GlobeNewswire Inc | Oct 29, 2020 03:00AM EDT

October 29, 2020

SHELL SETS OUT A COMPELLING INVESTMENT CASE

The Hague, October 29, 2020- Shell today announced a cash allocation framework that will enable it to reduce debt, increase distributions to shareholders, and allow for disciplined growth as it reshapes its business for the future of energy. Ongoing work to reshape Shells portfolio is expected to deliver continued cash generation to grow its low-carbon businesses as well as to increase shareholder distributions, making a compelling investment case.In confirming its progressive dividend policy, Shell announces a dividend per share growth by around 4% to 16.65 US cents for the third quarter 2020 and annually thereafter, subject to Board approval.The cash allocation framework includes a target to reduce net debt to $65 billion (from $73.5 billion as of September 30, 2020) and, on achieving this milestone, a target to distribute a total of 20-30% of cash flow from operations to shareholders. Increased shareholder distributions will be achieved through a combination of Shells progressive dividend and share buybacks. Remaining cash will be allocated to disciplined and measured capex growth and further debt reduction, targeting AA credit metrics through the cycle.Shells decisive steps this year have significantly strengthened its financial resilience, allowing the acceleration of strategic plans and providing clarity on cash priorities. These actions support Shell's ambition to become a net-zero energy emissions business by 2050 or sooner, in step with society and its customers."Our sector-leading cash flows will enable us to grow our businesses of the future while increasing shareholder distributions, making us a compelling investment case," said Royal Dutch Shell Chief Executive Officer, Ben van Beurden."We must continue to strengthen the financial resilience of our portfolio as we make the transition to become a net-zero emissions energy business. Our decisive actions taken earlier in the year have solidified our operational and cash delivery. The strength of our performance gives us the confidence to lay out our strategic direction, resume dividend growth and to provide clarity on the cash allocation framework, with clear parameters to increase shareholder distributions."Chair of the Board of Royal Dutch Shell, Chad Holliday commented: "The Board has reviewed Shells recent performance and its plans to grow its businesses of the future, and we are confident that Shell can sustainably grow its shareholder distributions as well as invest for growth.As a result, the Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020. The Board has additionally approved a cash allocation framework for Shell which, on reducing its net debt to $65 billion, will target total shareholder distributions of 20-30% of cash flow from operations."Shell will continue with its strong capital discipline, including annual Cash capex of between $19 and $22 billion in the near term and a focus on reducing net debt. Shell will continue its relentless high grading of the portfolio with expected divestment proceeds of $4 billion a year on average.LEADING ENERGY TRANSITION STRATEGY AND A STRONG PORTFOLIOShell will reshape its portfolio of assets and products to meet the cleaner energy needs of its customers in the coming decades. The key elements of Shells strategic direction include:Ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society and its customers.Grow its leading marketing business, further develop the integrated power business and commercialise hydrogen and biofuels to support customers efforts to achieve net-zero emissions.Transform the Refining portfolio from the current fourteen sites into six high-value energy and chemicals parks, integrated with Chemicals. Growth in Chemicals will pivot to more performance chemicals and recycled feedstocks.Extend leadership in liquefied natural gas (LNG) to enable decarbonisation of key markets and sectors.Focus on value over volume by simplifying Upstream to nine significant core positions, generating more than 80% of Upstream cash flow from operations.Enhanced value delivery through Trading and Optimisation.

A comprehensive strategy update, with details on the future shape of the Shell portfolio, actions to deliver the net-zero ambition, and a full financial outlook will be presented on February 11, 2021.

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NOTES TO EDITOROur nine core Upstream positions are: Brazil, Brunei, Gulf of Mexico (US/Mexico GoM), Kazakhstan, Malaysia, Nigeria, Oman, Permian and UK North Sea.The six sites expected to form our energy and chemicals parks include: Deer Park (US), Norco (US), Pernis (NL), Pulau Bukom (Singapore), Rheinland (Germany) and Scotford (Canada).The chemicals-only production sites, which sit alongside the energy and chemicals parks are: CSPC (China- JV with CNOOC), Fife Ethylene Plant (Scotland - JV with Exxon), Geismar (US), Jurong Island (Singapore), Moerdijk (NL), and Pennsylvania Chemicals (US - under construction).

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ROYAL DUTCH SHELL PLC 3RDQUARTER 2020 UNAUDITED RESULTS



SUMMARY OF UNAUDITED RESULTSQuarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 % Reference 2020 2019 % Income/(loss)489 (18,131) 5,879 -92 attributable (17,666) 14,878 -219 to shareholders CCS earnings177 (18,377) 6,081 -97 attributable Note 2 (15,443) 14,399 -207 to shareholders955 638 4,767 -80 Adjusted A 4,453 13,530 -67 Earnings Cash flow from10,403 2,563 12,252 -15 operating 27,818 31,913 -13 activities Cash flow from(2,833) (2,320) (2,130) investing (7,871) (10,918) activities7,571 243 10,122 Free cash flow G 19,947 20,995 3,737 3,617 6,098 Cash capital C 12,324 17,036 expenditure Underlying7,854 7,504 8,657 -9 operating F 23,958 27,000 -11 expenses(4.9)% (2.9)% 8.6% ROACE (Net D (4.9)% 8.6% income basis) ROACE (CCS basis3.9% 5.3% 8.1% excluding D 3.9% 8.1% identified items)31.4% 32.7% 27.9% Gearing E 31.4% 27.9% Total production3,081 3,379 3,563 -14 available for 3,392 3,632 -7 sale (thousand boe/d)0.06 (2.33) 0.73 -92 Basic earnings (2.27) 1.84 -223 per share ($)0.1665 0.16 0.47 -65 Dividend per 0.4865 1.41 -65 share ($)

1. Q3 on Q3 change.2.Adjusted Earnings is defined as income/(loss) attributable to shareholders plus cost of supplies adjustment (see Note 2) and excluding identified items (see Reference A).

Income attributable to Royal Dutch Shell plc shareholders was $0.5 billion for the third quarter 2020, which reflected lower realised prices for oil and LNG as well as lower realised refining margins and production volumes compared with the third quarter 2019. This was partly offset by lower operating expenses, well write-offs, depreciation and strong marketing margins. Income attributable to Royal Dutch Shell plc shareholders included an impairment charge of $1.1billion, partly offset by gains on fair value accounting of commodity derivatives of $0.5 billion.

Cost of supplies adjustment attributable to Royal Dutch Shell plc shareholders for the third quarter 2020 was negative $0.3 billion.

Adjusted Earnings were $1.0 billion for the third quarter 2020, reflecting lower realised prices for oil and LNG as well as lower realised refining margins and production volumes compared with the third quarter 2019. This was partly offset by lower operating expenses, well write-offs, depreciation and strong marketing margins.

Cash flow from operating activities for the third quarter 2020 was $10.4 billion, which included positive working capital movements of $1.4billion. Cash flow from investing activities for the quarter was an outflow of $2.8 billion, driven mainly by capital expenditure, partly offset by proceeds from divestments.

