1st Quarter 2014 Unaudited Results

ROYAL DUTCH SHELL PLC 1ST QUARTER 2014 UNAUDITED RESULTS * Royal Dutch Shell's first quarter 2014 earnings, on a current cost of supplies (CCS) basis (see Note 2), were $4.5 billion compared with $8.0 billion for the first quarter 2013. * First quarter 2014 CCS earnings included an identified net charge of $2.9 billion after tax, mainly reflecting impairments related to refineries in Asia and Europe (see page 6). * First quarter 2014 CCS earnings excluding identified items (see page 6) were $7.3 billion compared with $7.5 billion for the first quarter 2013, a decrease of 3%. * Compared with the first quarter 2013, Upstream earnings excluding identified items were supported by stronger Integrated Gas results as well as higher gas realisations and gas trading results. This was offset by the impact of exploration well write-offs, and higher costs and depreciation. Downstream earnings excluding identified items were impacted by lower industry refining margins and trading results. * Basic CCS earnings per share excluding identified items for the first quarter 2014 decreased by 2% versus the same quarter a year ago. * Cash flow from operating activities for the first quarter 2014 was $14.0 billion. Excluding working capital movements, cash flow from operating activities for the first quarter 2014 was $13.1 billion. * Capital investment for the first quarter 2014 was $10.7 billion, including $2.0 billion related to the acquisition of Repsol's LNG business. Net capital investment (see Note 2) for the quarter was $10.1 billion. * Total dividends distributed in the quarter were some $2.8 billion, of which $1.3 billion were settled under the Scrip Dividend Programme. During the first quarter some 32.4 million shares were bought back for cancellation for a consideration of some $1.2 billion. * Gearing at the end of the first quarter 2014 was 15.6%. * A first quarter 2014 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share ("ADS"), an increase of 4% compared with the first quarter 2013. SUMMARY OF UNAUDITED RESULTS $ million Quarters Q1 2014 Q4 2013 Q1 2013 %1 Income attributable to Royal Dutch Shell plcshareholders 4,509 1,781 8,176 -45 Current cost of supplies (CCS) adjustmentfor Downstream (44) 371 (225) CCS earnings 4,465 2,152 7,951 -44 Less: Identified items2 (2,862) (763) 431 CCS earnings excluding identified items 7,327 2,915 7,520 -3 Of which: Upstream 5,710 2,477 5,648 Downstream 1,575 558 1,848 Corporate and Non-controlling interest 42 (120) 24 Cash flow from operating activities 13,984 6,028 11,559 +21 Basic CCS earnings per share ($) 0.71 0.34 1.26 -44 Basic CCS earnings per ADS ($) 1.42 0.68 2.52 Basic CCS earnings per share excl.identified items ($) 1.17 0.46 1.19 -2 Basic CCS earnings per ADS excl. identifieditems ($) 2.34 0.92 2.38 Dividend per share ($) 0.47 0.45 0.45 +4 Dividend per ADS ($) 0.94 0.90 0.90 1 Q1 on Q1 change 2 See page 6 Royal Dutch Shell Chief Executive Officer Ben van Beurden: "Shell's profits enable the company to pay competitive dividends toshareholders and to finance new investments in oil and gas. Our long-termstrategy is sound. Our first quarter 2014 results reflect more robust levels of profitability.However, as we saw in 2013, we are in an industry where high volatilityremains, both in the macro-environment and in our quarterly results. The priorities I set out at the start of 2014 have not changed. I am determined to improve our competitiveness, and to adapt the company torespond to changes in the industry landscape, particularly in Oil Products andNorth America resources plays. We are aiming to continue to balance growth and returns, by focusing sharply onour three key priorities - better financial performance, enhanced capitalefficiency, including more selectivity on project choices and $15 billion ofdivestments in 2014-15, and continuing strong project delivery. Our investment strategy is delivering where it matters - at the bottom line.The first quarter of 2014 has seen new, profitable production from thedeep-water Gulf of Mexico and Iraq, together with new LNG from our acquisitionof Repsol's portfolio. We are making hard choices on Shell's assets and options, to improve capitalefficiency, in both Upstream and Downstream. The divestments underway inDownstream in four countries are part of Shell's drive to improve ourcompetitive position. Downstream has the potential to average 10-12% ROACE,more than double current levels, and to deliver around $10 billion of annualcash flow. I am determined to improve our performance in this business. The impairments we have announced today in Downstream reflect Shell's updatedviews on the outlook for refining margins. There are substantial pressures onthe industry from excess capacity, changing product demand, and new oilsupplies from liquids-rich shales. The 4% dividend increase we have confirmed today for the first quarter 2014underscores our delivery in recent years, and our confidence in the futurepotential." FIRST QUARTER 2014 PORTFOLIO DEVELOPMENTS Upstream In Brazil, Shell announced an agreement to sell a 23% interest in theShell-operated deep-water project BC-10 to Qatar Petroleum International for aconsideration of some $1 billion. Subject to regulatory approval, thetransaction is expected to close in 2014. In Brunei, final investment decision ("FID") was taken on the Maharaja LelaSouth ("ML South") development (Shell interest 35%). The development isexpected to deliver peak production of 35 thousand barrels of oil equivalentper day ("boe/d"). Shell successfully commenced export of its first crude from the Majnoon oilfield in Iraq, where production exceeded the 175,000 barrels per day (b/d)First Commercial Production target which initiated the commencement of costrecovery. In the United Kingdom, Shell