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ROYAL DUTCH SHELL PLC 4TH QUARTER AND FULL YEAR 2014 UNAUDITED RESULTS * Royal Dutch Shell's fourth quarter 2014 earnings, on a current cost of supplies (CCS) basis (see Note 2), were $4.2 billion compared with $2.2 billion for the same quarter a year ago. Full year 2014 CCS earnings were $19.0 billion compared with $16.7 billion in 2013. * Fourth quarter 2014 CCS earnings excluding identified items (see page 6) were $3.3 billion compared with $2.9 billion for the fourth quarter 2013, an increase of 12%. Full year 2014 CCS earnings excluding identified items were $22.6 billion compared with $19.5 billion in 2013. * Compared with the fourth quarter 2013, CCS earnings excluding identified items benefited from improved Downstream results reflecting steps taken by the company to improve financial performance and the industry environment. In Upstream, earnings benefited from increased high-margin liquids production volumes and improved operational performance, and lower well write-offs. These items were more than offset by lower oil prices. Upstream earnings excluding identified items were impacted by $330 million related to an increase of a deferred tax liability as a result of the weakening Australian dollar. * Fourth quarter 2014 basic CCS earnings per share excluding identified items increased by 13% versus the fourth quarter 2013. Full year 2014 basic CCS earnings per share excluding identified items increased by 15% versus 2013. * Total cash dividends paid to shareholders in the fourth quarter 2014 were $3.0 billion. During the fourth quarter some 27.4 million shares were bought back for cancellation for a consideration of $1.0 billion. * Gearing at the end of 2014 was 12.2% compared with 16.1% at the end of 2013. * A fourth quarter 2014 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share ("ADS"), an increase of 4% compared with the fourth quarter 2013. * Royal Dutch Shell is expected to announce a dividend of $0.47 per ordinary share and $0.94 per American Depositary Share ("ADS") in respect of the first quarter 2015. SUMMARY OF UNAUDITED RESULTS Quarters $ million Full year Q4 Q3 Q42014 2014 2013 %1 2014 2013 % Income attributable to Royal773 4,463 1,781 -57 Dutch Shell plc shareholders 15,052 16,371 -8 Current cost of supplies (CCS)3,390 803 371 adjustment for Downstream 3,989 374 4,163 5,266 2,152 +93 CCS earnings 19,041 16,745 +14 901 (581) (763) Identified items2 (3,521) (2,747) CCS earnings excluding identified3,262 5,847 2,915 +12 items 22,562 19,492 +16 Of which: 1,730 4,343 2,477 Upstream 16,505 15,117 1,550 1,793 558 Downstream 6,265 4,466 Corporate and Non-controlling(18) (289) (120) interest (208) (91) Cash flow from operating9,608 12,811 6,028 +59 activities 45,044 40,440 +11 0.66 0.83 0.34 +94 Basic CCS earnings per share ($) 3.02 2.66 +14 1.32 1.66 0.68 Basic CCS earnings per ADS ($) 6.04 5.32 Basic CCS earnings per share0.52 0.92 0.46 +13 excl. identified items ($) 3.57 3.10 +15 Basic CCS earnings per ADS excl.1.04 1.84 0.92 identified items ($) 7.14 6.20 0.47 0.47 0.45 +4 Dividend per share ($) 1.88 1.80 +4 0.94 0.94 0.90 Dividend per ADS ($) 3.76 3.60 1 Q4 on Q4 change 2 See page 6 Royal Dutch Shell Chief Executive Officer Ben van Beurden: "Our strategy is delivering with good performance on our three themes offinancial performance, capital efficiency and project delivery. These willremain Shell's priorities in 2015, as we continue to balance growth andreturns." FOURTH QUARTER 2014 PORTFOLIO DEVELOPMENTS Upstream In Malaysia, Shell announced first production from the Shell-operatedGumusut-Kakap deep-water development (Shell interest 29%). The productionsystem is expected to reach a peak oil production of around 135 thousandbarrels of oil equivalent per day ("boe/d"). With oil production now underway,work on the gas injection facilities is continuing with an expected start-upduring 2015. Shell announced the final investment decision ("FID") on the Bonga Main phase 3project (Shell interest 55%) offshore Nigeria. The development is expected tocontribute some 40 thousand boe/d at peak production through the existing BongaFPSO export facility. Shell announced the FID on the Coulomb phase 2 project (Shell interest 100%) inthe Gulf of Mexico. The development is a subsea tie-back into the Na Kikasemi-submersible storage platform and is expected to contribute some 20thousand boe/d at peak production. Shell commenced front end engineering and design ("FEED") on the Vitodeep-water development project (Shell interest 51%) in the Gulf of Mexico,United States. The development, which is expected to deliver peak production of100 thousand