Gearing was 31.4% at the end of the third quarter 2020, compared with 32.7% at the end of the second quarter 2020, mainly driven by strong cash flow generation in the quarter.

Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $1.2billion.

Shell announces a dividend per share growth by around 4% to 16.65 US cents for the third quarter 2020 and annually thereafter, subject to Board approval.

Supplementary financial and operational disclosure and a separate press release for this quarter are available at www.shell.com/investor1.



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

1.Not incorporated by reference.

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THIRD QUARTER 2020 PORTFOLIO DEVELOPMENTS

Integrated Gas

During the quarter, the CrossWind consortium, a joint venture between Shell (79.9% interest) and Eneco (20.1% interest), was awarded the tender for the subsidy-free offshore wind farm Hollandse Kust (noord) in the Netherlands. The wind farm has a planned installed capacity of 759 MW and is expected to help meet the objectives of the Dutch Climate Accord and the EUs Green Deal. Both companies have already taken their final investment decisions on the project. This investment is part of Shell's ambition for a new wind-to-hydrogen value chain.

UpstreamDuring the quarter, Shell completed the sale of its Appalachia shale gas position in the USA for $541 million paid fully in cash, less closing adjustments. The transaction has an effective date of January 1, 2020.

In August, Shell took the final investment decision to contract the Mero-3 floating production, storage and offloading (FPSO) vessel to be deployed at the Mero field within the offshore Santos Basin in Brazil. This production system has a daily operational capacity rate of 180,000 barrels of oil equivalent, with production coming online over the next four years.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

PERFORMANCE BY SEGMENT



INTEGRATED GAS Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 % 2020 2019 %(151) (7,959) 2,597 -106 Segment (6,298) 6,731 -194 earnings Of which:(920) (8,321) (77) Identified (9,572) (237) items (Reference A)768 362 2,674 -71 Adjusted 3,274 6,968 -53 Earnings Cash flow from2,323 2,663 4,224 -45 operating 8,972 11,854 -24 activities Cash flow from operating activities2,396 2,871 4,271 -44 excluding 8,619 10,811 -20 working capital movements (Reference H) Cash capital1,020 736 894 expenditure 2,638 2,976 (Reference C) Liquids production143 151 166 -14 available for 152 154 -1 sale (thousand b/d) Natural gas production4,067 4,369 4,586 -11 available for 4,343 4,397 -1 sale (million scf/d) Total production844 904 957 -12 available for 901 912 -1 sale (thousand boe/d) LNG liquefaction7.80 8.36 8.95 -13 volumes 25.03 26.34 -5 (million tonnes) LNG sales17.13 16.65 18.90 -9 volumes 52.78 54.36 -3 (million tonnes)

1. Q3 on Q3 change.

Third quartersegment earnings were a loss of $151 million. This included an impairment charge of $924million mainly related to the Prelude floating LNG operations in Australia. Also included were a divestment gain of $118 million related to a lease liability remeasurement and a charge of $126 million related to provisions for an onerous contract. These charges are part of identified items (see Reference A).Compared with the third quarter 2019, Integrated Gas Adjusted Earnings of $768 million primarily reflected lower realised prices for LNG, oil and gas and lower contributions from trading and optimisation, partly offset by lower operating expenses.

Cash flow from operating activities for the quarter was $2,323 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation, as well as cash inflows from commodity derivatives.

Compared with the third quarter 2019, total production decreased by 12% mainly due to more maintenance activities and lower well performance, partly offset by the transfer in the first quarter 2020 of the Rashpetco operations in Egypt from the Upstream segment. LNG liquefaction volumes decreased mainly as a result of more maintenance activities in Australia.

Nine Monthssegment earnings were a loss of $6,298 million. This included an impairment charge of $9,135million mainly related to the Queensland Curtis LNG and Prelude floating LNG operations in Australia. Also included was a net charge of $450 million due to the fair value accounting of commodity derivatives. These charges are part of identified items (see Reference A).Compared with the first nine months of 2019, Integrated Gas Adjusted Earnings of $3,274 million primarily reflected lower realised prices for LNG, oil and gas, lower contributions from trading and optimisation, higher well write-offs and unfavourable deferred tax movements, partly offset by lower operating expenses.

Cash flow from operating activities for the first nine months of 2020 was $8,972 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation and well write-offs.

Compared with the first nine months of 2019, total production decreased by 1% mainly due to more maintenance activities and lower well performance, partly offset by the transfer in the first quarter 2020 of the Rashpetco operations in Egypt from the Upstream segment. LNG liquefaction volumes decreased mainly as a result of feedgas availability, cargo timing and more maintenance activities.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



UPSTREAM Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 % 2020 2019 %(1,110) (6,721) 1,651 -167 Segment (8,694) 4,709 -285 earnings Of which: Identified(226) (5,209) 818 items (6,590) 966 (Reference A)(884) (1,512) 833 -206 Adjusted (2,104) 3,743 -156 Earnings Cash flow2,101 319 4,334 -52 from 8,026 15,090 -47 operating activities Cash flow from operating activities2,629 548 4,597 -43 excluding 6,894 15,112 -54 working capital movements (Reference H) Cash capital1,245 1,876 2,625 expenditure 5,642 7,437 (Reference C) Liquids production1,520 1,609 1,652 -8 available 1,619 1,652 -2 for sale (thousand b /d) Natural gas production3,960 4,673 5,224 -24 available 4,768 5,904 -19 for sale (million scf/d) Total production2,203 2,415 2,553 -14 available 2,441 2,669 -9 for sale (thousand boe/d)

1.Q3 on Q3 change.

Third quartersegment earnings amounted to a loss of $1,110 million, which reflected lower prices as a result of unfavourable macroeconomic conditions, as well as lower production volumes mainly driven by OPEC+ restrictions and severe weather conditions affecting US Gulf of Mexico production compared with the third quarter 2019. This was partly offset by comparatively lower well write-offs. Segment earnings included impairment charges of $101 million and divestment losses of $100million. These charges are part of identified items (see Reference A).Compared with the third quarter 2019, Upstream Adjusted Earnings were a loss of $884 million, reflecting lower oil and gas prices as a result of unfavourable macroeconomic conditions, as well as lower production volumes mainly driven by OPEC+ restrictions and severe weather conditions affecting US Gulf of Mexico production. This was partly offset by comparatively lower well write-offs.

Cash flow from operating activities for the quarter was $2,101 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation.

Compared with the third quarter 2019, total production decreased by 14%, mainly due to the impact of OPEC+ restrictions, lower production in the NAM joint venture and severe weather conditions in the US Gulf of Mexico. Divestments and field declines were largely offset by new fields and ramp-ups.

Nine Monthssegment earnings amounted to a loss of $8,694 million. This included an impairment charge of $5,175million mainly related to unconventional assets in North America, offshore assets in Brazil and Europe, a project in Nigeria (OPL245), and an asset in the US Gulf of Mexico. Also included were a net charge of $985million related to the impact of the weakening Brazilian real on a deferred tax position, and redundancy and restructuring costs of $170million. These net charges are part of identified items (see Reference A).Compared with the first nine months of 2019, Upstream Adjusted Earnings amounted to a loss of $2,104 million, primarily reflecting lower realised oil and gas prices.

