7th Aug 2008 16:42
Royal Dutch Shell plc
Consolidated Interim Report 2008
Period January 1, 2008 - June 30, 2008 (unaudited)
All amounts shown in this Consolidated Interim Report are unaudited.
In this report, excluding in the financial statements, we have aggregated ourequity position in projects for both direct and indirect interest (forexample, we have aggregated our indirect interest in North West Shelf LNG viaour 34% shareholding in Woodside Energy Ltd).In this report "Shell", "Shell group" and "Royal Dutch Shell" are sometimesused for convenience where references are made to Royal Dutch Shell and itssubsidiaries in general. Likewise, the words "we", "us" and "our" are alsoused to refer to subsidiaries in general or to those who work for them. Theseexpressions are also used where no useful purpose is served by identifying theparticular company or companies. "Subsidiaries", "Shell subsidiaries" and"Shell companies" as used in this report refer to companies in which RoyalDutch Shell either directly or indirectly has control, by having either amajority of the voting rights or the right to exercise a controllinginfluence. The companies in which Shell has significant influence but notcontrol are referred to as "associated companies" or "associates" andcompanies in which Shell has joint control are referred to as "jointlycontrolled entities". In this report, associates and jointly controlledentities are also referred to as "equity-accounted investments".This report 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 RoyalDutch Shell to market risks and statements expressing management'sexpectations, beliefs, estimates, forecasts, projections and assumptions.These forward-looking statements are identified by their use of terms andphrases such as "anticipate", "believe", "could", "estimate", "expect","intend", "may", "plan", "objectives", "outlook", "probably", "project","will", "seek", "target", "risks", "goals", "should" and similar terms andphrases. There are a number of factors that could affect the future operationsof Royal Dutch Shell and could cause those results to differ materially fromthose expressed in the forward-looking statements included in this report,including (without limitation): (a) price fluctuations in crude oil andnatural gas; (b) changes in demand for Shell's products; (c) currencyfluctuations; (d) drilling and production results; (e) reserve estimates; (f)loss of market and industry competition; (g) environmental and physical risks;(h) risks associated with the identification of suitable potential acquisitionproperties and targets, and successful negotiation and completion of suchtransactions; (i) the risk of doing business in developing countries andcountries subject to international sanctions; (j) legislative, fiscal andregulatory developments including potential litigation and regulatory effectsarising from recategorisation of reserves; (k) economic and financial marketconditions in various countries and regions; (l) political risks, includingthe risks of expropriation and renegotiation of the terms of contracts withgovernmental entities, delays or advancements in the approval of projects anddelays in the reimbursement for shared costs; and (m) changes in tradingconditions. All forward-looking statements contained in this report areexpressly qualified in their entirety by the cautionary statements containedor referred to in this section. Readers should not place undue reliance onforward-looking statements. Each forward-looking statement speaks only as ofthe date of this report, July 31, 2008. Neither Royal Dutch Shell nor any ofits subsidiaries undertake any obligation to publicly update or revise anyforward-looking statement as a result of new information, future events orother information. In light of these risks, results could differ materiallyfrom those stated, implied or inferred from the forward-looking statementscontained in this report.
Cautionary Note to US Investors:
The United States Securities and Exchange Commission (SEC) permits oil and gascompanies, in their filings with the SEC, to disclose only proved reservesthat a company has demonstrated by actual production or conclusive formationtests to be economically and legally producible under existing economic andoperating conditions. We may use certain terms in this announcement that theSEC's guidelines strictly prohibit us from including in filings with the SEC.US Investors are urged to consider closely the disclosure in our Form 20-F,File No 001-32575 and disclosure in our Forms 6-K, File No 001-32575,available on the SEC's website www.sec.gov. You can also obtain these formsfrom the SEC by calling 1-800-SEC-0330.
Contacts
- Investor Relations: Europe: +31 70 377 4540; USA: +1 212 218 3113
- Media: Europe: +44 20 7934 3505
Interim management report
Operational and Financial Review for the six month period ended June 30, 2008
Presented under IFRS (unaudited)
$ million Six months ended June 30, 2008 2007Income for the period 20,955 16,252Attributable to minority interest 316 304Income attributable to shareholders of RoyalDutch Shell plc 20,639 15,948Shell's income for the six months ended June 30, 2008 was $20,955 million, anincrease of 29% compared to 2007 mainly reflecting higher earnings inExploration & Production and Oil Products partly offset by lower earnings inChemicals and Corporate.Exploration & ProductionSegment earnings were $11,024 million compared to $6,492 for the same periodlast year. In 2008 earnings included a net gain of $32 million mainly fromgains from divestments of $571 million, partly offset by a charge of $462million related to the mark-to-market valuation of certain UK gas contractsand tax charges of $77 million. In the comparative period of 2007 earningsincluded a net gain of $257 million mainly from gains from divestments of $352million, partly offset by a charge of $3 million related to the mark-to-marketvaluation of certain UK gas contracts and tax charges of $92 million.