boe/d, will be a floating production system with flexibility forup to four subsea tiebacks. Shell announced a frontier exploration discovery offshore Gabon, West Africa(Shell interest 75%). The Leopard-1 well encountered a substantial gas columnwith around 200 metres net gas pay in a pre-salt reservoir. Shell and itspartners are planning to undertake an appraisal programme to further determinethe resource volumes. During the quarter, in Shell's heartlands exploration programme, Shell made twoShell-operated oil discoveries in deep-water Gulf of Mexico with the GettysburgW well (Shell interest 80%) in the Norphlet play, and the Power Nap well (Shellinterest 50%) just east of the Vito discovery. Shell had continued success with near-field exploration discoveries in a numberof countries. As part of its global exploration programme, Shell added new acreage positionsfollowing successful bidding results in the United States Gulf of Mexico. Upstream divestment proceeds totalled some $2.2 billion for the fourth quarter2014 and included proceeds from the divestment of the Haynesville dry gasposition in the United States, Oil Mining Lease 24 and related facilities inonshore Nigeria, and the BM-ES-23 concession in the Espirito Santos Basinoffshore Brazil. In Upstream outside the Americas, a strategic review of Shell's resources playsportfolio is underway. This review may potentially lead to future portfolioactivities, well write-offs and/or impairments. Downstream In Norway, Shell signed an agreement for the sale of its retail, commercialfuels, and supply and distribution logistics businesses to ST1. In addition,Shell's aviation business will become a 50-50 joint venture with ST1. The saleis subject to regulatory approval and is expected to be completed in 2015. In Singapore, Shell has taken full control of Ellba Eastern (Pte) Ltd, throughthe acquisition of a 50% stake in the company previously held by its jointventure partner. The joint venture, which is already operated by Shell,produces styrene monomer and propylene oxide. The buy-out enables integrationwith and optimisation of Shell's existing asset base at Shell Jurong Island,allowing for future growth. In South Africa, Shell announced that it is merging its Marketing and Refiningbusinesses to form Shell Downstream South Africa. As part of the merger, Shellwill sell 3% of its shareholding in the Durban refinery in South Africa to ourBroad-Based Black Economic Empowerment partner, Thebe. Shell Midstream Partners, L.P., a master limited partnership formed by Shell,announced the pricing of its initial public offering of 40,000,000 common unitsrepresenting limited partner interests at $23.00 per common unit raising $1.0billion in proceeds for Shell. The underwriters exercised the fullover-allotment option to purchase an additional 6,000,000 common units fromShell Midstream Partners. The common units began trading on the New York StockExchange on October 29, 2014 under the ticker symbol "SHLX". KEY FEATURES OF THE FOURTH QUARTER AND FULL YEAR 2014 * Fourth quarter 2014 CCS earnings (see Note 2) were $4,163 million, 93% higher than for the same quarter a year ago. Full year 2014 CCS earnings were $19,041 million, 14% higher than in 2013. * Fourth quarter 2014 CCS earnings excluding identified items (see page 6) were $3,262 million compared with $2,915 million for the fourth quarter 2013, an increase of 12%. Fourth quarter 2014 CCS earnings excluding identified items benefited from improved Downstream results reflecting steps taken by the company to improve financial performance and the industry environment. In Upstream, earnings benefited from increased high-margin liquids production volumes and improved operational performance, and lower well write-offs. These items were more than offset by lower oil prices. Upstream earnings excluding identified items were impacted by $330 million related to an increase of a deferred tax liability as a result of the weakening Australian dollar. Full year 2014 CCS earnings excluding identified items were $22,562 millioncompared with $19,492 million in 2013, an increase of 16%. * Basic CCS earnings per share for the fourth quarter 2014 increased by 94% versus the same quarter a year ago. Full year 2014 basic CCS earnings per share increased by 14% versus 2013. * Basic CCS earnings per share excluding identified items for the fourth quarter 2014 increased by 13% versus the same quarter a year ago. Full year 2014 basic CCS earnings per share excluding identified items increased by 15% versus 2013. * Cash flow from operating activities for the fourth quarter 2014 was $9.6 billion, compared with $6.0 billion for the same quarter last year. Excluding