Cash flow from operating activities for the first nine months of 2020 was $8,026 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation.

Compared with the first nine months of 2019, total production decreased by 9%, mainly due to the impact of lower production in the NAM joint venture and OPEC+ restrictions. Divestments and field declines were largely offset by new fields and ramp-ups mainly in Brazil.



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



OIL PRODUCTS Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 % 2020 2019 %2,092 (3,023) 2,433 -14 Segment earnings 1,281 4,956 -74411 (5,433) 430 Of which: Identified (4,174) 226 items (Reference A)1,680 2,411 2,003 -16 Adjusted Earnings 5,454 4,730 +15 Of which: 55 1,500 522 -90 Refining & Trading 1,713 995 +721,626 911 1,481 +10 Marketing 3,742 3,735 ?5,131 (362) 3,137 +64 Cash flow from 9,647 3,807 +153 operating activities Cash flow from operating activities3,476 2,430 2,948 +18 excluding working 6,259 7,618 -18 capital movements (Reference H) Cash capital832 606 1,308 expenditure 2,019 3,279 (Reference C) Refinery processing1,972 1,944 2,522 -22 intake (thousand b/ 2,104 2,606 -19 d) Oil Products sales4,740 4,041 6,731 -30 volumes (thousand b/ 4,686 6,603 -29 d)

1.Q3 on Q3 change.2.Earnings are presented on a CCS basis (see Note 2).3.With effect from January 1, 2020, the reporting of Oil Products sales volumes has changed (see Note 2). Sales volumes would be 5,413 thousand b/d in the third quarter 2020 on a comparable basis with 2019.

Third quartersegment earnings were $2,092 million, which reflected lower realised refining margins and lower marketing sales volumes due to a weak macroeconomic environment and the COVID-19 pandemic compared with the third quarter 2019. This was partly offset by lower operating expenses, strong marketing margins and favourable deferred tax movements. Segment earnings included a gain of $542 million due to the fair value accounting of commodity derivatives and impairment charges of $117 million. These net gains are part of identified items (see Reference A).Compared with the third quarter 2019, Oil Products Adjusted Earnings of $1,680 million for the quarter reflected lower realised refining margins and lower marketing sales volumes due to a weak macroeconomic environment and the COVID-19 pandemic. This was partly offset by lower operating expenses, strong marketing margins and favourable deferred tax movements.

Cash flow from operating activities for the third quarter 2020 was $5,131 million, primarily driven by Adjusted Earnings before depreciation, as well as positive working capital movements and cash inflows from commodity derivatives.

With effect from January 1, 2020, certain Oil Products contracts are no longer included in sales volumes (see Note 2). Excluding this impact, Oil Products sales volumes decreased due to lower refining & trading and marketing sales volumes, compared with the third quarter 2019.

For the third quarter 2020, Refining & Trading contributed 3% of Adjusted Earnings, and Marketing contributed 97% of Adjusted Earnings.

Refining & Trading Adjusted Earnings reflected lower realised refining margins. This was partly offset by lower operating expenses and favourable deferred tax movements, compared with the third quarter 2019.Marketing Adjusted Earnings reflected strong retail and global commercial margins, lower operating expenses and favourable deferred tax movements, despite lower marketing sales volumes, compared with the third quarter 2019.With effect from January 1, 2020, Shell discloses utilisation instead of availability to improve transparency on refinery production volumes. Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity. Refinery utilisation was 65% compared with 78% in the third quarter 2019, mainly due to lower demand and economic optimisation of the plants.

Nine Monthssegment earnings were $1,281 million. This included an impairment charge of $4,205 million, as a result of revised medium- and long-term price outlook assumptions in response to the energy market demand and supply fundamentals as well as the COVID-19 pandemic and macroeconomic conditions. Also included were a net gain of $251 million due to the fair value accounting of commodity derivatives and redundancy and restructuring costs of $133 million. These net charges are part of identified items (see Reference A).

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

Compared with the first nine months of 2019, Oil Products Adjusted Earnings of $5,454 million reflected lower operating expenses, strong marketing margins and very strong contributions from crude and oil products trading and optimisation. This was partly offset by lower realised refining margins and lower marketing sales volumes due to the weak macroeconomic environment and the COVID-19 pandemic.

Cash flow from operating activities for the first nine months of 2020 was $9,647 million, primarily driven by Adjusted Earnings before depreciation and positive working capital movements. This was partly offset by cost-of-sales adjustments for the first nine months of 2020.

With effect from January 1, 2020, certain Oil Products contracts are no longer included in sales volumes (see Note 2). Excluding this impact, Oil Products sales volumes decreased due to lower refining & trading and marketing sales volumes, compared with the first nine months of 2019.

For the first nine months of 2020, Refining & Trading contributed 31% of Adjusted Earnings, and Marketing contributed 69% of Adjusted Earnings.

Refining & Trading Adjusted Earnings reflected very strong contributions from crude and oil products trading and optimisation as well as lower operating expenses. This was partly offset by lower realised refining margins, compared with the first nine months of 2019.

Marketing Adjusted Earnings reflected strong retail and global commercial margins and lower operating expenses, despite lower marketing sales volumes, compared with the first nine months of 2019.

With effect from January 1, 2020, Shell discloses utilisation instead of availability to improve transparency on refinery production volumes. Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity. Refinery utilisation was 72% compared with 78% in the first nine months of 2019, mainly due to lower demand and economic optimisation of the plants.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



CHEMICALS Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 % 2020 2019 %131 164 211 -38 Segment 441 556 -21 earnings Of which: Identified(96) (41) (13) items (140) (250) (Reference A)227 206 224 +1 Adjusted 581 806 -28 Earnings Cash flow335 734 181 +85 from 891 1,438 -38 operating activities Cash flow from operating activities488 304 346 +41 excluding 981 1,383 -29 working capital movements (Reference H) Cash capital595 369 1,160 expenditure 1,810 3,067 (Reference C) Chemicals sales3,823 3,623 3,845 -1 volumes 11,318 11,769 -4 (thousand tonnes)

1.Q3 on Q3 change.2.Earnings are presented on a CCS basis (see Note 2).

Third quartersegment earnings were $131 million, which reflected lower realised margins due to a weak price environment compounded by the COVID-19 pandemic compared with the third quarter 2019. This was offset by favourable deferred tax movements. Segment earnings included a charge of $104 million mainly due to a legal provision, which is part of identified items (see Reference A).Compared with the third quarter 2019, Chemicals Adjusted Earnings of $227 million reflected lower realised margins due to a weak price environment compounded by the COVID-19 pandemic. This was offset by favourable deferred tax movements.Cash flow from operating activities for the quarter was $335 million, primarily driven by Adjusted Earnings before depreciation and partly offset by negative working capital movements.

With effect from January 1, 2020, Shell discloses utilisation instead of availability to improve transparency on chemicals production volumes. Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity. Chemicals manufacturing plant utilisation was 80% compared with 78% in the third quarter 2019, mainly due to a higher level of maintenance activities in 2019.

