28th Jul 2005 06:30
Royal Dutch ShellSummary resultsSECOND QUARTER $ million SIX MONTHS 2005 2004 % 2005 2004 % 5,236 3,897 +34 Income attributable to shareholders* 11,911 8,598 +39 Estimated current cost of supplies (CCS) adjustment for Oil Products 610 234 segment - see note 2 1,735 604 4,626 3,663 +26 CCS earnings * 10,176 7,994 +27 * including discontinued operations - see note 3 6,322 5,173 Cash from operating activities 15,002 13,310 Cash from operating activities excluding net working capital 8,655 7,199 movements and taxation paid/accrued 17,762 13,778 4,135 3,422 Capital investment 7,375 6,542 3,526 3,578 Upstream production (thousand boe/d) 3,684 3,821 Strong earnings and cash generation * Income of $5.2 billion * $6.3 billion cash from operations and $0.7 billion from divestments * Upstream earnings increased with oil price increases * Strong Downstream Oil Products earnings and asset utilisation * 3,526 thousand barrels of oil equivalent (boe) per day production * Successful exploration drilling and acreage access; decision to increase exploration expenditure to $1.8 billion annually for the years 2005 and 2006 * Second quarterly dividend declared equivalent to some $2 billion (subject to exchange rates)Chief Executive Jeroen van der Veer said, "Our good earnings and cashgeneration can be used for dividends, investments and share buybacks. Thecompany continues with its strategy of 'more upstream and profitabledownstream'. We focus on project management, operations, customers andtechnology. Upstream production was slightly above our expectations. We canconfirm exploration success and are futher increasing our exploration spendingand activity levels. Downstream operational performance was again excellent."A report by Royal Dutch Shell plc ('Royal Dutch Shell'). The information inthese quarterly results reflects the financial position and results of RoyalDutch Shell. All amounts shown throughout this report are unaudited. * Basic earnings per share for Royal Dutch Shell (see note 8) in the second quarter 2005 were $0.78, an increase of 36% compared to a year ago. Basic CCS earnings per share for Royal Dutch Shell were $0.69, an increase of 27% compared to a year ago. * Second quarter 2005 interim dividends have been announced of euro 0.23 per A and B share for Royal Dutch Shell.Segment earningsSECOND QUARTER $ million SIX MONTHS 2005 2004 % 2005 2004 % Segment earnings 2,745 1,855 Exploration & Production 5,700 4,562 11 334 Gas & Power 487 856 2,028 1,546 Oil Products (CCS basis) 3,908 2,729 259 375 Chemicals 708 596 Other segments/Corporate/Minority (417) (447) interest (627) (749) ______ 4,626 3,663 +26 CCS earnings 10,176 7,994 +27 The earnings in the second quarter 2005 reflect the following items, whichin aggregate were a net charge of $545 million (compared to a net charge of$573 million in the second quarter 2004): * Exploration & Production earnings included net charges of $149 million, mainly from a $270 million charge related to the mark-to-market valuation of certain UK gas contracts and net tax charges, partly offset by divestment gains. * Gas & Power earnings included a net charge of $226 million, mainly related to the expected divestment of power generation assets held through joint venture company InterGen. * Chemicals included legal and environmental charges of some $80 million. * Corporate segment reflected the $90 million settlement, subject to court approval, of a class action and related litigation by participants in certain United States employee savings plans.Key features of the second quarter 2005 * Basic earnings per share for Royal Dutch Shell (see note 8) in the second quarter 2005 were $0.78, an increase of 36% compared to a year ago. Basic CCS earnings per share for Royal Dutch Shell were $0.69, an increase of 27% compared to a year ago. * Second quarter 2005 interim dividends have been announced