18,131)       5,879     shareholders                                              (17,666)       14,878 
    0.06        (2.33)        0.73    Basic earnings per share ($)(3)                              (2.27)         1.84 
    0.06        (2.33)        0.73    Diluted earnings per share ($)(3)                            (2.27)         1.83 
--------    ----------    --------    -------------------------------------------------------  ----------    --------- 
 
 
   1.    See Note 2 "Segment information". 
 
   2.    See Note 7 "Other notes to the Condensed Consolidated Interim 
Financial Statements". 
 
   3.    See Note 3 "Earnings per share". 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
              Quarters                                           $ million                                    Nine Months 
  Q3 2020       Q2 2020      Q3 2019                                                                           2020         2019 
    546      (18,101)        6,024    Income/(loss) for the period                                       (17,578)       15,344 
                                      Other comprehensive income/(loss) net of tax: 
                                          Items that may be reclassified to income in later 
                                           periods: 
  1,246         1,588      (1,514)        -- Currency translation differences                             (1,101)      (1,123) 
      5            43            2        -- Debt instruments remeasurements                                   20           31 
     75         (137)          192        -- Cash flow hedging gains/(losses)                               (214)        (156) 
  (153)          (99)           22        -- Net investment hedging gains/(losses)                          (253)           24 
   (59)            55            5        -- Deferred cost of hedging                                          97          111 
                                          -- Share of other comprehensive income/(loss) of joint 
   (51)            30         (45)         ventures and associates                                           (80)        (101) 
  1,063         1,481      (1,339)      Total                                                             (1,530)      (1,214) 
                                          Items that are not reclassified to income in later 
                                           periods: 
  (580)       (4,924)      (2,010)        -- Retirement benefits remeasurements                           (3,747)      (4,655) 
     36            77         (53)        -- Equity instruments remeasurements                               (24)         (23) 
                                          -- Share of other comprehensive income/(loss) of joint 
     45            19            1         ventures and associates                                            112          (4) 
  (499)       (4,828)      (2,062)    Total                                                               (3,659)      (4,683) 
    564       (3,347)      (3,401)    Other comprehensive income/(loss) for the period                    (5,189)      (5,897) 
  1,111      (21,448)        2,624    Comprehensive income/(loss) for the period                         (22,767)        9,447 
     82            43          124    Comprehensive income/(loss) attributable to non-controlling               2          482 
                                      interest 
  1,029      (21,490)        2,499    Comprehensive income/(loss) attributable to Royal                  (22,768)        8,965 
                                       Dutch Shell plc shareholders 
-------    ----------    ---------    ---------------------------------------------------------------  ----------    --------- 
 
 
 
   Page 13 
 
 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEET 
         $ million 
                             September 30, 2020    December 31, 2019 
Assets 
Non-current assets 
Intangible assets                        22,536             23,486 
Property, plant and 
 equipment                              211,976            238,349 
Joint ventures and 
 associates                              22,008             22,808 
Investments in securities                 3,090              2,989 
Deferred tax                             15,713             10,524 
Retirement benefits(1)                    2,191              4,717 
Trade and other receivables               7,551              8,085 
Derivative financial 
 instruments(2)                           1,874                689 
                                        286,939            311,647 
Current assets 
Inventories                              17,306             24,071 
Trade and other receivables              33,033             43,414 
Derivative financial 
 instruments(2)                           6,258              7,149 
Cash and cash equivalents                35,714             18,055 
                                         92,311             92,689 
Total assets                            379,250            404,336 
Liabilities 
Non-current liabilities 
Debt                                     91,245             81,360 
Trade and other payables                  2,831              2,342 
Derivative financial 
 instruments(2)                             843              1,209 
Deferred tax                             10,707             14,522 
Retirement benefits(1)                   16,201             13,017 
Decommissioning and other 
 provisions(1)                           26,541             21,799 
                                        148,369            134,249 
Current liabilities 
Debt                                     17,811             15,064 
Trade and other payables                 36,546             49,208 
Derivative financial 
 instruments(2)                           5,499              5,429 
Taxes payable                             6,874              6,693 
Retirement benefits(1)                      380                419 
Decommissioning and other 
 provisions(1)                            3,431              2,811 
                                         70,541             79,624 
Total liabilities                       218,909            213,873 
Equity attributable to 
 Royal Dutch Shell plc 
 shareholders                           157,168            186,476 
Non-controlling interest(1)               3,173              3,987 
Total equity                            160,341            190,463 
Total liabilities and 
 equity                                 379,250            404,336 
---------------------------  ------------------  ----------------- 
 