Nine Monthssegment earnings were $441 million, which reflected lower realised margins due to a weak price environment compounded by the COVID-19 pandemic compared with the first nine months of 2019. Segment earnings included a charge of $104 million due to a legal provision and redundancy and restructuring costs of $28 million. These net charges are part of identified items (see Reference A).

Compared with the first nine months of 2019, Chemicals Adjusted Earnings of $581 million reflected lower realised margins due to a weak price environment compounded by the COVID-19 pandemic.

Cash flow from operating activities for the first nine months of 2020 was an inflow of $891 million, primarily driven by Adjusted Earnings before depreciation. This was partly offset by cost-of-sales adjustments for the first nine months of 2020.

With effect from January 1, 2020, Shell discloses utilisation instead of availability to improve transparency on chemicals production volumes. Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity. Chemicals manufacturing plant utilisation was 81% compared with 78% in the first nine months of 2019, mainly due to higher maintenance activities in Asia and Europe in 2019, including the impact of strike actions in the Netherlands last year.



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



CORPORATE Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019(739) (805) (663) Segment earnings (1,998) (2,122) 52 (9) 154 Of which: Identified items 578 185 (Reference A)(792) (796) (817) Adjusted Earnings (2,576) (2,307) 514 (791) 375 Cash flow from operating 282 (276) activities Cash flow from operating(33) 390 (80) activities excluding working 118 (265) capital movements (Reference H)

Third quartersegment earnings were an expense of $739 million. This included a gain of $48 million from the impact of the weakening Brazilian real on financing positions, which is part of identified items (see Reference A).Adjusted Earnings were an expense of $792 million, reflecting higher operating expenses, largely offset by favourable currency exchange rate effects and higher tax credits, compared with the third quarter 2019.

Nine Monthssegment earnings were an expense of $1,998 million. This included a gain of $578million from the impact of the weakening Brazilian real on financing positions, which is part of identified items (see Reference A).Adjusted Earnings were an expense of $2,576 million, reflecting adverse currency exchange rate effects and lower interest expenses, compared with the first nine months of 2019.

OUTLOOK FOR THE FOURTH QUARTER 2020As a result of COVID-19, there continues to be significant uncertainty in the macroeconomic conditions with an expected negative impact on demand for oil, gas and related products. Furthermore, global developments and uncertainty in oil supply have caused volatility in 2020 in commodity markets. The fourth quarter 2020 outlook provides ranges for operational and financial metrics based on current expectations, but these are subject to change in the light of current evolving market conditions. Due to demand or regulatory requirements and/or constraints in infrastructure, Shell may need to take measures to curtail or reduce oil and/or gas production, LNG liquefaction as well as utilisation of refining and chemicals plants and similarly sales volumes could be impacted. Such measures will likely have a variety of impacts on our operational and financial metrics.

Integrated Gas production is expected to be approximately 830 - 870 thousand boe/d. LNG liquefaction volumes are expected to be approximately 7.9 - 8.5 million tonnes.

Upstream production is expected to be approximately 2,300 - 2,500 thousand boe/d.

Refinery utilisation is expected to be approximately 69% - 77%.Oil Products sales volumes are expected to be approximately 4,000 - 5,000 thousand b/d.

Chemicals manufacturing plant utilisation is expected to be approximately 77% - 85%.Chemicals sales volumes are expected to be approximately 3,500 - 3,900 thousand tonnes.

Corporate Adjusted Earnings are expected to be a net expense of approximately $800 - $875million in the fourth quarter 2020 and a net expense of approximately $3,200 - $3,500million for the full year 2020. This excludes the impact of currency exchange rate effects.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

FORTHCOMING EVENTS

Fourth quarter 2020 and full year results and dividends are scheduled to be announced on February 4, 2021. First quarter 2021 results and dividends are scheduled to be announced on April 29, 2021. Second quarter 2021 and half year results and dividends are scheduled to be announced on July 29, 2021. Third quarter 2021 results and dividends are scheduled to be announced on October 28, 2021.The Shell Strategy Day is scheduled to take place on February 11, 2021.



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS



CONSOLIDATED STATEMENT OF INCOME Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 201944,021 32,504 86,592 Revenue 136,554 260,871 Share of profit461 (161) 769 of joint ventures 1,154 2,885 and associates234 148 2,180 Interest and 458 3,285 other income44,717 32,491 89,541 Total revenue and 138,167 267,041 other income27,276 18,093 63,900 Purchases 88,582 192,413 Production and5,496 5,822 6,002 manufacturing 17,299 19,191 expenses Selling,2,366 2,370 2,429 distribution and 7,130 7,662 administrative expenses233 232 219 Research and 708 656 development222 723 644 Exploration 1,239 1,389 Depreciation,7,689 28,089 6,815 depletion and 42,871 19,464 amortisation992 1,070 1,161 Interest expense 3,181 3,572 44,275 56,398 81,169 Total expenditure 161,009 244,346 442 (23,907) 8,372 Income/(loss) (22,842) 22,695 before taxation(104) (5,806) 2,348 Taxation charge/ (5,265) 7,351 (credit)546 (18,101) 6,024 Income/(loss) for (17,578) 15,344 the period Income/(loss)57 30 145 attributable to 88 466 non-controlling interest Income/(loss)489 (18,131) 5,879 attributable to (17,666) 14,878 Royal Dutch Shell plc shareholders0.06 (2.33) 0.73 Basic earnings (2.27) 1.84 per share ($)0.06 (2.33) 0.73 Diluted earnings (2.27) 1.83 per share ($)

1.See Note 2 Segment information.2.See Note 7 "Other notes to the Condensed Consolidated Interim Financial Statements".3.See Note 3 Earnings per share.



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019546 (18,101) 6,024 Income/(loss) for the period (17,578) 15,344 Other comprehensive income/ (loss) net of tax: Items that may be reclassified to income in later periods:1,246 1,588 (1,514) ? Currency translation (1,101) (1,123) differences5 43 2 ? Debt instruments 20 31 remeasurements75 (137) 192 ? Cash flow hedging gains/ (214) (156) (losses)(153) (99) 22 ? Net investment hedging (253) 24 gains/(losses)(59) 55 5 ? Deferred cost of hedging 97 111 ? Share of other(51) 30 (45) comprehensive income/(loss) (80) (101) of joint ventures and associates1,063 1,481 (1,339) Total (1,530) (1,214) Items that are not reclassified to income in later periods:(580) (4,924) (2,010) ? Retirement benefits (3,747) (4,655) remeasurements36 77 (53) ? Equity instruments (24) (23) remeasurements ? Share of other45 19 1 comprehensive income/(loss) 112 (4) of joint ventures and associates(499) (4,828) (2,062) Total (3,659) (4,683) 564 (3,347) (3,401) Other comprehensive income/ (5,189) (5,897) (loss) for the period1,111 (21,448) 2,624 Comprehensive income/(loss) (22,767) 9,447 for the period Comprehensive income/(loss)82 43 124 attributable to 2 482 non-controlling interest Comprehensive income/(loss)1,029 (21,490) 2,499 attributable to Royal Dutch (22,768) 8,965 Shell plc shareholders