of euro 0.23 per share for Royal Dutch Shell. * Reported income of $5,236 million was 34% higher than a year ago. * CCS earnings (i.e. on an estimated current cost of supplies basis for the Oil Products segment earnings) were $4,626 million, 26% higher than a year ago. Earnings were higher in Exploration & Production and Oil Products, whereas Gas & Power and Chemicals were lower. Income in the second quarter 2005 included net charges of $545 million mainly from mark-to-market valuations in Exploration & Production and charges in Gas & Power, Chemicals and Corporate, versus net charges of $573 million in 2004. * The return on average capital employed (ROACE) on a reported income basis (see note 4) was 23.6%. * Exploration & Production segment earnings of $2,745 million were 48% higher than a year ago ($1,855 million), mainly reflecting higher realised prices partly offset by higher costs including depreciation. Segment earnings included net charges of $149 million, mainly from a $270 million charge related to the mark-to-market valuation of certain UK gas contracts and net tax charges, partly offset by divestment gains, versus net charges a year ago of $471 million. Excluding these charges, segment earnings increased by 24%. * Hydrocarbon production was 3,526 thousand boe per day. Excluding the impact of divestments of 21 thousand boe per day and the end of a Production Sharing Contract (PSC) in the Middle East of 116 thousand boe per day, total production was 2% higher than a year ago. * Gas & Power segment earnings were $11 million, including a net charge of $226 million mainly related to the expected divestment of power generation assets held through the joint venture InterGen, compared to segment earnings of $334 million a year ago, which included a divestment gain of $18 million. Excluding these items earnings were lower despite higher liquefied natural gas (LNG) volumes and prices, mainly due to loss of earnings from divested midstream assets and other items such as lower trading and LNG shipping results. * Oil Products CCS earnings were $2,028 million compared to $1,546 million for the second quarter of 2004. Higher earnings due to strong refining margins and increased trading results were partially offset by lower marketing earnings. Asset utilisation continued to be strong. * Chemicals segment earnings were $259 million, and included legal and environmental charges of some $80 million compared to earnings of $375 million in the same quarter last year with similar margins. * Cash flow from operating activities, excluding net working capital movements and taxation paid/accrued, was $8.7 billion, compared to $7.2 billion a year ago. * Gearing, including other commitments such as operating leases and retirement benefits, and net of cash holdings minus operational cash requirements was 13.0% versus, on a comparable Royal Dutch Shell basis, 14.7% at the end of the first quarter 2005; cash and cash equivalents increased by $1.4 billion to $11.5 billion and debt decreased by $0.3 billion. * Capital investment for the quarter was $4.1 billion (including the minority share of Sakhalin) of which $3.2 billion was invested in the Upstream segments. * Gross proceeds from divestments for the second quarter of 2005 were $0.7 billion. * Share purchases for cancellation for the year to date amounted to $0.5 billion and were suspended during the second quarter as per requirements as a result of the unification process of Royal Dutch and Shell Transport.Royal Dutch Shell outlook 2005 * Royal Dutch Shell reaffirms the commitment previously made by Royal Dutch and Shell Transport to return surplus cash for the year 2005 in the range of $3 billion to $5 billion through market purchases of shares. Buy backs are expected to recommence after the end of the subsequent offer acceptance period for Royal Dutch shares, 9 August 2005. * The production outlook