 
   1.    See Note 7 "Other notes to the Condensed Consolidated Interim 
Financial Statements". 
 
   2.    See Note 6 "Derivative financial instruments and debt excluding 
lease liabilities". 
 
   Page 14 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
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(1)   trust   reserves(2)  earnings   Total       interest        equity 
At January 1, 2020         657  (1,063)       14,451   172,431   186,476            3,987   190,463 
Comprehensive 
 income/(loss) for 
 the period                 --       --      (5,102)  (17,666)  (22,768)                2  (22,767) 
Transfer from 
 other 
 comprehensive 
 income                     --       --          185     (185)        --               --        -- 
Dividends(3)                --       --           --   (5,956)   (5,956)            (242)   (6,198) 
Repurchases of 
 shares                    (6)       --            6   (1,214)   (1,214)               --   (1,214) 
Share-based 
 compensation               --      539        (237)     (230)        73               --        73 
Other changes in 
 non-controlling 
 interest                   --       --           --       557       557            (573)      (16) 
At September 30, 
 2020                      651    (523)        9,303   147,737   157,168            3,173   160,341 
At January 1, 2019         685  (1,260)       16,615   182,610   198,650            3,888   202,538 
Comprehensive 
 income/(loss) for 
 the period                 --       --      (5,913)    14,878     8,965              482     9,447 
Transfer from 
 other 
 comprehensive 
 income                     --       --         (56)        56        --               --        -- 
Dividends                   --       --           --  (11,472)  (11,472)            (403)  (11,875) 
Repurchases of 
 shares                   (20)       --           20   (7,526)   (7,526)               --   (7,526) 
Share-based 
 compensation               --      749        (131)     (619)       (1)               --       (1) 
Other changes in 
 non-controlling 
 interest                   --       --           --        --        --              (3)       (3) 
At September 30, 
 2019                      666    (511)       10,535   177,927   188,617            3,964   192,580 
------------------  ----------  -------  -----------  --------  --------  ---------------  -------- 
 
 
   1.    See Note 4 "Share capital". 
 
   2.    See Note 5 "Other reserves". 
 
   3.    The amount charged to retained earnings is based on prevailing 
exchange rates on payment date. 
 
   Page 15 
 
 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS 
               Quarters                                               $ million                                       Nine Months 
    Q3 2020       Q2 2020       Q3 2019                                                                                2020          2019 
      442      (23,907)         8,372    Income before taxation for the period                                   (22,842)        22,695 
                                         Adjustment for: 
      814           889           921        -- Interest expense (net)                                              2,600         2,846 
    7,689        28,089         6,815        -- Depreciation, depletion and amortisation                           42,871        19,464 
       14           518           402        -- Exploration well write-offs                                           615           722 
                                             -- Net (gains)/losses on sale and revaluation of non-current 
    (103)         (128)       (2,039)        assets and businesses                                                  (124)       (2,483) 
    (461)           161         (769)        -- Share of (profit)/loss of joint ventures and associates           (1,154)       (2,885) 
      468           610           859        -- Dividends received from joint ventures and associates               1,609         2,820 
      405       (3,713)           813        -- (Increase)/decrease in inventories                                  6,286       (2,089) 
    (540)         3,959         2,644        -- (Increase)/decrease in current receivables                          9,733         1,527 
    1,583       (4,226)       (3,289)        -- Increase/(decrease) in current payables                          (11,073)       (2,184) 
      233           837         (149)        -- Derivative financial instruments                                      899       (1,738) 
      152           293         (634)        -- Retirement benefits                                                   355         (582) 
       43           392         (250)        -- Decommissioning and other provisions                                  333         (544) 
      265         (480)            67        -- Other                                                                 363            54 
    (601)         (730)       (1,511)    Tax paid                                                                 (2,653)       (5,710) 
   10,403         2,563        12,252    Cash flow from operating activities                                       27,818        31,913 
  (3,679)       (3,436)       (5,992)    Capital expenditure                                                     (11,379)      (16,264) 
     (34)         (161)          (30)    Investments in joint ventures and associates                               (754)         (631) 
     (23)          (20)          (76)    Investments in equity securities                                           (190)         (141) 
                                         Proceeds from sale of property, plant and equipment 
      571           211         2,932     and businesses                                                            2,395         3,754 
      159           423           922    Proceeds from sale of joint ventures and associates                        1,129         1,567 
      139            62           126    Proceeds from sale of equity securities                                      274           414 
      112           118           229    Interest received                                                            422           686 
      588         1,174           732    Other investing cash inflows                                               2,617         2,004 
    (665)         (691)         (973)    Other investing cash outflows                                            (2,384)       (2,308) 
  (2,833)       (2,320)       (2,130)    Cash flow from investing activities                                      (7,871)      (10,918) 
                                         Net increase/(decrease) in debt with maturity period 
    (176)            90            44     within three months                                                         236            98 
                                         Other debt: 
    4,745        15,238         2,107        -- New borrowings                                                     20,986         2,427 
  (2,688)       (7,113)       (7,180)        -- Repayments                                                       (12,523)      (11,561) 
    (831)       (1,088)       (1,088)    Interest paid                                                            (2,952)       (3,417) 
      419           324            76    Derivative financial instruments                                             662            76 
       --          (32)            --    Change in non-controlling interest                                          (40)           (2) 
                                         Cash dividends paid to: 
  (1,236)       (1,397)       (3,773)        -- Royal Dutch Shell plc shareholders(1)                             (6,117)      (11,473) 
     (65)          (68)         (133)        -- Non-controlling interest                                            (242)         (404) 
       --         (216)       (2,944)    Repurchases of shares                                                    (1,702)       (7,340) 
                                         Shares held in trust: net sales/(purchases) and dividends 
        1          (18)          (94)     received                                                                  (198)         (557) 
      169         5,721      (12,985)    Cash flow from financing activities                                      (1,892)      (32,153) 
       36           164         (190)    Currency translation differences relating to cash                          (395)         (166) 
                                          and cash equivalents 
    7,775         6,128       (3,054)    Increase/(decrease) in cash and cash equivalents                          17,659      (11,324) 
   27,939        21,811        18,470    Cash and cash equivalents at beginning of period                          18,055        26,741 
   35,714        27,939        15,417    Cash and cash equivalents at end of period                                35,714        15,417 
---------    ----------    ----------    --------------------------------------------------------------------  ----------    ---------- 
 