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



CONDENSED CONSOLIDATED BALANCE SHEET$ million September 30, December 31, 2020 2019Assets Non-current assets Intangible assets 22,536 23,486 Property, plant and equipment 211,976 238,349 Joint ventures and associates 22,008 22,808 Investments in securities 3,090 2,989 Deferred tax 15,713 10,524 Retirement benefits 2,191 4,717 Trade and other receivables 7,551 8,085 Derivative financial instruments 1,874 689 286,939 311,647 Current assets Inventories 17,306 24,071 Trade and other receivables 33,033 43,414 Derivative financial instruments 6,258 7,149 Cash and cash equivalents 35,714 18,055 92,311 92,689 Total assets 379,250 404,336 Liabilities Non-current liabilities Debt 91,245 81,360 Trade and other payables 2,831 2,342 Derivative financial instruments 843 1,209 Deferred tax 10,707 14,522 Retirement benefits 16,201 13,017 Decommissioning and other provisions 26,541 21,799 148,369 134,249 Current liabilities Debt 17,811 15,064 Trade and other payables 36,546 49,208 Derivative financial instruments 5,499 5,429 Taxes payable 6,874 6,693 Retirement benefits 380 419 Decommissioning and other provisions 3,431 2,811 70,541 79,624 Total liabilities 218,909 213,873 Equity attributable to Royal Dutch Shell plc 157,168 186,476 shareholdersNon-controlling interest 3,173 3,987 Total equity 160,341 190,463 Total liabilities and equity 379,250 404,336

1.See Note 7 "Other notes to the Condensed Consolidated Interim Financial Statements".2.See Note 6 Derivative financial instruments and debt excluding lease liabilities.



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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Equity attributable to Royal Dutch Shell plc shareholders Share Shares Other Retained Non-controlling Total$ million capital held in reserves earnings Total interest equity trustAt January 1, 657 (1,063) 14,451 172,431 186,476 3,987 190,463 2020Comprehensiveincome/(loss) for ? ? (5,102) (17,666) (22,768) 2 (22,767) the periodTransfer fromother ? ? 185 (185) ? ? ? comprehensiveincomeDividends ? ? ? (5,956) (5,956) (242) (6,198) Repurchases of (6) ? 6 (1,214) (1,214) ? (1,214) sharesShare-based ? 539 (237) (230) 73 ? 73 compensationOther changes innon-controlling ? ? ? 557 557 (573) (16) interestAt September 30, 651 (523) 9,303 147,737 157,168 3,173 160,341 2020At January 1, 685 (1,260) 16,615 182,610 198,650 3,888 202,538 2019Comprehensiveincome/(loss) for ? ? (5,913) 14,878 8,965 482 9,447 the periodTransfer fromother ? ? (56) 56 ? ? ? comprehensiveincomeDividends ? ? ? (11,472) (11,472) (403) (11,875) Repurchases of (20) ? 20 (7,526) (7,526) ? (7,526) sharesShare-based ? 749 (131) (619) (1) ? (1) compensationOther changes innon-controlling ? ? ? ? ? (3) (3) interestAt September 30, 666 (511) 10,535 177,927 188,617 3,964 192,580 2019

1.See Note 4 Share capital.2.See Note 5 Other reserves.3.The amount charged to retained earnings is based on prevailing exchange rates on payment date.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



CONSOLIDATED STATEMENT OF CASH FLOWS Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019442 (23,907) 8,372 Income before taxation (22,842) 22,695 for the period Adjustment for: 814 889 921 ? Interest expense 2,600 2,846 (net) ? Depreciation,7,689 28,089 6,815 depletion and 42,871 19,464 amortisation14 518 402 ? Exploration well 615 722 write-offs ? Net (gains)/losses on(103) (128) (2,039) sale and revaluation of (124) (2,483) non-current assets and businesses ? Share of (profit)/(461) 161 (769) loss of joint ventures (1,154) (2,885) and associates ? Dividends received468 610 859 from joint ventures and 1,609 2,820 associates405 (3,713) 813 ? (Increase)/decrease 6,286 (2,089) in inventories(540) 3,959 2,644 ? (Increase)/decrease 9,733 1,527 in current receivables1,583 (4,226) (3,289) ? Increase/(decrease) (11,073) (2,184) in current payables233 837 (149) ? Derivative financial 899 (1,738) instruments152 293 (634) ? Retirement benefits 355 (582) 43 392 (250) ? Decommissioning and 333 (544) other provisions265 (480) 67 ? Other 363 54 (601) (730) (1,511) Tax paid (2,653) (5,710) 10,403 2,563 12,252 Cash flow from 27,818 31,913 operating activities(3,679) (3,436) (5,992) Capital expenditure (11,379) (16,264) (34) (161) (30) Investments in joint (754) (631) ventures and associates(23) (20) (76) Investments in equity (190) (141) securities Proceeds from sale of571 211 2,932 property, plant and 2,395 3,754 equipment and businesses Proceeds from sale of159 423 922 joint ventures and 1,129 1,567 associates139 62 126 Proceeds from sale of 274 414 equity securities112 118 229 Interest received 422 686 588 1,174 732 Other investing cash 2,617 2,004 inflows(665) (691) (973) Other investing cash (2,384) (2,308) outflows(2,833) (2,320) (2,130) Cash flow from (7,871) (10,918) investing activities Net increase/(decrease)(176) 90 44 in debt with maturity 236 98 period within three months Other debt: 4,745 15,238 2,107 ? New borrowings 20,986 2,427 (2,688) (7,113) (7,180) ? Repayments (12,523) (11,561) (831) (1,088) (1,088) Interest paid (2,952) (3,417) 419 324 76 Derivative financial 662 76 instruments Change in? (32) ? non-controlling (40) (2) interest Cash dividends paid to: (1,236) (1,397) (3,773) ? Royal Dutch Shell plc (6,117) (11,473) shareholders(65) (68) (133) ? Non-controlling (242) (404) interest? (216) (2,944) Repurchases of shares (1,702) (7,340) Shares held in trust:1 (18) (94) net sales/(purchases) (198) (557) and dividends received169 5,721 (12,985) Cash flow from (1,892) (32,153) financing activities Currency translation36 164 (190) differences relating to (395) (166) cash and cash equivalents Increase/(decrease) in7,775 6,128 (3,054) cash and cash 17,659 (11,324) equivalents Cash and cash27,939 21,811 18,470 equivalents at 18,055 26,741 beginning of period Cash and cash35,714 27,939 15,417 equivalents at end of 35,714 15,417 period

1.Cash dividends paid represents the payment of net dividends (after deduction of withholding taxes where applicable) and payment of withholding taxes on dividends paid in the previous quarter.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1.Basis of preparationThese unaudited Condensed Consolidated Interim Financial Statements (Interim Statements) of Royal Dutch Shell plc (the Company) and its subsidiaries (collectively referred to as Shell) have been prepared in accordance with IAS 34Interim Financial Reportingas issued by the International Accounting Standards Board ("IASB") and as adopted by the European Union, and on the basis of the same accounting principles as those used in the Annual Report and Accounts (pages 190 to 238) and Form 20-F (pages 142 to 189) for the year ended December31, 2019 as filed with the Registrar of Companies for England and Wales and the US Securities and Exchange Commission, respectively, and should be read in conjunction with these filings.The financial information presented in the unaudited Interim Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (the Act). Statutory accounts for the year ended December31, 2019 were published in Shells Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell's Form 20-F. The auditors report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.Key accounting considerations, significant judgements and estimatesFuture commodity price assumptions and management's view on the future development of refining margins represent a significant estimate and both were subject to change in the second quarter 2020, resulting in the recognition of impairments in the second quarter 2020. These assumptions continue to apply for impairment testing purposes in the third quarter 2020. The tax impact of impairments in the second and third quarter 2020 has been fully recognised in deferred tax positions as of September 30, 2020.