for 2005 and 2006 is unchanged at 3.5 to 3.8 million boe per day. The outlook for 2009 of 3.8 to 4.0 million boe per day is unchanged. * Building on the successful exploration programme for the first half 2005, Royal Dutch Shell will increase the exploration expenditure for the years 2005 and 2006 to $1.8 billion annually. * Shell's overall capital investment programme will reflect its recently announced new project opportunities such as LNG projects in Qatar, Nigeria and Libya, as well as market inflation specific to large construction projects and foreign exchange rate movements. The overall Shell investment programme for 2006 and beyond, including these projects and Sakhalin II, will be subject to review, consideration and approval by its Board later in 2005. The latest estimate for Shell's 2005 total capital investment, across all its business activities, remains some $15 billion (excluding the investment by the 45% minority partners of Sakhalin II).Second quarter 2005 investments and portfolio developments Upstream portfolio developments during the quarter were: Shell signed a Memorandum of Understanding with Gazprom under which Gazpromwould acquire up to 25 per cent plus one share in the Sakhalin II venture andShell would acquire a 50 per cent interest in the Western Siberia ZapolyarnoyeNecomian field in addition to other assets and cash, subject to valuation. Sakhalin Energy Investment Company (SEIC), in which Shell currently holds a55% share, provisionally anticipates that Phase 2 project investment costscould be of the order of $20 billion, covering all planned development activityincluding drilling activity through to 2014, with LNG deliveries starting inthe summer of 2008. The estimates remain subject to SEIC shareholders reviewand confirmation. SEIC has over 75% of its LNG capacity sold under long-termcontracts. The recoverable resource base in Sakhalin II is 17.3 trillion cubicfeet (tcf) of gas and 1 billion barrels of oil which means a projectdevelopment cost of some $5 to $6 per barrel of oil equivalent and includes theLNG plant. Shell signed an integrated gas deal with the Libyan National OilCorporation for the redevelopment and possible expansion of an LNG facility andexploration rights in five blocks in the Sirte Basin. Together with PetroChina, Shell will proceed to develop the Changbei gasfield. The field will be operated by Shell under a production sharing contractand is expected to deliver 1.5 billion cubic metres per annum (0.14 billioncubic feet (bcf) per day) of natural gas starting in 2007 rising to 3 billioncubic metres per annum (0.29 bcf per day) by 2008 (Shell share 50%). Shell, with Chevron, was awarded rights to four deepwater explorationblocks in the Carnarvon Basin offshore Western Australia. In Algeria, Shell wontwo exploration blocks in the 6th licensing round. Overall, this year Shell hasaccessed acreage in eleven countries, including seven new basin entries. In the second quarter 2005, 12 successful exploration and exploratoryappraisal wells were drilled in Australia, Malaysia, Netherlands, Nigeria,Egypt, UK and Oman. Year to date, Shell has had good success in five 'big cat' prospects fromeight drilled. These discoveries are in Norway, Nigeria and Australia. Furtherappraisal is required to determine their full resource potential. The North West Shelf LNG Venture (Shell share 22%) took the finalinvestment decision to expand its LNG facilities in Western Australia with afifth LNG train increasing capacity (100%) by 4.2 million tonnes per annum(mtpa) to 15.9 mtpa. Construction of the new LNG trains in Nigeria and Oman continues toprogress well. Nigeria LNG trains 4 and 5 (Shell share 25.6%) are expected tobe in operation around the end of the year. Qalhat LNG in Oman (Shell 11.0 %)is on target to deliver its first cargo in the first quarter of 2006. Following alignment of partners' interests