Royal Dutch Shell plc: 3rd Quarter 2017 Unaudited Results
THE HAGUE, Netherlands, November 2, 2017 /PRNewswire/ --
SUMMARY OF UNAUDITED RESULTS
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 %[1] Definition 2017 2016 %
Income/(loss)
attributable to
4,087 1,545 1,375 +197 shareholders 9,170 3,034 +202
CCS earnings
attributable to
3,698 1,920 1,448 +155 shareholders Note 2 8,999 2,501 +260
Of which:
(405) (1,684) (1,344) Identified items [A] (2,462) (2,889)
CCS earnings
attributable to
shareholders
excluding
4,103 3,604 2,792 +47 identified items 11,461 5,390 +113
Add: CCS earnings
attributable to
non-controlling
105 110 67 interest 324 230
CCS earnings
excluding
4,208 3,714 2,859 +47 identified items 11,785 5,620 +110
Of which:
1,282 1,169 931 Integrated Gas 3,632 2,793
562 339 4 Upstream 1,441 (2,758)
2,668 2,529 2,078 Downstream 7,686 5,904
(304) (323) (154) Corporate (974) (319)
Cash flow from
operating
7,582 11,285 8,492 -11 activities 28,375 11,445 +148
Cash flow from
investing (7,364
(3,912) 872 (5,168) activities ) (27,534)
3,670 12,157 3,324 Free cash flow [H] 21,011 (16,089)
Basic earnings per
0.50 0.19 0.17 +194 share ($) 1.12 0.39 +187
Basic CCS earnings
0.45 0.23 0.18 +150 per share ($) B 1.10 0.32 +244
Basic CCS earnings
per share excl.
identified items
0.50 0.44 0.35 +43 ($) 1.40 0.70 +100
Dividend per share
0.47 0.47 0.47 - ($) 1.41 1.41 -
1. Q3 on Q3 change
Compared with the third quarter 2016, CCS earnings attributable to shareholders excluding identified items increased to $4.1 billion, reflecting higher contributions from Downstream, Upstream and Integrated Gas. Earnings benefited mainly from stronger refining and chemicals industry conditions, increased realised oil and gas prices and higher production from new fields, offsetting the impact of field declines and divestments.
Cash flow from operating activities for the third quarter 2017 of $7.6 billion included negative working capital movements of $2.5 billion, mainly due to increases in inventory value and current receivables, compared with favourable working capital movements of $0.7 billion in the third quarter 2016. Excluding working capital effects, cash flow from operations was $10.1 billion.
Total dividends distributed to shareholders in the quarter were $4.0 billion, of which $0.9 billion were settled by issuing 33.8 million A shares under the Scrip Dividend Programme.
Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:
"Shell's three businesses all made resilient contributions to this strong set of results. Upstream generated almost half of the $10 billion cash flow from operations excluding working capital this quarter, at an average Brent oil price of $52 per barrel, and this was complemented by good cash contributions from our growing Integrated Gas business and from Downstream. This competitive performance is further evidence of Shell's growing momentum, and strengthens my firm belief that our strategy is working."
ADDITIONAL PERFORMANCE MEASURES
Quarters $ million Nine months
Q3 Q2 Q3
2017 2017 2016 %[1] Definition 2017 2016 %
Capital
5,742 6,766 7,705 investment[2] [C] 17,228 72,964
1,365 9,472 219 Divestments [D] 10,866 1,706
Total production
available for sale
3,657 3,495 3,595 +2 (thousand boe/d) 3,634 3,588 +1
Global liquids
realised price
47.06 45.62 40.43 +16 ($/b) 47.03 36.41 +29
Global natural gas
realised price
4.15 4.22 3.42 +21 ($/thousand scf) 4.22 3.51 +20
9,477 9,548 9,994 -5 Operating expenses [G] 28,307 31,654 -11
Underlying
9,197 9,339 9,245 -1 operating expenses [G] 27,717 28,498 -3
ROACE (reported
5.0% 4.0% 3.8% income basis) [E] 5.0% 3.8%
ROACE (CCS basis
excluding
4.6% 4.2% 2.8% identified items) [E] 4.6% 2.8%
25.4% 25.3% 29.2% Gearing [F] 25.4% 29.2%
1. Q3 on Q3 change
2. Nine months 2016 included $52,904 million related to the acquisition of
BG Group plc.
Supplementary financial and operational disclosure for this quarter is available at http://www.shell.com/investor.
THIRD QUARTER 2017 PORTFOLIO DEVELOPMENTS
Integrated Gas
During the quarter, Shell completed the acquisition of Chevron's subsidiary in Trinidad and Tobago, closed the sale of its 50% interest in the Kapuni asset in New Zealand, and acquired MP2 Energy LLC in the USA.
In September, Shell and KUFPEC mutually agreed to cancel the Sale and Purchase Agreement for the sale of Shell Integrated Gas Thailand Pte Limited and Thai Energy Co Limited (Shell interests 100%) in Thailand.
In October, Shell announced an agreement to sell its 16.8% interest in Companhia de Gas de São Paulo ("Comgás") to Cosan Ltd in Brazil.
Upstream
During the quarter, The Shell Petroleum Development Company of Nigeria Ltd joint venture announced first production of Phase 2 of the Gbaran-Ubie integrated oil and gas development. Peak production of around 175 thousand boe/d is expected in 2019 (Shell interest 30%).
Upstream divestments completed during the quarter totalled some $187 million, which included the sale of approximately 5,300 non-core acres and associated producing assets in the East Haley area of the Permian Delaware Basin in the USA.
In October, Shell and its partners won 35-year production-sharing contracts for three pre-salt blocks in the Santos Basin, offshore Brazil. Two blocks are adjacent areas to Gato do Mato and Sapinhoá, where Shell is already present, and the third new block is Alto Cabo Frio West.
In November, Shell completed the divestments of its onshore assets in Gabon and the package of UK North Sea assets.