After the finalisation of the operating plan in the fourth quarter 2020, the overall deferred tax position will be reviewed.

The finalisation of the operating plan in the fourth quarter 2020 may lead to identification of impairment triggers for certain assets.

The refining portfolio is expected to be transformed during the energy transition from fifteen sites into six high-value energy and chemical parks integrated with Chemicals. This is expected to be followed by further evaluation and decisions on assets that could result in the recognition of significant provisions and charges to earnings, some as early as in the fourth quarter 2020.

2.Segment informationWith effect from January 1, 2020, Shell's reporting segments consist of Integrated Gas, Upstream, Oil Products, Chemicals and Corporate, reflecting the way Shell reviews and assesses its performance. Oil Products and Chemicals businesses were previously reported under the Downstream segment. Oil sands mining activities, previously included in the Upstream segment, are reported under Oil Products. Comparative information has been reclassified.Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.With effect from January 1, 2020, additional contracts are classified as held for trading purposes and consequently revenue is reported on a net rather than gross basis. The effect on revenue for the third quarter 2020 is a reduction of $11,478 million (Q2 2020: $8,028 million, nine months 2020: $35,819 million).

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



INFORMATION BY SEGMENT Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019 Third-party revenue 7,684 7,436 9,735 Integrated Gas 25,277 30,316 1,670 1,177 2,231 Upstream 5,191 6,878 31,823 21,596 71,218 Oil Products 97,716 213,106 2,831 2,283 3,397 Chemicals 8,335 10,535 13 12 12 Corporate 35 36 44,021 32,504 86,592 Total third-party revenue 136,554 260,871 Inter-segment revenue 864 558 1,025 Integrated Gas 2,313 3,162 5,111 4,117 7,960 Upstream 15,704 26,319 1,547 1,082 2,059 Oil Products 4,480 6,190 715 475 1,009 Chemicals 2,065 3,062 ? ? ? Corporate ? ? CCS earnings (151) (7,959) 2,597 Integrated Gas (6,298) 6,731 (1,110) (6,721) 1,651 Upstream (8,694) 4,709 2,092 (3,023) 2,433 Oil Products 1,281 4,956 131 164 211 Chemicals 441 556 (739) (805) (663) Corporate (1,998) (2,122) 222 (18,343) 6,230 Total CCS earnings (15,268) 14,831

1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Third quarter 2020 included income of $1,803 million (Q2 2020: $1,405 million income; nine months 2020: $9,894 million income). This amount includes both the reversal of prior losses of $15 million (Q2 2020: $686 million gains) related to sales contracts and prior gains of $22 million (Q2 2020: $507 million losses) related to purchase contracts that were previously recognised and where physical settlement has taken place in the third quarter 2020.2.Comparative information for inter-segment revenue for Upstream, Oil Products and Chemicals has been revised to conform with reporting segment changes applicable from January 1, 2020.



RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019 Income/(loss)489 (18,131) 5,879 attributable to Royal (17,666) 14,878 Dutch Shell plc shareholders Income/(loss)57 30 145 attributable to 88 466 non-controlling interest546 (18,101) 6,024 Income/(loss) for the (17,578) 15,344 period Current cost of supplies adjustment:(395) (432) 240 Purchases 2,947 (715) 100 98 (56) Taxation (719) 181 Share of profit/(loss)(29) 92 22 of joint ventures and 82 21 associates(324) (242) 206 Current cost of 2,310 (513) supplies adjustment of which: Attributable to Royal(312) (246) 202 Dutch Shell plc 2,222 (479) shareholders Attributable to(12) 4 4 non-controlling 88 (34) interest222 (18,343) 6,230 CCS earnings (15,268) 14,831 of which: CCS earnings177 (18,377) 6,081 attributable to Royal (15,443) 14,399 Dutch Shell plc shareholders CCS earnings45 34 149 attributable to 176 432 non-controlling interest



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



3.Earnings per share



EARNINGS PER SHAREQuarters Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019 Income/(loss) attributable489 (18,131) 5,879 to Royal Dutch (17,666) 14,878 Shell plc shareholders ($ million) Weighted average number of shares used as the basis for determining: Basic earnings7,788.7 7,789.8 8,017.5 per share 7,799.4 8,097.6 (million) Diluted7,823.6 7,789.8 8,067.6 earnings per 7,799.4 8,151.4 share (million)

4.Share capital



ISSUED AND FULLY PAID ORDINARY SHARES OF ?0.07 EACH1 Number of shares Nominal value ($ million) A B A B TotalAt January 1, 2020 4,151,787,517 3,729,407,107 349 308 657Repurchases of (50,548,018) (23,223,271) (4) (2) (6)sharesAt September 30, 4,101,239,499 3,706,183,836 345 306 6512020At January 1, 2019 4,471,889,296 3,745,486,731 376 309 685Repurchases of (227,226,527) (11,488,283) (19) (1) (20)sharesAt September 30, 4,244,662,769 3,733,998,448 357 308 6652019

1.Share capital at September 30, 2020 also included 50,000 issued and fully paid sterling deferred shares of 1 each.At Royal Dutch Shell plcs Annual General Meeting on May19, 2020 the Board was authorised to allot ordinary shares in Royal Dutch Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Royal Dutch Shell plc, up to an aggregate nominal amount of 182.7 million (representing 2,611 million ordinary shares of 0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August19, 2021, and the end of the Annual General Meeting to be held in 2021, unless previously renewed, revoked or varied by Royal Dutch Shell plc in a general meeting.5.Other reserves



OTHER RESERVES Share Capital Share Accumulated$ million Merger premium redemption plan other Total reserve reserve reserve reserve comprehensive incomeAt January 1, 37,298 154 123 1,049 (24,173) 14,451 2020Othercomprehensiveincome/(loss) ? ? ? ? (5,102) (5,102) attributable toRoyal Dutch Shellplc shareholdersTransfer fromother ? ? ? ? 185 185 comprehensiveincomeRepurchases of ? ? 6 ? ? 6 sharesShare-based ? ? ? (237) ? (237) compensationAt September 30, 37,298 154 129 812 (29,091) 9,303 2020At January 1, 37,298 154 95 1,098 (22,030) 16,615 2019Othercomprehensiveincome/(loss) ? ? ? ? (5,913) (5,913) attributable toRoyal Dutch Shellplc shareholdersTransfer fromother ? ? ? ? (56) (56) comprehensiveincomeRepurchases of ? ? 20 ? ? 20 sharesShare-based ? ? ? (131) ? (131) compensationAt September 30, 37,298 154 116 966 (27,998) 10,535 2019



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

The merger reserve and share premium reserve were established as a consequence of Royal Dutch Shell plc becoming the single parent company of Royal Dutch Petroleum Company and The Shell Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Royal Dutch Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.

