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Royal Dutch Shell Plc: 3rd Quarter 2012 UNAUDITED Results

Stocks in this article: RDS.A RDS.B

Chemicals sales volumes decreased by 3% compared with the same quarter last year, mainly due to reductions in European capacity and the impact of hurricane Isaac in the Gulf of Mexico. Chemicals manufacturing plant availability was 89% compared with 90% in the third quarter 2011. Improved global operating performance during the quarter largely offset the impact on availability of hurricane Isaac in the Gulf of Mexico.

Refinery intake volumes were 1% higher compared with the third quarter 2011. Excluding portfolio impacts, refinery intake volumes were 3% higher than in the same period a year ago as result of improved operating performance. Excluding the impact of hurricane Isaac in the Gulf of Mexico, availability was in line with the 94% availability in the third quarter 2011.

    CORPORATE AND NON-CONTROLLING INTEREST

           Quarters                       $ million               Nine months
    Q3 2012 Q2 2012 Q3 2011                                        2012  2011
 
                            Corporate and Non-controlling
       (60)    (84)   (252) interest excl. identified items        (239) (204)
                            Of which:
        15     (36)   (201) Corporate                               (51)   39
       (75)    (48)    (51) Non-controlling interest               (188) (243)
 
                            Corporate and Non-controlling
       (60)    (84)   (305) interest                               (510) (257)
 

Third quarter Corporate results and Non-controlling interest excluding identified items incurred a loss of $60 million compared with a loss of $252 million in the same period last year.

Corporate results excluding identified items compared with the third quarter 2011 mainly reflected favourable currency exchange rate effects and higher tax credits. These items were partly offset by increased net interest expense.  In the third quarter 2012 favourable currency exchange rate effects were $77 million compared with adverse currency exchange rate effects of $270 million in the same period last year.

FORTHCOMING EVENTS

Fourth quarter 2012 results and fourth quarter 2012 dividend are scheduled to be announced on January 31, 2013. First quarter 2013 results and first quarter 2013 dividend are scheduled to be announced on May 2, 2013. Second quarter 2013 results and second quarter 2013 dividend are scheduled to be announced on August 1, 2013. Third quarter 2013 results and third quarter 2013 dividend are scheduled to be announced on October 31, 2013.

Unaudited Condensed Consolidated Interim Financial Statements

    CONSOLIDATED STATEMENT OF INCOME

              Quarters                   $ million             Nine months
    Q3 2012 Q2 2012 Q3 2011 %[1]                            2012    2011    %
    112,118 117,068 123,412      Revenue                   349,106 354,596
                                 Share of profit of
                                 equity-accounted
      2,367   1,514   2,041      investments                 6,821   6,504
        944   1,304     504      Interest and other income   3,162   4,261
                                 Total revenue and other
    115,429 119,886 125,957      income                    359,089 365,361
     87,265  95,041  98,094      Purchases                 276,375 278,179
                                 Production and
      6,513   6,379   6,761      manufacturing expenses     18,941  19,465
                                 Selling, distribution and
      3,709   3,459   3,516      administrative expenses    10,857  10,629
        311     289     253      Research and development      895     721
        713     862     661      Exploration                 1,937   1,441
                                 Depreciation, depletion
      3,875   3,503   3,803      and amortisation           10,780   9,985
        415     411     331      Interest expense            1,378   1,086
     12,628   9,942  12,538   +1 Income before taxation     37,926  43,855 -14
      5,389   5,874   5,505      Taxation                   17,785  19,138
      7,239   4,068   7,033   +3 Income for the period      20,141  24,717 -19
                                 Income attributable to
        100       5      57      non-controlling interest      220     299
                                 Income attributable to
                                 Royal Dutch Shell plc
      7,139   4,063   6,976   +2 shareholders               19,921  24,418 -18
 
                                                          [1] Q3 on Q3 change.
 
    EARNINGS PER SHARE

           Quarters                         $                   Nine months
    Q3 2012 Q2 2012 Q3 2011                                    2012    2011
     1.14    0.65    1.12   Basic earnings per share           3.19    3.93
     1.14    0.65    1.12   Diluted earnings per share         3.18    3.93

    SHARES[2]

           Quarters                      Million                Nine months
    Q3 2012 Q2 2012 Q3 2011                                    2012    2011
                            Weighted average number of shares
                            as the basis for:
    6,266.3 6,265.9 6,238.1 Basic earnings per share          6,253.9 6,206.2
    6,273.9 6,273.2 6,247.1 Diluted earnings per share        6,261.2 6,216.2
 
                            Shares outstanding at the end of
    6,284.8 6,266.2 6,236.5 the period                        6,284.8 6,236.5
    [2] Royal Dutch Shell plc ordinary shares of EUR0.07 each.

Notes 1 to 6 are an integral part of these Condensed Consolidated Interim Financial Statements.

