4th Quarter and Full Year 2013 Unaudited Results

ROYAL DUTCH SHELL PLC 4TH QUARTER AND FULL YEAR 2013 UNAUDITED RESULTS * Royal Dutch Shell's fourth quarter 2013 earnings, on a current cost of supplies (CCS) basis (see Note 1), were $2.2 billion compared with $7.4 billion in the same quarter a year ago. Full year 2013 CCS earnings were $16.7 billion compared with $27.2 billion in 2012. * Fourth quarter 2013 CCS earnings excluding identified items (see page 6) were $2.9 billion compared with $5.6 billion in the fourth quarter of 2012. Full year 2013 CCS earnings excluding identified items were $19.5 billion compared with $25.3 billion in 2012. * Compared with the fourth quarter 2012, CCS earnings excluding identified items were impacted by higher depreciation, increased exploration expenses, lower upstream volumes and weak industry conditions in downstream oil products. * Fourth quarter 2013 basic CCS earnings per share excluding identified items decreased by 49% versus the fourth quarter 2012. Full year 2013 basic CCS earnings per share excluding identified items decreased by 23% versus 2012. * Total dividends distributed in the fourth quarter were some $2.8 billion, of which $1.2 billion were settled under the Scrip Dividend Programme. During the fourth quarter some 27.2 million shares were bought back for cancellation for a consideration of $1.0 billion. * Gearing at the end of 2013 was 16.1% compared with 9.8% at the end of 2012. * A fourth quarter 2013 dividend has been announced of $0.45 per ordinary share and $0.90 per American Depositary Share ("ADS"), an increase of 5% compared with the fourth quarter 2012. * The first quarter 2014 dividend is expected to be declared at $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 Quarters $ million Full year Q4 Q3 Q42013 2013 20121 %2 2013 20121 % Income attributable to1,781 4,677 6,728 -74 shareholders 16,371 26,712 -39 Current cost of supplies (CCS)371 (429) 623 adjustment for Downstream 374 452 2,152 4,248 7,351 -71 CCS earnings 16,745 27,164 -38 (763) (209) 1,712 Less: Identified items3 (2,747) 1,905 CCS earnings excluding identified2,915 4,457 5,639 -48 items 19,492 25,259 -23 Of which: 2,477 3,466 4,401 Upstream 15,117 20,107 558 892 1,190 Downstream 4,466 5,343 Corporate and Non-controlling(120) 99 48 interest (91) (191) Cash flow from operating6,028 10,409 9,913 -39 activities 40,440 46,140 -12 0.34 0.68 1.17 -71 Basic CCS earnings per share ($) 2.66 4.34 -39 0.68 1.36 2.34 Basic CCS earnings per ADS ($) 5.32 8.68 Basic CCS earnings per share excl.0.46 0.71 0.90 -49 identified items ($) 3.10 4.04 -23 Basic CCS earnings per ADS excl.0.92 1.42 1.80 identified items ($) 6.20 8.08 0.45 0.45 0.43 +5 Dividend per share ($) 1.80 1.72 +5 0.90 0.90 0.86 Dividend per ADS ($) 3.60 3.44 1 Restated for accounting policy change (see Note 2) 2 Q4 on Q4 change 3 See page 6 Royal Dutch Shell Chief Executive Officer Ben van Beurden: "Our momentum slowed in 2013. We must improve our financial results, achievebetter capital efficiency and continue to strengthen our operationalperformance and project delivery." FOURTH QUARTER 2013 PORTFOLIO DEVELOPMENTS Upstream In Brazil, Shell paid $1.3 billion as its share of the signature bonus for the35-year production-sharing contract ("PSC") to develop the Libra discovery(Shell interest 20%), a potentially multi-billion barrel oil field in pre-saltreservoirs located in the Santos Basin. Also in Brazil, Shell completed the acquisition of an additional 23% interestin the Shell-operated deepwater project BC-10, for a consideration of some $1billion. During the fourth quarter 2013, Shell announced positive well test results inBlock 2-3 (Shell interest 75%) onshore south-central Albania, demonstratinglight oil potential in a fractured carbonate play. In addition, Shell drilled anumber of successful exploration and appraisal wells during 2013 near itsestablished production infrastructure. As part of its global exploration programme Shell added new acreage positionsduring the fourth quarter 2013, including offshore positions in Australia andGreenland as well as onshore positions in Tunisia. Upstream divestment proceeds totalled some $0.3 billion for the fourth quarter2013 and included proceeds from the divestment of certain liquids-rich shalesacreage positions in Ohio, United States. In January 2014, Shell completed the acquisition of Repsol S.A.'s LNG portfoliooutside of North America, including supply positions in Peru and Trinidad &Tobago, for a net cash purchase price of $3.8 billion, subject to post-closingadjustments. As part of the transaction, Shell also assumed $1.6 billion ofbalance sheet liabilities relating to existing leases for LNG ship charters.The acquisition adds 7.2 million tonnes per annum ("mtpa") of directly managedLNG volumes through long-term offtake agreements, including 4.2 mtpa of equityLNG plant capacity. Shell's fourth quarter 2013 capital investment includes$3.4 billion for this transaction, with the remaining $2.0 billion booked inthe first quarter 2014, of which $1.6 billion is a non-cash item relating tothe LNG ship charter finance leases. Also in January 2014, Shell agreed to sell its 8% interest in theWheatstone-Iago joint venture and its 6.4% interest in the 8.9 mtpa WheatstoneLNG project in Western Australia to the Kuwait