entered into an agreement with the government toprogress the Peterhead Carbon Capture and Storage ("CCS") project to the nextphase of front-end engineering and design ("FEED"). The project aims to captureand store 10 million tonnes of CO2 over 10 years. If successful, the projectcould represent the first industrial-scale application of CCS technology at agas-fired power station anywhere in the world. In the United States, Shell announced first production from the Mars Bdeep-water development (Shell interest 71.5%) in the Gulf of Mexico. TheOlympus platform was completed and installed more than six months ahead ofschedule, allowing for early production. Olympus is Shell's seventh, andlargest, floating deep-water platform in the Gulf of Mexico and extends thelife of the overall Mars basin to around 2050. It is expected that the projectwill ramp up to a peak production of 100 thousand boe/d in 2016. Also in the United States, Shell reached an agreement to sell its 50% interestin approximately 312,000 acres in the Niobrara and Sandwash basins for aconsideration of some $90 million. Subject to regulatory approval, the deal isexpected to close in May, 2014. Shell commenced FEED on the Appomattox deep-water development project (Shellinterest 80%) in the Gulf of Mexico, United States. Including the Vicksburg Adiscovery (Shell interest 75%), the resources associated with this developmentare estimated to be greater than 600 million barrels of oil equivalent("boe"). The project is expected to deliver peak production of 150 thousandboe/d. The Siakap North-Petai development (Shell interest 21%) offshore Malaysiacommenced production. The development is expected to deliver peak production ofaround 30 thousand boe/d. During the quarter, in Shell's heartlands exploration programme, aShell-operated oil discovery at the Limbayong prospect (Shell interest 35%)offshore Malaysia was announced. Shell participated in the non-operatedLympstone gas discovery (Shell interest 50%) offshore Australia, and in Aprilin the Rosmari-1 discovery (Shell interest 85%) offshore Malaysia, adding newgas resources. In addition during the quarter, we had a successful appraisal ofthe Pegaga gas discovery (Shell interest 20%) offshore Malaysia. Shell had continued success with near-field exploration discoveries in a numberof countries. As part of its global exploration programme, Shell added new acreage positionsfollowing successful bidding results in Namibia, Norway, and Russia. Upstream divestment proceeds totalled some $0.3 billion for the first quarter2014 and included among others proceeds from the completed sale of Shell'sinterest in Mississippi Lime acreage in Kansas, United States. In April, Shell approved to move into FEED for an LNG facility in Canada. Thefacility is expected to have capacity of approximately 12 million tonnes perannum ("mtpa") with expansion potential to approximately 24 mtpa. In Upstream Americas resources plays (shale oil and gas), insights from ongoingexploration and appraisal drilling results and production information, andShell's ongoing restructuring of this portfolio, could potentially lead tofuture asset sales and/or impairments. Downstream In Australia, Shell announced a binding agreement to sell its Downstreambusinesses (excluding Aviation) to Vitol for a total transaction value ofapproximately $2.6 billion. The sale covers Shell's Geelong Refinery and870-site Retail business, along with its Bulk Fuels, Bitumen, Chemicals andpart of its Lubricants businesses. It also includes a brand licence arrangementand an exclusive distributor arrangement in Australia for Shell Lubricants. Thedeal is subject to regulatory approvals and is expected to close in 2014. In Italy, Shell reached an agreement with Kuwait Petroleum International forthe sale of its Retail, Supply & Distribution Logistics and Aviationbusinesses. Under this agreement, Shell's Retail network will be re-branded toQ8 in the country. The sale is subject to regulatory approvals and is expectedto close in 2014. Consistent with Shell's strategic intent to concentrate its Downstream globalfootprint and businesses where it can be most competitive, Shell announced theintent to sell its Downstream Refining and Marketing businesses in Denmark. Shell is also considering the sale of certain of its Marketing assets in Norway. Downstream divestment proceeds totalled some $0.2 billion for the first quarter2014 and included among others proceeds from the divestment of Shell's 16.3%interest in Ceska Rafinerska in the Czech Republic. KEY FEATURES OF THE FIRST QUARTER 2014 * First quarter 2014 CCS earnings (see Note 2) were $4,465 million, 44% lower than for the same quarter a year ago. * First quarter 2014 CCS earnings included an identified net charge of $2.9 billion after tax, mainly reflecting impairments related to refineries in Asia and Europe (see page 6). * First quarter 2014 CCS earnings excluding identified items (see page 6) were $7,327 million compared with $7,520 million for the first quarter 2013, a decrease of 3%. First quarter 2014 Upstream earnings excluding identified items were supported by stronger Integrated Gas results as well as higher gas realisations and gas trading results. This was offset by the impact of exploration well write-offs, and higher costs and depreciation. Downstream earnings excluding identified items were impacted by lower industry refining margins and trading results. * Basic CCS earnings per share decreased by 44% versus the same quarter a year ago. * Basic CCS earnings per share excluding identified items decreased by 2% compared with the first quarter 2013. * Cash flow from operating activities for the first quarter 2014 was $14.0 billion, compared with $11.6 billion in the same quarter last year. Excluding working capital movements, cash flow from