working capital movements, cash flow from operating activities for the fourth quarter 2014 was $3.8 billion, compared with $7.7 billion in the same quarter last year. Full year 2014 cash flow from operating activities was $45.0 billion, comparedwith $40.4 billion in 2013. Excluding working capital movements, cash flow fromoperating activities for the full year 2014 was $38.9 billion, compared with$37.5 billion in 2013. * Net capital investment (see Note 2) for the fourth quarter 2014 was $7.8 billion. Capital investment for the fourth quarter 2014 was $9.7 billion and divestments were $2.5 billion. Full year 2014 net capital investment was $23.9 billion. Capital investment forthe full year 2014 was $37.3 billion, including $2.0 billion for theacquisition of the Repsol LNG portfolio. This successfully completes the 2014capital program. Divestments were $14.0 billion, excluding proceeds from theinitial public offering of the US midstream master limited partnership. * Total cash dividends paid to shareholders in the fourth quarter 2014 were $3.0 billion. Total dividends distributed in the full year 2014 were $11.8 billion, of which $2.4 billion were settled by issuing some 64.6 million A shares under the Scrip Dividend Programme. * Under our share buyback programme some 27.4 million A shares were bought back for cancellation during the fourth quarter 2014 for a consideration of $1.0 billion. During the full year 2014 some 87.7 million shares were bought back for cancellation for a consideration of $3.3 billion. * Return on average capital employed on a reported income basis (see Note 4) was 7.1% at the end of 2014 compared with 7.9% at the end of 2013. * Gearing was 12.2% at the end of 2014 versus 16.1% at the end of 2013. * Oil and gas production for the fourth quarter 2014 was 3,213 thousand boe/ d, a decrease of 1% compared with the fourth quarter 2013. Excluding the impact of divestments, Abu Dhabi license expiry, PSC price effects, and security impacts in Nigeria, fourth quarter 2014 production volumes were 7% higher than for the same period last year. Full year 2014 oil and gas production was 3,080 thousand boe/d, a decrease of4% compared with 2013. Excluding the impact of divestments, Abu Dhabi licenseexpiry, PSC price effects, and security impacts in Nigeria, 2014 productionvolumes increased by 2% compared with 2013. * Equity sales of LNG of 6.20 million tonnes for the fourth quarter 2014 were 26% higher than for the same quarter a year ago. Full year 2014 equity sales of LNG of 23.97 million tonnes were 22% higher thanin 2013. * Oil products sales volumes for the fourth quarter 2014 were 6% higher than for the fourth quarter 2013. Chemicals sales volumes for the fourth quarter 2014 decreased by 12% compared with the same quarter a year ago. Full year 2014 oil products sales volumes were 3% higher than in 2013. Fullyear 2014 chemicals sales volumes decreased by 2% compared with 2013. * When final volumes are reported in the 2014 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 0.3 billion barrels of oil equivalent ("boe"). With 2014 production of some 1.2 billion boe, our headline proved ReservesReplacement Ratio for the year on an SEC basis is expected to be around 26%.Our Organic Reserves Replacement Ratio, which excludes the impact of oil andgas price movements in the year, acquisitions and divestments, is expected tobe around 47%. At the end of 2014, total proved reserves on an SEC basis are expected to bearound 13.1 billion boe, after taking into account 2014 production. The 3-year average headline proved Reserves Replacement Ratio on an SEC basisis expected to be around 67%. 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 85%. Further information will be provided in our Annual Report and Form 20-F, whichis expected to be filed in March 2015. * Supplementary financial and operational disclosure for the fourth quarter and full year 2014 is available at www.Shell.com/investor. SUMMARY OF IDENTIFIED ITEMS Earnings for the fourth quarter 2014 reflected the following items, which inaggregate amounted to a net gain of $901 million (compared with a net charge of$763 million for the fourth quarter 2013), as summarised in the table below: * Upstream earnings included a net gain of $915 million, mainly reflecting net divestment gains of $756 million and the net impact of fair value accounting of commodity derivatives and certain gas contracts of $436 million. These items were partly offset by asset impairments of $119 million, as well as redundancy and restructuring charges and other items. These other items included a $369 million charge associated with an update of an Australian deferred