Foreign Petroleum ExplorationCompany for $1.1 billion, subject to closing. In Upstream Americas resources plays, insights from ongoing exploration andappraisal drilling results and production information, and Shell's ongoingrestructuring of this portfolio, could potentially lead to future asset salesand/or impairments. Downstream Shell is restructuring its Oil Products business to improve profitability. In the Czech Republic, Shell agreed to sell its 16.3% interest in CeskaRafinerska, which includes the Kralupy and Litvinov refineries with a combinedcapacity of 160 thousand barrels per day ("b/d") (100%). The transaction isexpected to complete during the first half of 2014. Shell sold its 21% interest in the Mongstad refinery (capacity 205 thousand b/d) in Norway and, under the transaction, acquired an additional 10% interest inthe Pernis refinery (capacity 404 thousand b/d) in the Netherlands. Followingthis transaction, Shell's interest in the Pernis refinery increased to 100%. Downstream divestment proceeds totalled some $0.2 billion for the fourthquarter 2013 and included proceeds from the divestment of certain downstreammarketing businesses in Egypt, the first phase of the sale of the Harburgrefinery (capacity 108 thousand b/d) in Germany and the divestment of the LPGbusiness in the Philippines. Shell commenced a review of its global refining portfolio, in the context ofthe growth of light crude supply in North America, and excess industry refiningcapacity world-wide. These factors are affecting the dynamics of the globalrefining industry environment. The portfolio review could potentially lead tofurther asset sales, closures and/or impairments. Shell is also considering the sale of certain of its marketing assets in Norwayand Italy. In Australia, Shell has received indications of interest to acquireits refining and parts of its marketing portfolio. The company is consideringits options for divestment, subject to achieving satisfactory commercial termsfor these positions. KEY FEATURES OF THE FOURTH QUARTER AND FULL YEAR 2013 * Fourth quarter 2013 CCS earnings (see Note 1) were $2,152 million, 71% lower than for the same quarter a year ago. Full year 2013 CCS earnings were $16,745 million, 38% lower than in 2012. * Fourth quarter 2013 CCS earnings excluding identified items (see page 6) were $2,915 million compared with $5,639 million in the fourth quarter 2012, a decrease of 48%. Fourth quarter 2013 CCS earnings excluding identified items were impacted by higher depreciation, increased exploration expenses, lower upstream volumes and weak industry conditions in downstream oil products. Full year 2013 CCS earnings excluding identified items were $19,492 million compared with $25,259 million in the fourth quarter 2012, a decrease of 23%. * Basic CCS earnings per share for the fourth quarter 2013 decreased by 71% versus the same quarter a year ago. Full year 2013 basic CCS earnings per share decreased by 39% versus 2012. * Basic CCS earnings per share excluding identified items for the fourth quarter 2013 decreased by 49% versus the same quarter a year ago. Full year 2013 basic CCS earnings per share excluding identified items decreased by 23% versus 2012. * Cash flow from operating activities for the fourth quarter 2013 was $6.0 billion, compared with $9.9 billion in the same quarter last year. Excluding working capital movements, cash flow from operating activities for the fourth quarter 2013 was $7.7 billion, compared with $8.9 billion in the same quarter last year. Full year 2013 cash flow from operating activities was $40.4 billion, compared with $46.1 billion in 2012. Excluding working capital movements, cash flow from operating activities for the full year 2013 was $37.5 billion, compared with $42.7 billion in 2012. * Net capital investment (see Note 1) for the fourth quarter 2013 was $15.8 billion. Capital investment for the fourth quarter 2013 was $16.3 billion and divestment proceeds were some $0.5 billion. Full year 2013 net capital investment was $44.3 billion. Capital investment for the full year 2013 was $46.0 billion and divestment proceeds were $1.7 billion. * Total dividends distributed in the fourth quarter 2013 were some $2.8 billion, of which $1.2 billion were settled by issuing some 37.3 million A shares under the Scrip Dividend Programme for the third quarter 2013. Total dividends distributed in the full year 2013 were $11.3 billion, of which $4.1 billion were settled by issuing some 125.6 million A shares under the Scrip Dividend Programme. * Under our share buyback programme some 27.2 million B shares were bought back for cancellation during the fourth quarter 2013 for a consideration of $1.0 billion. During the full year 2013 some 144.9 million B shares were bought back for cancellation for a consideration of $5.0 billion. * Return on average capital employed (see Note 5) on a reported income basis was 7.9% at the end of 2013 compared with 13.6% at the end of 2012 (see Note 2). * Gearing was 16.1% at the end of 2013 versus 9.8% at the end of 2012 (see Note 2). * Oil and gas production for the fourth quarter 2013 was 3,251 thousand barrels of oil equivalent per day ("boe/d"), a decrease of 5% compared with the fourth quarter 2012. Excluding the impact of the deteriorated security situation in Nigeria, divestments