Earnings, when compared to the same period in 2007, mainly reflected higher gas production volumes and the benefit of higher oil and gas prices on revenues, which were partly offset by lower oil production volumes, higher royalty expenses and higher operating costs.
Liquid realisations were 71% higher than a year ago, compared to an increase in the industry benchmarks Brent of 72% and West Texas Intermediate of 80%. Outside the USA gas realisations increased by 40%. In the USA, gas realisations increased by 43% compared to an increase in industry benchmark Henry Hub of 35%.
Hydrocarbon production was 3,246 thousand barrels of oil equivalent per day(boe/d), in line with 3,250 thousand boe/d a year ago or 1% higher adjustingfor the impact of pricing effects from production sharing contracts.Production in the first six months of 2008 compared to 2007 was negativelyimpacted by field decline, divestments and pricing effects of productionsharing contracts, offset by volumes from new fields and higher gas demand innorth west Europe mainly as a consequence of colder weather.
Gas & Power
Segment earnings were $1,573 million compared to $1,582 million for the sameperiod last year. In 2008 earnings included a charge of $11 million related tothe mark-to-market valuation of certain gas contracts. In 2007 earningsincluded gains from divestments of $357 million and a charge of $71 millionrelated to the mark-to-market valuation of certain gas contracts.
Earnings for the first six months of 2008 also included non-cash charges of some $450 million related to fair value accounting of commodity derivatives associated with long-term contracts.
Earnings, when compared to the same period in 2007, reflected strong LNG prices and LNG diversion opportunities and continued strong operational performance.
LNG sales volumes for the first half-year of 2008 were 6.59 million tonnes (Shell share) compared to 6.55 million tonnes a year ago. Higher feed gas supply was offset by higher maintenance activity when compared to the same period in 2007.
Oil Sands
Segment earnings were $600 million compared to $317 million for the same period last year. Earnings, when compared to the same period in 2007, reflected improved margins and higher profits due to higher overall average realised oil price and a refund of royalty charges earlier in the year, which were partly offset by higher operating costs.
Sales volumes declined mainly as a consequence of a reduction in production atthe mine, which was driven by a lower ore grade as a result of the executionof the mine tailings management plan, planned and unplanned maintenance andextreme weather conditions. Oil Sands mechanical availability, when comparedto the same period last year, was lower by 1 percentage point at each sitewith the mine mechanical availability at 92% and the upgrader at 94%. Thereduction was mainly driven by unplanned maintenance work earlier in the year.
Oil Products
Segment earnings were $6,906 million compared to $5,730 million for the sameperiod last year. Earnings benefited from the impact of increasing crudeprices on our inventory by $4,637 million compared to a benefit of $1,306million in the same period last year. In 2008 earnings included a gain of $181million, reflecting a divestment gain of $167 million and a tax credit of $14million. In 2007 earnings included a divestment gain of $205 million partlyoffset by a charge of $176 million related to impairment of certain assets. Inaddition, marketing and trading earnings were reduced by a non-cash charge ofaround $400 million as a result of fair value accounting of commodityderivatives.After taking into account the impact of rising crude prices, earnings, whencompared to the same period last year, were mainly impacted by lower realisedrefining margins, and higher operating costs, mainly as a result of exchangerate movements, and lower trading contributions, which were partly offset byhigher marketing margins.
Industry refining margins declined worldwide compared to the same period a year ago. Refinery availability increased to 92% compared to 89% in the same period last year mainly due to lower planned maintenance activities.
Marketing earnings, when compared to the same period a year ago, declined dueto higher operating costs, mainly as a result of exchange rate movements, andlower lubricants margins. These declines were partly offset by higher B2B andretail margins.Oil Products (marketing and trading) sales volumes increased by 4% compared tothe same period last year. Marketing sales volumes were 0.1% higher than inthe same period last year and excluding the impact of divestments 2.2% higher,mainly because of increased aviation, retail and commercial fuels sales.