tax asset, partly offset by a gain of $295 million related to the recognition of the Dutch pension plan amendment. Upstream earnings for the fourth quarter 2013 included a net charge of $631 million. * Downstream earnings included a net charge of $6 million, mainly reflecting the net impact of fair value accounting of commodity derivatives of $186 million, redundancy and restructuring charges of $161 million, and impairment charges of $132 million. These net charges were partly offset by a gain of $480 million related to the recognition of the Dutch pension plan amendment. Downstream earnings for the fourth quarter 2013 included a net charge of $86 million. * Corporate results and Non-controlling interest included a net charge of $8 million mainly reflecting redundancy and restructuring charges. Earnings for the fourth quarter 2013 included a net charge of $46 million. SUMMARY OF IDENTIFIED ITEMS Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 2014 2013 Segment earnings impact of identified items: 915 (394) (631) Upstream (664) (2,479) (6) (192) (86) Downstream (2,854) (597) Corporate and Non-controlling(8) 5 (46) interest (3) 329 901 (581) (763) Earnings impact (3,521) (2,747) These identified items are shown to provide additional insight into segmentearnings and income attributable to shareholders. They include the full impacton Shell's CCS earnings of the following items: * Divestment gains and losses * Impairments * Fair value accounting of commodity derivatives and certain gas contracts (see Note 3) * Redundancy and restructuring Further items may be identified in addition to the above. EARNINGS BY BUSINESS SEGMENT UPSTREAM Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 %1 2014 2013 % Upstream earnings excluding1,730 4,343 2,477 -30 identified items 16,505 15,117 +9 2,645 3,949 1,846 +43 Upstream earnings 15,841 12,638 +25 Upstream cash flow from4,991 8,854 5,557 -10 operating activities 31,839 30,114 +6 5,355 5,447 14,150 -62 Upstream net capital investment 20,704 39,217 -47 Liquids production available for1,526 1,429 1,539 -1 sale (thousand b/d) 1,484 1,541 -4 Natural gas production available9,782 7,892 9,925 -1 for sale (million scf/d) 9,259 9,616 -4 Total production available for3,213 2,790 3,251 -1 sale (thousand boe/d) 3,080 3,199 -4 Equity sales of LNG (million6.20 5.68 4.93 +26 tonnes) 23.97 19.64 +22 1 Q4 on Q4 change Fourth quarter Upstream earnings excluding identified items were $1,730 millioncompared with $2,477 million a year ago. Identified items were a gain of $915million, compared with a net charge of $631 million for the fourth quarter 2013(see page 6). Compared with the fourth quarter 2013, earnings excluding identified items wereimpacted by the significant decline in oil price. Earnings benefited from boththe impact of high-margin liquids production volumes from the start-up of newdeep-water projects and improved operational performance, and lower wellwrite-offs. The increase of a deferred tax liability as a result of theweakening Australian dollar reduced earnings by some $140 million. The impactof this item on the fourth quarter 2014 earnings excluding identified items was$330 million after tax, compared with a $190 million after tax impact in thefourth quarter 2013. Upstream Americas excluding identified items incurred a loss. Global liquids realisations were 25% lower than for the fourth quarter 2013.Global natural gas realisations were 12% lower than for the same quarter a yearago, with a 3% decrease in the Americas and a 15% decrease outside theAmericas. Fourth quarter 2014 production was 3,213 thousand boe/d compared with 3,251thousand boe/d a year ago. Liquids production decreased by 1% and natural gasproduction decreased by 1% compared with the fourth quarter 2013. Excluding theimpact of divestments, Abu Dhabi license expiry, PSC price effects, andsecurity impacts in Nigeria, fourth quarter 2014 production was 7% higher thanfor the same period last year. Underlying production was driven by increasedhigh-margin liquids production from both new deep-water projects and improvedoperational performance. New field start-ups and the continuing ramp-up of existing fields, inparticular Mars B, Cardamom and BC10 phase 2 in the Americas, Gumusut Kakap inMalaysia, and Bonga NW in Nigeria contributed some 140 thousand boe/d toproduction for the fourth quarter 2014, which more than offset the impact offield declines. Equity LNG sales volumes of 6.20 million tonnes increased by 26% compared withthe same quarter a year ago, mainly reflecting the contribution from AtlanticLNG and Peru LNG. Full year Upstream earnings excluding identified items were $16,505 millioncompared with $15,117 million in 2013. Identified items were a net charge of$664 million, compared with a net charge of $2,479 million in 2013 (see page6). Compared with 2013, Upstream earnings excluding identified items benefited fromincreased liquids production volumes from both the start-up of new high-margindeep-water projects and improved operational performance. Earnings alsoreflected lower exploration expenses primarily driven by lower well write-offs,and increased contributions from trading. Earnings were heavily impacted bydeclining oil prices, and increased depreciation. Global liquids realisations were 8% lower than in 2013. Global natural gasrealisations were 6% lower than in 2013, with a 20% increase in the Americasand an 11% decrease outside the Americas. Full year 2014 production was 3,080 thousand boe/d compared with 3,199 thousandboe/d in 2013. Liquids production decreased by 4% and natural gas productiondecreased by 4% compared with 2013. Excluding the impact of divestments, AbuDhabi license expiry, PSC price effects, and security impacts in Nigeria,production volumes in 2014 increased by 2% compared with 2013. New field start-ups and the continuing ramp-up of existing fields, inparticular Majnoon in Iraq, Mars B and BC-10 phase 2 in the Americas,contributed some 130 thousand boe/d to production in 2014. Equity LNG sales volumes of 23.97 million tonnes were 22% higher than in 2013,mainly reflecting the contribution from Atlantic LNG and Peru LNG. DOWNSTREAM Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 %1 2014 2013 % Downstream CCS earnings1,550 1,793 558 +178 excluding identified items 6,265 4,466 +40 1,544 1,601 472 +227 Downstream CCS earnings 3,411 3,869 -12 Downstream cash flow from4,698 3,187 808 +481 operating activities 11,292 7,903 +43 Downstream net capital2,375 (615) 1,571 +51 investment 3,079 4,885 -37 Refinery processing intake2,718 2,896 2,910 -7 (thousand b/d) 2,903 2,915 - Oil products sales volumes6,392 6,295 6,038 +6 (thousand b/d) 6,365 6,164 +3 Chemicals sales volumes3,895 4,441 4,412 -12 (thousand tonnes) 17,008 17,386 -2 1 Q4 on Q4 change Fourth quarter Downstream earnings excluding identified items were $1,550million compared with $558 million for the fourth quarter 2013. Identifieditems were a net charge of $6 million, compared with a net charge of $86million for the fourth quarter 2013 (see page 6). Compared with the fourth quarter 2013, Downstream earnings excluding identifieditems benefited from increased contributions from trading and supply, lowercosts and taxes, higher contributions from marketing, and Shell's actions toimprove its portfolio and profitability. Realised refining margins improved inmost regions, reflecting industry conditions and operating performance.Chemicals earnings were negatively impacted by unit shut-downs at the Moerdijkchemical site in the Netherlands. Refinery intake volumes were 7% lower compared with the same quarter last year.Excluding portfolio impacts, refinery intake volumes were 3% lower than in thesame period a year ago as a result of planned maintenance. Refineryavailability was 95%, compared with 93% for the fourth quarter 2013. Oil products sales volumes increased by 6% compared with the same period a yearago, mainly as a result of increased trading volumes. Chemicals sales volumes decreased by 12% compared with the same quarter lastyear primarily due to reduced volumes as a result of unplanned downtime at theMoerdijk chemical site in the Netherlands. Chemicals manufacturing plantavailability was 65% compared with 91% in the same period last year, mainlyreflecting the impact of unplanned unit shut-downs at the Moerdijk chemicalsite in the Netherlands. Full year Downstream earnings excluding identified items were $6,265 millioncompared with $4,466 million in 2013. Identified items were a net charge of$2,854 million, compared with a net charge of $597 million in 2013 (see page6). Compared with 2013, Downstream earnings excluding identified items benefitedfrom higher realised refining margins, reflecting the industry environment andimproved operating performance, increased contributions from trading, and lowercosts mainly as a result of divestments. Contributions from Marketing continuedto be strong in 2014. Earnings were impacted by lower Chemicals contributionsmainly as a result of weaker intermediates industry conditions and the resultof unit shut-downs at the Moerdijk chemical site in the Netherlands. Refinery intake volumes were in line with 2013. Refinery availability was 94%,compared with 93% in 2013. Oil products sales volumes increased by 3% compared with 2013, mainlyreflecting higher trading volumes. Chemicals sales volumes