and PSC price effects, fourth quarter 2013 production volumes were 3% lower than in the same period last year. Production volumes were impacted by higher maintenance and asset replacement activities during the fourth quarter 2013. Full year 2013 oil and gas production was 3,199 thousand boe/d, a decrease of 2% compared with 2012. Excluding the impact of the deteriorated operating environment in Nigeria, divestments and PSC price effects, 2013 production volumes were in line with 2012. Production volumes were impacted by higher maintenance and asset replacement activities during 2013. * Equity LNG sales volumes of 4.93 million tonnes for the fourth quarter 2013 were 10% lower than in the same quarter a year ago. Full year 2013 equity LNG sales volumes of 19.64 million tonnes were 3% lower than in 2012. * Oil products sales volumes for the fourth quarter 2013 were 5% lower than for the fourth quarter 2012. Chemicals sales volumes for the fourth quarter 2013 decreased by 5% compared with the same quarter a year ago. Full year 2013 oil products sales volumes were 1% lower than in 2012. Full year 2013 chemicals sales volumes decreased by 7% compared with 2012. * When final volumes are reported in the 2013 Annual Report and Form 20-F, Shell expects that proved oil and gas reserves additions before taking into account production on an SEC basis will be around 1.6 billion barrels of oil equivalent ("boe"). With 2013 production of some 1.2 billion boe, our headline proved Reserves Replacement Ratio for the year on an SEC basis is expected to be around 131%. Our Organic Reserves Replacement Ratio, which excludes the impact of oil and gas price movements in the year, acquisitions and divestments, is expected to be around 123%. At the end of 2013, total proved reserves on an SEC basis are expected to be around 13.9 billion boe, after taking into account 2013 production. The 3-year average headline proved Reserves Replacement Ratio on an SEC basis is expected to be around 91%. Our 3-year average Organic Reserves Replacement Ratio, which excludes the impact of oil and gas price movements in the year, acquisitions and divestments, is expected to be around 112%. Further information will be provided in our Annual Report and Form 20-F, which is expected to be filed in March 2014. * Comparative information in this Report has been restated following the adoption of revised IAS 19 Employee Benefits on January 1, 2013, with retrospective effect (see Note 2). Comparative information was not restated for other accounting policy changes (see Note 1) for which the impacts are not significant, including the adoption of IFRS 11 Joint Arrangements on January 1, 2013, which results in certain previously equity-accounted entities now in effect being proportionately consolidated. * Supplementary financial and operational disclosure for the fourth quarter and full year 2013 is available at www.shell.com/investor. SUMMARY OF IDENTIFIED ITEMS Earnings for the fourth quarter 2013 reflected the following items, which inaggregate amounted to a net charge of $763 million (compared with a net gain of$1,712 million in the fourth quarter 2012), as summarised in the table below: * Upstream earnings included a net charge of $631 million, reflecting impairments of $687 million, mainly related to two liquids-rich shales properties, gas infrastructure and the Kulluk drilling rig, all in North America. Identified items also included redundancy and restructuring charges of $31 million and a net charge of $16 million related to divestments. This was partly offset by a net gain of $55 million from movements in tax provisions and by the net impact of fair value accounting of commodity derivatives and certain gas contracts of $48 million. Upstream earnings for the fourth quarter 2012 included a net gain of $1,801 million. * Downstream earnings included a net charge of $86 million, reflecting impairments of $105 million, mainly related to a bitumen refinery in North America, redundancy and restructuring charges of $27 million and the net impact of fair value accounting of commodity derivatives of $27 million. This was partly offset by a net gain of $73 million related to divestments. Downstream earnings for the fourth quarter 2012 included a net charge of $89 million. * Corporate results and Non-controlling interest included a net charge of $46 million, mainly reflecting a net charge from movements in tax provisions. Earnings for the fourth quarter 2012 did not include any identified items. SUMMARY OF IDENTIFIED ITEMS Quarters $ million Full year Q4 2013 Q3 2013 Q4 2012 2013 2012 Segment earnings impact of identified items: (631) (176) 1,801 Upstream (2,479) 2,137 (86) 14 (89) Downstream (597) 39 Corporate and Non-controlling(46) (47) - interest 329 (271) (763) (209) 1,712 Earnings impact (2,747) 1,905 These identified items are shown to provide additional insight into segmentearnings and income attributable to shareholders. From the first quarter 2013onwards, identified items include the full impact on Shell's CCS earnings ofthe following items: * Divestment gains and losses * Impairments * Fair value accounting of commodity derivatives and certain gas contracts (see Note 4) * Redundancy and restructuring Further items may be identified in addition to the above. Prior periodcomparatives