Chemicals
Segment earnings were $505 million compared to $1,153 million for the same period last year. In 2008 earnings included net charges of $206 million, reflecting impairment of assets and provisions of $265 million, which was partly offset by a divestment gain of $59 million.
Earnings reflected lower margins, higher operating costs and lower income from equity-accounted investments.
Chemicals manufacturing plant availability increased to 95%, some 3 percentage points higher than in the same period last year.
Corporate
Segment earnings were $347 million compared to $978 million a year ago.Earnings in the comparative period of 2007 included gains on the sale of theequity portfolio held by the insurance companies of $404 million and the saleof property in the United Kingdom of $55 million.
Earnings, when compared to the same period in 2007, mainly reflected lower net interest income and increased exchange rate losses, partly offset by higher tax credits.
PORTFOLIO DEVELOPMENTSExploration & Production
In Australia, Shell reached an agreement with Woodside Petroleum Ltd. for the sale of various interests in North West Shelf assets, with current production of approximately 8 thousand boe/d, for some $0.3 billion.
Also in Australia, Shell signed a preliminary agreement with Arrow Energy Ltd. to jointly develop projects to extract clean-burning natural gas from coal deposits for a total anticipated value up to $0.7 billion. Completion of a definitive agreement is expected by the end of 2008.
In the USA, Shell was awarded 141 blocks and was the apparent high bidder on another 134 blocks, with high bids totalling $2.1 billion, offshore Alaska in the Chukchi Sea.
In Kazakhstan, the international members of the Kashagan consortium agreed inprinciple to sell their participating interests proportionally, allowingKazMunaiGas's stake to increase to match that of the four major shareholders.Assuming conclusion of the deal, Shell's interest will change from 18.5% to16.8%.
In Nigeria, Shell reached an agreement, amounting to some $0.6 billion, for the sale of offshore deepwater blocks OML 134 and OML 125, with current production of approximately 7 thousand boe/d.
In Peru, Shell signed a preliminary agreement with BPZ Energy Inc. to jointly explore for oil and gas in the northern part of the country.
During the first half of 2008, Shell had four notable exploration discoveriesin offshore Nigeria, Australia and Brunei and onshore USA. Shell alsosignificantly increased its overall acreage position through acquisitions ofnew exploration licences offshore northwest Australia, in the Chukchi Sea andthe Gulf of Mexico in the USA.
Gas & Power
In China, during the first quarter, binding sales and purchase agreements wereprogressed with Qatargas 4 and PetroChina, leading to the long-term supply ofLNG from Qatar to China, totalling 3 million tonnes per annum over 25 years.Agreements were signed on April 10, 2008.
In the Middle East, an agreement was reached with Qatargas 4 and the Dubai Government for the supply of LNG during the summer months for 15 years. The LNG will be delivered from Qatargas 4 and Shell's portfolio of other LNG volumes.
In Germany, the sale of the BEB Erdgas and Erdoel GmbH gas transport business(Shell share 50%) to NV Nederlandse Gasunie was closed on July 1, 2008, withall required approvals in place. Proceeds have been mainly received in July2008, with a remaining payment expected by the end of the year.
Oil Products
In France, on March 31, 2008, Shell concluded the sale of the Petit Couronne and Reichstett Vendenheim refineries, with a combined capacity of some 220 thousand barrels per day.
Also in France, on April 1, 2008, Shell concluded the sale of the Berre-l'Etang refining and petrochemical complex, with a refining capacity of 80 thousand barrels per day.
The combined cash proceeds expected from the above-mentioned sales amount to approximately $1.8 billion of which $1.5 billion was received in the second quarter 2008.
In Qatar, a Letter of Intent was signed with Qatar Petroleum International and PetroChina to build an integrated refinery and petrochemical manufacturing complex in China.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow provided by operating activities in the six month period to June 30,2008 was $21.0 billion compared to $20.0 billion a year ago. Net workingcapital increased mainly due to higher cost-valued inventory and increased netaccounts receivable.
Cash and cash equivalents amounted to $9.0 billion at the end of the period (2007: $15.1 billion). Total short and long-term debt amounted to $16.4 billion (2007: $17.5 billion).