Downstream
During the quarter, Shell completed divestments totalling $1,156 million, including the sale of its 50% share in SADAF, the petrochemicals joint venture in Al Jubail, Saudi Arabia, and the sale of 10.37 million common units by Shell Midstream Partners, L.P.
Shell also announced the start of Retail marketing operations in Mexico.
PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 %[1] 2017 2016 %
1,217 1,191 614 +98 Segment earnings 4,230 2,501 +69
Of which: Identified
(65) 22 (317) items (Definition [A]) 598 (292)
Earnings excluding
1,282 1,169 931 +38 identified items 3,632 2,793 +30
Cash flow from operating
1,742 1,951 1,326 +31 activities 5,644 6,713 -16
Capital investment
1,148 831 1,092 +5 (Definition [C])[2] 2,784 25,069 -89
Liquids production
available for sale
226 188 225 - (thousand b/d) 194 223 -13
Natural gas production
available for sale
4,496 3,683 3,982 +13 (million scf/d) 3,836 3,783 +1
Total production
available for sale
1,001 823 912 +10 (thousand boe/d) 856 875 -2
LNG liquefaction volumes
8.45 8.09 7.70 +10 (million tonnes) 24.72 22.31 +11
LNG sales volumes
16.97 16.08 15.23 +11 (million tonnes) 48.89 41.77 +17
1. Q3 on Q3 change
2. Nine months 2016 included $21,773 million related to the acquisition of BG
Group plc.
Third quarter identified items mainly comprised an impairment charge of $149 million on an intangible asset related to a non-core technology and a loss of $150 million on fair value accounting of commodity derivatives, partly offset by a gain of $184 million related to the impact of the strengthening Australian dollar on a deferred tax position.
Compared with the third quarter 2016, Integrated Gas earnings excluding identified items benefited from higher realised oil, gas, and LNG prices, as well as higher production and LNG liquefaction volumes, partly offset by a revision of a deferred tax liability and higher depreciation.
Compared with the third quarter 2016, total production and LNG liquefaction volumes increased, mainly due to higher production from Gorgon with three trains online, compared with one train in the same quarter last year.
LNG sales volumes reflected higher liquefaction volumes and increased trading of third-party volumes compared with the same quarter in 2016.
UPSTREAM
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 %[1] 2017 2016 %
575 (544) (385) +249 Segment earnings (499) (3,709) +87
Of which: Identified
13 (883) (389) items (Definition A) (1,940) (951)
Earnings excluding
562 339 4 identified items 1,441 (2,758) +152
Cash flow from operating
4,222 4,501 3,607 +17 activities 12,572 3,758 +235
Capital investment
2,805 4,504 5,279 -47 (Definition [C])[2] 10,163 44,017 -77
Liquids production
available for sale
1,626 1,626 1,645 -1 (thousand b/d) 1,650 1,576 +5
Natural gas production
available for sale
5,974 6,064 6,022 -1 (million scf/d) 6,546 6,594 -1
Total production
available for sale
2,656 2,672 2,683 -1 (thousand boe/d) 2,778 2,713 +2
1. Q3 on Q3 change
2. Nine months 2016 included $31,131 million related to the acquisition of BG
Group plc.
Third quarter identified items comprised a gain of $181 million related to the impact of the strengthening Brazilian real on a deferred tax position, partly offset by impairments of $179 million, mainly related to Shell's onshore assets in Gabon.
Compared with the third quarter 2016, Upstream earnings excluding identified items benefited from higher realised oil and gas prices, partly offset by increased depreciation. Earnings also benefited from the revision of a deferred tax asset and an arrears settlement agreement.
Third quarter production was 1% lower, compared with the same quarter a year ago. New field start-ups and the continuing ramp-up of existing fields, in particular Lula, Iracema and Sapinhoá in the Santos Basin in Brazil, Kashagan in Kazakhstan, as well as Stones, Olympus and Mars in the Gulf of Mexico, contributed some 243 thousand boe/d to production compared with the third quarter 2016. This offset the impact of field declines and divestments.
DOWNSTREAM
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 %[1] 2017 2016 %
2,405 2,157 1,596 +51 Segment earnings[2] 7,142 5,013 +42
Of which: Identified
(263) (372) (482) items (Definition [A]) (544) (891)
Earnings excluding
2,668 2,529 2,078 +28 identified items[2] 7,686 5,904 +30
Of which:
2,018 1,905 1,536 +31 Oil Products 5,576 4,737 +18
891 760 271 +229 Refining & Trading 2,366 1,392 +70
1,127 1,145 1,265 -11 Marketing 3,210 3,345 -4
650 624 542 +20 Chemicals 2,110 1,167 +81
Cash flow from operating
949 5,126 2,133 -56 activities 9,780 1,270 +670
Capital investment
1,743 1,419 1,325 +32 (Definition [C]) 4,208 3,806 +11
Refinery processing
2,592 2,476 2,812 -8 intake (thousand b/d) 2,566 2,702 -5
Oil products sales
6,557 6,467 6,647 -1 volumes (thousand b/d) 6,511 6,490 -
Chemicals sales volumes
4,540 4,465 4,580 -1 (thousand tonnes) 13,551 12,878 +5
1. Q3 on Q3 change
2. Earnings are presented on a CCS basis (See Note [2]).
Third quarter identified items primarily reflected a loss of $215 million on fair value accounting of commodity derivatives, litigation provisions of $95 million and impairments of $77 million, partly offset by a gain on sale of assets of $167 million, mainly related to the divestment of Shell's 50% share in SADAF.
Compared with the third quarter 2016, Downstream earnings excluding identified items benefited from improved refining and chemicals industry conditions.
Despite higher earnings, cash flow from operating activities decreased, due to negative working capital movements of $1,446 million, mainly due to an increase in inventory value, compared with positive movements of $941 million in the same quarter in 2016.
Oil Products
- Refining & Trading earnings excluding identified items benefited from stronger refining industry conditions, compared with the same quarter a year ago.
