RDS 4TH QUARTER AND FULL YEAR 2012 RESULTS

ROYAL DUTCH SHELL PLC - RDS 4TH QUARTER AND FULL YEAR 2012 RESULTS

PR Newswire

London, January 31

4TH QUARTER AND FULL YEAR 2012 UNAUDITED RESULTS

Royal Dutch Shell Chief Executive Officer Peter Voser commented:

"With the first year of our 2012-2015 growth targets completed, Shell is ontrack for plans we set out in early 2012, despite headwinds last year.

'Shell is competitive and innovative. We are delivering a strategy that otherscan't easily repeat, with unique skills in technology and integration and aworldwide set of opportunities for new investment."

FOURTH QUARTER 2012 PORTFOLIO DEVELOPMENTS

Upstream

In Australia, Shell completed the acquisition of Chevron's 16.7% interest inEast Browse and Chevron's 20% interest in West Browse in exchange for Shell's33.3% interest in Clio-Acme and cash.

Also in Australia, Shell acquired an additional 2% interest in the Crux gas andcondensate field from Nexus Energy, increasing Shell's interest to 82%.

Front-end engineering and design contracts were awarded for the 2.5 milliontonnes per annum capacity floating LNG facility and the major subsurfaceproduction facilities for the development of the Abadi LNG project (Shell share30%) in Indonesia.

In Malaysia, Shell took the final investment decision for the development ofthe deep-water oil field Malikai, part of the Block G production-sharingcontract (Shell share 35%), offshore Sabah. The Shell-operated project isexpected to produce some 60 thousand barrels of oil equivalent per day ("boe/d") at peak production.

Also in Malaysia, the Shell-operated deep-water Gumusut-Kakap field (Shellshare 33%) commenced early oil production via a tie-back of two productionwells to the nearby Kikeh production facility. This interim measure is expectedto produce some 25 thousand barrels per day of oil until the Gumusut-Kakapfloating production system is on stream.

In Qatar, Shell completed the ramp-up of the Pearl GTL project.

In the United Kingdom, Shell agreed to acquire 75% of Hess Corporation'sinterests in the Beryl area fields and SAGE infrastructure. This transactionwas completed in January 2013, lifting Shell's production in the Beryl areafields from 9 thousand boe/d to 20 thousand boe/d.

Also in the United Kingdom, Shell agreed to acquire an additional 5.9% interestin the offshore Schiehallion field from Murphy Schiehallion Limited. Followingcompletion of this transaction, expected in 2013, Shell's interest in the fieldwill be 55%.

Upstream divestment proceeds totalled some $1.7 billion in the fourth quarter2012. Divestments mainly included Shell's 30% interest in Oil Mining Lease 30(Shell share of production 11 thousand boe/d) in the Niger Delta, Shell's 50%interest in the Holstein field (Shell share of production 5 thousand boe/d) inthe Gulf of Mexico and Shell's interest in the Seal area (Shell share ofproduction 2 thousand boe/d) within the Peace River oil sands of Alberta,Canada.

During the fourth quarter 2012, Shell participated in the Arnhem-1, Pinhoe-1(Shell share 50%) gas discoveries in the outer Exmouth and the Satyr-4 (Shellshare 25%) gas discovery in the Gorgon area offshore Australia and theZabazaba-3 oil discovery (Shell share 50%) offshore Nigeria. Shell also hadsuccessful drilling programmes in liquids-rich shales in North America and coalbed methane in Australia.

As part of its global exploration programme Shell added new acreage positionsduring the fourth quarter 2012, including the Zitong tight-gas block onshoreChina, deep-water positions in the Gulf of Mexico and offshore New Zealand. Newacreage positions were also added offshore Canada, Colombia and Malaysia,onshore Egypt, Russia and in liquids-rich shales in North America.

Downstream

In Poland, Shell agreed to acquire Neste Oil Corporation's network of 105retail sites. The transaction, which is subject to regulatory approvals, isexpected to be completed in 2013.

Downstream divestment proceeds totalled some $0.2 billion. Divestments mainlyincluded Shell's LPG business in Malaysia and the majority of Shell'sshareholding in its downstream businesses in Botswana, Kenya and Namibia.