operating activities for the first quarter 2014 was $13.1 billion, compared with $11.5 billion in the same quarter last year. * Net capital investment (see Note 2) for the first quarter 2014 was $10.1 billion. Capital investment for the first quarter 2014 was $10.7 billion, including $2.0 billion related to the acquisition of Repsol's LNG business, and divestment proceeds were $0.5 billion. * Total dividends distributed in the first quarter 2014 were some $2.8 billion, of which $1.3 billion were settled by issuing some 38 million A shares under the Scrip Dividend Programme for the fourth quarter 2013. * Under our share buyback programme some 32.4 million B shares were bought back for cancellation during the first quarter 2014 for a consideration of some $1.2 billion. * Return on average capital employed (see Note 8) on a reported income basis was 6.1% at the end of the first quarter 2014, versus 13.0% at the end of the first quarter 2013. * Gearing was 15.6% at the end of the first quarter 2014, versus 9.1% at the end of the first quarter 2013. * Oil and gas production for the first quarter 2014 was 3,245 thousand boe/d. Excluding the impact of divestments, licence expiries, PSC price effects, security impacts in Nigeria and the NAM curtailment, first quarter 2014 production was 4% lower than in the same period last year. * Equity sales of LNG of 6.09 million tonnes for the first quarter 2014 were 18% higher than in the same quarter a year ago, including 0.95 million tonnes from the acquisition of Repsol's LNG business. * Oil products sales volumes were 5% higher than for the first quarter 2013. Chemicals sales volumes for the first quarter 2014 increased by 3% compared with the same quarter a year ago. * Supplementary financial and operational disclosure for the first quarter 2014 is available at www.shell.com/investor . SUMMARY OF IDENTIFIED ITEMS Earnings for the first quarter 2014 reflected the following items, which inaggregate amounted to a net charge of $2,862 million (compared with a net gainof $431 million in the first quarter 2013), as summarised in the table below: * Upstream earnings included a net charge of $283 million, mainly reflecting charges related to asset impairments of $168 million. Identified items also included net charges related to the fair value accounting of commodity derivatives and certain gas contracts, the impact of a reduction in the discount rate used for provisions, and divestments. Earnings for the first quarter 2013 included a net gain of $173 million. * Downstream earnings included a net charge of $2,580 million, including impairments of $2,284 million related to refineries in Asia and Europe. The refining-related impairments, equivalent to 14% of Shell's refinery asset base, reflect the latest insight into margins based on feedstock supply and product demand outlook. This charge includes the write-off of the Bukom oil refinery, at Shell's integrated refinery and chemicals facility in Singapore, and excludes the Bukom chemicals plant. The company has initiatives underway to improve the profitability of the integrated facilities at Bukom. Earnings for the first quarter 2013 included a net charge of $160 million. * Corporate and Non-controlling interest earnings included a net gain of $1 million. Earnings for the first quarter 2013 included a net gain of $418 million. SUMMARY OF IDENTIFIED ITEMS $ million Quarters Q1 2014 Q4 2013 Q1 2013 Segment earnings impact of identified items: Upstream (283) (631) 173 Downstream (2,580) (86) (160) Corporate and Non-controlling interest 1 (46) 418 Earnings impact (2,862) (763) 431 These identified items are shown to provide additional insight into segmentearnings and income attributable to shareholders. They include the full impacton Shell's CCS earnings of the following items: * Divestment gains and losses * Impairments * Fair value accounting of commodity derivatives and certain gas contracts (see Note 7) * Redundancy and restructuring Further items may be identified in addition to the above. EARNINGS BY BUSINESS SEGMENT UPSTREAM $ million Quarters Q1 2014 Q4 2013 Q1 2013 %1 Upstream earnings excluding identified items 5,710 2,477 5,648 +1 Upstream earnings 5,427 1,846 5,821 -7 Upstream cash flow from operating activities 9,075 5,557 9,705 -6 Upstream net capital investment 9,340 14,150 7,370 +27 Liquids production available for sale(thousand b/d) 1,481 1,539 1,640 -10 Natural gas production available for sale(million scf/d) 10,227 9,925 11,132 -8 Total production available for sale (thousandboe/d) 3,245 3,251 3,559 -9 Equity sales of LNG (million tonnes) 6.09 4.93 5.15 +18 1 Q1 on Q1 change First quarter Upstream earnings excluding identified items were $5,710 millioncompared with $5,648 million a year ago. Identified items were a net charge of$283 million, compared with a net gain of $173 million for the first quarter2013 (see page 6). Compared with the first quarter 2013, Upstream earnings excluding identifieditems benefited from stronger Integrated Gas results, including contributionsfrom the recent purchase of Repsol's LNG business and higher dividends from anLNG venture. Earnings also benefited from higher gas realisations and gastrading results. Earnings were negatively impacted by higher explorationexpenses, mainly due to well write-offs, increased costs and higherdepreciation. Earnings also reflected the cap and curtailment of NAM volumes inthe Netherlands. Global liquids realisations were 4% lower than for the first quarter 2013.Global natural gas realisations were 3% higher than for the same quarter a yearago, with a 50% increase in the Americas and a 4% decrease outside theAmericas. First quarter 2014 production was 3,245 thousand boe/d compared with 3,559thousand boe/d a year ago. Liquids production decreased by 10% and natural gasproduction