Refinery processing intake volumes decreased compared with the third quarter of 2016, as a result of portfolio impacts. Excluding these impacts, intake volumes were 2% lower compared with the same quarter a year ago. Refinery availability decreased to 87% compared with 92% in the third quarter 2016, mainly due to unplanned shutdowns of the Pernis and Deer Park refineries in the third quarter 2017.
- Marketing earnings excluding identified items reflected lower volumes, mainly due to portfolio impacts, and lower underlying unit margins, compared with the same quarter a year ago.
Chemicals
- Chemicals earnings excluding identified items benefited from stronger industry conditions.
Chemicals manufacturing plant availability was 88% compared with 93% in the third quarter 2016, mainly due to unplanned downtime at Moerdijk and unplanned shutdowns of the Pernis and Deer Park plants this quarter.
CORPORATE
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
(394) (774) (306) Segment earnings (1,578) (1,185)
Of which: Identified items
(90) (451) (152) (Definition [A]) (604) (866)
Earnings excluding identified
(304) (323) (154) items (974) (319)
Cash flow from operating
669 (293) 1,426 activities 379 (296)
Third quarter identified items reflected the impact of the strengthening Brazilian real, which resulted in a tax charge of $90 million.
Compared with the third quarter 2016, Corporate earnings excluding identified items were impacted by higher operating expenses, reduced currency exchange rate gains and lower tax credits, partly offset by higher net interest income.
OUTLOOK FOR THE FOURTH QUARTER 2017
Compared with the fourth quarter 2016, Integrated Gas production volumes are expected to be positively impacted by some 90 thousand boe/d, mainly associated with Gorgon and portfolio impacts.
Compared with the fourth quarter 2016, Upstream earnings are expected to be negatively impacted by a reduction of some 250 thousand boe/d associated with completed divestments, as well as some 40 thousand boe/d associated with higher maintenance activities. Lower production in NAM in the Netherlands and an improved security situation in Nigeria, although situation remains sensitive, are expected to be largely offsetting.
Refinery availability is expected to increase in the fourth quarter 2017 as a result of lower levels of maintenance compared with the same period a year ago.
Chemicals manufacturing plant availability is expected to increase in the fourth quarter 2017, reflecting improved operational performance at Bukom and lower maintenance compared with the fourth quarter 2016.
As a result of completed divestments in Malaysia, Australia, and the separation of Motiva assets, oil products sales volumes are expected to decrease by some 250 thousand barrels per day compared with the same period a year ago.
Corporate earnings excluding identified items and exchange rate impacts are expected to be a net charge of $350 - 450 million in the fourth quarter.
Forthcoming events
Shell will host Management Day events on November 28, 2017 in London, and on November 29, 2017 in New York.
Fourth quarter 2017 results and dividends are scheduled to be announced on February 1, 2018. First quarter 2018 results and dividends are scheduled to be announced on April 26, 2018. Second quarter 2018 results and dividends are scheduled to be announced on July 26, 2018. Third quarter 2018 results and dividends are scheduled to be announced on November 1, 2018.
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016[1] 2017 2016
75,830 72,131 61,855 Revenue[2] 219,757 168,824
Share of profit of joint
1,062 931 828 ventures and associates 3,191 2,563
841 (360) 255 Interest and other income[3] 798 1,554
77,733 72,702 62,938 Total revenue and other income 223,746 172,941
54,849 53,237 43,398 Purchases 159,352 117,046
Production and manufacturing
6,497 6,934 6,890 expenses 20,089 21,731
Selling, distribution and
2,750 2,394 2,856 administrative expenses 7,556 9,189
230 220 248 Research and development 662 734
326 255 548 Exploration 1,024 1,540
Depreciation, depletion and
6,408 6,181 6,191 amortisation[4] 20,427 18,435
1,011 935 948 Interest expense 3,058 2,088
72,071 70,156 61,079 Total expenditure 212,168 170,763
5,662 2,546 1,859 Income/(loss) before taxation 11,578 2,178
1,450 904 425 Taxation charge/(credit)[5] 2,080 (991)
4,212 1,642 1,434 Income/(loss) for the period[2] 9,498 3,169
Income/(loss) attributable to
125 97 59 non-controlling interest 328 135
Income/(loss) attributable to
Royal Dutch Shell plc
4,087 1,545 1,375 shareholders 9,170 3,034
0.50 0.19 0.17 Basic earnings per share ($)[6] 1.12 0.39
Diluted earnings per share
0.49 0.19 0.17 ($)[6] 1.11 0.39
1. Third quarter 2016 included a credit of $254 million after taxation,
representing an adjustment to the fair value of net assets acquired from BG Group
plc related to the first half of 2016.
2. See Note [2] "Segment information"
3. Second quarter 2017 includes a net charge of $546 million related to the
Motiva transaction (See Note 7) and a pre-tax foreign exchange loss of $545
million related to the restructuring of the funding of our businesses in North
America.
4. Third quarter 2017 includes a pre-tax impairment charge of $510 million (Q2
2017: $836 million; Q3 2016: $831 million). Nine months 2017 includes a pre-tax
impairment charge of $3,788 million (Nine months 2016: $1,690 million).
5. Third quarter 2017 includes a gain of $275 million driven by exchange rate
movements on tax balances (Q2 2017: $77 million loss; Q3 2016: $165 million
gain). Nine months 2017 includes a $733 million gain driven by exchange rate
movements on tax balances (Nine months 2016: $686 million gain) and a $329
million gain from a deferred tax asset recognition following the oil sands
divestment.