 
   1.     Cash dividends paid represents the payment of net dividends 
(after deduction of withholding taxes where applicable) and payment of 
withholding taxes on dividends paid in the previous quarter. 
 
   Page 16 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   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 ("IASB") and as adopted by the 
European Union, and on the basis of the same accounting principles as 
those used in the Annual Report and Accounts (pages 190 to 238) and Form 
20-F (pages 142 to 189) for the year ended December 31, 2019 as filed 
with the Registrar of Companies for England and Wales and the US 
Securities and Exchange Commission, respectively, and should be read in 
conjunction with these filings. 
 
   The financial information presented in the unaudited 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, 2019 were published in Shell's Annual Report and 
Accounts, a copy of which was delivered to the Registrar of Companies 
for England and Wales, and in Shell's Form 20-F. 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. 
 
   Key accounting considerations, significant judgements and estimates 
 
   Future commodity price assumptions and management's view on the future 
development of refining margins represent a significant estimate and 
both were subject to change in the second quarter 2020, resulting in the 
recognition of impairments in the second quarter 2020. These assumptions 
continue to apply for impairment testing purposes in the third quarter 
2020. The tax impact of impairments in the second and third quarter 2020 
has been fully recognised in deferred tax positions as of September 30, 
2020. 
 
   After the finalisation of the operating plan in the fourth quarter 2020, 
the overall deferred tax position will be reviewed. 
 
   The finalisation of the operating plan in the fourth quarter 2020 may 
lead to identification of impairment triggers for certain assets. 
 
   The refining portfolio is expected to be transformed during the energy 
transition from fifteen sites into six high-value energy and chemical 
parks integrated with Chemicals. This is expected to be followed by 
further evaluation and decisions on assets that could result in the 
recognition of significant provisions and charges to earnings, some as 
early as in the fourth quarter 2020. 
 
   2. Segment information 
 
   With effect from January 1, 2020, Shell's reporting segments consist of 
Integrated Gas, Upstream, Oil Products, Chemicals and Corporate, 
reflecting the way Shell reviews and assesses its performance. Oil 
Products and Chemicals businesses were previously reported under the 
Downstream segment. Oil sands mining activities, previously included in 
the Upstream segment, are reported under Oil Products. Comparative 
information has been reclassified. 
 
   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. 
 
   With effect from January 1, 2020, additional contracts are classified as 
held for trading purposes and consequently revenue is reported on a net 
rather than gross basis. The effect on revenue for the third quarter 
2020 is a reduction of $11,478 million (Q2 2020: $8,028 million, nine 
months 2020: $35,819 million). 
 
   Page 17 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
INFORMATION BY SEGMENT 
               Quarters                     $ million             Nine Months 
    Q3 2020       Q2 2020      Q3 2019                             2020         2019 
                                        Third-party 
                                        revenue 
    7,684         7,436        9,735      Integrated Gas       25,277       30,316 
    1,670         1,177        2,231      Upstream              5,191        6,878 
   31,823        21,596       71,218      Oil Products         97,716      213,106 
    2,831         2,283        3,397       Chemicals            8,335       10,535 
       13            12           12      Corporate                35           36 
                                        Total third-party 
   44,021        32,504       86,592    revenue(1)            136,554      260,871 
                                        Inter-segment 
                                        revenue(2) 
      864           558        1,025      Integrated Gas        2,313        3,162 
    5,111         4,117        7,960      Upstream             15,704       26,319 
    1,547         1,082        2,059      Oil Products          4,480        6,190 
      715           475        1,009       Chemicals            2,065        3,062 
       --            --           --      Corporate                --           -- 
                                        CCS earnings 
    (151)       (7,959)        2,597      Integrated Gas      (6,298)        6,731 
  (1,110)       (6,721)        1,651      Upstream            (8,694)        4,709 
    2,092       (3,023)        2,433      Oil Products          1,281        4,956 
      131           164          211       Chemicals              441          556 
    (739)         (805)        (663)      Corporate           (1,998)      (2,122) 
                                        Total CCS 
      222      (18,343)        6,230    earnings             (15,268)       14,831 
---------    ----------    ---------    -----------------  ----------    --------- 
 
 
   1.    Includes revenue from sources other than from contracts with 
customers, which mainly comprises the impact of fair value accounting of 
commodity derivatives. Third quarter 2020 included income of $1,803 
million (Q2 2020: $1,405 million income; nine months 2020: $9,894 
million income). This amount includes both the reversal of prior losses 
of $15 million (Q2 2020: $686 million gains) related to sales contracts 
and prior gains of $22 million (Q2 2020: $507 million losses) related to 
purchase contracts that were previously recognised and where physical 
settlement has taken place in the third quarter 2020. 
 