decreased by 2% compared with 2013, primarily driven byreduced volumes as a result of unplanned downtime at the Moerdijk chemical sitein the Netherlands. Chemicals manufacturing plant availability decreased to 85%from 92% in 2013, mainly reflecting the impact of unit shut-downs at theMoerdijk chemical site in the Netherlands. CORPORATE AND NON-CONTROLLING INTEREST Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 2014 2013 Corporate and Non-controlling interest(18) (289) (120) excl. identified items (208) (91) Of which: (24) (306) (73) Corporate (153) 73 6 17 (47) Non-controlling interest (55) (164) (26) (284) (166) Corporate and Non-controlling interest (211) 238 Fourth quarter Corporate results and Non-controlling interest excludingidentified items were a loss of $18 million, compared with a loss of $120million for the same period last year. Identified items for the fourth quarter2014 were a net charge of $8 million, whereas earnings for the fourth quarter2013 included a net charge of $46 million (see page 6). Compared with the fourth quarter 2013, Corporate results excluding identifieditems mainly reflected lower net interest expense and higher tax credits,partly offset by adverse currency exchange rate effects. Full year Corporate results and Non-controlling interest excluding identifieditems were a loss of $208 million compared with a loss of $91 million in 2013.Identified items for 2014 were a net charge of $3 million, whereas earnings for2013 included a net gain of $329 million (see page 6). Compared with 2013, Corporate results excluding identified items mainlyreflected lower tax credits, higher net interest expense and adverse currencyexchange rate effects. FORTHCOMING EVENTS First quarter 2015 results and first quarter 2015 dividend are scheduled to beannounced on April 30, 2015. Second quarter 2015 results and second quarter2015 dividend are scheduled to be announced on July 30, 2015. Third quarter2015 results and third quarter 2015 dividend are scheduled to be announced onOctober 29, 2015. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF INCOME Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 %1 2014 2013 % 92,374 107,851 109,243 Revenue 421,105 451,235 Share of profit of joint818 1,512 2,024 ventures and associates 6,116 7,275 974 462 212 Interest and other income 4,123 1,089 Total revenue and other94,166 109,825 111,479 income 431,344 459,599 73,360 84,507 85,853 Purchases 326,998 353,199 Production and manufacturing7,465 7,555 7,512 expenses 30,038 28,386 Selling, distribution and3,426 3,350 3,861 administrative expenses 13,965 14,675 363 302 428 Research and development 1,222 1,318 1,323 846 1,766 Exploration 4,224 5,278 Depreciation, depletion and4,991 4,730 5,629 amortisation 24,499 21,509 430 417 470 Interest expense 1,804 1,642 2,808 8,118 5,960 -53 Income before taxation 28,594 33,592 -15 2,212 3,693 4,138 Taxation 13,686 17,066 596 4,425 1,822 -67 Income for the period 14,908 16,526 -10 Income attributable to(177) (38) 41 non-controlling interest (144) 155 Income attributable to Royal773 4,463 1,781 -57 Dutch Shell plc shareholders 15,052 16,371 -8 1 Q4 on Q4 change EARNINGS PER SHARE Quarters $ Full year Q4 2014 Q3 2014 Q4 2013 2014 2013 0.12 0.70 0.28 Basic earnings per share 2.38 2.60 0.12 0.70 0.28 Diluted earnings per share 2.38 2.60 SHARES1 Quarters Millions Full year Q4 2014 Q3 2014 Q4 2013 2014 2013 Weighted average number of shares as the basis for: 6,301.0 6,333.8 6,272.9 Basic earnings per share 6,311.5 6,291.1 6,301.1 6,334.1 6,275.1 Diluted earnings per share 6,311.6 6,293.4 Shares outstanding at the end of6,295.0 6,320.3 6,295.4 the period 6,295.0 6,295.4 1 Royal Dutch Shell plc ordinary shares of euro 0.07 each CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 2014 2013 596 4,425 1,822 Income for the period 14,908 16,526 Other comprehensive income net of tax: Items that may be reclassified to income in later periods: (2,398) (2,963) (326) - Currency translation differences (5,321) (1,938) - Unrealised (losses)/gains on(560) (83) 28 securities (797) (166) 537 (10) (2) - Cash flow hedging gains/(losses) 528 178 - Share of other comprehensive loss(86) (68) (43) of joint ventures and associates (156) (167) (2,507) (3,124) (343) Total (5,746) (2,093) Items that are not reclassified to income in later periods: (3,011) (2,672) 2,370 - Retirement benefits remeasurements(6,482) 3,833 (3,011) (2,672) 2,370 Total (6,482) 3,833 Other comprehensive (loss)/income(5,518) (5,796) 2,027 for the period (12,228) 1,740 (4,922) (1,371) 3,849 Comprehensive income for the period 2,680 18,266 Comprehensive (loss)/income attributable to non-controlling(163) (104) (14) interest (190) 