REG-Royal Dutch Shell: Shell enhances quarterly disclosures

ShellAnnouncement

30/09/2019 07:05

Shell enhances quarterly disclosures

The Hague, September 30, 2019 - Royal Dutch Shell plc (Shell) today introduces
the publication of a quarterly update, starting with the third quarter 2019.
We will additionally publish the quarterly consensus collected for cash flow
from operations (CFFO). Jessica Uhl, CFO of Royal Dutch Shell said: “In
response to feedback from our investor community we are introducing this new
quarterly process. This is a further step in Shell’s ongoing journey to
enhance disclosures and increase transparency”.

Third quarter 2019 update

This is an update to the third quarter 2019 outlook provided in the second
quarter results announcement on August 1, 2019. The impacts presented here may
vary from the actual results and are subject to finalisation of the third
quarter 2019 results which are scheduled to be released on 31 October 2019.

Presented earnings impacts relate to earnings on a current cost of supplies
basis, attributable to shareholders excluding identified items unless stated
otherwise.

Integrated Gas
* Production is expected to be between 930 and 960 thousand barrels of oil
equivalent per day
* LNG liquefaction volumes are expected to be between 9.00 and 9.30 million
tonnes
* For the third quarter, we expect to deliver strong trading and optimisation
performance
* Note that more than 80% of our term contracts for LNG sales in 2018 were oil
price linked with a price-lag of typically 3-6 months, as per previous
disclosures
* Note that, as in previous quarters, CFFO in Integrated Gas can be impacted
by margining resulting from movements in the forward commodity curves
Upstream
* Production is expected to be between 2,600 and 2,650 thousand barrels of oil
equivalent per day
* During the third quarter there have been additional well write-offs in the
range of $250-$350 million compared to Q3 2018, for which no cash impact is
expected
* Natural Gas Liquids and gas prices continue to be disconnected from Brent
compared to Q3 2018
* In July, we completed the divestment of the Caesar-Tonga asset and our
Upstream interests in Denmark
Downstream
* Refinery availability is expected to be between 90% and 92%
* Oil Products sales volumes are expected to be between 6,700 and 7,350
thousand barrels per day
* Chemicals manufacturing plant availability is expected to be between 90% and
92%
* Chemicals sales volumes are expected to be between 3,900 and 4,000 thousand
tonnes
* We expect chemicals cracker and intermediate margins to be materially
unchanged from Q2 2019
* In September, we completed the divestment of our interest in the SASREF
refining joint venture
Corporate
* Corporate earnings excluding identified items are expected to be a net
charge between $700 – 850 million, this excludes the impact of currency
exchange rate effects
* Currency exchange rate movements, including a weakening of the Brazilian
Real, is expected to have a negative earnings impact on top of the provided
range
Other
* As per previous disclosures, price sensitivity at Shell group level is $6
billion per annum per $10 per barrel Brent price movement * Note that this
price sensitivity is appropriate for smaller price changes, and is best used
for full-year numbers
Consensus

The consensus collection for quarterly earnings and CFFO, managed by VARA
research, is scheduled to be opened for submission on 10 October 2019, close
on 23 October 2019, and made public on 24 October 2019.

Royal Dutch Shell plc

Enquiries:

Investor Relations:
Europe + 31 (0) 70 377 4540
North America +1 832 337 2034

Media:
International +44 (0) 207 934 5550
Americas +1 832 337 4355

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate legal entities. In this announcement “Shell”,
“Shell group” and “Royal Dutch Shell” are sometimes used for
convenience where references are made to Royal Dutch Shell plc and its
subsidiaries in general. Likewise, the words “we”, “us” and “our”
are also used to refer to Royal Dutch Shell plc and its subsidiaries in
general or to those who work for them. These terms are also used where no
useful purpose is served by identifying the particular entity or entities.
‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies”
as used in this announcement refer to entities over which Royal Dutch Shell
plc either directly or indirectly has control. Entities and unincorporated
arrangements over which Shell has joint control are generally referred to as
“joint ventures” and “joint operations”, respectively. Entities over
which Shell has significant influence but neither control nor joint control
are referred to as “associates”. The term “Shell interest” is used for
convenience to indicate the direct and/or indirect ownership interest held by
Shell in an entity or unincorporated joint arrangement, after exclusion of all
third-party interest.

This announcement contains forward-looking statements (within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995) concerning the
financial condition, results of operations and businesses of Royal Dutch
Shell. All statements other than statements of historical fact are, or may be
deemed to be, forward-looking statements. Forward-looking statements are
statements of future expectations that are based on management’s current
expectations and assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or events to differ
materially from those expressed or implied in these statements.
Forward-looking statements include, among other things, statements concerning
the potential exposure of Royal Dutch Shell to market risks and statements
expressing management’s expectations, beliefs, estimates, forecasts,
projections and assumptions. These forward-looking statements are identified
by their use of terms and phrases such as “aim”, “ambition’,
‘‘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 of factors that could affect the future operations
of Royal Dutch Shell and could cause those results to differ materially from
those expressed in the forward-looking statements included in this
announcement, including (without limitation): (a) price fluctuations in crude
oil and natural gas; (b) changes in demand for Shell’s products; (c)
currency fluctuations; (d) drilling and production results; (e) reserves
estimates; (f) loss of market share and industry competition; (g)
environmental and physical risks; (h) risks associated with the identification
of suitable potential acquisition properties and targets, and successful
negotiation and completion of such transactions; (i) the risk of doing
business in developing countries and countries subject to international
sanctions; (j) legislative, fiscal and regulatory developments including
regulatory measures addressing climate change; (k) economic and financial
market conditions in various countries and regions; (l) political risks,
including the risks of expropriation and renegotiation of the terms of
contracts with governmental entities, delays or advancements in the approval
of projects and delays in the reimbursement for shared costs; and (m) changes
in trading conditions. No assurance is provided that future dividend payments
will match or exceed previous dividend payments. All forward-looking
statements contained in this announcement are expressly qualified in their
entirety by the cautionary statements contained or referred to in this
section. Readers should not place undue reliance on forward-looking
statements. Additional risk factors that may affect future results are
contained in Royal Dutch Shell’s Form 20-F for the year ended December 31,
2018 (available at www.shell.com/investor and www.sec.gov). These risk factors
also expressly qualify all forward-looking statements contained in this
announcement and should be considered by the reader. Each forward-looking
statement speaks only as of the date of this announcement, September 30, 2019.
Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any
obligation to publicly update or revise any forward-looking statement 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 this announcement.

This announcement may contain references to Shell’s website. These
references are for the readers’ convenience only. Shell is not incorporating
by reference any information posted on www.shell.com.

We may have used certain terms, such as resources, in this announcement that
the 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, File No 1-32575, available
on the SEC website www.sec.gov.

LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70



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