New Shell CEO Ben van Beurden sets agenda

New Shell CEO Ben van Beurden sets agenda for sharper performance and rigorouscapital discipline The Hague, 30 January 2014. Speaking to investors today, new Shell CEO Ben vanBeurden updated on the company's priorities: improving Shell's financialresults and achieving better capital efficiency, as well as continuing tostrengthen operational performance and project delivery. Van Beurden, who became the new CEO of Royal Dutch Shell plc ("Shell") on 1January 2014, said Shell's strategy overall is sound. The company has a highquality portfolio and key strengths in technology and project delivery. Shellwill continue to invest in new projects that deliver more energy to customers,and create value for shareholders. The strategy is designed to deliverthrough-cycle growth in cash flow, to drive competitive returns and a growingdividend. Van Beurden said: "Our ambitious growth drive in recent years has yielded astep change in Shell's portfolio and options, with more growth to come, but atthe same time we have lost some momentum in operational delivery, and we cansharpen up in a number of areas." "Our overall strategy remains robust, but 2014 will be a year where we arechanging emphasis, to improve our returns and cash flow performance", hecontinued, highlighting three priorities: * Improved financial performance, including restructuring in some areas of the company * Enhancing capital efficiency, with hard choices on new projects, reduced growth investment, and more asset sales * Continued strong delivery of new projects, and integration of recent acquisitions. The landscape the company had expected has changed. Factors such as theworsening security situation in Nigeria in 2013, and delays to non-operatedprojects in several other countries, have altered the outlook. Oil pricesremain high globally, but North America natural gas prices and associated crudemarkers remain low, and industry refining margins are under pressure.Restructuring and improving profitability in North America Upstream resourcesplays, and Oil Products world-wide, is a particular focus for the company. The recent Ninth Circuit Court decision against the Department of the Interiorraises substantial obstacles to Shell's plans for drilling in offshore Alaska.As a result, Shell has decided to stop its exploration programme for Alaska in2014. "This is a disappointing outcome, but the lack of a clear path forwardmeans that I am not prepared to commit further resources for drilling in Alaskain 2014," van Beurden said. "We will look to relevant agencies and the Court toresolve their open legal issues as quickly as possible." The company will increase the pace of asset sales, which are expected to be $15billion for 2014-15 combined in Upstream and Downstream. "We are making hardchoices in our world-wide portfolio to improve Shell's capital efficiency", vanBeurden said. With a changing operational landscape and the streamlining of Shell'sportfolio, the company will no longer be updating against previous cash flowand net spending targets. "I want Shell to be measured on our competitiveperformance", van Beurden said. Capital spending will be reduced. In 2013, this totalled $46 billion, including$8 billion of acquisitions. In 2014, Shell expects total capital spending ofaround $37 billion, including $2 billion of previously announced acquisitions. Innovative large-scale projects such as Pearl gas-to-liquids have been the maindrivers behind Shell's recent increase in cash flow, which reached over $87billion in 2012-13 combined, an increase of 35% on 2010-11. Recent start-upsand Shell's latest projects and acquisitions - dominated by liquefied naturalgas, and deep-water oil in the Gulf of Mexico, Brazil and Malaysia - areexpected to build on this growth in 2014. Shell has distributed more than $11 billion to shareholders in dividends andrepurchased $5 billion of shares in 2013. Reflecting confidence in thepotential for free cash flow growth in 2014, the company is expecting the Q12014 dividend to be $0.47/share, an increase of over 4% compared to Q1 2013,and total dividends announced in respect of 2014 to be potentially over $11billion. Ends Enquiries: Shell Media Relations: International +44 207 934 5550 Americas +1 713 241 4544 Shell Investor Relations: International +31 70 377 4540 North America +1 713 241 1042 Cautionary note The companies in which Royal Dutch Shell plc directly and indirectly ownsinvestments are separate entities. In this announcement "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 thisannouncement refer to companies in which Shell either directly or indirectlyhas control, by having either a majority of the voting rights or the right toexercise a controlling influence. The companies in which Shell has significantinfluence but not control are referred to as "associated companies" or"associates" and companies in which Shell has joint control are referred to as"jointly controlled entities". In this announcement, associates and jointlycontrolled entities are also referred to as "equity-accounted investments". Theterm "Shell interest" is used for convenience to indicate the direct and/orindirect (for example, through our 23 per cent shareholding in WoodsidePetroleum Ltd.) ownership interest held by Shell in a venture, partnership orcompany, after exclusion of all third-party interest. This announcement contains forward looking statements concerning the financialcondition, results of operations and businesses of Shell and the Shell Group.All statements other than statements of historical fact are, or may be deemedto be, 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 Shell andthe Shell Group to market risks and statements expressing management'sexpectations, 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", "seek", "should", "target", "will" and similar terms and phrases.There are a number of factors that could affect the future operations of Shelland the Shell Group and could cause those results to differ materially fromthose expressed in the forward looking statements included in thisannouncement, including (without limitation): (a) price fluctuations in crudeoil and natural gas; (b) changes in demand for Shell's products; (c) currencyfluctuations; (d) drilling and production results; (e) reserves estimates; (f)loss of market share and industry competition; (g) environmental and physicalrisks; (h) risks associated with the identification of suitable potentialacquisition properties and targets, and successful negotiation and completionof such transactions; (i) the risk of doing business in developing countriesand countries subject to international sanctions; (j) legislative, fiscal andregulatory developments including regulatory measures addressing climatechange; (k) economic and financial market conditions in various countries andregions; (l) political risks, including the risks of expropriation andrenegotiation of the terms of contracts with governmental entities, delays oradvancements in the approval of projects and delays in the reimbursement forshared costs; and (m) changes in trading conditions. All forward lookingstatements contained in this announcement are expressly qualified in theirentirety by the cautionary statements contained or referred to in this section.Readers should not place undue reliance on forward looking statements.Additional factors that may affect future results are contained in Shell's 20-Ffor the year ended 31 December 2012 (available at www.shell.com/investor andwww.sec.gov ). These factors also should be considered by the reader. Eachforward looking statement speaks only as of the date of this announcement, 30January 2014. Neither Shell nor any of its subsidiaries nor the Shell Groupundertake any obligation to publicly update or revise any forward lookingstatement as a result of new information, future events or other information.In light of these risks, results could differ materially from those stated,implied or inferred from the forward looking statements contained in thisannouncement.