6. See Note [3] "Earnings per share"
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters $ million Nine months
Q2 Q3
Q3 2017 2017 2016 2017 2016
4,212 1,642 1,434 Income/(loss) for the period 9,498 3,169
Other comprehensive income net of
tax:
Items that may be reclassified to
income in later periods:
- Currency translation
1,552 2,027 302 differences 4,801 2,187
- Unrealised gains/(losses) on
328 (122) (194) securities 335 (334)
- Cash flow hedging
(327) 171 (202) gains/(losses) (68) (416)
- Net investment hedging
- - (512) gains/(losses) - (1,239)
- Share of other comprehensive
income/(loss) of joint ventures
(8) 72 (25) and associates 124 (94)
1,545 2,148 (631) Total 5,192 104
Items that are not reclassified
to income in later periods:
(1,998 - Retirement benefits
(512) 1,419 ) remeasurements 2,660 (6,427)
(2,629 Other comprehensive income/(loss)
1,033 3,567 ) for the period 7,852 (6,323)
(1,195 Comprehensive income/(loss) for
5,245 5,209 ) the period 17,350 (3,154)
Comprehensive income/(loss)
attributable to non-controlling
177 152 46 interest 445 146
Comprehensive income/(loss)
(1,241 attributable to Royal Dutch Shell
5,068 5,057 ) plc shareholders 16,905 (3,300)
CONDENSED CONSOLIDATED BALANCE SHEET
Sep 30,
$ million 2017[1] Dec 31, 2016
Assets
Non-current assets
Intangible assets 24,425 23,967
Property, plant and equipment[2],[3] 230,360 236,098
Joint ventures and associates 28,473 33,255
Investments in securities[4] 9,214 5,952
Deferred tax 16,402 14,425
Retirement benefits 3,451 1,456
Trade and other receivables[5] 8,833 9,553
321,158 324,706
Current assets
Inventories 24,019 21,775
Trade and other receivables[5] 47,206 45,664
Cash and cash equivalents 20,699 19,130
91,924 86,569
Total assets 413,082 411,275
Liabilities
Non-current liabilities
Debt 79,681 82,992
Trade and other payables[5] 5,240 6,925
Deferred tax 14,396 15,274
Retirement benefits 12,229 14,130
Decommissioning and other provisions[6] 28,083 29,618
139,629 148,939
Current liabilities
Debt 8,675 9,484
Trade and other payables[5] 52,590 53,417
Taxes payable 9,478 6,685
Retirement benefits 422 455
Decommissioning and other provisions 3,755 3,784
74,920 73,825
Total liabilities 214,549 222,764
Equity attributable to Royal Dutch
Shell plc shareholders 195,026 186,646
Non-controlling interest 3,507 1,865
Total equity 198,533 188,511
Total liabilities and equity 413,082 411,275
1. See Note 7 "Motiva joint venture"
2. At September 30, 2017, a decrease of $8,777 million in the carrying
amount of property, plant and equipment is included, principally
related to the divestment of Shell's oil sands interests in Canada in
the second quarter 2017.
3. At September 30, 2017, the carrying amount includes $4,932 million
of assets held for sale (December 31, 2016: $282 million).
4. At September 30, 2017, investments include $3,267 million in
relation to shares in Canadian Natural Resources Limited received in
the second quarter 2017 as partial consideration for the oil sands
divestment.
5. See Note [6] "Derivative contracts and debt excluding finance lease
liabilities"
6. At September 30, 2017, provisions of $2,615 million relate to assets
held for sale (December 31, 2016: $482 million).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to Royal Dutch Shell
plc shareholders
Total
Share Shares Other Non-
capital[1 held in reserves[ Retained controlling
$ million ] trust 2] earnings Total interest equity
At January 1,
2017 683 (901) 11,298 175,566 186,646 1,865 188,511
Comprehensive
income/(loss)
for the period - - 7,735 9,170 16,905 445 17,350
Dividends paid - - - (11,731) (11,731) (309) (12,040)
Scrip dividends 9 - (9) 3,120 3,120 - 3,120
Share-based
compensation - 350 (309) (9) 32 - 32
Other changes in
non-controlling
interest[3] - - - 54 54 1,506 1,560
At September 30,
2017 692 (551) 18,715 176,170 195,026 3,507 198,533
At January 1,
2016 546 (584) (17,186) 180,100 162,876 1,245 164,121
Comprehensive
income/(loss)
for the period - - (6,334) 3,034 (3,300) 146 (3,154)
Dividends paid - - - (11,177) (11,177) (108) (11,285)
Scrip dividends 13 - (13) 3,823 3,823 - 3,823
Shares issued 120 - 33,930 - 34,050 - 34,050
Share-based
compensation - (156) 380 133 357 - 357
Other changes in
non-controlling
interest - - - 257 257 560 817
At September 30,
2016 679 (740) 10,777 176,170 186,886 1,843 188,729
1. See Note [4] "Share capital"
2. See Note [5] "Other reserves"
3. This includes $1,286 million for the 50% non-controlling interest share in
the acquisition of Marathon Oil Canada Corporation in the second quarter 2017,
and $275 million related to the public offering of limited partner units in
Shell Midstream Partners, L.P. in the third quarter 2017.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
4,212 1,642 1,434 Income/(loss) for the period 9,498 3,169
Adjustment for:
1,734 1,508 618 - Current tax 5,124 1,490
839 757 829 - Interest expense (net) 2,548 1,772
- Depreciation, depletion and
6,408 6,181 6,191 amortisation 20,427 18,435
- Net (gains)/losses on sale
and revaluation of
non-current assets and
(459) 68 (193) businesses[1] (321) (903)
- Decrease/(increase) in
(2,467) 2,258 742 working capital (2,037) (5,641)
- Share of (profit)/loss of
(1,062) (931) (828) joint ventures and associates (3,191) (2,563)
- Dividends received from
1,082 1,493 702 joint ventures and associates 3,351 2,354
- Deferred tax, retirement
benefits, decommissioning and
(1,158) (876) 387 other provisions (4,073) (1,901)
(31) 521 (435) - Other[2] 991 (1,073)
(1,516) (1,336) (955) Tax paid (3,942) (3,694)
Cash flow from operating
7,582 11,285 8,492 activities 28,375 11,445
(5,018) (5,660) (5,282) Capital expenditure (14,984) (16,402)
Acquisition of BG Group plc,
net of cash and cash
- - - equivalents acquired - (11,421)
Investments in joint ventures
(42) (157) (255) and associates (393) (803)
Proceeds from sale of
property, plant and equipment
236 5,584 204 and businesses[3] 5,942 766
Proceeds from sale of joint
874 1,081 115 ventures and associates[4] 1,956 154
237 207 65 Interest received 567 294
(199) (183) (15) Other (452) (122)
Cash flow from investing
(3,912) 872 (5,168) activities (7,364) (27,534)
Net increase/(decrease) in
debt with maturity period
(544) (578) (3,126) within three months (1,412) (383)
Other debt:
29 247 8,219 - New borrowings 640 17,955
(2,702) (3,593) (442) - Repayments (7,617) (3,383)
(858) (1,002) (606) Interest paid (2,710) (1,865)
Change in non-controlling
279 6 - interest 287 819
Cash dividends paid to:
- Royal Dutch Shell plc
(3,016) (2,941) (2,660) shareholders (8,611) (7,354)
(113) (165) (39) - Non-controlling interest (309) (108)
- - - Repurchases of shares - -
Shares held in trust: net
sales/(purchases) and
(221) 7 13 dividends received (274) 15
Cash flow from financing
(7,146) (8,019) 1,359 activities (20,006) 5,696
Currency translation
differences relating to cash
and
183 259 79 cash equivalents 564 (1,375)
Increase/(decrease) in cash
(3,293) 4,397 4,762 and cash equivalents 1,569 (11,768)
Cash and cash equivalents at
23,992 19,595 15,222 beginning of period 19,130 31,752
Cash and cash equivalents at
20,699 23,992 19,984 end of period 20,699 19,984
1. Second quarter 2017 includes $546 million related to the Motiva transaction
(See Note 7).