23 Comprehensive income attributable to Royal Dutch Shell plc(4,759) (1,267) 3,863 shareholders 2,870 18,243 CONDENSED CONSOLIDATED BALANCE SHEET $ million Dec 31, 2014 Sep 30, 2014 Dec 31, 2013 Assets Non-current assets: Intangible assets 7,076 7,135 4,394 Property, plant and equipment 192,472 190,842 191,897 Joint ventures and associates 31,558 33,316 34,613 Investments in securities 4,115 4,592 4,715 Deferred tax 8,029 7,465 5,785 Retirement benefits 1,682 2,405 3,574 Trade and other receivables 8,304 8,255 9,191 253,236 254,010 254,169 Current assets: Inventories 19,981 27,318 30,009 Trade and other receivables 58,470 59,056 63,638 Cash and cash equivalents 21,607 19,027 9,696 100,058 105,401 103,343 Total assets 353,294 359,411 357,512 Liabilities Non-current liabilities: Debt 38,332 37,065 36,218 Trade and other payables 3,582 3,735 4,065 Deferred tax 12,052 12,970 11,943 Retirement benefits 16,318 14,064 11,182 Decommissioning and other provisions 23,834 22,156 19,698 94,118 89,990 83,106 Current liabilities: Debt 7,208 5,917 8,344 Trade and other payables 64,864 65,741 70,112 Taxes payable 9,797 13,181 11,173 Retirement benefits 377 364 382 Decommissioning and other provisions 3,966 3,226 3,247 86,212 88,429 93,258 Total liabilities 180,330 178,419 176,364 Equity attributable to Royal Dutch Shellplc shareholders 172,144 180,002 180,047 Non-controlling interest 820 990 1,101 Total equity 172,964 180,992 181,148 Total liabilities and equity 353,294 359,411 357,512 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, 2014 542 (1,932) (2,037) 183,474 180,047 1,101 181,148 Comprehensiveincome for theperiod - - (12,182) 15,052 2,870 (190) 2,680 Capitalcontributions from,and other changesin, non-controllinginterest1 - - - 727 727 25 752 Dividends paid - - - (11,843)(11,843) (116) (11,959) Scrip dividends2 6 - (6) 2,399 2,399 - 2,399 Repurchases ofshares3 (8) - 8 (2,787) (2,787) - (2,787) Shares held intrust: net sales/(purchases) anddividends received - 742 - 107 849 - 849 Share-basedcompensation - - (148) 30 (118) - (118) At December 31,2014 540 (1,190) (14,365)187,159 172,144 820 172,964 At January 1, 2013 542 (2,287) (3,752) 180,246 174,749 1,433 176,182 Comprehensiveincome for theperiod - - 1,872 16,371 18,243 23 18,266 Capitalcontributions from,and other changesin, non-controllinginterest - - - 18 18 (103) (85) Dividends paid - - - (11,338)(11,338) (252) (11,590) Scrip dividends2 12 - (12) 4,140 4,140 - 4,140 Repurchases ofshares3 (12) - 12 (5,757) (5,757) - (5,757) Shares held intrust: net sales/(purchases) anddividends received - 355 - 126 481 - 481 Share-basedcompensation - - (157) (332) (489) - (489) At December 31,2013 542 (1,932) (2,037) 183,474 180,047 1,101 181,148 1 Mainly relates to the public offering of limited partner units in ShellMidstream Partners, L.P. The difference between the proceeds after tax, and theincrease in non-controlling interest, measured by reference to the carryingamount of the entity's net assets at the date of the transaction, wasrecognised in retained earnings. 2 Under the Scrip Dividend Programme some 64.6 million A shares, equivalent to$2.4 billion, were issued during 2014 and some 125.6 million A shares,equivalent to $4.1 billion, were issued during 2013. 3 Includes shares committed to repurchase and repurchases subject to settlementat the end of the period. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Quarters $ million Full year Q4 2014 Q3 2014 Q4 2013 2014 2013 Cash flow from operating activities 596 4,425 1,822 Income for the period 14,908 16,526 Adjustment for: 2,330 2,691 4,677 - Current taxation 13,757 18,582 375 377 436 - Interest expense (net) 1,598 1,448 - Depreciation, depletion and4,991 4,729 5,629 amortisation 24,499 21,509 (972) (78) (87) - Net gains on sale of assets (3,212) (382) - Decrease/(increase) in working5,844 1,741 (1,682) capital 6,125 2,988 - Share of profit of joint(818) (1,512) (2,024) ventures and associates (6,116) (7,275) - Dividends received from joint1,531 2,096 1,865 ventures and associates 6,902 7,117 - Deferred taxation, retirement benefits, decommissioning (1,603) 689 (938) and other provisions (1,618) (2,701) 1,000 572 1,338 - Other 2,500 2,937 Net cash from operating13,274 15,730 11,036 activities (pre-tax) 59,343 60,749 (3,666) (2,919) (5,008) Taxation paid (14,299) (20,309) Net cash from operating9,608 12,811 6,028 activities 45,044 40,440 Cash flow from investing activities (8,718) (7,867) (14,508) Capital expenditure (31,854) (40,145) Investments in joint ventures and107 (151) (523) associates (1,426) (1,538) 2,245 3,783 432 Proceeds from sales of assets 9,873 1,212 Proceeds from sales of joint279 157 109 ventures