across the Greater Gorgon areaearlier in the year, the Gorgon Joint Venture Partners (Shell share 25%) inAustralia agreed to commence the Front End Engineering and Design phase of thegreenfield integrated LNG project. The initial development is expected to havea total capacity of 10 mtpa with LNG sales volumes expected in Asia Pacific andalso in North America through Shell's secured capacity in the Energia CostaAzul LNG terminal in Baja California, Mexico. The sale of Shell's interest in Gasunie's gas transportation assets in theNetherlands was completed in July 2005 with net proceeds and earnings of some$1.7 billion and these will be reflected in the third quarter 2005 Exploration& Production earnings. The completion of the divestment of Shell power generation assets outsidethe USA held through the joint venture InterGen is expected in the second halfof 2005. Progress has also been made towards the divestment of the remainder ofInterGen's power generation assets. Downstream portfolio developments during the quarter were: Shell completed a sale of shares representing 5% ownership in the OilProducts refining and marketing company Showa Shell Sekiyu KK in Japan to SaudiAramco following the earlier sale representing 10% in 2004. As a result, SaudiAramco now holds 15% of Showa Shell shares, while Shell continues to hold some35%. Shell announced the intention to sell its Retail and Commercial businessesboth in the Republic of Ireland and Northern Ireland. A sale and purchaseagreement was signed in July 2005 for completion later in the year. Shell announced its intention to consider a sale of its Oil Productsmarketing and refining assets in French Antilles and French Guyana. Shell and BASF announced the sale of their 50/50 joint venture Basell, fora total sale price of euro 4.4 billion, including debt. The transaction isexpected to be completed in the second half of 2005. Earnings by industry segment Exploration & ProductionSECOND QUARTER $ million SIX MONTHS 2005 2004 % 2005 2004 % 2,745 1,855 +48 Segment earnings 5,700 4,562 +25 2,168 2,238 -3 Crude oil production (thousand b/d) 2,156 2,285 -6 Natural gas production available for 7,875 7,773 +1 sale (million scf/d) 8,869 8,909 - Second quarter segment earnings of $2,745 million were 48% higher than ayear ago, mainly due to higher hydrocarbon prices, offset by higher costsincluding higher depreciation. Segment unit earnings, calculated as segment earnings divided by productionfor the quarter, at $8.6 per barrel of oil equivalent were 50% higher than theprevious year. Year to date unit earnings of $8.5 per barrel of oil equivalentwere 30% higher than last year. Segment earnings included net charges of $149 million, mainly from a $270million charge related to the mark-to-market valuation of certain UK gascontracts and net tax charges partly offset by divestment gains mainly inAustralia and Norway. Liquids realisations were 42% higher than a year ago, compared to anincrease in Brent of 46% and WTI of around 39%. Outside the USA, gasrealisations increased by 36%. In the USA, gas realisations increased by 20%compared to an increase in Henry Hub of 14%. Total hydrocarbon production for the quarter was 3,526 thousand boe perday. Excluding the impact of divestments of 21 thousand boe per day and the endof a production sharing contract in the Middle East of 116 thousand boe perday, production was 2% higher than a year ago. Overall production increased inthe USA, Europe and Asia. Production benefited from new fields mainly in the UK Goldeneye (Shellshare 49%) and Howe (Shell share 60%), Malaysia Jintan (Shell share 37.5%) andin the USA Holstein (Shell share 50%) and the ramp-up of additional productionin the USA totalling some 179 thousand boe per day versus a year ago. These newproduction volumes exceeded field declines of some 120 thousand boe per day,mainly in the USA, Norway and the UK. Production