Capital investment for the six months ended June 30, 2008 was $16.1 billion ofwhich $12.1 billion was invested in the Exploration & Production and Gas &Power segments. Capital investment in the same period of 2007 (including theminority share of Sakhalin) was $11.8 billion of which $8.9 billion wasinvested in the Exploration & Production and Gas & Power segments.In the six months ended June 30, 2007 Shell paid cash of $7.1 billion for theacquisition of the shares in Shell Canada that it did not already own. TheShell Canada acquisition was partly offset by the sale of a portion of Shell'sownership in Sakhalin Energy Investment Company Ltd.Gross proceeds from divestments in the six month period to June 30, 2008 were$2.7 billion compared to $7.5 billion a year ago. Dividends of $0.40 per sharewere declared on April 29, 2008 and July 31, 2008 totaling $0.80 per share inrespect of the first and second quarters.
During the first six months of 2008 $2.4 billion or 1% of Royal Dutch Shell shares were bought back for cancellation.
RECENT DEVELOPMENTS
On July 17, 2008 Royal Dutch Shell, through its wholly owned subsidiary ShellCanada Limited, launched an offer to acquire all of the outstanding shares ofDuvernay Oil Corp. (Duvernay) at a total price of C$5.9 billion, includingdebt. The offer is subject to certain conditions and regulatory approvals.
Duvernay is a leading acreage holder in the Western Canadian Sedimentary Basin. The company has some 1,800 square kilometers (approximately 450,000 acres) of landholdings there. Duvernay has reported over 25,000 boe/d of production, predominantly in natural gas.
PRINCIPAL RISK AND UNCERTAINTIES
The principal risks and uncertainties affecting Shell for the remaining six months of the year are described in the Annual Report and Form 20-F 2007 (pages 13 to 15).
Unaudited Condensed Consolidated Interim Financial Statements
Condensed Consolidated Statement of Income
$ million Six months ended June 30 2008 2007Revenue[A] 245,721 158,376Cost of sales 206,041 129,381Gross profit 39,680 28,995
Selling, distribution and administrative expenses 8,413 7,898 Exploration
733 722
Share of profit of equity-accounted investments 5,096 3,946 Net finance costs and other (income)/expense (193) (1,378) Income before taxation
35,823 25,699Taxation 14,868 9,447Income for the period 20,955 16,252 Income attributable to minority interest 316 304Income attributable to shareholders of RoyalDutch Shell plc 20,639 15,948Basic earnings per share (see Note 3) 3.34 2.54Diluted earnings per share (see Note 3) 3.33 2.53[A] Revenue is stated after deducting sales taxes, excise duties and similarlevies of $25,462 million in the second quarter 2008 ($48,382 millioncumulatively) and $18,993 million in the second quarter 2007 ($36,298 millioncumulatively).
The Notes on pages 10 to 11 are an integral part of these Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Balance Sheet
$ million June 30, 2008 Dec 31, 2007ASSETSNon-current assetsIntangible assets 5,336 5,366Property, plant and equipment 109,191 101,521
Investments:
equity-accounted investments 32,514 29,153financial assets 2,975 3,461Deferred tax 4,089 3,253Pre-paid pension costs 6,215 5,559Other 6,504 5,760 166,824 154,073Current assetsInventories 39,624 31,503Accounts receivable 127,241 74,238Cash and cash equivalents 8,990 9,656 175,855 115,397Total assets 342,679 269,470 LIABILITIESNon-current liabilitiesDebt 11,072 12,363Deferred tax 13,994 13,039Retirement benefit obligations 6,162 6,165Other provisions 14,086 13,658Other 4,857 3,893 50,171 49,118Current liabilitiesDebt 5,352 5,736Accounts payable and accrued liabilities 126,246 75,697Taxes payable 15,895 9,733Retirement benefit obligations 419 426Other provisions 2,687 2,792 150,599 94,384Total liabilities 200,770 143,502 EQUITYEquity attributable to shareholders of Royal 139,809 123,960Dutch Shell plcMinority interest 2,100 2,008Total equity 141,909 125,968Total liabilities and equity 342,679 269,470
The Notes on pages 10 to 11 are an integral part of these Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Statement of Changes in Equity
$ million Equity attributable to
shareholders of Royal Dutch Shell plc
Ordinary Treasury Other Retained Total Minority Total share shares reserves[A] earnings interest equity capitalAt January 1, 2008 536 (2,392) 14,148
111,668 123,960 2,008 125,968
Income/(expense) recogniseddirectly in equity - - 1,853 - 1,853 (110) 1,743Income for the period - - 20,639 20,639 316 20,955Total recognised income/(expense)for the period - - 1,853
