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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Shell Plc | LSE:SHEL | London | Ordinary Share | GB00BP6MXD84 | ORD EUR0.07 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -18.00 | -0.77% | 2,308.00 | 2,311.00 | 2,312.00 | 2,335.00 | 2,290.00 | 2,310.50 | 12,980,431 | 16:35:22 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 284.31B | 16.09B | 2.6459 | 8.74 | 141.48B |
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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
------- ---------- --------- --------------------------------------------------------------- ---------- ---------
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ROYAL DUTCH SHELL PLC 3RD QUARTER 2020
UNAUDITED RESULTS
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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
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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
------- ---------- -------- ------------------------------------------------------- ---------- --------
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ROYAL DUTCH SHELL PLC 3RD QUARTER 2020
UNAUDITED RESULTS
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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
---------------------------------------------------- ------- ------- ---------- ------- ------------- -------
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ROYAL DUTCH SHELL PLC 3RD QUARTER 2020
UNAUDITED RESULTS
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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
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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
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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
--------- ---------- ------- ----------------------------------------------------------- ---------- ---------
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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)
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