and associates 4,163 538 (649) (278) 2 Other investments (net) (587) (388) 56 29 37 Interest received 174 175 Net cash used in investing(6,680) (4,327) (14,451) activities (19,657) (40,146) Cash flow from financing activities Net (decrease)/increase in debt with maturity period within three(173) (465) 3,239 months (3,332) 3,126 4,001 442 4,366 Other debt: New borrowings 7,778 9,146 (571) (334) (464) Repayments (4,089) (6,877) (310) (404) (650) Interest paid (1,480) (1,307) Change in non-controlling1,002 0 (60) interest1 989 (51) Cash dividends paid to: - Royal Dutch Shell plc(2,987) (2,994) (1,610) shareholders (9,444) (7,198) (39) (4) (36) - Non-controlling interest (116) (252) (971) (770) (996) Repurchases of shares (3,328) (5,000) Shares held in trust: net (purchases)/sales and dividends(29) 48 66 received 232 (565) Net cash used in financing(77) (4,481) 3,855 activities (12,790) (8,978) Currency translation differences relating to cash and (271) (395) (14) cash equivalents (686) (170) Increase/(decrease) in cash and2,580 3,608 (4,582) cash equivalents 11,911 (8,854) Cash and cash equivalents at19,027 15,419 14,278 beginning of period 9,696 18,550 Cash and cash equivalents at end21,607 19,027 9,696 of period 21,607 9,696 1 Mainly relates to the public offering of limited partner units in ShellMidstream Partners, L.P. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of preparation These unaudited Condensed Consolidated Financial Statements of Royal DutchShell plc and its subsidiaries (collectively referred to as Shell) have beenprepared on the basis of the same accounting principles as, and should be readin conjunction with, the Annual Report and Form 20-F for the year endedDecember 31, 2013 (pages 105 to 110) as filed with the U.S. Securities andExchange Commission. The financial information presented in these Condensed Consolidated FinancialStatements does not constitute statutory accounts within the meaning of section434(3) of the Companies Act 2006. Statutory accounts for the year endedDecember 31, 2013 were published in Shell's Annual Report and a copy wasdelivered to the Registrar of Companies in England and Wales. The auditors'report on those accounts was unqualified, did not include a reference to anymatters to which the auditors drew attention by way of emphasis withoutqualifying the report and did not contain a statement under sections 498(2) or498(3) of the Companies Act 2006. 2. 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 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 other investments (net) in the Corporate segment);exploration expense excluding exploration wells written off; investments injoint 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. 3. 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 this Report. 4. Return on average capital employed Return on average capital employed (ROACE) measures the efficiency of Shell'sutilisation of the capital that it employs and is a common measure of businessperformance. In this calculation, ROACE is defined as the sum of income for thecurrent and previous three quarters, adjusted for after-tax interest expense,as a percentage of the average capital employed for the same period. The rateused is Shell's effective tax rate for the period. Capital employed consists oftotal equity, current debt and non-current debt. CAUTIONARY STATEMENT All amounts shown throughout this Report are unaudited. All peak productionfigures in Portfolio Developments are quoted at 100% expected production. 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". The term "Shell interest" is used for convenience to indicate thedirect and/or indirect ownership interest held by Shell in a venture,partnership or company, 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 Royal DutchShell to market risks and statements expressing management's expectations,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'', "schedule", ''seek'', ''should'',''target'', ''will'' and similar terms and phrases. There are a number offactors that could affect the future operations of Royal Dutch Shell and couldcause 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, 2013 (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, January29, 2015. 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 29, 2015 The information in this Report reflects the unaudited consolidated financialposition and results of Royal Dutch Shell plc. Company No. 4366849, RegisteredOffice: Shell Centre, London, SE1 7NA, England, UK. Contacts: - Investor Relations: International + 31 (0) 70 377 4540; North America +1 832337 2034 - Media: International +44 (0) 207 934 5550; USA +1 713 241 4544