20,639 22,492 206 22,698
Capital contributions from minorityshareholders - - - - - 27 27Changes in minority interest - - - 59 59 25 84Dividends paid - - - (4,818) (4,818) (166) (4,984)Treasury shares: net sales/(purchases)and dividends received - 442 - - 442 - 442Shares repurchased for cancellation (5) - 5 (2,237) (2,237) - (2,237)Share-based compensation - - (107) 18 (89) - (89)At June 30, 2008 531 (1,950) 15,899 125,329 139,809 2,100 141,909At January 1, 2007 545 (3,316) 8,820
99,677 105,726 9,219 114,945
Income/(expense) recogniseddirectly in equity - - 1,397 - 1,397 (101) 1,296Income for the period - - - 15,948 15,948 304 16,252Total recognised income/(expense)for the period - - 1,397
15,948 17,345 203 17,548
Capital contributions from minorityshareholders - - - - - 819 819Acquisition of Shell Canada - - - (5,445) (5,445) (1,639) (7,084)Sakhalin partial divestment - - - - - (6,711) (6,711)Other changes in minority interest - - - 7 7 (49) (42)Dividends paid - - - (4,400) (4,400) (119) (4,519)Treasury shares: net sales/(purchases)and dividends received - 552 - 552 - 552Shares repurchased for cancellation (3) - 3 (1,386) (1,386) - (1,386)Share-based compensation - - 222
222 - 222At June 30, 2007 542 (2,764) 10,442 104,401 112,621 1,723 114,344[A] See Note 2.
The Notes on pages 10 to 11 are an integral part of these Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Statement of Cash Flows
$ million Six months ended June 30 2008 2007Cash flow from operating activities:Income for the period 20,955 16,252Adjustment for:Current taxation 15,106 9,727Interest (income)/expense 447 328
Depreciation, depletion and amortisation 6,585 6,498(Profit)/loss on sale of assets (1,038) (1,495)Decrease/(increase) in net working capital (8,967) (2,103)Share of profit of equity-accounted investments (5,096) (3,946)Dividends received from equity-accounted investments 4,199 3,106Deferred taxation and other provisions 170 62Other 104 (1,123)Cash flow from operating activities (pre-tax) 32,465 27,306Taxation paid (11,435) (7,277)Cash flow from operating activities 21,030 20,029Cash flow from investing activities:Capital expenditure (14,781) (11,013)Investments in equity-accounted investments (1,137) (689)Proceeds from sale of assets 2,471 6,650Proceeds from sale of equity-accounted investments 333 394Proceeds from sale of/(additions to) financial assets 285 1,140Interest received 554 580Cash flow from investing activities (12,275) (2,938)Cash flow from financing activities:Net Increase/(decrease) in debt with maturity periodwithin three months (24) (844)Other debt:New borrowings 316 4,396Repayments (2,143) (1,887)Interest paid (667) (641)Change in minority interest 27 (6,695)Net issue/(repurchase) of shares (2,423) (1,386)Dividends paid to:Shareholders of Royal Dutch Shell plc (4,818) (4,400)Minority interest (166) (119)Treasury shares: net sales/(purchases) and dividends received 442 552Cash flow from financing activities (9,456) (11,024)Currency translation differences relating to cash and cash equivalents 35 48Increase/(decrease) in cash and cash equivalents (666) 6,115Cash and cash equivalents at January 1 9,656 9,002Cash and cash equivalents at June 30
8,990 15,117
The Notes on pages 10 to 11 are an integral part of these Condensed Consolidated Interim Financial Statements.
Notes to the Condensed Consolidated Interim Financial Statements
1. Basis of preparation
These Condensed Consolidated Interim Financial Statements of Royal Dutch Shellplc and its subsidiaries (collectively known as "Shell" or the "Shell group")are prepared on the same basis as, and should be read in conjunction with, theAnnual Report on Form 20-F for the year ended December 31, 2007 (pages 117 to121).
The Oil Sands operations, which were previously reported within the Exploration & Production segment, are reported as a separate segment with effect from the fourth quarter 2007. Prior period financial statements have been reclassified accordingly.
The six month period ended June 30, 2008 Condensed Consolidated InterimFinancial Statements of Royal Dutch Shell plc and its subsidiaries have beenprepared in accordance with International Accounting Standard (IAS) 34 InterimFinancial Reporting.
These Condensed Consolidated Interim Financial Statements are unaudited; however, in the opinion of Shell, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods.