   2.    Comparative information for inter-segment revenue for Upstream, 
Oil Products and Chemicals has been revised to conform with reporting 
segment changes applicable from January 1, 2020. 
 
 
 
 
 
 
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS 
             Quarters                                       $ million                               Nine Months 
  Q3 2020       Q2 2020     Q3 2019                                                                   2020        2019 
                                     Income/(loss) attributable to Royal Dutch Shell plc 
    489      (18,131)       5,879     shareholders                                              (17,666)      14,878 
     57            30         145    Income/(loss) attributable to non-controlling interest           88         466 
    546      (18,101)       6,024    Income/(loss) for the period                               (17,578)      15,344 
                                     Current cost of supplies adjustment: 
  (395)         (432)         240    Purchases                                                     2,947       (715) 
    100            98        (56)    Taxation                                                      (719)         181 
   (29)            92          22    Share of profit/(loss) of joint ventures and associates          82          21 
  (324)         (242)         206    Current cost of supplies adjustment                           2,310       (513) 
                                     of which: 
  (312)         (246)         202    Attributable to Royal Dutch Shell plc shareholders            2,222         (479) 
   (12)             4             4  Attributable to non-controlling interest                         88          (34) 
    222      (18,343)       6,230    CCS earnings                                               (15,268)      14,831 
                                     of which: 
    177      (18,377)       6,081    CCS earnings attributable to Royal Dutch Shell plc         (15,443)      14,399 
                                      shareholders 
     45            34         149    CCS earnings attributable to non-controlling interest           176         432 
-------    ----------    --------    -------------------------------------------------------  ----------    -------- 
 
 
 
   Page 18 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   3. Earnings per share 
 
 
 
 
 
 
EARNINGS PER SHARE 
               Quarters                                                                                 Nine Months 
    Q3 2020       Q2 2020      Q3 2019                                                                   2020         2019 
                                        Income/(loss) attributable to Royal Dutch Shell plc 
      489      (18,131)        5,879    shareholders ($ million)                                   (17,666)       14,878 
                                        Weighted average number of shares used as the basis 
                                        for determining: 
  7,788.7       7,789.8      8,017.5      Basic earnings per share (million)                        7,799.4      8,097.6 
  7,823.6       7,789.8      8,067.6      Diluted earnings per share (million)                      7,799.4      8,151.4 
---------    ----------    ---------    -------------------------------------------------------  ----------    --------- 
 
   4. Share capital 
 
 
 
 
 
 
ISSUED AND FULLY PAID ORDINARY SHARES OF EUR0.07 EACH1 
                                                Nominal value ($ 
                      Number of shares              million) 
                      A              B           A       B   Total 
At January 1, 
 2020           4,151,787,517  3,729,407,107    349     308   657 
Repurchases of 
 shares          (50,548,018)   (23,223,271)    (4)     (2)   (6) 
At September 
 30, 2020       4,101,239,499  3,706,183,836    345     306   651 
At January 1, 
 2019           4,471,889,296  3,745,486,731    376     309   685 
Repurchases of 
 shares         (227,226,527)   (11,488,283)    (19)    (1)  (20) 
At September 
 30, 2019       4,244,662,769  3,733,998,448    357     308   665 
--------------  -------------  -------------  --------  ---  ----- 
 
 
   1.    Share capital at September 30, 2020 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 19, 2020 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 EUR182.7 million (representing 2,611 million ordinary shares 
of EUR0.07 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 19, 2021, and the end of the Annual General Meeting to be held 
in 2021, unless previously renewed, revoked or varied by Royal Dutch 
Shell plc in a general meeting.5. Other reserves 
 
 
 
 
 
 
OTHER RESERVES 
                                                                                              Accumulated 
                                                                Share    Capital     Share       other 
                                                      Merger   premium  redemption   plan    comprehensive 
                     $ million                        reserve  reserve   reserve    reserve     income        Total 
At January 1, 2020                                     37,298      154         123    1,049       (24,173)   14,451 
Other comprehensive income/(loss) attributable to 
Royal Dutch Shell plc shareholders                         --       --          --       --        (5,102)  (5,102) 
Transfer from other comprehensive income                   --       --          --       --            185      185 
Repurchases of shares                                      --       --           6       --             --        6 
Share-based compensation                                   --       --          --    (237)             --    (237) 
At September 30, 2020                                  37,298      154         129      812       (29,091)    9,303 
At January 1, 2019                                     37,298      154          95    1,098       (22,030)   16,615 
Other comprehensive income/(loss) attributable to 
Royal Dutch Shell plc shareholders                         --       --          --       --        (5,913)  (5,913) 
Transfer from other comprehensive income                   --       --          --       --           (56)     (56) 
Repurchases of shares                                      --       --          20       --             --       20 
Share-based compensation                                   --       --          --    (131)             --    (131) 
At September 30, 2019                                  37,298      154         116      966       (27,998)   10,535 
----------------------------------------------------  -------  -------  ----------  -------  -------------  ------- 
 
 
 
   Page 19 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   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 lease liabilities 
 
   As disclosed in the Consolidated Financial Statements for the year ended 
December 31, 2019, presented in the Annual Report and Accounts 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 September 30, 2020, 
are consistent with those used in the year ended December 31, 2019, 
though the carrying amounts of derivative financial instruments measured 
using predominantly unobservable inputs have changed since that date. 
 