KEY FEATURES OF THE FOURTH QUARTER AND FULL YEAR 2012

Full year 2012 cash flow from operating activities was $46.1 billion, comparedwith $36.8 billion in 2011. Excluding movements in working capital, cash flowfrom operating activities in 2012 was $42.7 billion, compared with $43.2billion in 2011.

Total dividends distributed in the full year 2012 were $11.0 billion, of whichsome $3.6 billion were settled by issuing some 103.8 million Class A sharesunder the Scrip Dividend Programme. Some 43.7 million Class B shares werebought back for cancellation during 2012 for a consideration of $1.5 billion.

* When final volumes are reported in the 2012 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 0.5 billion boe.

With 2012 production of some 1.2 billion boe, our headline proved ReservesReplacement Ratio for the year on an SEC basis is expected to be around 44%.Our Organic Reserves Replacement Ratio, which excludes the impact of oil andgas price movements in the year (mainly due to low gas prices in NorthAmerica), acquisitions and divestments, is expected to be around 85%.

At the end of 2012, total proved reserves on an SEC basis are expected to bearound 13.6 billion boe, after taking into account 2012 production.

The 3 year average headline proved Reserves Replacement Ratio on an SEC basisis expected to be around 84%. Our 3 year average Organic Reserves ReplacementRatio, which excludes the impact of oil and gas price movements in the year,acquisitions and divestments, is expected to be around 115%.

Further information will be provided in our Annual Report and Form 20-F, whichis expected to be filed in March 2013.

* Supplementary financial and operational disclosure for the fourth quarter

2012 is available at www.shell.com/investor .

SUMMARY OF IDENTIFIED ITEMS

Earnings in the fourth quarter 2012 reflected the following items, which inaggregate amounted to a net gain of $1,712 million (compared with a net gain of$1,613 million in the fourth quarter 2011), as summarised in the table below:

These identified items generally relate to events with an impact of more than$50 million on Royal Dutch Shell's CCS earnings and are shown to provideadditional insight into segment earnings and income attributable toshareholders. Further comments on the business segments are provided in thesection 'Earnings by Business Segment' on pages 5 to 7.

EARNINGS BY BUSINESS SEGMENT

Fourth quarter Upstream earnings excluding identified items were $4,377 millioncompared with $5,107 million a year ago. Identified items were a net gain of$1,801 million, compared with a net gain of $1,458 million in the fourthquarter 2011 (see page 4).

Compared with the fourth quarter 2011, Upstream earnings excluding identifieditems benefited from the contribution of Integrated Gas, reflecting the ramp-upof Pearl GTL in Qatar, higher equity LNG sales volumes and realisations as wellas increased LNG trading contributions. Earnings were lower than in the fourthquarter 2011 mainly due to increased operating expenses, higher depreciationand higher exploration expenses. Earnings were also impacted by lower liquidsand synthetic crude oil realisations in the Americas, which incurred a loss.

Global liquids realisations were 1% lower than in the fourth quarter 2011. InCanada, synthetic crude oil realisations were 19% lower than in the same periodlast year. Global natural gas realisations were 3% higher than in the samequarter a year ago, with a 4% decrease in the Americas and a 3% increaseoutside the Americas.

Fourth quarter 2012 production was 3,414 thousand boe/d compared with 3,305thousand boe/d a year ago, an increase of 3%. Liquids production was in linewith the fourth quarter 2011, while natural gas production increased by 7%.

New field start-ups and the continuing ramp-up of fields, in particular PearlGTL in Qatar and Pluto LNG in Australia, contributed some 235 thousand boe/d toproduction in the fourth quarter 2012, which more than offset the impact offield declines.

Equity LNG sales volumes of 5.49 million tonnes were 13% higher than in thesame quarter a year ago. Equity LNG sales volumes reflected the contributionfrom Pluto LNG and higher volumes from Qatargas 4 LNG.

Full year Upstream earnings excluding identified items were $20,025 millioncompared with $20,600 million in 2011. Identified items were a net gain of$2,137 million, compared with a net gain of $3,855 million in 2011.