The Condensed Consolidated Interim Financial Statements do not comprisestatutory accounts within the meaning of section 240 of the Companies Act 1985(section 434 of the Companies Act 2006). Statutory accounts for the year endedDecember 31, 2007 were approved by the Board of Directors on March 12, 2008and delivered to the Registrar of Companies. The report of the auditors onthose accounts was unqualified, did not contain an emphasis of matterparagraph and did not contain any statement under section 237 of the CompaniesAct 1985 (section 498 of the Companies Act 2006).2. Other reserves $ million Capital Share Share Merger redemption premium plan reserve[A] reserve reserve reserve Other TotalAt January 1, 2008 3,444 48
154 1,122 9,380 14,148
Cumulative currency translation differences - - - - 2,085 2,085Unrealised gains/(losses) on securities - - - - (249) (249)Unrealised gains/(losses) on cash flow hedges - -
- - 17 17 Income/(expense) recognised directly in equity - - - - 1,853 1,853
Share repurchased for cancellation - 5
- - - 5Share-based compensation - - - (107) - (107)At June 30, 2008 3,444 53 154 1,015 11,233 15,899 At January 1, 2007 3,444 39 154 736 4,447 8,820
Cumulative currency translation differences - - - - 2,218 2,218Unrealised gains/(losses) on securities - - - - (738) (738)Unrealised gains/(losses) on cash flow hedges - -
- - (83) (83) Income/(expense) recognised directly in equity - - - - 1,397 1,397
Share repurchased for cancellation - 3
- - - 3Share-based compensation - - - 222 - 222At June 30, 2007 3,444 42 154 958 5,844 10,442
[A] The merger reserve was established as, in 2005, Royal Dutch Shell plc ("Royal Dutch Shell") became the single parent company of Royal Dutch Petroleum Company ("Royal Dutch") and of Shell Transport and Trading Company Limited (previously known as The "Shell" Transport and Trading Company, p.l.c.) ("Shell Transport") the two former public parent companies of the Group. It relates primarily to the difference between the nominal value of Royal Dutch Shell plc shares issued and the nominal value of Royal Dutch Petroleum Company and Shell Transport and Trading Company Limited shares received.
3. Earnings per share Six months ended June 30, 2008 2007Income attributable to 20,639 15,948shareholders of Royal DutchShell plc ($ million) Basic weighted average numberof ordinary shares 6,182,927,817 6,284,367,046Diluted weighted averagenumber of ordinary shares 6,199,685,973 6,303,195,713
4. Information by business segment
With effect from 2007, segment information is reported in accordance with IFRS 8 Operating Segments, which has replaced IAS 14 Segment Reporting.
Six months ended June 30, 2008
$ million Exploration & Gas & Oil Oil Production Power Sands Products Chemicals Corporate TotalRevenueThird party 10,654 11,979 614 197,442 25,013 19 245,721Inter-segment 25,184 726 1,621 2,255 3,236 - Segment earnings 11,024 1,573 600 6,906 505 347 20,955
Six months ended June 30, 2007
$ million Exploration & Gas & Oil Oil Production Power Sands Products Chemicals Corporate TotalRevenueThird party 6,513 7,536 541 124,780 18,965 40 158,375Inter-segment 17,542 535 777 1,486 2,123 - Segment earnings 6,492 1,582 317 5,730 1,153 978 16,2525. Ordinary share capital $ million June 30, 2008 Dec 31, 2007Allotted, called up and fully paidClass A ordinary shares 300 303Class B ordinary shares 231 233Sterling deferred [A] [A] 531 536[A] Less than $1millionResponsibility statementIt is confirmed that to the best of our knowledge: (a) thecondensed set of financial statements has been prepared in accordance with IAS34 `Interim Financial Reporting'; (b) the interim management report includes afair review of the information required by DTR 4.2.7R (indication of importantevents during the first six months and description of principal risks anduncertainties for the remaining six months of the year); and (c) the interimmanagement report includes a fair review of the information required by DTR4.2.8R (disclosure of related parties' transactions and changes therein).The Directors of Royal Dutch Shell plc are listed in the AnnualReport and Form 20-F for the year ended December 31, 2007 with the exceptionof Dr Josef Ackermann who was elected as a Director with effect from May 21,2008. A list of current Directors is available at www.shell.com/investor.Jeroen van der Veer Peter VoserChief Executive Chief Financial OfficerJuly 31, 2008 July 31, 2008
vendorRelated Shares:
RDSA.L