Shell corrects 4Q & FY 2014 FIFO results, CCS unchanged

Shell corrects fourth quarter and full year 2014 (FIFO) results, CCS earningsunchanged. The Hague, 30 January 2015. Royal Dutch Shell plc announced its unauditedresults for the fourth quarter and full year 2014 on 29 January 2015.Subsequent to making that announcement, a stock valuation error in itsDownstream operations was discovered. The value of inventories in the condensedconsolidated balance sheet, reported as $19,981 million, should be corrected to$19,701 million. The fourth quarter and full year 2014 results of Royal Dutch Shell plc havebeen revised to take account of this stock valuation error. The impact is shownbelow. Royal Dutch Shell's fourth quarter and full year 2014 earnings, on a currentcost of supplies (CCS) basis are unchanged. These earnings were $4.2 billionand $19.0 billion respectively. Fourth quarter and full year 2014 CCS earnings excluding identified items areunchanged. These earnings were $3.3 billion and $22.6 billion respectively. The CCS adjustment for Downstream increased from $3,390 million to $3,568million in the fourth quarter 2014 and from $3,989 million to $4,167 millionfor the full year 2014. As a consequence, fourth quarter 2014 Income attributable to Royal Dutch Shellplc shareholders reduced from $773 million to $595 million. Full year 2014Income attributable to Royal Dutch Shell plc shareholders reduced from $15,052million to $14,874 million. The impact on end 2014 return on average capital employed on a reported incomebasis (7.1%) and gearing (12.2%) is immaterial. Fourth quarter and full year 2014 Basic CCS earnings per share and per ADS areunchanged. Basic earnings per share and diluted earnings per share both reduced from $0.12per share to $0.09 per share in the fourth quarter 2014 and from $2.38 pershare to $2.36 per share for the full year 2014. SUMMARY OF UNAUDITED RESULTS Quarters $million Full year Q4 2014 Q4 2014 2014 2014 Amended Reported Revision Amended Reported Revision Income attributable to Royal595 773 (178) Dutch Shell plc shareholders 14,874 15,052 (178) Current cost of supplies (CCS)3,568 3,390 178 adjustment for Downstream 4,167 3,989 178 4,163 4,163 - CCS earnings 19,041 19,041 - 901 901 - Identified items (3,521) (3,521) - CCS earnings excluding3,262 3,262 - identified items 22,562 22,562 - Of which: 1,730 1,730 - Upstream 16,505 16,505 - 1,550 1,550 - Downstream 6,265 6,265 - Corporate and Non-controlling(18) (18) - interest (208) (208) - Cash flow from operating9,608 9,608 - activities 45,044 45,044 - The adjustment of the value of inventories leads to the correction of certainother line items in the unaudited condensed consolidated financial statementswhich are considered to be immaterial. The revised amounts will be included in the 2014 Annual Report and Form 20-F. Enquiries Shell Media RelationsInternational: +44 20 7934 5550Americas: +1 713 241 4544 Shell Investor RelationsInternational: +31 70 377 4540North America: +1 832 337 2034 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 ownership interest held by Shell in a venture, partnership or company,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 2013 (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 2015. 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.