have not been restated. EARNINGS BY BUSINESS SEGMENT UPSTREAM Quarters $ million Full year Q4 2013 Q3 2013 Q4 2012 %2 2013 2012 % Upstream earnings excluding2,477 3,466 4,401 -44 identified items1 15,117 20,107 -25 1,846 3,290 6,202 -70 Upstream earnings1 12,638 22,244 -43 Upstream cash flow from5,557 6,709 6,165 -10 operating activities 30,114 33,061 -9 14,150 8,148 9,323 +52 Upstream net capital investment 39,217 25,320 +55 Liquids production available for1,539 1,485 1,640 -6 sale (thousand b/d) 1,541 1,633 -6 Natural gas production available9,925 8,383 10,288 -4 for sale (million scf/d) 9,616 9,449 +2 Total production available for3,251 2,931 3,414 -5 sale (thousand boe/d) 3,199 3,262 -2 Equity LNG sales volumes4.93 4.88 5.49 -10 (million tonnes) 19.64 20.20 -3 1 Fourth quarter 2012 and full year 2012 comparatives restated for accountingpolicy change (see Note 2) 2 Q4 on Q4 change Fourth quarter Upstream earnings excluding identified items were $2,477 millioncompared with $4,401 million a year ago. Identified items were a net charge of$631 million, compared with a net gain of $1,801 million in the fourth quarter2012 (see page 6). Compared with the fourth quarter 2012, earnings excluding identified items wereimpacted by higher exploration expenses, mainly due to well write-offs inFrench Guiana and in resources plays globally. Increased maintenanceactivities, affecting high value oil and gas volumes as well as LNG salesvolumes, adversely impacted earnings by some $500 million compared with thefourth quarter 2012. Depreciation increased, and the impact of the weakeningAustralian dollar on a deferred tax liability reduced earnings by some $170million compared with the fourth quarter 2012. Earnings also reflected lowerliquids and gas realisations, higher operating expenses and the deterioratedsecurity situation onshore Nigeria. Earnings benefited from the contribution ofgrowth projects and from higher LNG realisations. Upstream Americas excluding identified items continued to incur a loss. Global liquids realisations were 6% lower than for the fourth quarter 2012. InCanada, synthetic crude oil realisations were 2% higher than for the sameperiod last year. Global natural gas realisations were 1% higher than for thesame quarter a year ago, with a 4% increase in the Americas and a 1% decreaseoutside the Americas. Fourth quarter 2013 production was 3,251 thousand boe/d compared with 3,414thousand boe/d a year ago. Liquids production decreased by 6% and natural gasproduction decreased by 4% compared with the fourth quarter 2012. Thedeteriorated security situation in Nigeria impacted production volumes by some40 thousand boe/d compared with the fourth quarter 2012. Excluding the impactof the deteriorated security situation environment in Nigeria, divestments andPSC price effects, fourth quarter 2013 production was 3% lower than for thesame period last year. Compared with the fourth quarter 2012, productionvolumes were impacted by some 95 thousand boe/d due to higher maintenance andasset replacement activities. New field start-ups and the continuing ramp-up of existing fields contributedsome 115 thousand boe/d to production for the fourth quarter 2013. Equity LNG sales volumes of 4.93 million tonnes decreased by 10% compared withthe same quarter a year ago, mainly reflecting higher planned maintenanceactivities at several LNG plants, partly offset by stronger operatingperformance. Full year Upstream earnings excluding identified items were $15,117 millioncompared with $20,107 million in 2012. Identified items were a net charge of$2,479 million, compared with a net gain of $2,137 million in 2012 (see page6). Compared with 2012, Upstream earnings excluding identified items reflectedhigher exploration expenses, increased operating expenses, higher depreciationas well as lower liquids and LNG realisations. Earnings were also impacted bythe deteriorated operating environment in Nigeria and the impact of theweakening Australian dollar on a deferred tax liability. This was partly offsetby the contribution of Pearl GTL, and higher gas realisations in the Americas. Global liquids realisations were 6% lower than in 2012. In Canada, syntheticcrude oil realisations were 7% higher than in 2012. Global natural gasrealisations were 6% higher than in 2012, with a 27% increase in the Americasand a 3% increase outside the Americas. Full year 2013 production was 3,199 thousand boe/d compared with 3,262 thousandboe/d in 2012. Liquids production was down 6% and natural gas productionincreased by 2% compared with 2012. The deteriorated operating environment inNigeria impacted production volumes by some 50 thousand boe/d compared with2012. Excluding the impact of divestments, PSC price effects and thedeteriorated operating environment in Nigeria, production volumes in 2013 werein line with 2012. Production volumes were impacted by higher maintenance andasset replacement activities. New field start-ups and the continuing ramp-up of existing fields, inparticular Pearl GTL in Qatar, contributed some 170 thousand boe/d toproduction in 2013. Equity LNG sales volumes of 19.64 million tonnes were 3% lower than in 2012,mainly reflecting lower volumes from Nigeria LNG due to reduced feedgas supplyas a result of the deteriorated operating environment in Nigeria. Excluding