decreased by 8% compared with the first quarter 2013. Excluding theimpact of divestments, license expiries, PSC price effects, security impacts inNigeria and the NAM curtailment, first quarter 2014 production was 4% lowerthan for the same period last year. Warm weather in Europe and the impact of field declines were partly offset bysome 89 thousand boe/d related to new field start-ups and the continuingramp-up of existing fields, in particular Majnoon in Iraq. Equity sales of LNG of 6.09 million tonnes were 18% higher than in the samequarter a year ago, including 0.95 million tonnes from the acquisition ofRepsol's LNG business and decreased feedgas disruptions in Nigeria, partlyoffset by higher planned maintenance at some LNG plants. DOWNSTREAM $ million Quarters Q1 2014 Q4 2013 Q1 2013 %1 Downstream CCS earnings excluding identifieditems 1,575 558 1,848 -15 Downstream CCS earnings (1,005) 472 1,688 - Downstream cash flow from operatingactivities 3,145 808 365 +762 Downstream net capital investment 776 1,571 820 -5 Refinery processing intake (thousand b/d) 2,965 2,910 2,890 +3 Oil products sales volumes (thousand b/d) 6,319 6,038 6,004 +5 Chemicals sales volumes (thousand tonnes) 4,285 4,412 4,143 +3 1 Q1 on Q1 change First quarter Downstream earnings excluding identified items were $1,575million compared with $1,848 million for the first quarter 2013. Identifieditems were a net charge of $2,580 million, compared with a net charge of $160million for the first quarter 2013 (see page 6). Compared with the first quarter 2013, Downstream earnings excluding identifieditems were impacted by lower contributions from manufacturing and from tradingand supply activities. This was partly offset by a stronger refining marginenvironment in the United States Gulf Coast, improved performance from theMotiva joint venture, and Retail results. Earnings also benefited fromdecreased taxation and favourable currency exchange rate effects in the firstquarter 2014. Downstream cash flow from operating activities benefited from favourableworking capital movements in Oil Products. Refinery intake volumes were 3% higher compared with the same quarter lastyear, mainly as a result of improved operating performance from Motivarefineries partly offset by increased planned maintenance in United States WestCoast refineries. Refinery availability was 92% compared with 91% for the firstquarter 2013. Oil products sales volumes increased by 5% compared with the same period a yearago, reflecting higher trading volumes partly offset by lower marketingvolumes. Chemicals sales volumes increased by 3% compared with the same quarter lastyear, mainly as a result of improved operational performance partly offset bypoorer intermediates market conditions in most regions. Chemicals manufacturingplant availability increased to 95% from 92% for the first quarter 2013, as aresult of decreased planned maintenance. CORPORATE AND NON-CONTROLLING INTEREST $ million Quarters Q1 2014 Q4 2013 Q1 2013 Corporate and Non-controlling interest excludingidentified items 42 (120) 24 Of which: Corporate 76 (73) 88 Non-controlling interest (34) (47) (64) Corporate and Non-controlling interest 43 (166) 442 First quarter Corporate results and Non-controlling interest excludingidentified items were a gain of $42 million, compared with a gain of $24million in the same period last year. Identified items for the first quarter of2014 were a net gain of $1 million, compared with a net gain of $418 millionfor the first quarter of 2013 (see page 6). Compared with the first quarter of 2013, Corporate results excluding identifieditems reflected favourable currency exchange rate effects offset by lower taxcredits, higher costs and higher net interest expense. FORTHCOMING EVENTS Second quarter 2014 results and second quarter 2014 dividend are scheduled tobe announced on July 31, 2014. Third quarter 2014 results and third quarter2014 dividend are scheduled to be announced on October 30, 2014. The AnnualGeneral Meeting will be held on May 20, 2014. UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF INCOME $ million Quarters Q1 2014 Q4 2013 Q1 2013 %1 Revenue 109,658 109,243 112,810 Share of profit of joint ventures andassociates 2,070 2,024 2,303 Interest and other income 351 212 401 Total revenue and other income 112,079 111,479 115,514 Purchases 83,835 85,853 86,603 Production and manufacturing expenses 7,179 7,512 6,458 Selling, distribution and administrativeexpenses 3,434 3,861 3,587 Research and development 283 428 294 Exploration 927 1,766 648 Depreciation, depletion and amortisation 7,424 5,629 4,225 Interest expense 452 470 401 Income before taxation 8,545 5,960 13,298 -36 Taxation 4,003 4,138 5,072 Income for the period 4,542 1,822 8,226 -45 Income attributable to non-controllinginterest 33 41 50 Income attributable to Royal Dutch Shell plcshareholders 4,509 1,781 8,176 -45 1 Q1 on Q1 change EARNINGS PER SHARE $ Quarters Q1 2014 Q4 2013 Q1 2013 Basic earnings per share 0.72 0.28 1.30 Diluted earnings per share 0.72 0.28 1.29 SHARES1 Million Quarters Q1 2014 Q4 2013 Q1 2013 Weighted average number of shares as the basisfor: Basic earnings per share 6,287.8 6,272.9 6,308.9 Diluted earnings per share 6,288.9 6,275.1 6,313.7 Shares outstanding at the end of the period 6,321.8 6,295.4 6,340.2 1 Royal Dutch Shell plc ordinary shares of euro 0.07 each Notes 1 to 6 are an integral part of these unaudited Condensed ConsolidatedInterim Financial Statements. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME $ million Quarters Q1 2014 Q4 2013 Q1 2013 Income for the period 4,542 1,822 8,226 Other comprehensive income net of tax: Items that may be reclassified to income in laterperiods: Currency translation differences (551) (326) (1,652) Unrealised gains on securities 28 28 31 Cash flow hedging gains/(losses) 19 (2) 13 Share of other comprehensive loss of joint venturesand associates (7) (43) (56) Total (511) (343) (1,664) Items that are not reclassified to income inlater periods: Retirement benefits remeasurements (546) 2,370 1,436 Other comprehensive (loss)/income for the period (1,057) 2,027 (228) Comprehensive income for the period 3,485 3,849 7,998 Comprehensive income attributable tonon-controlling interest 29 (14) 25 Comprehensive income attributable to Royal DutchShell plc shareholders 3,456 3,863 7,973 Notes 1 to 6 are an integral part of these unaudited Condensed ConsolidatedInterim Financial Statements. CONDENSED CONSOLIDATED BALANCE SHEET $ million Mar 31, 2014 Dec 31, 2013 Mar 31, 2013 Assets Non-current assets: Intangible assets1 7,482 4,394 4,456 Property, plant and equipment1 194,608 191,897 180,244 Joint ventures and associates1 35,909 34,613 34,478 Investments in securities 4,761 4,715 4,878 Deferred tax 6,177 5,785 4,641 Retirement benefits 3,197 3,574 3,502 Trade and other receivables 10,036 9,191 9,052 262,170 254,169 241,251 Current assets: Inventories 28,829 30,009 31,531 Trade and other receivables 63,670 63,638 66,598 Cash and cash equivalents1 11,924 9,696 17,614 104,423 103,343 115,743 Total assets 366,593 357,512 356,994 Liabilities Non-current liabilities: Debt1 41,236 36,218 27,329 Trade and other payables 4,281 4,065 4,170 Deferred tax 11,882 11,943 11,490 Retirement benefits 11,385 11,182 15,091 Decommissioning and otherprovisions 22,298 19,698 18,054 91,082 83,106 76,134 Current liabilities: Debt1 4,493 8,344 8,461 Trade and other payables 70,738 70,112 73,301 Taxes payable 13,488 11,173 14,386 Retirement benefits 387 382 376 Decommissioning and otherprovisions 3,275 3,247 3,097 92,381 93,258 99,621 Total liabilities 183,463 176,364 175,755 Equity attributable to Royal DutchShell plc shareholders 182,028 180,047 179,806 Non-controlling interest 1,102 1,101 1,433 Total equity 183,130 181,148 181,239 Total liabilities and equity 366,593 357,512 356,994 1 See Note 6 Notes 1 to 6 are an integral part of these unaudited Condensed ConsolidatedInterim Financial Statements. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Equity attributable to Royal Dutch Shell plc shareholders Shares Share held in Other Retained Non-controlling Total$ million capital trust reserves earnings Total interest equity At January 1, 2014 542 (1,932) (2,037) 183,474 180,047 1,101 181,148 Comprehensiveincome for theperiod - - (1,053) 4,509 3,456 29 3,485 Capitalcontributionsfrom, and otherchanges in,non-controllinginterest - - - (4) (4) - (4) Dividends paid - - - (2,849) (2,849) (28) (2,877) Scrip dividends1 4 - (4) 1,350 1,350 - 1,350 Repurchases ofshares2 (3) - 3 (249) (249) - (249) Shares held intrust: net salesand dividendsreceived - 746 - 32 778 - 778 Share-basedcompensation - - (497) (4) (501) - (501) At March 31, 2014 543 (1,186) (3,588) 186,259 182,028 1,102 183,130 At January 1, 2013 542 (2,287) (3,752) 180,246 174,749 1,433 176,182 Comprehensiveincome for theperiod - - (203) 8,176 7,973 25 7,998 Capitalcontributionsfrom, and otherchanges in,non-controllinginterest - - - - - (4) (4) Dividends paid - - - (2,752) (2,752) (21) (2,773) Scrip dividends1 2 - (2) 844 844 - 844 Repurchases ofshares2,3 (1) - 1 (1,104) (1,104) - (1,104) Shares held intrust: net salesand dividendsreceived - 1,030 - 36 1,066 - 1,066 Share-basedcompensation - - (603) (367) (970) - (970) At March 31, 2013 543 (1,257) (4,559) 185,079 179,806 1,433 181,239 1 Under the Scrip Dividend Programme some 38.0 million A shares, equivalent to$1.3 billion, were issued during the first quarter 2014 and some 25.6 million Ashares, equivalent to $0.8 billion, were issued during the first quarter 2013. 2 Includes shares committed to repurchase 3 Includes repurchases subject to settlement at the end of the quarter Notes 1 to 6 are an integral part of these unaudited Condensed ConsolidatedInterim Financial Statements. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS $ million Quarters Q1 2014 Q4 2013 Q1 2013 Cash flow from operating activities Income for the period 4,542 1,822 8,226 Adjustment for: - Current taxation 4,400 4,677 4,892 - Interest expense (net) 378 436 357 - Depreciation, depletion and amortisation 7,424 5,629 4,225 - Net losses/(gains) on sale of assets 41 (87) (213) - Decrease/(increase) in working capital 875 (1,682) 34 - Share of profit of joint ventures andassociates (2,070) (2,024) (2,303) - Dividends received from joint ventures andassociates 1,507 1,865 1,242 - Deferred taxation, retirement benefits,decommissioning and other provisions (308) (938) (11) - Other 529 1,338 27 Net cash from operating activities (pre-tax) 17,318 11,036 16,476 Taxation paid (3,334) (5,008) (4,917) Net cash from operating activities 13,984 6,028 11,559 Cash flow from investing activities Capital expenditure1 (7,397) (14,508) (7,862) Investments in joint ventures and associates (889) (523) (372) Proceeds from sale of assets 306 432 382 Proceeds from sale of joint ventures andassociates 56 109 154 Other investments (net) 152 2 20 Interest received 58 37 36 Net cash used in investing activities (7,714) (14,451) (7,642) Cash flow from financing activities Net (decrease)/increase in debt withmaturity period within three months (1,297) 3,239 133 Other debt: New borrowings 3,195 4,366 180 Repayments (2,933) (464) (2,185) Interest paid (368) (650) (158) Change in non-controlling interest 0 (60) (7) Cash dividends paid to: - Royal Dutch Shell plc shareholders (1,499) (1,610) (1,908) - Non-controlling interest (28) (36) (21) Repurchases of shares (1,241) (996) (545) Shares held in trust: net sales/(purchases)and dividends received 123 66 (10) Net cash used in financing activities (4,048) 3,855 (4,521) Currency translation differences relating tocash and cash equivalents 6 (14) (332) Increase/(decrease) in cash and cashequivalents 2,228 (4,582) (936) Cash and cash equivalents at beginning ofperiod 9,696 14,278 18,550 Cash and cash equivalents at end of period 11,924 9,696 17,614 1 See Note 6 Notes 1 to 6 are an integral part of these unaudited Condensed ConsolidatedInterim Financial Statements. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. Basis of preparation These unaudited Condensed Consolidated Interim Financial Statements ("InterimStatements") of Royal Dutch Shell plc and its subsidiaries (collectivelyreferred to as Shell) have been prepared in accordance with IAS 34 InterimFinancial Reporting as adopted by the European Union and as issued by theInternational Accounting Standards Board and on the basis of the sameaccounting principles as, and should be read in conjunction with, the AnnualReport and Form 20-F for the year ended December 31, 2013 (pages 105 to 110) asfiled with the U.S. Securities and Exchange Commission. The financial information presented in the Interim Statements does notconstitute statutory accounts within the meaning of section 434(3) of theCompanies Act 2006. Statutory accounts for the year ended December 31, 2013were published in Shell's Annual Report and a copy was delivered to theRegistrar of Companies in England and Wales. The auditors' report on thoseaccounts was unqualified, did not include a reference to any matters to whichthe auditors drew attention by way of emphasis without qualifying the reportand did not contain a statement under sections 498(2) or 498(3) of theCompanies Act 2006. 2. Segment information Segment earnings are presented on a current cost of supplies basis (CCSearnings). On this basis, the purchase price of volumes sold during the periodis based on the current cost of supplies during the same period after makingallowance for the tax effect. CCS earnings therefore exclude the effect ofchanges in the oil price on inventory carrying amounts. Net capital investment (see Note 9) is defined as capital expenditure asreported in the Condensed Consolidated Statement of Cash Flows, adjusted for:proceeds from disposals (excluding other investments (net) in the Corporatesegment); exploration expense excluding exploration wells written off;investments in joint ventures and associates; and leases and other items. CCS earnings and net capital investment information are the dominant measuresused by the Chief Executive Officer for the purposes of making decisions aboutallocating resources and assessing performance. Information by business segment: $ million Quarters Q1 2014 Q1 2013 Third-party revenue Upstream 13,013 12,376 Downstream 96,603 100,409 Corporate 42 25 Total third-party revenue 109,658 112,810 Inter-segment revenue Upstream 12,251 12,142 Downstream 608 243 Corporate 0 0 Segment earnings Upstream 5,427 5,821 Downstream1 (1,005) 1,688 Corporate 77 491 Total segment earnings 4,499 8,000 $ million Quarters Q1 2014 Q1 2013 Total segment earnings 4,499 8,000 Current cost of supplies adjustment: Purchases (8) 113 Taxation (1) (28) Share of profit of joint ventures andassociates 52 141 Income for the period 4,542 8,226 1 First quarter 2014 Downstream earnings included an impairment charge of$2,284 million related to refineries in Asia and Europe. 3. Share capital Issued and fully paid Sterling deferred Ordinary shares of euro 0.07 each shares Number of shares A B of £1 each At January 1, 2014 3,898,011,213 2,472,839,187 50,000 Scrip dividends 37,952,003 - - Repurchases of shares - (32,428,573) - At March 31, 2014 3,935,963,216 2,440,410,614 50,000 At January 1, 2013 3,772,388,687 2,617,715,189 50,000 Scrip dividends 25,586,312 - - Repurchases of shares - (16,080,000) - At March 31, 2013 3,797,974,999 2,601,635,189 50,000 Nominal value Ordinary shares of euro 0.07 each $ million A B Total At January 1, 2014 333 209 542 Scrip dividends 4 - 4 Repurchases of shares - (3) (3) At March 31, 2014 337 206 543 At January 1, 2013 321 221 542 Scrip dividends 2 - 2 Repurchases of shares - (1) (1) At March 31, 2013 323 220 543 The total nominal value of sterling deferred shares is less than $1 million. At Royal Dutch Shell plc's Annual General Meeting on May 21, 2013, the Boardwas authorised to allot ordinary shares in Royal Dutch Shell plc, and to grantrights to subscribe for or to convert any security into ordinary shares inRoyal Dutch Shell plc, up to an aggregate nominal amount of euro 148 million(representing 2,114 million ordinary shares of euro 0.07 each), and to listsuch shares or rights on any stock exchange. This authority expires at theearlier of the close of business on August 21, 2014, and the end of the AnnualGeneral Meeting to be held in 2014, unless previously renewed, revoked orvaried by Royal Dutch Shell plc in a general meeting. 4. Other reserves Accumulated Share Capital Share other Merger premium redemption plan comprehensive$ million reserve1 reserve1 reserve2 reserve income Total At January 1, 2014 3,411 154 75 1,871 (7,548) (2,037) Other comprehensiveloss attributable toRoyal Dutch Shell plcshareholders - - - - (1,053) (1,053) Scrip dividends (4) - - - - (4) Repurchases of shares - - 3 - - 3 Share-basedcompensation - - - (497) - (497) At March 31, 2014 3,407 154 78 1,374 (8,601) (3,588) At January 1, 2013 3,423 154 63 2,028 (9,420) (3,752) Other comprehensiveloss attributable toRoyal Dutch Shell plcshareholders - - - - (203) (203) Scrip dividends (2) - - - - (2) Repurchases of shares - - 1 - - 1 Share-basedcompensation - - - (603) - (603) At March 31, 2013 3,421 154 64 1,425 (9,623) (4,559) 1 The merger reserve and share premium reserve were established as aconsequence of Royal Dutch Shell plc becoming the single parent company ofRoyal Dutch Petroleum Company and The "Shell" Transport and Trading Company,plc, now The Shell Transport and Trading Company Limited, in 2005. 