Shell updates on Q4 2013 and FY 2013 unaudited results

Shell updates on fourth quarter 2013 and full year 2013 unaudited results The Hague, 17 January 2014 Royal Dutch Shell plc ("Shell") today updates on its expected 2013 results.Fourth quarter 2013 figures, which are expected to be published on January 30,2014 , are expected to be significantly lower than recent levels ofprofitability, considering current oil and gas prices and the downstream oilproducts industry environment. Shell's fourth quarter 2013 earnings on a current cost of supplies ("CCS")basis excluding identified items are expected to be approximately $2.9 billionand were impacted by weak industry conditions in downstream oil products,higher exploration expenses and lower upstream volumes. Chief Executive Officer Ben van Beurden commented: "Our 2013 performance wasnot what I expect from Shell. Our focus will be on improving Shell's financialresults, achieving better capital efficiency and on continuing to strengthenour operational performance and project delivery." When Shell announces its results on January 30, 2014, fourth quarter 2013 CCSearnings (see Note 1) are expected to be approximately $2.2 billion, and fullyear 2013 CCS earnings are expected to be approximately $16.8 billion. Fourth quarter 2013 identified items are expected to be a net charge ofapproximately $0.7 billion, mainly reflecting impairments in Upstream. Fullyear 2013 identified items are expected to be a net charge of approximately$2.7 billion, also mainly reflecting impairments in Upstream. Excluding identified items, fourth quarter 2013 CCS earnings are expected to beapproximately $2.9 billion, reflecting lower results in each of Upstream,Downstream and Corporate compared with the fourth quarter 2012. Full year 2013 CCS earnings excluding identified items are expected to beapproximately $19.5 billion, reflecting lower results in both Upstream andDownstream compared with the full year 2012. Compared with the fourth quarter 2012, Upstream earnings excluding identifieditems were impacted by higher exploration expenses and lower volumes. A highlevel of maintenance activity during the fourth quarter 2013 affected highvalue oil and gas production volumes, including gas-to-liquids, as well as LNGsales volumes. Earnings were also impacted by the weakening of the Australiandollar. Upstream Americas continued to incur a loss. The security situation inNigeria remained challenging. Compared with the fourth quarter 2012, Downstream CCS earnings excludingidentified items were mainly impacted by significantly weaker industry refiningconditions, in particular in Asia Pacific and Europe. Marketing and tradingcontributions were lower. Chemicals earnings increased as a result of improvedindustry conditions and operating performance. Cash flow from operating activities for the fourth quarter 2013 is expected tobe approximately $6.0 billion. Full year 2013 cash flow from operatingactivities is expected to be approximately $40.4 billion. Excluding working capital movements, cash flow from operating activities forthe fourth quarter 2013 is expected to be approximately $7.7 billion, andapproximately $37.5 billion for the full year 2013. Net capital investment (see Note 1) for the fourth quarter 2013 is expected tobe approximately $15.8 billion. Full year 2013 net capital investment isexpected to be approximately $44.3 billion. Gearing is expected to be approximately 16% at the end of 2013. SUMMARY OF EXPECTED RESULTS (UNAUDITED) Quarter $ billion Full Year Q4 2013 Q4 20121 2013 20121 Approximately Approximately Income attributable to1.8 6.7 shareholders 16.4 26.7 Current cost of supplies (CCS)0.4 0.6 adjustment for Downstream 0.4 0.5 2.2 7.3 CCS earnings 16.8 27.2 (0.7) 1.7 Less: Identified items (2.7) 1.9 CCS earnings excluding identified2.9 5.6 items 19.5 25.3 Of which: 2.5 4.4 Upstream 15.1 20.1 0.5 1.2 Downstream 4.5 5.4 Corporate and Non-controlling(0.1) - interest (0.1) (0.2) Cash flow from operating6.0 9.9 activities 40.4 46.1 15.8 10.9 Net Capital Investment 44.3 29.8 16 9.8 Gearing (%) 16 9.8 1 Prior restatement for accounting policy change Shell's fourth quarter and full year 2013 results and fourth quarter 2013dividend are scheduled to be announced on January 30, 2014. Shell's annualManagement Day is scheduled for March 13, 2014 in London, United Kingdom, andwill also be webcast on www.shell.com/investor. On March 17, 2014 a ManagementDay will be held in New York, United States. Note 1 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 therefore exclude the effect ofchanges in the oil price on inventory carrying amounts. Net capital investment is defined as capital expenditure as reported in theCondensed Consolidated Statement of Cash Flows, adjusted for: proceeds fromdisposals (excluding those in the Corporate segment relating to otherinvestments); exploration expense excluding exploration wells written off;investments in joint ventures and associates; 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. CAUTIONARY STATEMENT All amounts shown throughout this Release 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 over which Royal Dutch Shell plc either directly orindirectly has control. Companies over which Shell has joint control aregenerally referred to as "joint ventures" and companies over which Shell hassignificant influence but neither control nor joint control are referred to as"associates". In this document, joint ventures and associates may also bereferred to as "equity-accounted investments". The term "Shell interest" isused for convenience to indicate the direct and/or indirect (for example,through our 23% shareholding in Woodside Petroleum Ltd.) ownership interestheld by Shell in a venture, partnership or company, after exclusion of allthird-party interest. This document contains forward-looking statementsconcerning the financial condition, results of operations and businesses ofRoyal Dutch Shell. All statements other than statements of historical fact are,or may be deemed to be, forward-looking statements. Forward-looking statementsare statements of future expectations that are based on management's currentexpectations and assumptions and involve known and unknown risks anduncertainties that could cause actual results, performance or events to differmaterially from those expressed or implied in these statements. Forward-lookingstatements include, among other things, statements concerning the potentialexposure of Royal Dutch Shell to market risks and statements expressingmanagement's expectations, beliefs, estimates, forecasts, projections andassumptions. These forward-looking statements are identified by their use ofterms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'',''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'',''plan'', ''probably'', ''project'', ''risks'', "schedule", ''seek'',''should'', ''target'', ''will'' and similar terms and phrases. There are anumber of factors that could affect the future operations of Royal Dutch Shelland could cause those results to differ materially from those expressed in theforward-looking statements included in this document, including (withoutlimitation): (a) price fluctuations in crude oil and natural gas; (b) changesin demand for Shell's products; (c) currency fluctuations; (d) drilling andproduction results; (e) reserves estimates; (f) loss of market share andindustry 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 risk factors that may affectfuture results are contained in Royal Dutch Shell's Form 20-F for the yearended December 31, 2012 (available at www.shell.com/investor and www.sec.gov).These risk factors also expressly qualify all forward-looking statementscontained in this document and should be considered by the reader. Eachforward-looking statement speaks only as of the date of this document, January17, 2014. Neither Royal Dutch Shell plc nor any of its subsidiaries undertakeany obligation to publicly update or revise any forward-looking statement as aresult of new information, future events or other information. In light ofthese risks, results could differ materially from those stated, implied orinferred from the forward-looking statements contained in this document. We may have used certain terms, such as resources, in this document that theUnited States Securities and Exchange Commission (SEC) strictly prohibits usfrom including in our filings with the SEC. U.S. investors are urged toconsider closely the disclosure in our Form 20-F, File No 1-32575, available onthe SEC website www.sec.gov. You can also obtain this form from the SEC bycalling 1-800-SEC-0330. January 17, 2014 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