theimpact of the challenging operating environment in Nigeria, equity LNG salesvolumes were in line with 2012. DOWNSTREAM Quarters $ million Full year Q4 2013 Q3 2013 Q4 2012 %2 2013 2012 % Downstream CCS earnings558 892 1,190 -53 excluding identified items1 4,466 5,343 -16 472 906 1,101 -57 Downstream CCS earnings1 3,869 5,382 -28 Downstream cash flow from808 2,969 4,303 -81 operating activities 7,903 11,111 -29 Downstream net capital1,571 1,166 1,471 +7 investment 4,885 4,275 +14 Refinery processing intake2,910 2,947 2,804 +4 (thousand b/d) 2,915 2,819 +3 Oil products sales volumes6,038 6,398 6,367 -5 (thousand b/d) 6,164 6,235 -1 Chemicals sales volumes4,412 4,620 4,620 -5 (thousand tonnes) 17,386 18,669 -7 1 Fourth quarter 2012 and full year 2012 comparatives restated for accountingpolicy change (see Note 2) 2 Q4 on Q4 change Fourth quarter Downstream earnings excluding identified items were $558 millioncompared with $1,190 million for the fourth quarter 2012. Identified items werea net charge of $86 million, compared with a net charge of $89 million for thefourth quarter 2012 (see page 6). Compared with the fourth quarter 2012, Downstream earnings excluding identifieditems were mainly impacted by significantly weaker refining industryconditions, in particular in Asia and Europe. Earnings also reflected lowercontributions from marketing and trading. This was partly offset by positivecontributions from the Motiva joint venture in the United States and by higherChemicals earnings, as a result of improved chemicals industry conditions inAsia and the United States, as well as continued strong operating performance. Oil products sales volumes decreased by 5% compared with the same period a yearago, as a result of lower marketing and trading volumes, partly offset by anaccounting policy change (see Note 1b). Chemicals sales volumes also decreased by 5% compared with the same quarterlast year, mainly as a result of an accounting policy change (see Note 1b) andcontract expirations, partly offset by higher trading volumes. Chemicalsmanufacturing plant availability of 91% was in line with the fourth quarter2012 and reflected continued strong operating performance, offset by higherplanned maintenance. Refinery intake volumes were 4% higher compared with the same quarter lastyear, mainly as a result of an accounting policy change (see Note 1b) and alsofrom higher volumes from the Motiva joint venture. Refinery availability was93%, compared with 92% for the fourth quarter 2012. Full year Downstream earnings excluding identified items were $4,466 millioncompared with $5,343 million in 2012. Identified items were a net charge of$597 million, compared with a net gain of $39 million in 2012 (see page 6). Compared with 2012, Downstream earnings excluding identified items reflectedhigher contributions from Chemicals and trading, with continued strongcontributions from marketing, which were broadly similar to 2012. This was morethan offset by significantly lower realised refining margins, mainly as aresult of a severe deterioration of industry conditions in most regions.Contributions from North American refineries were also impacted by the narrowerprice differential between North American crude oil markers and the Brent crudeoil marker. As a result of these developments, refining incurred a loss in2013. Oil products sales volumes were 1% lower compared with 2012, reflecting lowermarketing and trading volumes, partly offset by the effect of an accountingpolicy change (see Note 1b). Chemicals sales volumes decreased by 7% compared with 2012, mainly as a resultof an accounting policy change (see Note 1b) and contract expirations, partlyoffset by higher trading volumes. Chemicals manufacturing plant availabilityincreased to 92% from 91% in 2012, reflecting improved operational performance. Refinery intake volumes were 3% higher than in 2012, mainly as a result of anaccounting policy change (see Note 1b). Refinery availability was 92%, comparedwith 93% in 2012. CORPORATE AND NON-CONTROLLING INTEREST Quarters $ million Full year Q4 2013 Q3 2013 Q4 2012 2013 2012 Corporate and Non-controlling interest(120) 99 48 excl. identified items1 (91) (191) Of which: (73) 135 82 Corporate1 73 31 (47) (36) (34) Non-controlling interest (164) (222) (166) 52 48 Corporate and Non-controlling interest1 238 (462) 1 Fourth quarter 2012 and full year 2012 comparatives restated for accountingpolicy change (see Note 2) Fourth quarter Corporate results and Non-controlling interest excludingidentified items were a loss of $120 million, compared with a gain of $48million in the same period last year. Identified items for the fourth quarter2013 were a net charge of $46 million, whereas earnings for the fourth quarter2012 did not include any identified items (see page 6). Compared with the fourth quarter 2012, Corporate results excluding identifieditems mainly reflected higher net interest expense and adverse currencyexchange rate effects, partly offset by lower costs. Full year Corporate results and Non-controlling interest excluding identifieditems were a loss of $91 million compared with a loss of $191 million in 2012.Identified items for 2013 were a net gain of $329 million, compared with a netcharge of $271 million in 2012 (see page 6). Compared with 2012, Corporate results excluding identified items mainlyreflected lower net interest expense and lower costs, partly offset by adversecurrency exchange rate effects. FORTHCOMING EVENTS Shell's annual Management Day is scheduled for March 13, 2014 in London, UnitedKingdom, and will also be webcast on www.shell.com/investor. On March 17, 2014a Management Day will be held in New York, United States. First quarter 2014 results and first quarter 2014 dividend are scheduled to beannounced on May 1, 2014. Second quarter 2014 results and second quarter 2014dividend are scheduled to be announced on July 31, 2014. Third quarter 2014results and third quarter 2014 dividend are scheduled to be announced onOctober 30, 2014. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF INCOME Quarters $ million Full year Q4Q4 2013 Q3 2013 20121 %2 2013 20121 % 109,243 116,513 118,047 Revenue 451,235 467,153 Share of profit of joint2,024 1,515 2,127 ventures and associates 7,275 8,948 212 230 2,437 Interest and other income 1,089 5,599 Total revenue and other111,479 118,258 122,611 income 459,599 481,700 85,853 91,842 93,350 Purchases 353,199 369,725 Production and manufacturing7,512 7,416 7,319 expenses 28,386 26,215 Selling, distribution and3,861 3,566 3,698 administrative expenses 14,675 14,465 428 291 416 Research and development 1,318 1,307 1,766 1,636 1,167 Exploration 5,278 3,104 Depreciation, depletion and5,629 4,153 3,835 amortisation 21,509 14,615 470 392 379 Interest expense 1,642 1,757 5,960 8,962 12,447 -52 Income before taxation 33,592 50,512 -33 4,138 4,225 5,691 Taxation 17,066 23,552 1,822 4,737 6,756 -73 Income for the period 16,526 26,960 -39 Income attributable to41 60 28 non-controlling interest 155 248 Income attributable to Royal1,781 4,677 6,728 -74 Dutch Shell plc shareholders 16,371 26,712 -39 1 Restated for accounting policy change (see Note 2) 2 Q4 on Q4 change EARNINGS PER SHARE Quarters $ Full year Q4 2013 Q3 2013 Q4 20121 2013 20121 0.28 0.75 1.07 Basic earnings per share 2.60 4.27 0.28 0.75 1.07 Diluted earnings per share 2.60 4.26 1 Restated for accounting policy change (see Note 2) SHARES1 Quarters Millions Full year Q4 2013 Q3 2013 Q4 2012 2013 2012 Weighted average number of shares as the basis for: 6,272.9 6,269.7 6,282.8 Basic earnings per share 6,291.1 6,261.2 6,275.1 6,272.5 6,289.2 Diluted earnings per share 6,293.4 6,267.8 Shares outstanding at the end of6,295.4 6,282.2 6,305.9 the period 6,295.4 6,305.9 1 Royal Dutch Shell plc ordinary shares of euro 0.07 each CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Quarters $ million Full year Q4Q4 2013 Q3 2013 20121 2013 20121 1,822 4,737 6,756 Income for the period 16,526 26,960 Other comprehensive income, net of tax: Items that may be reclassified to income in later periods: (326) 1,064 36 Currency translation differences (1,938) 1,394 Unrealised gains/(losses) on28 (154) (683) securities (166) (815) (2) 25 101 Cash flow hedging gains/(losses) 178 31 Share of other comprehensive loss(43) (39) (179) of joint ventures and associates (167) (222) (343) 896 (725) Total (2,093) 388 Items that are not reclassified to income in later periods: 2,370 (557) (2,500) Retirement benefits remeasurements 3,833 (2,578) 2,370 (557) (2,500) Total 3,833 (2,578) Other comprehensive income/(loss)2,027 339 (3,225) for the period 1,740 (2,190) 3,849 5,076 3,531 Comprehensive income for the period 18,266 24,770 Comprehensive income attributable(14) 34 46 to non-controlling interest 23 300 Comprehensive income attributable to Royal Dutch Shell plc3,863 5,042 3,485 shareholders 18,243 24,470 1 Restated for accounting policy change (see Note 2) CONDENSED CONSOLIDATED BALANCE SHEET $ million Sept 30, Dec 31, Dec 31, 2013 2013 20121 Assets Non-current assets: Intangible assets 4,394 4,348 4,470 Property, plant and equipment 191,897 186,541 172,293 Joint ventures and associates 34,613 34,010 38,350 Investments in securities 4,715 4,703 4,867 Deferred tax 5,785 5,514 4,288 Retirement benefits 3,574 3,205 2,301 Trade and other receivables 9,191 9,633 8,991 254,169 247,954 235,560 Current assets: Inventories 30,009 29,820 30,781 Trade and other receivables 63,638 62,561 65,403 Cash and cash equivalents 9,696 14,278 18,550 103,343 106,659 114,734 Total assets 357,512 354,613 350,294 Liabilities Non-current liabilities: Debt 36,218 31,972 29,921 Trade and other payables 4,065 4,198 4,175 Deferred tax 11,943 11,678 10,312 Retirement benefits 11,182 13,738 15,290 Decommissioning and other provisions 19,698 18,839 17,435 83,106 80,425 77,133 Current liabilities: Debt 8,344 5,106 7,833 Trade and other payables 70,112 71,988 72,839 Taxes payable 11,173 13,110 12,684 Retirement benefits 382 383 402 Decommissioning and other provisions 3,247 3,195 3,221 93,258 93,782 96,979 Total liabilities 176,364 174,207 174,112 Equity attributable to Royal Dutch Shellplc shareholders 180,047 179,147 174,749 Non-controlling interest 1,101 1,259 1,433 Total equity 181,148 180,406 176,182 Total liabilities and equity 357,512 354,613 350,294 1 Restated for accounting policy change (see Note 2) 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, 20131 542 (2,287) (3,752) 180,246 174,749 1,433 176,182 Comprehensiveincome for theperiod - - 1,872 16,371 18,243 23 18,266 Capitalcontributions from,and other changesin, non-controllinginterest - - - 18 18 (103) (85) Dividends paid - - - (11,338) (11,338) (252) (11,590) Scrip dividends2 12 - (12) 4,140 4,140 - 4,140 Repurchases ofshares3 (12) - 12 (5,757) (5,757) - (5,757) Shares held intrust: net sales/(purchases) anddividends received - 355 - 126 481 - 481 Share-basedcompensation - - (157) (332) (489) - (489) At December 31,2013 542 (1,932) (2,037) 183,474 180,047 1,101 181,148 At January 1, 20121 536 (2,990) (1,961) 162,895 158,480 1,486 159,966 Comprehensiveincome for theperiod1 - - (2,242) 26,712 24,470 300 24,770 Capitalcontributions from,and other changesin, non-controllinginterest - - - 39 39 (61) (22) Dividends paid - - - (10,955) (10,955) (292) (11,247) Scrip dividends2 9 - (9) 3,565 3,565 - 3,565 Repurchases ofshares3 (3) - - 3 (1,728) (1,728) - (1,728) Shares held intrust: net sales/(purchases) anddividends received - 703 - 150 853 - 853 Share-basedcompensation - - 457 (432) 25 - 25 At December 31,20121 542 (2,287) (3,752) 180,246 174,749 1,433 176,182 1 Restated for accounting policy change (see Note 2) 2 Under the Scrip Dividend Programme some 125.6 million A shares, equivalent to$4.1 billion, were issued during 2013 and some 103.8 million A shares,equivalent to $3.6 billion, were issued during 2012. 3 Includes shares committed to repurchase and repurchases subject to settlementat the end of the period CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Quarters $ million Full year Q4 2013 Q3 2013 Q4 20121 2013 20121 Cash flow from operating activities 1,822 4,737 6,756 Income for the period 16,526 26,960 Adjustment for: 4,677 4,965 5,966 - Current taxation 18,582 22,722 436 354 324 - Interest expense (net) 1,448 1,543 - Depreciation, depletion and5,629 4,153 3,835 amortisation 21,509 14,615 (87) (38) (2,083) - Net gains on sale of assets (382) (4,228) - Decrease/(increase) in working(1,682) 551 994 capital 2,988 3,391 - Share of profit of joint(2,024) (1,515) (2,127) ventures and associates (7,275) (8,948) - Dividends received from joint1,865 1,307 2,655 ventures and associates 7,117 10,573 - Deferred taxation, retirement benefits, decommissioning (938) (907) (422) and other provisions (2,701) 341 1,338 788 553 - Other 2,937 201 Net cash from operating11,036 14,395 16,451 activities (pre-tax) 60,749 67,170 (5,008) (3,986) (6,538) Taxation paid (20,309) (21,030) Net cash from operating6,028 10,409 9,913 activities 40,440 46,140 Cash flow from investing activities (14,508) (8,788) (10,674) Capital expenditure2 (40,145) (32,576) Investments in joint ventures and(523) (352) (217) associates (1,538) (3,028) 432 79 1,513 Proceeds from sales of assets 1,212 6,346 Proceeds from sales of joint109 212 415 ventures and associates 538 698 2 (63) (30) Other investments (net) (388) (86) 37 31 53 Interest received 175 193 Net cash used in investing(14,451) (8,881) (8,940) activities (40,146) (28,453) Cash flow from financing activities Net increase/(decrease) in debt with maturity period 3,239 124 (467) within three months 3,126 (165) 4,366 4,402 1,813 Other debt: New borrowings 9,146 5,108 (464) (672) (278) Repayments (6,877) (4,960) (650) (323) (283) Interest paid (1,307) (1,428) Change in non-controlling(60) 8 25 interest (51) 23 Cash dividends paid to: - Royal Dutch Shell plc(1,610) (1,637) (1,634) shareholders (7,198) (7,390) (36) (136) (26) - Non-controlling interest (252) (292) (996) (1,525) (453) Repurchases of shares (5,000) (1,492) Shares held in trust: net (purchases)/sales and dividends66 (189) (43) received (565) (34) Net cash used in financing3,855 52 (1,346) activities (8,978) (10,630) Currency translation differences relating to cash and(14) 158 84 cash equivalents (170) 201 (Decrease)/increase in cash and(4,582) 1,738 (289) cash equivalents (8,854) 7,258 Cash and cash equivalents at14,278 12,540 18,839 beginning of period 18,550 11,292 Cash and cash equivalents at end9,696 14,278 18,550 of period 9,696 18,550 1 Restated for accounting policy change (see Note 2) 2 See Note 6 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of preparation The unaudited quarterly and full year Condensed Consolidated FinancialStatements of Royal Dutch Shell plc and its subsidiaries (collectively known asShell) have been prepared on the basis of the same accounting principles as,and should be read in conjunction with, the Annual Report and Form 20-F for theyear ended December 31, 2012 (pages 103 to 108) as filed with the U.S.Securities and Exchange Commission, except as described below: A) Revised IAS 19 Employee Benefits was adopted on January 1, 2013, withretrospective effect (see Note 2). B) IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements andrevised standards IAS 27 Separate Financial Statements and IAS 28 Investmentsin Associates and Joint Ventures were adopted on January 1, 2013. The standardsreinforce the principles for determining when an investor controls anotherentity and in certain cases amend the accounting for arrangements where aninvestor has joint control. The impact of the changes on the accounting forShell's interests is not significant, hence comparative information was notrestated; the major investments affected are listed in Note 3. C) IFRS 13 Fair Value Measurement was adopted on January 1, 2013, with prospectiveeffect. The standard affects nearly all instances where assets and liabilitiesare currently recognised