2. Second quarter 2017 includes a $545 million foreign exchange loss related to
the restructuring of the funding of our businesses in North America.
3. Second quarter 2017 includes $5,188 million related to the divestment of oil
sands in Canada.
4. Third quarter 2017 primarily includes the divestment of SADAF, Saudi Arabia.
Second quarter 2017 includes the impact of the Motiva transaction (see Note 7).
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited Condensed Consolidated Interim Financial Statements ("Interim Statements") of Royal Dutch Shell plc ("the Company") and its subsidiaries (collectively referred to as "Shell") have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board and as adopted by the European Union, and on the basis of the same accounting principles as, and should be read in conjunction with, the Annual Report and Form 20-F for the year ended December 31, 2016 (pages 122 to 127) as filed with the U.S. Securities and Exchange Commission.
The financial information presented in the Interim Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 ("the Act"). Statutory accounts for the year ended December 31, 2016 were published in Shell's Annual Report and a copy was delivered to the Registrar of Companies in England and Wales. The auditors' report on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.
2. Segment information
Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.
INFORMATION BY SEGMENT
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
Third-party revenue
8,316 7,734 7,199 Integrated Gas 24,469 18,251
1,654 1,816 1,361 Upstream 5,079 4,994
65,843 62,575 53,279 Downstream 190,170 145,523
17 6 16 Corporate 39 56
75,830 72,131 61,855 Total third-party revenue 219,757 168,824
Inter-segment revenue
1,101 873 1,181 Integrated Gas 2,779 2,820
7,991 7,558 7,221 Upstream 24,211 18,307
1,142 1,099 259 Downstream 2,967 931
- - - Corporate - -
CCS earnings
1,217 1,191 614 Integrated Gas 4,230 2,501
575 (544) (385) Upstream (499) (3,709)
2,405 2,157 1,596 Downstream 7,142 5,013
(394) (774) (306) Corporate (1,578) (1,185)
3,803 2,030 1,519 Total 9,295 2,620
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
Income/(loss) attributable
to Royal Dutch Shell plc
4,087 1,545 1,375 shareholders 9,170 3,034
Income/(loss) attributable
to non-controlling
125 97 59 interest 328 135
Income/(loss) for the
4,212 1,642 1,434 period 9,498 3,169
Current cost of supplies
adjustment:
(528) 515 109 Purchases (230) (651)
145 (143) (32) Taxation 62 171
Share of profit/(loss) of
joint ventures and
(26) 16 8 associates (35) (69)
Current cost of supplies
(409) 388 85 adjustment[1] (203) (549)
3,803 2,030 1,519 CCS earnings 9,295 2,620
of which:
CCS earnings attributable
to Royal Dutch Shell plc
3,698 1,920 1,448 shareholders 8,999 2,501
CCS earnings attributable
to non-controlling
105 110 71 interest 296 119
1. The adjustment attributable to Royal Dutch Shell plc shareholders is a
negative $389 million in the third quarter 2017 (Q2 2017: positive $375
million; Q3 2016: positive $73 million; First nine months 2017: negative $171
million; First nine months 2016: negative $533 million).
3. Earnings Per Share
EARNINGS PER SHARE
Quarters Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
Income/(loss) attributable to
Royal Dutch Shell plc
shareholders
4,087 1,545 1,375 ($ million) 9,170 3,034
Weighted average number of
shares used as the basis for
determining:
Basic earnings per share
8,249.6 8,212.9 8,054.3 (million) 8,206.1 7,743.7
Diluted earnings per share
8,324.9 8,292.3 8,107.7 (million) 8,280.3 7,798.2
4. Share Capital
ISSUED AND FULLY PAID ORDINARY SHARES OF EUR0.07 EACH[1]
Number of shares Nominal value ($ million)
A B A B Total
4,428,903,81 3,745,486,73
At January 1, 2017 3 1 374 309 683
Scrip dividends 115,510,804 - 9 - 9
4,544,414,61 3,745,486,73
At September 30, 2017 7 1 383 309 692
3,990,921,56 2,440,410,61
At January 1, 2016 9 4 340 206 546
Scrip dividends 160,304,567 - 13 - 13
1,305,076,11
Shares issued 218,728,308 7 17 103 120
4,369,954,44 3,745,486,73
At September 30, 2016 4 1 370 309 679
1. Share capital at September 30, 2017 also included 50,000 issued and fully
paid sterling deferred shares of GBP1 each.