   The table below provides the comparison of the fair value with the 
carrying amount of debt excluding lease liabilities, disclosed in 
accordance with IFRS 7 Financial Instruments: Disclosures. 
 
 
 
 
 
 
DEBT EXCLUDING LEASE LIABILITIES 
         $ million           September 30, 2020    December 31, 2019 
Carrying amount                          80,126             65,887 
Fair value(1)                            87,127             71,163 
---------------------------  ------------------  ----------------- 
 
 
   1.    Mainly determined from the prices quoted for these securities.7. 
Other notes to the Condensed Consolidated Interim Financial Statements 
 
   Consolidated Statement of Income 
 
   Depreciation, depletion and amortisation 
 
 
 
 
 
 
               Quarters                     $ million            Nine Months 
     Q3 2020      Q2 2020      Q3 2019                             2020        2019 
                                        Depreciation, 
                                        depletion and 
     7,689       28,089        6,815    amortisation           42,871      19,464 
----------    ---------    ---------    -----------------  ----------    -------- 
 
 
 
   Impairment losses of $1,636 million, of which $1,615 million recognised 
in depreciation, depletion and amortisation and $21 million recognised 
in share of profit of joint ventures and associates (Q2 2020: $22,332 
million, of which $21,780 million recognised in depreciation, depletion 
and amortisation and $552 million recognised in share of profit of joint 
ventures and associates; nine months: $24,718 million, of which $24,145 
million recognised in depreciation, depletion and amortisation and $573 
million recognised in share of profit of joint ventures and associates), 
mainly relate to Prelude floating LNG in Australia ($1,327 million 
pre-tax and $929 million post-tax). This impairment reflects Q3 2020 
updates to the production plan including a revised outlook on near to 
medium-term availability as well as an updated view on backfill 
opportunities. The commodity price assumptions and the discount rate 
applied remained unchanged from those disclosed in the notes to the 
Condensed Consolidated Interim Financial Statements for the period ended 
June 30, 2020. For further information regarding the impairments 
recognised in the second quarter 2020, see notes 1 and 7 to the 
Condensed Consolidated Interim Financial Statements for the period ended 
June 30, 2020. 
 
   Page 20 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   Condensed Consolidated Balance Sheet 
 
   Retirement benefits 
 
 
 
 
 
 
        $ million 
                            September 30, 2020    December 31, 2019 
Non-current assets 
Retirement benefits                      2,191              4,717 
Non-current liabilities 
Retirement benefits                     16,201             13,017 
Current liabilities 
Retirement benefits                        380                419 
Net liability                           14,390              8,719 
--------------------------  ------------------  ----------------- 
 
 
   The increase in the net retirement benefit liability is mainly driven by 
a decrease of the market yield on high-quality corporate bonds. 
 
   Decommissioning and other provisions 
 
 
 
 
 
 
         $ million 
                             September 30, 2020    December 31, 2019 
Non-current liabilities 
Decommissioning and other 
 provisions                              26,541             21,799 
Current liabilities 
Decommissioning and other 
 provisions                               3,431              2,811 
---------------------------  ------------------  ----------------- 
 
 
   The discount rate applied at September 30, 2020 was 1.75% (December 31, 
2019: 3.0%). Compared with December 31, 2019, non-current 
decommissioning and restoration provisions increased by $3,999 million 
at June 30, 2020 as a result of the change in the discount rate as at 
that date.Non-controlling interest 
 
 
 
 
 
 
         $ million 
                             September 30, 2020    December 31, 2019 
Non-controlling interest                  3,173              3,987 
---------------------------  ------------------  ----------------- 
 
 
   The change in the non-controlling interest is mainly related to the 
non-controlling interest in Shell Midstream Partners, L.P. ("SHLX") 
following the completion of the sale of Shell's 79% interest in the 
Mattox Pipeline Company LLC and certain logistics assets at the Shell 
Norco Manufacturing Complex to SHLX in the second quarter 2020. 
 
   Page 21 
 
 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES 
 
   A.Adjusted Earnings 
 
   The "Adjusted Earnings" measure aims to facilitate a comparative 
understanding of Shell's financial performance from period to period by 
removing the effects of oil price changes on inventory carrying amounts 
and removing the effects of identified items. These items are in some 
cases driven by external factors and may, either individually or 
collectively, hinder the comparative understanding of Shell's financial 
results from period to period. This measure excludes earnings 
attributable to non-controlling interest. This measure was previously 
referred to as "CCS earnings attributable to shareholders excluding 
identified items" and was renamed for simplicity with effect from the 
second quarter 2020. 
 