6.Derivative financial instruments and debt excluding lease liabilitiesAs disclosed in the Consolidated Financial Statements for the year ended December31, 2019, presented in the Annual Report and Accounts and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at September 30, 2020, are consistent with those used in the year ended December31, 2019, though the carrying amounts of derivative financial instruments measured using predominantly unobservable inputs have changed since that date.The table below provides the comparison of the fair value with the carrying amount of debt excluding lease liabilities, disclosed in accordance with IFRS 7Financial Instruments: Disclosures.



DEBT EXCLUDING LEASE LIABILITIES$ million September 30, 2020 December 31, 2019Carrying amount 80,126 65,887 Fair value 87,127 71,163

1.Mainly determined from the prices quoted for these securities.7. Other notes to the Condensed Consolidated Interim Financial StatementsConsolidated Statement of IncomeDepreciation, depletion and amortisation



Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019 Depreciation,7,689 28,089 6,815 depletion and 42,871 19,464 amortisation

Impairment losses of $1,636 million, of which $1,615 million recognised in depreciation, depletion and amortisation and $21 million recognised in share of profit of joint ventures and associates (Q2 2020: $22,332 million, of which $21,780 million recognised in depreciation, depletion and amortisation and $552 million recognised in share of profit of joint ventures and associates; nine months: $24,718 million, of which $24,145 million recognised in depreciation, depletion and amortisation and $573 million recognised in share of profit of joint ventures and associates), mainly relate to Prelude floating LNG in Australia ($1,327 million pre-tax and $929 million post-tax). This impairment reflects Q3 2020 updates to the production plan including a revised outlook on near to medium-term availability as well as an updated view on backfill opportunities. The commodity price assumptions and the discount rate applied remained unchanged from those disclosed in the notes to the Condensed Consolidated Interim Financial Statements for the period ended June 30, 2020. For further information regarding the impairments recognised in the second quarter 2020, see notes 1 and 7 to the Condensed Consolidated Interim Financial Statements for the period ended June 30, 2020.



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

Condensed Consolidated Balance SheetRetirement benefits



$ million September 30, 2020 December 31, 2019Non-current assets Retirement benefits 2,191 4,717 Non-current liabilities Retirement benefits 16,201 13,017 Current liabilities Retirement benefits 380 419 Net liability 14,390 8,719

The increase in the net retirement benefit liability is mainly driven by a decrease of the market yield on high-quality corporate bonds.Decommissioning and other provisions



$ million September 30, 2020 December 31, 2019Non-current liabilities Decommissioning and other provisions 26,541 21,799 Current liabilities Decommissioning and other provisions 3,431 2,811

The discount rate applied at September 30, 2020 was 1.75% (December 31, 2019: 3.0%). Compared with December 31, 2019, non-current decommissioning and restoration provisions increased by $3,999 million at June 30, 2020 as a result of the change in the discount rate as at that date.Non-controlling interest



$ million September 30, 2020 December 31, 2019Non-controlling interest 3,173 3,987

The change in the non-controlling interest is mainly related to the non-controlling interest in Shell Midstream Partners, L.P. (SHLX) following the completion of the sale of Shell's 79% interest in the Mattox Pipeline Company LLC and certain logistics assets at the Shell Norco Manufacturing Complex to SHLX in the second quarter 2020.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURESA.Adjusted EarningsThe Adjusted Earnings measure aims to facilitate a comparative understanding of Shells financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. These items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shells financial results from period to period. This measure excludes earnings attributable to non-controlling interest. This measure was previously referred to as CCS earnings attributable to shareholders excluding identified items and was renamed for simplicity with effect from the second quarter 2020.



ADJUSTED EARNINGSQuarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019 Income/(loss)489 (18,131) 5,879 attributable to Royal (17,666) 14,878 Dutch Shell plc shareholders Add: Current cost of supplies adjustment(312) (246) 202 attributable to Royal 2,222 (479) Dutch Shell plc shareholders (Note 2) Less: Identified items(778) (19,015) 1,313 attributable to Royal (19,897) 868 Dutch Shell plc shareholders955 638 4,767 Adjusted Earnings 4,453 13,530

Identified itemsIdentified items comprise: divestment gains and losses, impairments, fair value accounting of commodity derivatives and certain gas contracts, redundancy and restructuring, the impact of exchange rate movements on certain deferred tax balances, and other items.



IDENTIFIED ITEMSQuarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019 Identified items before tax 103 128 2,039 Divestment gains/(losses) 154 2,483 (1,636) (22,332) (509) Impairments (24,718) (1,214) Fair value accounting of721 (1,884) 47 commodity derivatives and (195) (14) certain gas contracts25 (518) 6 Redundancy and restructuring (511) (74) (267) (427) ? Other (694) (437) (1,055) (25,033) 1,584 Total identified items (25,963) 744 before tax276 6,018 (271) Total tax impact of 6,066 146 identified items Identified items after tax 46 10 1,756 Divestment gains/(losses) 24 2,058 (1,143) (16,842) (430) Impairments (18,521) (921) Fair value accounting of532 (1,540) 91 commodity derivatives and (171) 124 certain gas contracts4 (375) 2 Redundancy and restructuring (378) (43) 13 (44) (106) Impact of exchange rate (397) (98) movements on tax balances(230) (224) ? Other (454) (229) (778) (19,015) 1,313 Impact on CCS earnings (19,897) 890 Of which: (920) (8,321) (77) Integrated Gas (9,572) (237) (226) (5,209) 818 Upstream (6,590) 966 411 (5,433) 430 Oil Products (4,174) 226 (96) (41) (13) Chemicals (140) (250) 52 (9) 154 Corporate 578 185 (778) (19,015) 1,313 Impact on CCS earnings (19,897) 868 attributable to shareholders Impact on CCS earnings? ? ? attributable to ? 22 non-controlling interest