Compared with 2011, Upstream earnings excluding identified items benefited fromthe contribution of Integrated Gas, reflecting the ramp-up of Pearl GTL inQatar, higher LNG realisations as well as increased LNG trading contributionsand equity LNG sales volumes. Earnings also reflected higher gas realisationsoutside the Americas. These items were more than offset by reducedcontributions of the Americas, mainly as a result of higher depreciation,increased operating expenses, higher exploration expenses and lower gasrealisations.

Global liquids realisations were 1% higher than in 2011. In Canada, syntheticcrude oil realisations were 11% lower than in 2011. Global natural gasrealisations were 1% higher than in 2011, with a 31% decrease in the Americasand a 9% increase outside the Americas.

Full year 2012 production was 3,262 thousand boe/d compared with 3,215 thousandboe/d for 2011. Liquids production was down 2% and natural gas productionincreased by 5% compared with 2011. Excluding the impact of divestments andexits, production volumes in 2012 were 3% higher than in 2011.

New field start-ups and the continuing ramp-up of fields, in particular theramp-up of Pearl GTL in Qatar and Pluto LNG in Australia, contributed some 225thousand boe/d to production in 2012, which more than offset the impact offield declines.

Equity LNG sales volumes of 20.20 million tonnes were 7% higher than in 2011,mainly reflecting the successful ramp-up of Qatargas 4 LNG in Qatar and thestart-up of Pluto LNG in Australia.

Fourth quarter Downstream earnings excluding identified items were $1,163million compared with a loss of $278 million in the fourth quarter 2011.Identified items were a net charge of $89 million, compared with a net gain of$34 million in the fourth quarter 2011 (see page 4).

Compared with the fourth quarter 2011, Downstream earnings excluding identifieditems benefited from higher realised refining margins and Shell's improvedoperating performance, as well as increased contributions from marketing andtrading. Chemicals earnings were lower, mainly as a result of higher operatingexpenses and, in the United States, supply constraints of advantaged feedstock.

Oil products sales volumes were 3% higher compared with the same period a yearago, mainly as a result of increased trading volumes.

Chemicals sales volumes increased by 4% compared with the same quarter lastyear, due to improved operating performance and demand. Chemicals manufacturingplant availability was 91% compared with 86% in the fourth quarter 2011, mainlydue to lower planned maintenance activities.

Refinery intake volumes were 5% higher compared with the fourth quarter 2011.Excluding portfolio impacts, refinery intake volumes were 8% higher than in thesame period a year ago. Refinery availability was 92%, in line with the fourthquarter 2011.

In the United States, the crude distillation unit at the expansion of Motiva'srefinery (Shell share 50%) in Port Arthur, Texas was restarted in January 2013and is expected to ramp-up during early 2013.

Full year Downstream earnings excluding identified items were $5,311 millioncompared with $4,274 million in 2011. Identified items were a net gain of $39million, compared with a net gain of $15 million in 2011.

Compared with 2011, Downstream earnings excluding identified items reflectedhigher realised refining margins and lower operating expenses, mainly as aresult of favourable currency exchange rate effects. Trading contributions werelower, while marketing contributions were broadly in line with 2011. Chemicalsearnings were lower, mainly as a result of the impact of the global economicslowdown and, in the United States, supply constraints of advantaged feedstockand the impact of hurricane Isaac on operations.

Oil products sales volumes were 1% higher compared with 2011. Lower marketingvolumes, mainly as a result of portfolio divestments, were more than offset byhigher trading volumes. Excluding the impact of divestments and the effect ofthe formation of the Raízen joint venture, sales volumes were 3% higher than in2011.

Chemicals sales volumes were 1% lower compared with 2011, as reductions inEuropean manufacturing capacity and rationalisation of the contract portfoliowere largely offset by improved operating performance. Chemicals manufacturingplant availability increased to 91% compared with 89% in 2011.

Refinery intake volumes were 1% lower compared with 2012. Excluding portfolioimpacts, refinery intake volumes were 4% higher than in 2011. Refineryavailability increased to 93% compared with 92% in 2011.