at fair value, primarily by refining the measurementconcept to represent an asset or liability's exit value. The standard alsointroduces certain additional considerations to the measurement process andadditional disclosures. The impact of the changes for Shell is not significant. The financial information presented in these Condensed Consolidated FinancialStatements does not constitute statutory accounts within the meaning of section434(3) of the Companies Act 2006. Statutory accounts for the year endedDecember 31, 2012 were published in Shell's Annual Report and a copy deliveredto the Registrar of Companies in England and Wales. The auditors' report onthose accounts was unqualified, did not include a reference to any matters towhich the auditors drew attention by way of emphasis without qualifying thereport and did not contain a statement under sections 498(2) or (3) of theCompanies Act 2006. 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 is defined as capital expenditure as reported in theCondensed Consolidated Statement of Cash Flows, adjusted for: proceeds fromdisposals (excluding those in the Corporate segment relating to otherinvestments); 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. 2. Accounting for defined benefit plans Revised IAS 19 Employee Benefits (IAS 19R) was adopted on January 1, 2013, withretrospective effect; comparative information is therefore restated. The revised standard requires immediate recognition of actuarial gains andlosses and return on assets arising in connection with defined benefit plansthrough other comprehensive income (see page 12). Previously, Shell applied thecorridor method of accounting under which amounts falling inside the corridorremained unrecognised, while amounts falling outside it were recognised(amortised) in income over a number of years. For the periods presented in thisReport, the elimination of this amortisation is approximately offset by lowerinterest income being recognised in income under the IAS 19R "net interest"approach. Under this approach, interest income from defined benefit plan assetsis determined based on the same discount rate as applied to measure planobligations, rather than on an expected rate of return reflecting the plan'sinvestment portfolio. The following table sets out the impact of the change on relevant lines in theCondensed Consolidated Balance Sheet, on gearing, and on the return on averagecapital employed (ROACE, see Note 5) for the twelve months ending December 31,2012. $ million Dec 31, 2012 Effect of As previously accounting policy stated change Restated Non-current assets Deferred tax 4,045 243 4,288 Retirement benefits 12,575 (10,274) 2,301 Non-current liabilities Deferred tax 15,590 (5,278) 10,312 Retirement benefits 6,298 8,992 15,290 Total equity Other reserves 10,021 (13,773) (3,752) Retained earnings 180,218 28 180,246 Gearing1 9.2% 0.6% 9.8% ROACE 12.7% 0.9% 13.6% 1 Net debt (total debt less cash and cash equivalents) as percentage of totalcapital (net debt plus equity) The effect of the accounting policy change at January 1, 2012 was to reduceAccumulated other comprehensive income (within Other reserves) by $10,945million, Retained earnings by $92 million and Total equity by $11,037 million. Income for the fourth quarter 2012 increased by $57 million, of which Upstreamsegment earnings increased by $24 million, Downstream segment earningsincreased by $27 million and Corporate segment earnings increased by $6million. Basic and diluted earnings per share for the fourth quarter 2012increased by $0.01. There was no impact on net cash from operating activities. Income for the full year 2012 increased by $120 million, of which Upstreamsegment earnings increased by $82 million, Downstream segment earningsincreased by $32 million and Corporate segment earnings increased by $6million. Basic and diluted earnings per share for the full year 2012 increasedby $0.02. There was no impact on net cash from operating activities. 3. Major investments in joint ventures and associates Of the major investments in joint ventures and associates listed in the AnnualReport and Form 20-F for the year ended December 31, 2012 (page 117), Aera,Deer Park and Saudi Aramco Shell Refinery have been assessed as jointoperations under IFRS 11 Joint Arrangements (see Note 1b) and are no longeraccounted for using the equity method as from January 1, 2013. 4. 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. 5. 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. 6. Acquisition of Repsol LNG businesses On January 1, 2014, Shell completed the acquisition of part of Repsol S.A.'sLNG portfolio for a net cash purchase price of $3.8 billion, subject topost-closing adjustments. Of this amount, $3.4 billion was paid on December 31,2013 (reflected within Trade and other receivables in the CondensedConsolidated Balance Sheet and within Capital expenditure in the CondensedConsolidated Statement of Cash Flows), with the balance settled on completion. 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, 2012 (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, January30, 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. January 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 +1 713 241 1042- Media: International +44 (0) 207 934 5550; USA +1 713 241 4544