compared to a year ago wasnegatively impacted by operational issues totalling some 50 thousand boe perday mainly in the North Sea. Higher depreciation charges impacted earnings by some $250 million versuslast year mainly as a result of production mix including new fields, higherasset retirement costs and reserve revisions. Capital investment in the second quarter of $2.4 billion, excluding theinvestment by the 45% minority partners of Sakhalin II, and includingexploration expense of $0.2 billion, was 17% higher than the correspondingperiod last year. Gas & PowerSECOND QUARTER $ million SIX MONTHS 2005 2004 % 2005 2004 % 11 334 -97 Segment earnings 487 856 -43 +8 Equity LNG sales volume (million 2.48 2.44 +2 tonnes) 5.36 4.95 Gas & Power segment earnings were $11 million including a charge of $226million mainly related to the expected divestment of power generation assetsheld through the joint venture InterGen. Earnings were $334 million a year ago,which included a divestment gain of $18 million. Excluding these items,earnings were lower than a year ago. Higher earnings from higher LNG prices andvolumes were more than offset by loss of earnings as a result of divestment ofmidstream assets and other items such as lower trading and LNG shippingresults. LNG sales volumes were up 2% as a result of the LNG expansion in theNorth West Shelf project which came on stream late 2004, offset partially byplanned major LNG plant shut downs elsewhere. Oil ProductsSECOND QUARTER $ million SIX MONTHS 2005 2004 % 2005 2004 % 2,664 1,795 +48 Segment earnings 5,715 3,368 +70 636 249 CCS adjustment - see note 2 1,807 639 2,028 1,546 +31 Segment CCS earnings 3,908 2,729 +43 3,981 4,191 -5 Refinery intake (thousand b/d) 4,019 4,158 -3 7,458 7,469 - Oil product sales (thousand b/d) 7,461 7,504 -1 Second quarter segment earnings were $2,664 million compared to $1,795million for the same period last year. Second quarter CCS earnings were $2,028 million compared to $1,546 millionfor the second quarter of 2004. Higher earnings due to strong refining marginsand increased trading results were partially offset by lower marketingearnings. Industry refining margins increased in the USA, Europe and Asia Pacific.Refining margins benefited from middle distillate strength in Europe andincreases in light/heavy crude differentials. Refinery intake volumes increasedby 1% after adjusting for divestments over the past year. Overall globalrefining utilisation for the quarter reflected continued strong assetperformance. In Marketing, including Lubricants and B2B (business to business), earningsdeclined in the second quarter of 2005 compared to the same period a year ago.In the USA, retail margins, while up significantly from the first quarter of2005, were lower than the second quarter of 2004. Retail margins in AsiaPacific and Europe improved versus the second quarter of 2004. LPG, CommercialFuels, Lubricants and Aviation earnings were lower in the second quarter of2005 compared to the same quarter last year due to lower margins and higheroperating costs. Marketing sales volumes declined 4% mainly as a result ofdivestments in 2004 and the first quarter of 2005. ChemicalsSECOND QUARTER $ million SIX MONTHS 2005 2004 % 2005 2004 % 259 375 -31 Segment earnings 708 596 +19 5,647 6,182 -9 Sales volumes (thousand tonnes) 11,508 12,116 -5 Segment earnings for the second quarter were $259 million and includedlegal and environmental charges of some $80 million compared with earnings lastyear of $375 million. Sales volumes were 9% lower and mainly reflected aplanned reduction in lower-margin volumes with minimal impact on earnings.Average price realisations were up 26% from a year ago offset by higherfeedstock cost. Margins relative to last year were broadly similar but weresubstantially reduced from the first quarter 2005 due to weaker tradingconditions in the second quarter. Other