2 The capital redemption reserve was established in connection with repurchasesof shares of Royal Dutch Shell plc. 5. Derivative contracts The table below provides the carrying amounts of derivatives contracts held,disclosed in accordance with IFRS 13 Fair Value Measurement. $ million Mar 31, 2014 Dec 31, 2013 Mar 31, 2013 Included within: Trade and other receivables - non-current 1,761 1,772 1,426 Trade and other receivables - current 7,577 6,445 8,443 Trade and other payables - non-current 569 587 609 Trade and other payables - current 7,944 6,474 8,530 As disclosed in the Consolidated Financial Statements for the year endedDecember 31, 2013, 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 assetsand liabilities. The fair values of the financial assets and liabilities aredefined as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants atthe measurement date. Methods and assumptions used to estimate the fair valuesat March 31, 2014 are consistent with those used in the year ended December 31,2013, and the carrying amounts of derivative contracts measured usingpredominantly unobservable inputs has not changed materially since that date. The fair value of debt excluding finance lease liabilities at March 31, 2014,was $39,967 million (December 31, 2013: $40,569 million; March 31, 2013:$33,765 million). Fair value is determined from the prices quoted for thosesecurities. 6. Acquisition of Repsol LNG businesses On January 1, 2014, Shell completed the acquisition from Repsol S.A. of its LNGoperations located in Trinidad and Tobago and Peru and related shipping andmarketing activities, as reported in the Annual Report and Form 20-F for theyear ended December 31, 2013 (page 139). Cash consideration was $4.1 billion, of which $3.4 billion was transferred onDecember 31, 2013 and $0.7 billion on January 2, 2014. After taking account ofcash balances of $0.3 billion in the entities acquired, the impact on capitalexpenditure in the Condensed Consolidated Statement of Cash Flows was $3.4billion and $0.4 billion in the fourth quarter 2013 and the first quarter 2014respectively. The impact on net capital investment, which also reflected theinclusion of finance lease liabilities assumed on January 1, 2014, was $3.4billion and $2.0 billion in the fourth quarter 2013 and the first quarter 2014respectively. The updated fair values of the net assets acquired at January 1, 2014 and thefair value of the consideration paid were as follows: $ million Fair value1 Net assets acquired: Intangible assets 3,183 Property, plant and equipment 1,198 Joint ventures and associates 531 Cash and cash equivalents 329 Other assets 424 Debt (1,601) Other liabilities (22) 4,042 Goodwill 43 Consideration paid 4,085 1 The determination of the fair values of the net assets acquired isprovisional and will be subject to further review during the 12 months from theacquisition date. 7. Impacts of accounting for derivatives In the ordinary course of business Shell enters into contracts to supply orpurchase oil and gas products, and also enters into derivative contracts tomitigate resulting economic exposures (generally price exposure). Derivativecontracts are carried at period-end market price (fair value), with movementsin fair value recognised in income for the period. Supply and purchasecontracts entered into for operational purposes are, by contrast, recognisedwhen the transaction occurs (see also below); furthermore, inventory is carriedat historical cost or net realisable value, whichever is lower. As a consequence, accounting mismatches occur because: (a) the supply orpurchase transaction is recognised in a different period; or (b) the inventoryis measured on a different basis. In addition, certain UK gas contracts held by Upstream are, due to pricing ordelivery conditions, deemed to contain embedded derivatives or written optionsand are also required to be carried at fair value even though they are enteredinto for operational purposes. The accounting impacts of the aforementioned are reported as identified itemsin this Report. 8. Return on average capital employed Return on average capital employed (ROACE) measures the efficiency of Shell'sutilisation of the capital that it employs and is a common measure of businessperformance. In this calculation, ROACE is defined as the sum of income for thecurrent and previous three quarters, adjusted for after-tax interest expense,as a percentage of the average capital employed for the same period. Capitalemployed consists of total equity, current debt and non-current debt. The taxrate is derived from calculations at the published segment level. 9. Liquidity and capital resources Net cash from operating activities for the first quarter 2014 was $14.0 billioncompared with $11.6 billion for the same period last year. Total current and non-current debt increased to $45.7 billion at March 31, 2014from $35.8 billion at March 31, 2013 while cash and cash equivalents decreasedto $11.9 billion at March 31, 2014 from $17.6 billion at March 31, 2013. Newdebt was issued under the euro medium-term note programme during the firstquarter of 2014. Net capital investment for the first quarter 2014 was $10.1 billion, of which$9.3 billion in Upstream and $0.8 billion in Downstream. Net capital investmentfor the same period of 2013 was $8.2 billion, of which $7.4 billion in Upstreamand $0.8 billion in Downstream. Dividends of $0.47 per share are announced on April 30, 2014 in respect of thefirst quarter. These dividends are payable on June 26, 2014. In the case of Bshares, the dividends will be payable through the dividend access mechanism andare expected to be treated as UK-source rather than Dutch-source. See theAnnual Report and Form 20-F for the year ended December 31, 2013 for