At Royal Dutch Shell plc's Annual General Meeting on May 23, 2017, the Board was authorised to allot ordinary shares in Royal Dutch Shell plc, and to grant rights to subscribe for or to convert any security into ordinary shares in Royal Dutch Shell plc, up to an aggregate nominal amount of €190 million (representing 2,714 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 23, 2018, and the end of the Annual General Meeting to be held in 2018, unless previously renewed, revoked or varied by Royal Dutch Shell plc in a general meeting.
5. Other reserves
OTHER RESERVES
Accumulated
Share Capital other
Merger premium redemption Share plan comprehensi
$ million reserve reserve reserve reserve ve income Total
At January 1, 2017 37,311 154 84 1,644 (27,895) 11,298
Other comprehensive
income/(loss)
attributable to Royal
Dutch Shell plc
shareholders - - - - 7,735 7,735
Scrip dividends (9) - - - - (9)
Share-based
compensation - - - (309) - (309)
At September 30, 2017 37,302 154 84 1,335 (20,160) 18,715
At January 1, 2016 3,398 154 84 1,658 (22,480) (17,186)
Other comprehensive
income/(loss)
attributable to Royal
Dutch Shell plc
shareholders - - - - (6,334) (6,334)
Scrip dividends (13) - - - - (13)
Shares issued 33,930 - - - - 33,930
Share-based
compensation - - (154) 534 380
At September 30, 2016 37,315 154 84 1,504 (28,280) 10,777
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 contracts and debt excluding finance lease liabilities
The table below provides the carrying amounts of derivatives contracts held, disclosed in accordance with
IFRS 13 Fair Value Measurement.
DERIVATIVE CONTRACTS
$ million Sep 30, 2017 Dec 31, 2016
Included within:
Trade and other receivables - non-current 792 405
Trade and other receivables - current 5,871 5,957
Trade and other payables - non-current 1,194 3,315
Trade and other payables - current 5,051 6,418
As disclosed in the Consolidated Financial Statements for the year ended December 31, 2016, presented in the Annual Report and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at September 30, 2017 are consistent with those used in the year ended December 31, 2016. The carrying amounts of derivative contracts measured using predominantly unobservable inputs have not changed materially since December 31, 2016.
The table below provides the comparison of the fair value with the carrying amount of debt excluding finance lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.
<start_table>
DEBT EXCLUDING FINANCE LEASE LIABILITIES
$ million Sep 30, 2017 Dec 31, 2016
Carrying amount 72,956 77,617
Fair value[1] 76,952 80,408
1. Mainly determined from the prices quoted for these securities
<end_table>
7. Motiva joint venture
On May 1, 2017, Shell and Saudi Refining Inc. ("SRI") completed the separation of assets, liabilities and businesses of Motiva Enterprises LLC ("Motiva"), a 50:50 joint venture. Following the transaction, Shell assumed sole ownership of two refineries, eleven distribution terminals and certain Shell-branded fuel retail markets in the United States. The transaction enables Shell to combine the assets retained from the joint venture with other Shell Downstream assets in North America, in line with its strategy to deliver increased cash and returns through simpler and highly integrated businesses. It is accounted for as a disposal of Shell's 50% interest in the Motiva joint venture and a subsequent business acquisition.
The fair value of Shell's interest in the joint venture on May 1, 2017 was $3,847 million. This fair value was used, for accounting purposes, as the consideration recognised for the disposal. The disposal gave rise to a taxable gain, leading to a non-cash charge of $574 million on completion of the transaction. Consequently, income for the second quarter 2017 included a net charge of $546 million representing the difference between the net carrying amount of Shell's interest in the joint venture (including associated deferred tax liabilities) of $3,819 million and its fair value, and the tax charge which crystallised upon the disposal. This net charge was reported under "Interest and other income".
The fair value of $3,847 million also served as the consideration paid for the net assets acquired, in combination with $862 million received in cash from SRI in the second quarter 2017. The fair value of net assets acquired was $2,544 million. As a result, goodwill of $441 million was initially recognised on the business acquisition in the second quarter 2017. In the third quarter 2017, goodwill was reduced to $391 million following updates to the provisionally agreed cash settlement from SRI and to the fair value of the net assets acquired, as set out in the table below. The fair value of Shell's interest in the joint venture, the fair value of the net assets acquired, and therefore the resultant goodwill, remain provisional and subject to the outcome of post close settlements expected in the fourth quarter 2017.
GOODWILL RECOGNISED
As previously
$ million published Adjustment As adjusted
Fair value of Shell's interest in
the Motiva joint venture [1] 3,847 - 3,847
Less: Cash settlement [2] 862 68 930
Less: Fair value of net assets
acquired [3]
Intangible assets 641 - 641
Property, plant and equipment 2,719 (20) 2,699
Other non-current assets 69 (2) 67
Inventories 945 (17) 928
Debt (non-current) (115) - (115)
Trade and other payables
(non-current) (64) (1) (65)
Deferred tax (non-current
liabilities) (312) - (312)
Retirement benefits (non-current
liabilities) (982) - (982)
Decommissioning and other
provisions (non-current) (156) 24 (132)
Trade and other payables (current) (96) (4) (100)
Other current liabilities (105) 2 (103)
2,544 (18) 2,526
Goodwill 441 (50) 391
1. Based on Shell's assessment.
2. Of the $930 million cash settlement agreed with SRI, $912 million was received
at September 30, 2017, and $18 million is provisionally agreed to be received in
the fourth quarter.
3. Based on an independent valuation using cash flow projections based on the
historical performance of the newly acquired assets, forecasted pricing for various
related commodities and existing business plan information.
For the first nine months of 2017, the total cash impact of this transaction was $842 million reported under "Proceeds from sale of joint ventures and associates" in the Condensed Consolidated Statement of Cash Flows (second quarter 2017: $792 million). This is the net effect of the $912 million cash received from SRI and a payment by Shell of $70 million to settle the transfer of certain retirement benefit liabilities to SRI.