Industry & Corporate segmentsSECOND QUARTER $ million SIX MONTHS 2005 2004 2005 2004 (8) (8) Other industry segment earnings (16) (24) (210) (301) Corporate segment net costs (327) (462) In the second quarter, Corporate net costs were $210 million compared to$301 million a year ago. Corporate charges mainly reflected the $90 millionsettlement, subject to court approval, of a class action and related litigationby participants in certain United States employee savings plans that aresubject to the Employee Retirement Income Security Act of 1974 (ERISA) andsubject to expenses and insurance recovery. The settlement relates to allERISA-based claims relating to the reserves recategorisations, but does notrelate to or affect pending securities claims. In the same quarter a year ago aprovision was taken as a result of a $120 million settlement with the SEC alsorelating to the reserves recategorisations.Note All amounts shown throughout this report are unaudited. Third quarter results for 2005 are expected to be announced on 27 October2005. This announcement contains forward-looking statements that are subject torisk factors associated with the oil, gas, power, chemicals and renewablesbusinesses. It is believed that the expectations reflected in these statementsare reasonable, but may be affected by a variety of variables which could causeactual results, trends or reserves replacement to differ materially, including,but not limited to: price fluctuations, actual demand, currency fluctuations,drilling and production results, reserve estimates, loss of market, industrycompetition, environmental risks, physical risk, risks associated with theidentification of suitable potential acquisition properties and targets and thesuccessful negotiation and consummation of transactions, the risk of doingbusiness in developing countries, legislative, fiscal and regulatorydevelopments including potential litigation and regulatory effects arising fromrecategorisation of reserves, economic and financial market conditions invarious countries and regions, political risks, project delay or advancement,approvals and cost estimates. Please refer to the Royal Dutch and Shell Transport Annual Reports on Form20-F for the year ended December 31, 2004 (as amended) for a description ofcertain important factors, risks and uncertainties that may affect Royal DutchShell businesses. Royal Dutch Shell does not undertake any obligation topublicly update or revise any of these forward-looking statements, whether toreflect new information, future events or otherwise. 28 July 2005 Appendix 1: Royal Dutch Shell financial report and tablesStatement of income (see note 1)QUARTERS $ million SIX MONTHS Q2 Q1 Q2 2005 2005 2004 % 1 2005 2004 % 101,383 90,068 79,880 +27 Sales proceeds 191,451 154,628 +24 Less: Sales taxes, excise 18,739 17,912 17,748 duties and similar levies 36,651 35,228 ______ ______ ______ ______ ______ 82,644 72,156 62,132 +33 Revenue 154,800 119,400 +30 69,464 58,565 51,860 Cost of sales 128,029 99,297 ______ ______ ______ ______ ______ 13,180 13,591 10,272 +28 Gross profit 26,771 20,103 +33 Selling and distribution 3,148 3,164 3,023 expenses 6,312 5,936 769 375 645 Administrative expenses 1,144 1,113 248 261 889 Exploration 509 1,000 Share of profit of equity 1,080 1,573 1,111 accounted investments 2,653 2,242 Net finance costs and other 39 70 135 (income)/expense 109 (43) ______ ______ ______ ______ ______ 10,056 11,294 6,691 +50 Income before taxation 21,350 14,339 +49 4,595 4,274 2,663 Taxation 8,869 5,485 ______ ______ ______ ______ ______ Income from continuing 5,461 7,020 4,028 operations 12,481 8,854 Income from discontinued - (214) 22 operations (214) 42 ______ ______ ______ ______ ______ 5,461 6,806 4,050 +35 Income for the period 12,267 8,896 +38 ======= ====== ====== ======= ======= ======= ====== ====== ======= ======= Income attributable to 225 131 153 