additionalinformation on the dividend access mechanism. Under the Scrip Dividend Programme shareholders can increase their shareholdingin Shell by choosing to receive new shares instead of cash dividends. Only newA shares will be issued under the Programme, including to shareholders whocurrently hold B shares. The purpose of Shell's share buyback programme is to offset dilution created bythe issuance of shares under the Scrip Dividend Programme. Shell currentlypurchases only B shares for cancellation, which is more economic thanpurchasing A shares due to Dutch dividend withholding tax rules. CAUTIONARY STATEMENT All amounts shown throughout this Report are unaudited. The companies in which Royal Dutch Shell plc directly and indirectly ownsinvestments are separate entities. In this document "Shell", "Shell group" and"Royal Dutch Shell" are sometimes used for convenience where references aremade to Royal Dutch Shell plc and its subsidiaries in general. Likewise, thewords "we", "us" and "our" are also used to refer to subsidiaries in general orto those who work for them. These expressions are also used where no usefulpurpose is served by identifying the particular company or companies.''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in thisdocument refer to companies over which Royal Dutch Shell plc either directly orindirectly has control. Companies over which Shell has joint control aregenerally referred to as "joint ventures" and companies over which Shell hassignificant influence but neither control nor joint control are referred to as"associates". The term "Shell interest" is used for convenience to indicate thedirect and/or indirect (for example, through our 23% shareholding in WoodsidePetroleum Ltd.) ownership interest held by Shell in a venture, partnership orcompany, after exclusion of all third-party interest. This document contains forward-looking statements concerning the financialcondition, results of operations and businesses of Royal Dutch Shell. Allstatements other than statements of historical fact are, or may be deemed tobe, forward-looking statements. Forward-looking statements are statements offuture expectations that are based on management's current expectations andassumptions and involve known and unknown risks and uncertainties that couldcause actual results, performance or events to differ materially from thoseexpressed or implied in these statements. Forward-looking statements include,among other things, statements concerning the potential exposure of Royal DutchShell to market risks and statements expressing management's expectations,beliefs, estimates, forecasts, projections and assumptions. Theseforward-looking statements are identified by their use of terms and phrasessuch 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 offactors that could affect the future operations of Royal Dutch Shell and couldcause those results to differ materially from those expressed in theforward-looking statements included in this document, including (withoutlimitation): (a) price fluctuations in crude oil and natural gas; (b) changesin demand for Shell's products; (c) currency fluctuations; (d) drilling andproduction results; (e) reserves estimates; (f) loss of market share andindustry competition; (g) environmental and physical risks; (h) risksassociated with the identification of suitable potential acquisition propertiesand targets, and successful negotiation and completion of such transactions;(i) the risk of doing business in developing countries and countries subject tointernational sanctions; (j) legislative, fiscal and regulatory developmentsincluding regulatory measures addressing climate change; (k) economic andfinancial market conditions in various countries and regions; (l) politicalrisks, including the risks of expropriation and renegotiation of the terms ofcontracts with governmental entities, delays or advancements in the approval ofprojects and delays in the reimbursement for shared costs; and (m) changes intrading conditions. All forward-looking statements contained in this documentare expressly qualified in their entirety by the cautionary statementscontained or referred to in this section. Readers should not place unduereliance on forward-looking statements. Additional risk factors that may affectfuture results are contained in Royal Dutch Shell's Form 20-F for the yearended December 31, 2013 (available at www.shell.com/investor and www.sec.gov).These risk factors also expressly qualify all forward-looking statementscontained in this document and should be considered by the reader. Eachforward-looking statement speaks only as of the date of this document, April30, 2014. Neither Royal Dutch Shell plc nor any of its subsidiaries undertakeany obligation to publicly update or revise any forward-looking statement as aresult of new information, future events or other information. In light ofthese risks, results could differ materially from those stated, implied orinferred from the forward-looking statements contained in this document. We may have used certain terms, such as resources, in this document that theUnited States Securities and Exchange Commission (SEC) strictly prohibits usfrom including in our filings with the SEC. U.S. investors are urged toconsider closely the disclosure in our Form 20-F, File No 1-32575, available onthe SEC website www.sec.gov. You can also obtain this form from the SEC bycalling 1-800-SEC-0330. April 30, 2014 The information in this Report reflects the unaudited consolidated financialposition and results of Royal Dutch Shell plc. Company No. 4366849, RegisteredOffice: Shell Centre, London, SE1 7NA, England, UK. Contacts: - Investor Relations: International + 31 (0) 70 377 4540; North America +1 832337 2034 - Media: International +44 (0) 207 934 5550; USA +1 713 241 4544