 
 
 
 
 
ADJUSTED EARNINGS 
             Quarters                                        $ million                                Nine Months 
  Q3 2020       Q2 2020     Q3 2019                                                                     2020        2019 
                                     Income/(loss) attributable to Royal Dutch Shell plc 
    489      (18,131)       5,879     shareholders                                                (17,666)      14,878 
                                     Add: Current cost of supplies adjustment attributable 
  (312)         (246)         202    to Royal Dutch Shell plc shareholders (Note 2)                  2,222       (479) 
                                     Less: Identified items attributable to Royal Dutch 
  (778)      (19,015)       1,313     Shell plc shareholders                                      (19,897)         868 
    955           638       4,767    Adjusted Earnings                                               4,453      13,530 
-------    ----------    --------    ---------------------------------------------------------  ----------    -------- 
 
 
   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. 
 
 
 
 
 
 
IDENTIFIED ITEMS 
              Quarters                                         $ million                                  Nine Months 
    Q3 2020       Q2 2020    Q3 2019                                                                       2020         2019 
                                      Identified items before tax 
      103           128      2,039         Divestment gains/(losses)                                      154        2,483 
  (1,636)      (22,332)      (509)         Impairments                                               (24,718)      (1,214) 
                                           Fair value accounting of commodity derivatives and 
      721       (1,884)         47         certain gas contracts                                        (195)         (14) 
       25         (518)          6         Redundancy and restructuring                                 (511)         (74) 
    (267)         (427)         --         Other                                                        (694)        (437) 
  (1,055)      (25,033)      1,584    Total identified items before tax                              (25,963)          744 
      276         6,018      (271)    Total tax impact of identified items                              6,066          146 
                                      Identified items after tax 
       46            10      1,756         Divestment gains/(losses)                                       24        2,058 
  (1,143)      (16,842)      (430)         Impairments                                               (18,521)        (921) 
                                           Fair value accounting of commodity derivatives and 
      532       (1,540)         91         certain gas contracts                                        (171)          124 
        4         (375)          2         Redundancy and restructuring                                 (378)         (43) 
       13          (44)      (106)         Impact of exchange rate movements on tax balances            (397)         (98) 
    (230)         (224)         --         Other                                                        (454)        (229) 
    (778)      (19,015)      1,313    Impact on CCS earnings                                         (19,897)          890 
                                        Of which: 
    (920)       (8,321)       (77)          Integrated Gas                                            (9,572)        (237) 
    (226)       (5,209)        818          Upstream                                                  (6,590)          966 
      411       (5,433)        430          Oil Products                                              (4,174)          226 
     (96)          (41)       (13)          Chemicals                                                   (140)        (250) 
       52           (9)        154          Corporate                                                     578          185 
    (778)      (19,015)      1,313    Impact on CCS earnings attributable to shareholders            (19,897)          868 
                                      Impact on CCS earnings attributable to non-controlling 
       --            --         --     interest                                                            --           22 
---------    ----------    -------    -----------------------------------------------------------  ----------    --------- 
 
 
 
   Page 22 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   The identified items categories above may include after-tax impacts of 
identified items of joint ventures and associates which are fully 
reported within "Share of profit of joint ventures and associates" in 
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 (Reference F). 
 
   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. Shell also enters into contracts for tolling, 
pipeline and storage capacity. 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, as well as contracts for tolling, pipeline and storage 
capacity, 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 Upstream and 
Integrated Gas 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 that based on 
Shell management's assessment hinder the comparative understanding of 
Shell's financial results from period to period. The third quarter 2020 
reflects the impacts of a provision for an onerous contract in 
Integrated Gas and provisions for litigation in Chemicals. 
 
   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.    Cash capital expenditure 
 
   Cash capital expenditure represents cash spent on maintaining and 
developing assets as well as on investments in the period. Management 
regularly monitors this measure as a key lever to delivering sustainable 
cash flows. Cash capital expenditure is the sum of the following lines 
from the Consolidated Statement of Cash flows: Capital expenditure, 
Investments in joint ventures and associates and Investments in equity 
securities. 
 
   With effect from the first quarter 2020, "Capital investment" is no 
longer presented in this announcement since Cash capital expenditure is 
considered to be more closely aligned with management's focus on free 
cash flow generation. 
 
 
 
 
 
 
               Quarters                      $ million              Nine Months 
     Q3 2020      Q2 2020      Q3 2019                                2020        2019 
     3,679        3,436        5,992    Capital expenditure       11,379      16,264 
                                        Investments in joint 
                                        ventures and 
        34          161           30    associates                   754         631 
                                        Investments in 
        23           20           76    equity securities            190         141 
                                        Cash capital 
     3,737        3,617        6,098    expenditure               12,324      17,036 
                                        Of which: 
     1,020          736          894          Integrated Gas       2,638       2,976 
     1,245        1,876        2,625          Upstream             5,642       7,437 
       832          606        1,308          Oil Products         2,019       3,279 
       595          369        1,160          Chemicals            1,810       3,067 
        45           30          111          Corporate              215         277 
----------    ---------    ---------    --------------------  ----------    -------- 
 
 
 
   Page 23 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   D.    Return on average capital employed 
 
   Return on average capital employed (ROACE) measures the efficiency of 
Shell's utilisation of the capital that it employs. Shell uses two ROACE 
measures: ROACE on a Net income basis and ROACE on a CCS basis excluding 
identified items, both adjusted for after-tax interest expense. With 
effect from the second quarter 2020, the after-tax interest expense 
adjustment is calculated using an applicable blended statutory tax rate. 
This change is implemented to eliminate the distorting volatility 
effects of the effective tax rate. There is no significant impact on 
prior periods comparatives, which therefore have not been revised. 
 