minority interest 356 298 ______ ______ ______ ______ ______ Income attributable to 5,236 6,675 3,897 +34 shareholders 11,911 8,598 +39 ______ ______ ______ ______ ______ 1 Q2 on Q2 change Earnings by industry segment 1QUARTERS $ million SIX MONTHS Q2 Q1 Q2 2005 2005 2004 % 2 2005 2004 % Exploration & Production: 1,644 2,010 1,168 +41 World outside USA 3,654 3,123 +17 1,101 945 687 +60 USA 2,046 1,439 +42 ______ ______ ______ ______ ______ 2,745 2,955 1,855 +48 5,700 4,562 +25 ______ ______ ______ ______ ______ Gas & Power: 74 518 375 -80 World outside USA 592 819 -28 (63) (42) (41) USA (105) 37 ______ ______ ______ ______ ______ 11 476 334 -97 487 856 -43 ______ ______ ______ ______ ______ Oil Products: 1,500 1,475 1,099 +36 World outside USA 2,975 2,067 +44 528 405 447 +18 USA 933 662 +41 ______ ______ ______ ______ ______ 2,028 1,880 1,546 +31 3,908 2,729 +43 ______ ______ ______ ______ ______ Chemicals: 221 280 311 -29 World outside USA 501 541 -7 38 169 64 -41 USA 207 55 +276 ______ ______ ______ ______ ______ 259 449 375 -31 708 596 +19 ______ ______ ______ ______ ______ (8) (8) (8) Other industry segments (16) (24) ______ ______ ______ ______ ______ 5,035 5,752 4,102 +23 TOTAL OPERATING SEGMENTS 10,787 8,719 +24 ______ ______ ______ ______ ______ Corporate: (74) (70) (196) Interest income/(expense) (144) (370) Currency exchange gains/ (6) (40) (2) (losses) (46) (9) (130) (7) (103) Other - including taxation (137) (83) ______ ______ ______ ______ ______ (210) (117) (301) (327) (462) ______ ______ ______ ______ ______ (199) (85) (138) Minority interest (284) (263) ______ ______ ______ ______ ______ 4,626 5,550 3,663 +26 CCS EARNINGS 10,176 7,994 +27 ______ ______ ______ ______ ______ 610 1,125 234 CCS adjustment for Oil Products 1,735 604 ______ ______ ______ ______ ______ Income attributable to 5,236 6,675 3,897 +34 shareholders 11,911 8,598 +39 ______ ______ ______ ______ ______ 1 Operating segment results will continue to be presented and discussed in quarterly results announcements (including the CCS adjustment) and in the Annual Report and Accounts on the same basis as used internally by management, therefore before net finance costs, including equity accounted investments and after tax. Segment results in accordance with International Accounting Standard14 "Segment Reporting" will be disclosed in the Annual Report and Accounts, with a reconciliation to the management basis as presented above. 2 Q2 on Q2 change Summarised balance sheet (see note 1) $ million Jun 30 Mar 31 Jun 30 ASSETS 2005 2005 2004 Non-current assets: Property, plant and equipment 84,816 85,779 84,440 Intangible assets 4,403 4,428 4,380 Investments: Equity accounted investments 18,679 18,763 20,076 Financial assets 3,401 3,704 2,455 Deferred tax 2,961 2,775 3,038 Employee benefit assets 2,320 2,250 1,810 Other 4,411 6,206 3,422 ______ ______ ______ 120,991 123,905 119,621 ______ ______ ______ Current assets: Inventories 18,566 17,517 14,545 Accounts receivable 51,420 45,153 32,505 Cash and cash equivalents 11,520 10,082 3,244 ______ ______ ______ 81,506 72,752 50,294 ______ ______ ______ ______ ______ ______ TOTAL ASSETS 202,497 196,657 169,915 ______ ______ ______ LIABILITIES Non-current liabilities: Debt 7,905 8,000 9,673 Deferred tax 12,807 12,625 13,225 Employee benefit obligations 6,239 6,358 6,939 Other provisions 6,781 6,821 5,374 Other 4,020 5,788 4,648 ______ ______ ______ 37,752 39,592 39,859 ______ ______ ______ Current liabilities: Debt 5,479 5,718 6,867 Accounts payable and accrued liabilities 52,678 45,820 33,040 Taxes payable 10,789 11,228 8,835 Employee benefit obligations 300 308 312 Other provisions 1,430 1,576 1,166 ______ ______ ______ 70,676 64,650 50,220 ______ ______ ______ ______ ______ ______ TOTAL LIABILITIES 108,428 104,242 90,079 ______ ______ ______ Equity attributable to shareholders 87,829 86,738 75,688 Minority interest 6,240 