8. Post-balance sheet event
On November 1, 2017, Shell completed the sale of its interests in UK North Sea assets Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, as well as a 10% interest in Schiehallion. The transaction is expected to result in a post-tax gain on sale of assets of $1.2 billion and an inflow of $1.6 billion in cash from investing activities in the fourth quarter 2017. A deferred consideration of $0.2 billion is expected by April 30, 2018.
DEFINITIONS
A. Identified items
Identified items comprise: divestment gains and losses, impairments, fair value accounting of commodity derivatives and certain gas contracts, redundancy and restructuring, the impact of exchange rate movements on certain deferred tax balances, and other items. These items, either individually or collectively, can cause volatility to net income, in some cases driven by external factors, which may hinder the comparative understanding of Shell's financial results from period to period. The impact of identified items on Shell's CCS earnings is shown below.
IDENTIFIED ITEMS AFTER TAX
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
324 (139) 155 Divestment gains/(losses) 382 570
(405) (791) (1,010) Impairments (2,721) (1,815)
Fair value accounting of
commodity derivatives and
(398) 100 230 certain gas contracts 206 (405)
(71) (156) (261) Redundancy and restructuring (272) (1,380)
Impact of exchange rate
275 (77) 165 movements on tax balances 733 686
(130) (621) (619) Other[1] (818) (656)
(405) (1,684) (1,340) Impact on CCS earnings (2,490) (3,000)
Of which:
(65) 22 (317) Integrated Gas 598 (292)
13 (883) (389) Upstream (1,940) (951)
(263) (372) (482) Downstream (544) (891)
(90) (451) (152) Corporate (604) (866)
Impact on CCS earnings
attributable to
- - 4 non-controlling interest (28) (111)
Impact on CCS earnings
(405) (1,684) (1,344) attributable to shareholders (2,462) (2,889)
1. Second quarter 2017 includes a non-cash charge of $550 million (pre-tax: $545
million) related to the restructuring of the funding of our businesses in North
America.
The categories above represent the nature of the items identified irrespective of whether the items relate to Shell subsidiaries or joint ventures and associates. The after-tax impact of identified items of joint ventures and associates is fully reported within "Share of profit and joint ventures and associates" on the Consolidated Statement of Income. Identified items related to subsidiaries are consolidated and reported across appropriate lines of the Consolidated Statement of Income. Only pre-tax identified items reported by subsidiaries are taken into account in the calculation of "underlying operating expenses" (Definition G).
Fair value accounting of commodity derivatives and certain gas contracts: In the ordinary course of business, Shell enters into contracts to supply or purchase oil and gas products as well as power and environmental products. Derivative contracts are entered into for mitigation of resulting economic exposures (generally price exposure) and these derivative contracts are carried at period-end market price (fair value), with movements in fair value recognised in income for the period. Supply and purchase contracts entered into for operational purposes are, by contrast, recognised when the transaction occurs; furthermore, inventory is carried at historical cost or net realisable value, whichever is lower. As a consequence, accounting mismatches occur because: (a) the supply or purchase transaction is recognised in a different period; or (b) the inventory is measured on a different basis. In addition, certain contracts are, due to pricing or delivery conditions, deemed to contain embedded derivatives or written options and are also required to be carried at fair value even though they are entered into for operational purposes. The accounting impacts are reported as identified items.
Impacts of exchange rate movements on tax balances represent the impact on tax balances of exchange rate movements arising on (a) the conversion to dollars of the local currency tax base of non-monetary assets and liabilities, as well as losses (this primarily impacts the Integrated Gas and Upstream segments) and (b) the conversion of dollar-denominated inter-segment loans to local currency, leading to taxable exchange rate gains or losses (this primarily impacts the Corporate segment).
Other identified items represent other credits or charges Shell's management assesses should be excluded to provide additional insight, such as certain provisions for onerous contracts or litigation.
B. Basic CCS earnings per share
Basic CCS earnings per share is calculated as CCS earnings attributable to Royal Dutch Shell plc shareholders (see Note 2), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 3).
C. Capital investment
Capital investment is a measure used to make decisions about allocating resources and assessing performance. It comprises capital expenditure, exploration expense excluding well write-offs, new investments in joint ventures and associates, new finance leases and investments in Integrated Gas, Upstream and Downstream securities, all of which on an accruals basis. In 2016, it also included the capital investment related to the acquisition of BG Group plc.
The reconciliation of "Capital expenditure" to "Capital investment" is as follows.
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
5,018 5,660 5,282 Capital expenditure[1] 14,984 16,402
Capital investment related to
the acquisition of BG Group
- - - plc - 52,904
Investments in joint ventures
42 157 255 and associates 393 803
Exploration expense,
excluding exploration wells
280 231 298 written off 668 858
312 391 1,723 Finance leases 744 2,128
90 327 147 Other[1] 439 (131)
5,742 6,766 7,705 Capital investment 17,228 72,964
Of which:
1,148 831 1,092 Integrated Gas 2,784 25,069
2,805 4,504 5,279 Upstream 10,163 44,017
1,743 1,419 1,325 Downstream 4,208 3,806
46 12 9 Corporate 73 72
1. Second quarter 2017 includes capital expenditure of $911 million and, under
"Other", a payable position of $375 million, related to the acquisition of
Marathon Oil Canada Corporation in Canada.
D. Divestments
Divestments is a measure used to monitor the progress of Shell's divestment programme. This measure comprises proceeds from sale of property, plant and equipment and businesses, joint ventures and associates, and other Integrated Gas, Upstream and Downstream investments, reported in "Cash flow from investing activities", adjusted onto an accruals basis and for any share consideration received or contingent consideration recognised upon divestment, as well as proceeds from the sale of interests in entities while retaining control (for example, proceeds from sale of interest in Shell Midstream Partners, L.P.), which are included in "Change in non-controlling interest" within "Cash flow from financing activities."