   Both measures refer to Capital employed which consists of total equity, 
current debt and non-current debt. 
 
   ROACE on a Net income basis 
 
   In this calculation, the sum of income for the current and previous 
three quarters, adjusted for after-tax interest expense, is expressed as 
a percentage of the average capital employed for the same period. 
 
 
 
 
 
 
                       $ million                                   Quarters 
                                                           Q3 2020   Q2 2020  Q3 2019 
Income - current and previous three quarters              (16,489)  (11,011)   20,989 
Interest expense after tax - current and previous 
 three quarters                                              2,933     3,014    3,115 
Income before interest expense - current and previous 
three quarters                                            (13,556)   (7,997)   24,105 
Capital employed -- opening                                281,505   288,900  279,864 
Capital employed -- closing                                269,397   265,435  281,505 
Capital employed -- average                                275,451   277,168  280,684 
ROACE on a Net income basis                                 (4.9)%    (2.9)%     8.6% 
--------------------------------------------------------  --------  --------  ------- 
 
   ROACE on a CCS basis excluding identified items 
 
   In this calculation, the sum of CCS earnings excluding identified items 
for the current and previous three quarters, adjusted for after-tax 
interest expense, is expressed as a percentage of the average capital 
employed for the same period. 
 
 
 
 
 
 
                        $ million                                    Quarters 
                                                             Q3 2020   Q2 2020  Q3 2019 
CCS earnings - current and previous three quarters          (14,272)   (8,264)   22,284 
Identified items - current and previous three quarters      (21,957)  (19,865)    2,536 
Interest expense after tax -- current and previous 
 three quarters                                                2,933     3,014    3,115 
CCS earnings excluding identified items before interest 
expense - current and previous three quarters                 10,618    14,616   22,864 
Capital employed -- average                                  275,451   277,168  280,684 
ROACE on a CCS basis excluding identified items                 3.9%      5.3%     8.1% 
----------------------------------------------------------  --------  --------  ------- 
 
 
   E.    Gearing 
 
   Gearing is a key measure of Shell's capital structure and is defined as 
net debt as a percentage of total capital. Net debt is defined as the 
sum of current and non-current debt, less cash and cash equivalents, 
adjusted for the fair value of derivative financial instruments used to 
hedge foreign exchange and interest rate risks relating to debt, and 
associated collateral balances. Management considers this adjustment 
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. 
 
   Page 24 
 
 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
                      $ million                                            Quarters 
                                                         September 30,                   September 30, 
                                                                  2020  June 30, 2020             2019 
Current debt                                                    17,811         17,530           12,812 
Non-current debt                                                91,245         87,460           76,112 
Total debt(1)                                                  109,056        104,990           88,924 
Add: Debt-related derivative financial instruments: 
 net liability/(asset)                                           (564)            525            1,013 
Add: Collateral on debt-related derivatives: net 
 liability/(asset)                                                 686            266              148 
Less: Cash and cash equivalents                               (35,714)       (27,939)         (15,417) 
Net debt                                                        73,463         77,843           74,668 
Add: Total equity                                              160,341        160,445          192,580 
Total capital                                                  233,804        238,288          267,249 
Gearing                                                   31.4%            32.7%          27.9% 
------------------------------------------------------  ------   -----  -------   ---  ------- ----- 
 
 
   1.    Includes lease liabilities of $28,930 million at September 30, 
2020 and $29,073 million at June 30, 2020, and $31,085 million at 
September 30, 2019. 
 
   F.    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 is a measure aimed at facilitating a 
comparative understanding of performance from period to period by 
removing the effects of identified items, which, either individually or 
collectively, can cause volatility, in some cases driven by external 
factors. 
 
 
 
 
 
 
              Quarters                            $ million                   Nine Months 
    Q3 2020      Q2 2020      Q3 2019                                          2020        2019 
                                       Production and manufacturing 
    5,496        5,822        6,002    expenses                            17,299      19,191 
                                       Selling, distribution and 
    2,366        2,370        2,429    administrative expenses              7,130       7,662 
      233          232          219    Research and development               708         656 
    8,095        8,423        8,650    Operating expenses                  25,137      27,509 
                                       Of which identified items: 
                                             Redundancy and 
                                             restructuring 
       25        (508)            7          (charges)/reversal             (501)        (72) 
    (267)        (411)           --          (Provisions)/reversal          (678)       (306) 
       --           --           --          Other                             --       (131) 
    (242)        (919)            7                                       (1,179)       (509) 
    7,854        7,504        8,657    Underlying operating expenses       23,958      27,000 
---------    ---------    ---------    -------------------------------  ---------    -------- 
 
 
   G.    Free cash flow 
 
   Free cash flow is used to evaluate cash available for financing 
activities, including dividend payments and debt servicing, after 
investment in maintaining and growing the business. It is defined as the 
sum of "Cash flow from operating activities" and "Cash flow from 
investing activities". 
 