5,677 4,148 ______ ______ ______ TOTAL EQUITY 94,069 92,415 79,836 ______ ______ ______ TOTAL LIABILITIES AND EQUITY 202,497 196,657 169,915 ______ ______ ______ Summarised statement of cash flows (see note 1 and 6)QUARTERS $ million SIX MONTHS Q2 Q1 Q2 2005 2005 2004 2005 2004 CASH FLOW FROM OPERATING ACTIVITIES: 5,461 6,806 4,050 Income for the period 12,267 8,896 Adjustment for: 5,086 4,311 3,171 Taxation accrued 9,397 6,087 204 160 234 Interest accrued 364 534 Depreciation, depletion and 3,136 3,155 3,244 amortisation 6,291 5,947 (193) (558) (12) (Profit)/loss on sale of assets (751) (675) Decrease/(increase) in net working (1,918) (1,551) (2,040) capital (3,469) (2,003) Share of profit of equity accounted (1,080) (1,359) (1,133) investments (2,439) (2,284) Dividends received from equity 1,515 992 1,119 accounted investments 2,507 1,872 Deferred taxation and other (142) (392) (224) provisions (534) (290) (246) 303 (79) Other 57 (222) ______ ______ ______ ______ ______ Cash flow from operating activities 11,823 11,867 8,330 (pre-tax) 23,690 17,862 ______ ______ ______ ______ ______ (5,501) (3,187) (3,157) Taxation paid (8,688) (4,552) ______ ______ ______ ______ ______ 6,322 8,680 5,173 Cash flow from operating activities 15,002 13,310 ______ ______ ______ ______ ______ CASH FLOW FROM INVESTING ACTIVITIES: (3,736) (2,934) (3,083) Capital expenditure (6,670) (5,719) 490 1,008 125 Proceeds from sale of assets 1,498 853 Proceeds from sales and (additions): (61) (138) (69) Equity accounted investments (199) (496) 274 (24) 10 Investments: financial assets 250 948 177 190 77 Interest received 367 185 ______ ______ ______ ______ ______ (2,856) (1,898) (2,940) Cash flow from investing activities (4,754) (4,229) ______ ______ ______ ______ ______ CASH FLOW FROM FINANCING ACTIVITIES: (22) (677) (483) Net increase/(decrease) in debt (699) (3,107) (275) (254) (216) Interest paid (529) (426) 452 351 311 Change in minority interest 803 588 Dividends paid to: (2,086) (5,324) (4,402) Shareholders (7,410) (4,414) (58) (47) (72) Minority interest (105) (118) Treasury shares: Net sales/(purchases) and dividends 131 143 (416) received 274 (424) ______ ______ ______ ______ ______ (1,858) (5,808) (5,278) Cash flow from financing activities (7,666) (7,901) ______ ______ ______ ______ ______ Currency translation differences relating to cash and cash (170) (93) (28) equivalents (263) (43) ______ ______ ______ ______ ______ INCREASE/(DECREASE) IN CASH AND CASH 1,438 881 (3,073) EQUIVALENTS 2,319 1,137 ______ ______ ______ ______ ______ Cash and cash equivalents at 10,082 9,201 6,317 beginning of period 9,201 2,107 Cash and cash equivalents at end of 11,520 10,082 3,244 period 11,520 3,244 Operational data - UpstreamQUARTERS SIX MONTHS Q2 Q1 Q2 2005 2005 2004 %1 2005 2004 % thousand b/d CRUDE OIL PRODUCTION thousand b/d 566 571 601 Europe 569 603 375 379 382 Africa 375 414 233 232 247 Asia Pacific 233 252 413 392 469 Middle East, Russia, CIS 403 455 403 400 350 USA 402 370 80 92 103 Other Western Hemisphere 86 108 ______ ______ ______ ______ ______ Total crude oil production 2,070 2,066 2,152 excluding oil sands 2,068 2,202 98 78 86 Oil sands 88 83 ______ ______ ______ ______ ______ Total crude oil production 2,168 2,144 2,238 -3 including oil sands 2,156 2,285 -6 ______ ______ ______ ______ ______ million scf/d 2 NATURAL GAS PRODUCTION million scf/d 2 AVAILABLE FOR SALE 3,175 4,951 2,756 Europe 4,058 3,863 383 387 379 Africa 385 362 2,225 2,369 2,025 Asia Pacific 2,297 2,071 256 272 743 Middle East, Russia, CIS 264 708 1,357 1,385 1,327 USA 1,371 1,366 479 511 543 Other Western Hemisphere 494 539 ______ ______ ______ ______ ______ 7,875 9,875 7,773 +1 8,869 8,909 - ______ ______ ______ ______ ______ thousand b/d3 BARRELS OF OIL EQUIVALENT thousand b/d3 1,113 1,425 1,076 Europe 1,269 1,269 441 446 447 Africa 441 476 617 640 596Related Shares:
RDSA.LRDSB.L