    Consolidated Statement of Comprehensive Income

           Quarters                      $ million               Nine months
    Q3 2012 Q2 2012 Q3 2011                                      2012   2011
      7,239   4,068   7,033 Income for the period               20,141  24,717
                            Other comprehensive income, net of
                            tax:
      2,424 (2,805) (4,642) Currency translation differences     1,504 (2,018)
                            Unrealised gains/(losses) on
       (97)      70      23 securities                           (132)      13
      (187)     567   (130) Cash flow hedging gains/(losses)      (70)    (89)
                            Share of other comprehensive
                            income/(loss) of equity-accounted
         27      39      29 investments                           (43)      99
                            Other comprehensive income/(loss)
      2,167 (2,129) (4,720) for the period                       1,259 (1,995)
      9,406   1,939   2,313 Comprehensive income for the period 21,400  22,722
                            Comprehensive income/(loss)
                            attributable to non-controlling
        132    (36)    (46) interest                               254     255
                            Comprehensive income attributable
                            to Royal Dutch Shell plc
      9,274   1,975   2,359 shareholders                        21,146  22,467

Notes 1 to 6 are an integral part of these Condensed Consolidated Interim Financial Statements.

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                       Equity attributable to Royal Dutch
                             Shell plc shareholders
                            Shares
                     Share  held in  Other   Retained         Non-controlling  Total
       $ million    capital  trust  reserves earnings  Total     interest     equity
    At January 1,
    2012                536 (2,990)    8,984  162,987 169,517           1,486 171,003
    Comprehensive
    income for the
    period                -       -    1,225   19,921  21,146             254  21,400
    Capital
    contributions
    from and other
    changes in
    non-controlling
    interest              -       -        -       36      36            (76)    (40)
    Dividends paid        -       -        -  (8,194) (8,194)           (266) (8,460)
    Scrip
    dividends[1]          6       -      (6)    2,438   2,438               -   2,438
    Repurchases of
    shares[2]           (2)       -        2  (1,815) (1,815)               - (1,815)
    Shares held in
    trust: net
    sales/
    (purchases) and
    dividends
    received              -     782        -      114     896               -     896
    Share-based
    compensation          -       -      243    (482)   (239)               -   (239)
    At September
    30, 2012            540 (2,208)   10,448  175,005 183,785           1,398 185,183
    [1] During the first nine months of 2012 some 69.6 million Class A shares,
    equivalent to $2.4 billion, were issued under the Scrip Dividend
    Programme.
 
    [2] Includes shares committed to repurchase at September 30, 2012.
                       Equity attributable to Royal Dutch
                             Shell plc shareholders
                            Shares
                     Share  held in  Other   Retained         Non-controlling  Total
       $ million    capital  trust  reserves earnings  Total     interest     equity
    At January 1,
    2011                529 (2,789)   10,094  140,179 148,013           1,767 149,780
    Comprehensive
    income for the
    period                -       -  (1,951)   24,418  22,467             255  22,722
    Capital
    contributions
    from and other
    changes in
    non-controlling
    interest              -       -        -       48      48            (46)       2
    Dividends paid        -       -        -  (7,816) (7,816)           (374) (8,190)
    Scrip
    dividends[1]          9       -      (9)    2,627   2,627               -   2,627
    Repurchases of
    shares[2]           (3)       -        3  (1,501) (1,501)               - (1,501)
    Shares held in
    trust: net
    sales/
    (purchases) and
    dividends
    received              -     961        -       99   1,060               -   1,060
    Share-based
    compensation          -       -    (230)     (67)   (297)               -   (297)
    At September
    30, 2011            535 (1,828)    7,907  157,987 164,601           1,602 166,203
    [1] During the first nine months of 2011 some 77.3 million Class A shares,
    equivalent to $2.6 billion, were issued under the Scrip Dividend
    Programme.
 
    [2] Includes shares committed to repurchase and repurchases subject to
    settlement at September 30, 2011.

Notes 1 to 6 are an integral part of these Condensed Consolidated Interim Financial Statements.

    CONDENSED CONSOLIDATED balance sheet
                                                        $ million
                                            Sept 30,     June 30,     Sept 30,
                                              2012         2012         2011
 
    Assets
    Non-current assets:
    Intangible assets                          4,478        4,425        4,500
    Property, plant and equipment            162,401      155,526      147,027
    Equity-accounted investments              39,033       38,424       38,321
    Investments in securities                  5,492        5,530        3,915
    Deferred tax                               4,246        4,141        5,512
    Prepaid pension costs                     12,461       11,542       11,132
    Trade and other receivables               10,070        9,467        9,040
                                             238,181      229,055      219,447
 
    Current assets:
    Inventories                               32,358       28,295       30,250
    Trade and other receivables               70,972       71,200       78,529
    Cash and cash equivalents                 18,839       17,282       19,256
                                             122,169      116,777      128,035
 