   Cash flows from acquisition and divestment activities are removed from 
Free cash flow to arrive at the Organic free cash flow, a measure used 
by management to evaluate the generation of free cash flow without these 
activities. 
 
   Page 25 
 
 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
              Quarters                                        $ million                                Nine Months 
    Q3 2020      Q2 2020      Q3 2019                                                                  2020          2019 
   10,403        2,563       12,252    Cash flow from operating activities                         27,818        31,913 
  (2,833)      (2,320)      (2,130)    Cash flow from investing activities                        (7,871)      (10,918) 
    7,571          243       10,122    Free cash flow                                              19,947        20,995 
      869          696        3,979    Less: Divestment proceeds (Reference I)                      3,798         5,736 
                                       Add: Tax paid on divestments (reported under "Other 
       --           --            4     investing cash outflows")                                      --            80 
                                       Add: Cash outflows related to inorganic capital 
       12          199          484    expenditure1                                                   614           849 
    6,713        (254)        6,630    Organic free cash flow2                                     16,763        16,189 
---------    ---------    ---------    -------------------------------------------------------  ---------    ---------- 
 
 
   1.Cash outflows related to inorganic capital expenditure includes 
portfolio actions which expand Shell's activities through acquisitions 
and restructuring activities as reported in capital expenditure lines in 
the Consolidated Statement of Cash Flows. 
 
   2.Free cash flow less divestment proceeds, adding back outflows related 
to inorganic expenditure. 
 
   H.    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. 
 
 
 
 
 
 
              Quarters                                        $ million                                 Nine Months 
   Q3 2020      Q2 2020      Q3 2019                                                                     2020         2019 
  10,403        2,563       12,252    Cash flow from operating activities                            27,818       31,913 
     405      (3,713)          813    (Increase)/decrease in inventories                              6,286      (2,089) 
   (540)        3,959        2,644    (Increase)/decrease in current receivables                      9,733        1,527 
   1,583      (4,226)      (3,289)    Increase/(decrease) in current payables                      (11,073)      (2,184) 
   1,448      (3,980)          168    (Increase)/decrease in working capital                          4,947      (2,746) 
                                      Cash flow from operating activities excluding working 
   8,955        6,543       12,083    capital movements                                              22,871       34,658 
                                      Of which: 
   2,396        2,871        4,271          Integrated Gas                                            8,619       10,811 
   2,629          548        4,597          Upstream                                                  6,894       15,112 
   3,476        2,430        2,948          Oil Products                                              6,259        7,618 
     488          304          346          Chemicals                                                   981        1,383 
    (33)          390         (80)          Corporate                                                   118        (265) 
--------    ---------    ---------    ---------------------------------------------------------  ----------    --------- 
 
 
   I.    Divestment proceeds 
 
   Divestment proceeds represent cash received from divestment activities 
in the period. Management regularly monitors this measure as a key lever 
to deliver sustainable cash flow. 
 
 
 
 
 
 
            Quarters                                      $ million                             Nine Months 
  Q3 2020     Q2 2020     Q3 2019                                                                2020       2019 
                                   Proceeds from sale of property, plant and equipment 
    571           211       2,932  and businesses                                               2,395      3,754 
    159           423         922  Proceeds from sale of joint ventures and associates          1,129      1,567 
    139            62         126  Proceeds from sale of equity securities                        274        414 
    869           696       3,979  Divestment proceeds                                          3,798      5,736 
-------    ----------  ----------  -------------------------------------------------------  ---------  --------- 
 
 
 
   Page 26 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   CAUTIONARY STATEMENT 
 
   All amounts shown throughout this announcement are unaudited. All peak 
production figures in Portfolio Developments are quoted at 100% expected 
production. The numbers presented throughout this announcement may not 
sum precisely to the totals provided and percentages may not precisely 
reflect the absolute figures, due to rounding. 
 
   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 its 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 US 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; 
(m) risks associated with the impact of pandemics, such as the COVID-19 
(coronavirus) outbreak; and (n) 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 Annual Report and Accounts and Form 20-F for the 
year ended December 31, 2019 (available at www.shell.com/investor and 
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, October 29, 2020. 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 announcement contains references to Shell's website. These 
references are for the readers' convenience only. Shell is not 
incorporating by reference any information posted on 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. Investors are 
urged to consider closely the disclosure in our Form 20-F, File No 
1-32575, available on the SEC website www.sec.gov. 
 
   This announcement contains inside information. 
 
   October 29, 2020 
 
 
 
 
 
The information in this announcement 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 M. Coulter, Company Secretary 
 
   - Media: International +44 (0) 207 934 5550; USA +1 832 337 4355 
 
   LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70 
 
   Classification: Inside Information 
 
   Page 27 
 
 
 
 

(END) Dow Jones Newswires

October 29, 2020 03:00 ET (07:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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