Fourth quarter Corporate results and Non-controlling interest excludingidentified items were $42 million compared with $17 million in the same periodof 2011. Identified items in the fourth quarter 2011 were a net gain of $121million (see page 4).

Corporate results excluding identified items compared with the fourth quarter2011 mainly reflected favourable currency exchange rate effects and higher taxcredits, partly offset by higher net interest expense.

Full year Corporate results and Non-controlling interest excluding identifieditems were a loss of $197 million compared with a loss of $187 million in 2011.Identified items were a net charge of $271 million, compared with a net gain of$68 million in 2011.

Corporate results excluding identified items compared with 2011 mainlyreflected higher net interest expense and increased operating expenses, whichwere largely offset by higher tax credits and favourable currency exchange rateeffects.

FORTHCOMING EVENTS

First quarter 2013 results and first quarter 2013 dividend are scheduled to beannounced on May 2, 2013. Second quarter 2013 results and second quarter 2013dividend are scheduled to be announced on August 1, 2013. Third quarter 2013results and third quarter 2013 dividend are scheduled to be announced onOctober 31, 2013.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

12,363 12,628 11,805 +5 Income before taxation 50,289 55,660 -10

6,671 7,139 6,500 +3 Dutch Shell plc shareholders 26,592 30,918 -14

Decommissioning and other provisions 17,435 16,262 15,631

Decommissioning and other provisions 3,221 3,131 3,108

The unaudited quarterly and full year financial report and tables of RoyalDutch Shell plc and its subsidiaries (collectively known as Shell) are preparedon the basis of the same accounting principles as, and should be read inconjunction with, the Annual Report and Form 20-F for the year ended December31, 2011 (pages 105 to 110) as filed with the U.S. Securities and ExchangeCommission.

The financial information presented does not constitute statutory accountswithin the meaning of section 434(3) of the Companies Act 2006. Statutoryaccounts for the year ended December 31, 2011 were published in Shell's AnnualReport and a copy was delivered to the Registrar of Companies in England andWales. The auditors' report on those accounts was unqualified, did not includea reference to any matters to which the auditors drew attention by way ofemphasis without qualifying the report and did not contain a statement undersections 498(2) or (3) of the Companies 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 thus exclude the effect of changesin the oil price on inventory carrying amounts. Net capital investmentinformation is presented as measured based on capital expenditure as reportedin the Condensed Consolidated Statement of Cash Flows, adjusted for: proceedsfrom divestments; exploration expenses excluding exploration wells written off;investments in equity-accounted investments; 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. 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 the quarterly results.

3. Return on average capital employed

Return on average capital employed measures the efficiency of Shell'sutilisation of the capital that it employs and is a common measure of businessperformance. In this calculation, return on average capital employed is definedas the income for the year adjusted for after-tax interest expense as apercentage 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.

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 in which Royal Dutch Shell either directly orindirectly has control, by having either a majority of the voting rights or theright to exercise a controlling influence. The companies in which Shell hassignificant influence but not control are referred to as "associated companies"or "associates" and companies in which Shell has joint control are referred toas "jointly controlled entities". In this document, 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 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 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 this document,including (without limitation): (a) price fluctuations in crude oil and naturalgas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d)drilling and production results; (e) reserves estimates; (f) loss of marketshare and industry 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 factors that may affectfuture results are contained in Shell's Annual Report and Form 20-F for theyear ended December 31, 2011 (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 document, January31, 2013. 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 thisdocument.

We may have used certain terms, such as "Organic Reserves Replacement Ratio",in this report that United States Securities and Exchange Commission (SEC)strictly prohibits us from including in our filings with the SEC. U.S.Investors are urged to consider closely the disclosure in our Form 20-F, FileNo 1-32575, available on the SEC website www.sec.gov. You can also obtain theseforms from the SEC by calling 1-800-SEC-0330.

The information in this results announcement reflects the consolidated financial position and results of Royal Dutch Shell plc (“Royal Dutch Shell”). All amounts shown throughout this report are unaudited. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.

January 31, 2013

CONTACTS:

- Investor Relations International + 31 (0) 70 377 4540; North America +1 713241 1042

- Media International: +44 (0) 207 934 5550; USA +1 713 241 4544