With effect from January 1, 2017, consideration received in the form of shares is valued and included in this measure upon completion of the divestment transactions, instead of when these shares are disposed of. This change in timing of recognition enables Shell to better evaluate its progress against its divestment programme. The share or contingent consideration is not remeasured thereafter, including if and when the shares received are eventually disposed of, or contingent consideration is realised. Comparative information for 2016 has been adjusted to include the share consideration received upon the divestments of Shell's interests in the Deep Basin and Gundy acreages (Canada) and the Brutus TLP and Glider subsea production system (USA), both in the fourth quarter 2016.
In future periods, the proceeds from any disposal of shares received as divestment consideration, and proceeds from realisation of contingent consideration, will be included in "Cash flow from investing activities."
The reconciliation of "Proceeds from sale of property, plant and equipment and businesses" to "Divestments" is as follows.
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
Proceeds from sale of
property, plant and equipment
236 5,584 204 and businesses[1] 5,942 766
Proceeds from sale of joint
874 1,081 115 ventures and associates[2] 1,956 154
Share and contingent
- 2,829 - consideration[3] 2,829 -
Proceeds from sale of
interests in entities while
275 3 - retaining control 278 819
(20) (25) (100) Other adjustments (139) (33)
1,365 9,472 219 Divestments 10,866 1,706
Of which:
22 22 20 Integrated Gas 56 305
187 8,084 166 Upstream 8,288 246
1,156 1,348 24 Downstream 2,504 1,142
- 18 9 Corporate 18 13
1. Second quarter 2017 includes $5,188 million related to the oil sands
divestment. As reflected in Definition C, capital expenditure of $911 million and
a payable position of $375 million, together $1,286 million, were also recorded
as part of the oil sands transaction and are integral to the divestment
programme.
2. See Note 7. Also integral to the divestment programme is $1,358 million
primarily related to net debt assumed by the counterparty in the Motiva
transaction, which would have otherwise increased the cash consideration received
by Shell.
3. Second quarter 2017 includes $2,829 million for shares in Canadian Natural
Resources Limited received as partial consideration for the oil sands divestment.
E. Return on average capital employed
Return on average capital employed (ROACE) measures the efficiency of Shell's utilisation of the capital that it employs. In this calculation, ROACE is defined as income for the current and previous three quarters, adjusted for after-tax interest expense, as a percentage of the average capital employed for the same period. Capital employed consists of total equity, current debt and non-current debt.
$ million Quarters
Q3 2017 Q2 2017 Q3 2016
Income for current and previous three
quarters 11,106 8,328 4,112
Interest expense after tax 3,088 3,056 5,535
Income before interest expense 14,194 11,384 9,647
Capital employed - opening 286,558 282,835 218,069
Capital employed - closing 286,889 286,604 286,558
Capital employed - average 286,723 284,720 252,314
ROACE 5.0% 4.0% 3.8%
Return on average capital employed on a CCS basis excluding identified items is defined as the sum of CCS earnings attributable to shareholders excluding identified items for the current and previous three quarters, as a percentage of the average capital employed for the same period.
$ million Quarters
Q3 2017 Q2 2017 Q3 2016
CCS earnings excluding identified
items for current and previous
three quarters 13,256 11,945 6,962
Capital employed - average 286,723 284,720 252,314
ROACE on a CCS basis excluding
identified items 4.6% 4.2% 2.8%
F. Gearing
Gearing is a key measure of Shell's capital structure and is calculated as follows.
$ million Quarters
Sep 30, 2017 Jun 30, 2017 Sep 30, 2016
Current debt 8,675 9,616 11,192
Non-current debt 79,681 80,731 86,637
Total debt1 88,356 90,347 97,829
Less: Cash and cash equivalents (20,699) (23,992) (19,984)
Net debt 67,657 66,355 77,845
Add: Total equity 198,533 196,257 188,729
Total capital 266,190 262,612 266,574
Gearing 25.4% 25.3% 29.2%
1. Includes finance lease liabilities of $15,400 million at September 30, 2017, $15,208 million at June 30, 2017 and $14,550 million at September 30, 2016.
G. Operating expenses
Operating expenses is a measure of Shell's total operating expenses performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses. Underlying operating expenses measures Shell's total operating expenses performance excluding identified items.
Quarters $ million Nine months
Q3 2017 Q2 2017 Q3 2016 2017 2016
6,497 6,934 6,890 Production and manufacturing expenses 20,089 21,731
2,750 2,394 2,856 Selling, distribution and administrative
expenses 7,556 9,189
230 220 248 Research and development 662 734
9,477 9,548 9,994 Operating expenses 28,307 31,654
Less identified items:
(131) (209) (359) Redundancy and restructuring charges (413) (1,819)
(149) - (390) Provisions (177) (915)
- - - BG acquisition costs - (422)
(280) (209) (749) (590) (3,156)
9,197 9,339 9,245 Underlying operating expenses 27,717 28,498
H. Free cash flow
Free cash flow is used to evaluate cash available for financing activities, including dividend payments, after investment in maintaining and growing our business. It is defined as the sum of "Cash flow from operating activities" and "Cash flow from investing activities" as shown on page 1.
CAUTIONARY STATEMENT
All amounts shown throughout this announcement are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this announcement "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. '‘Subsidiaries'’, "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies 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 a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of 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 "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "schedule", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell's Form 20-F for the year ended December 31, 2016 (available at http://www.shell.com/investor and http://www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, November 2, 2017. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.
This Report contains references to Shell's website. These references are for the readers' convenience only. Shell is not incorporating by reference any information posted on http://www.shell.com
We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website http://www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
This announcement contains inside information.
November 2, 2017
The information in this Report reflects the unaudited consolidated financial position and results of Royal Dutch Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.
Contacts:
Linda Szymanski, Company Secretary
Investor Relations:
International +31(0)70-377-4540; North America +1-832-337-2034
Media:
International +44(0)207-934-5550; USA +1-832-337-4355
LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70
Classification: Inside Information
SOURCE Royal Dutch Shell plc
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article