    Total assets                             360,350      345,832      347,482
 
    Liabilities
    Non-current liabilities:
    Debt                                      28,078       28,383       31,092
    Trade and other payables                   4,322        4,250        5,415
    Deferred tax                              16,107       15,626       15,814
    Retirement benefit obligations             6,169        6,026        5,988
    Decommissioning and other
    provisions                                16,262       15,805       15,442
                                              70,938       70,090       73,751
 
    Current liabilities:
    Debt                                       8,280        4,597        8,268
    Trade and other payables                  77,550       75,361       80,357
    Taxes payable                             14,869       14,491       15,305
    Retirement benefit obligations               399          403          374
    Decommissioning and other
    provisions                                 3,131        2,814        3,224
                                             104,229       97,666      107,528
 
    Total liabilities                        175,167      167,756      181,279
 
    Equity attributable to Royal Dutch
    Shell plc shareholders                   183,785      176,637      164,601
 
    Non-controlling interest                   1,398        1,439        1,602
    Total equity                             185,183      178,076      166,203
 
    Total liabilities and equity             360,350      345,832      347,482

Notes 1 to 6 are an integral part of these Condensed Consolidated Interim Financial Statements.

    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

           Quarters                    $ million                 Nine months
    Q3 2012 Q2 2012 Q3 2011                                     2012     2011
 
                            Cash flow from operating
                            activities
      7,239   4,068   7,033 Income for the period              20,141   24,717
                            Adjustment for:
      5,385   5,892   5,746 - Current taxation                 16,756   17,193
        362     358     249 - Interest expense (net)            1,219      889
                            - Depreciation, depletion and
      3,875   3,503   3,803 amortisation                       10,780    9,985
      (428) (1,193)   (347) - Net gains on sale of assets     (2,145)  (3,335)
                            - Decrease/(increase) in net
    (2,209)   3,836   1,011 working capital                     2,397  (5,783)
                            - Share of profit of
    (2,367) (1,514) (2,041) equity-accounted investments      (6,821)  (6,504)
                            - Dividends received from
                            equity-accounted
      2,537   2,799   2,402 investments                         7,918    6,485
                            - Deferred taxation and
                            decommissioning and other
       (75)    (70)   (204) provisions                            826    1,927
      (205)     261   (540) - Other                             (352)    (399)
                            Net cash from operating
     14,114  17,940  17,112 activities (pre-tax)               50,719   45,175
 
    (4,631) (4,635) (5,467) Taxation paid                    (14,492) (14,869)
 
                            Net cash from operating
      9,483  13,305  11,645 activities                         36,227   30,306
 
                            Cash flow from investing
                            activities
    (8,413) (7,033) (7,261) Capital expenditure              (21,902) (16,387)
                            Investments in equity-accounted
      (789)   (724)   (199) investments                       (2,811)  (1,571)
        786   1,675   1,594 Proceeds from sales of assets       4,833    5,815
                            Proceeds from sales of
         56     170     200 equity-accounted investments          283      425
                            Proceeds from sales/(purchases)
       (26)      10       6 of securities (net)                  (56)        7
         47      45      75 Interest received                     140      185
                            Net cash used in investing
    (8,339) (5,857) (5,585) activities                       (19,513) (11,526)
 
                            Cash flow from
                            financing activities
                            Net (decrease)/increase in debt
                            with maturity period
 
        507     248   (365) within three months                   302  (2,883)
      2,551     134     477 Other debt: New borrowings          3,295    1,244
      (182) (1,533) (2,529) Repayments                        (4,682)  (4,064)
      (352)   (339)   (173) Interest paid                     (1,145)  (1,195)
                            Change in non-controlling
       (10)     (2)     (3) interest                              (2)      (3)
                            Cash dividends paid to:
                            - Royal Dutch Shell plc
    (1,973) (2,112) (1,865) shareholders                      (5,756)  (5,189)
      (164)    (78)   (175) - Non-controlling interest          (266)    (374)
      (149)   (890)   (817) Repurchases of shares             (1,039)    (817)
                            Shares held in trust: net
                            sales/(purchases) and dividends
       (93)   (103)      10 received                                9      413
                            Net cash used in financing
        135 (4,675) (5,440) activities                        (9,284) (12,868)
 
                            Currency translation
                            differences relating to cash
                            and
 
        278   (515)   (829) cash equivalents                      117    (100)
                            Increase in cash and cash
      1,557   2,258   (209) equivalents                         7,547    5,812
 
                            Cash and cash equivalents at
     17,282  15,024  19,465 beginning of period                11,292   13,444
 
                            Cash and cash equivalents at
     18,839  17,282  19,256 end of period                      18,839   19,256
 

Notes 1 to 6 are an integral part of these Condensed Consolidated Interim Financial Statements.

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