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



The identified items categories above may include after-tax impacts of identified items of joint ventures and associates which are fully reported within "Share of profit of joint ventures and associates" in the Consolidated Statement of Income, and fully reported as identified items before tax in the table above. Identified items related to subsidiaries are consolidated and reported across appropriate lines of the Consolidated Statement of Income. Only pre-tax identified items reported by subsidiaries are taken into account in the calculation of underlying operating expenses (Reference F).Fair value accounting of commodity derivatives and certain gas contracts:In the ordinary course of business, Shell enters into contracts to supply or purchase oil and gas products, as well as power and environmental products. Shell also enters into contracts for tolling, pipeline and storage capacity. Derivative contracts are entered into for mitigation of resulting economic exposures (generally price exposure) and these derivative contracts are carried at period-end market price (fair value), with movements in fair value recognised in income for the period. Supply and purchase contracts entered into for operational purposes, as well as contracts for tolling, pipeline and storage capacity, are, by contrast, recognised when the transaction occurs; furthermore, inventory is carried at historical cost or net realisable value, whichever is lower. As a consequence, accounting mismatches occur because: (a) the supply or purchase transaction is recognised in a different period, or (b) the inventory is measured on a different basis. In addition, certain contracts are, due to pricing or delivery conditions, deemed to contain embedded derivatives or written options and are also required to be carried at fair value even though they are entered into for operational purposes. The accounting impacts are reported as identified items.Impacts of exchange rate movements on tax balancesrepresent the impact on tax balances of exchange rate movements arising on (a) the conversion to dollars of the local currency tax base of non-monetary assets and liabilities, as well as losses (this primarily impacts the Upstream and Integrated Gas segments) and (b) the conversion of dollar-denominated inter-segment loans to local currency, leading to taxable exchange rate gains or losses (this primarily impacts the Corporate segment).Other identified itemsrepresent other credits or charges that based on Shell management's assessment hinder the comparative understanding of Shell's financial results from period to period. The third quarter 2020 reflects the impacts of a provision for an onerous contract in Integrated Gas and provisions for litigation in Chemicals.B.Basic CCS earnings per shareBasic CCS earnings per share is calculated as CCS earnings attributable to Royal Dutch Shell plc shareholders (see Note 2), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 3).C.Cash capital expenditureCash capital expenditure represents cash spent on maintaining and developing assets as well as on investments in the period. Management regularly monitors this measure as a key lever to delivering sustainable cash flows. Cash capital expenditure is the sum of the following lines from the Consolidated Statement of Cash flows: Capital expenditure, Investments in joint ventures and associates and Investments in equity securities.With effect from the first quarter 2020, Capital investment is no longer presented in this announcement since Cash capital expenditure is considered to be more closely aligned with managements focus on free cash flow generation.



Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 20193,679 3,436 5,992 Capital expenditure 11,379 16,264 Investments in joint34 161 30 ventures and 754 631 associates23 20 76 Investments in 190 141 equity securities3,737 3,617 6,098 Cash capital 12,324 17,036 expenditure Of which: 1,020 736 894 Integrated Gas 2,638 2,976 1,245 1,876 2,625 Upstream 5,642 7,437 832 606 1,308 Oil Products 2,019 3,279 595 369 1,160 Chemicals 1,810 3,067 45 30 111 Corporate 215 277



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS

D.Return on average capital employed

Return on average capital employed (ROACE) measures the efficiency of Shells utilisation of the capital that it employs. Shell uses two ROACE measures: ROACE on a Net income basis and ROACE on a CCS basis excluding identified items, both adjusted for after-tax interest expense. With effect from the second quarter 2020, the after-tax interest expense adjustment is calculated using an applicable blended statutory tax rate. This change is implemented to eliminate the distorting volatility effects of the effective tax rate. There is no significant impact on prior periods comparatives, which therefore have not been revised.Both measures refer to Capital employed which consists of total equity, current debt and non-current debt.ROACE on a Net income basisIn this calculation, the sum of income for the current and previous three quarters, adjusted for after-tax interest expense, is expressed as a percentage of the average capital employed for the same period.



$ million Quarters Q3 2020 Q2 2020 Q3 2019Income - current and previous three quarters (16,489) (11,011) 20,989Interest expense after tax - current and previous 2,933 3,014 3,115three quartersIncome before interest expense - current and previous (13,556) (7,997) 24,105three quartersCapital employed ? opening 281,505 288,900 279,864Capital employed ? closing 269,397 265,435 281,505Capital employed ? average 275,451 277,168 280,684ROACE on a Net income basis (4.9)% (2.9)% 8.6%

ROACE on a CCS basis excluding identified itemsIn this calculation, the sum of CCS earnings excluding identified items for the current and previous three quarters, adjusted for after-tax interest expense, is expressed as a percentage of the average capital employed for the same period.



$ million Quarters Q3 2020 Q2 2020 Q3 2019CCS earnings - current and previous three quarters (14,272) (8,264) 22,284Identified items - current and previous three (21,957) (19,865) 2,536quartersInterest expense after tax ? current and previous 2,933 3,014 3,115three quartersCCS earnings excluding identified items beforeinterest expense - current and previous three 10,618 14,616 22,864quartersCapital employed ? average 275,451 277,168 280,684ROACE on a CCS basis excluding identified items 3.9% 5.3% 8.1%

E.GearingGearing is a key measure of Shells capital structure and is defined as net debt as a percentage of total capital. Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to debt, and associated collateral balances. Management considers this adjustment useful because it reduces the volatility of net debt caused by fluctuations in foreign exchange and interest rates, and eliminates the potential impact of related collateral payments or receipts. Debt-related derivative financial instruments are a subset of the derivative financial instrument assets and liabilities presented on the balance sheet. Collateral balances are reported under Trade and other receivables or Trade and other payables as appropriate.

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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



$ million Quarters September June 30, September 30, 2020 2020 30, 2019Current debt 17,811 17,530 12,812Non-current debt 91,245 87,460 76,112Total debt 109,056 104,990 88,924Add: Debt-related derivative financial (564) 525 1,013instruments: net liability/(asset)Add: Collateral on debt-related derivatives: 686 266 148net liability/(asset)Less: Cash and cash equivalents (35,714) (27,939) (15,417)Net debt 73,463 77,843 74,668Add: Total equity 160,341 160,445 192,580Total capital 233,804 238,288 267,249Gearing 31.4 % 32.7 % 27.9 %

1.Includes lease liabilities of $28,930 million at September 30, 2020 and $29,073 million at June 30, 2020, and$31,085 millionat September 30, 2019.F.Operating expensesOperating expenses is a measure of Shells cost management performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses.Underlying operating expenses is a measure aimed at facilitating a comparative understanding of performance from period to period by removing the effects of identified items, which, either individually or collectively, can cause volatility, in some cases driven by external factors.



Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 20195,496 5,822 6,002 Production and manufacturing 17,299 19,191 expenses2,366 2,370 2,429 Selling, distribution and 7,130 7,662 administrative expenses233 232 219 Research and development 708 656 8,095 8,423 8,650 Operating expenses 25,137 27,509 Of which identified items: 25 (508) 7 Redundancy and restructuring (501) (72) (charges)/reversal(267) (411) ? (Provisions)/reversal (678) (306) ? ? ? Other ? (131) (242) (919) 7 (1,179) (509) 7,854 7,504 8,657 Underlying operating expenses 23,958 27,000

G.Free cash flowFree cash flow is used to evaluate cash available for financing activities, including dividend payments and debt servicing, after investment in maintaining and growing the business. It is defined as the sum of Cash flow from operating activities and Cash flow from investing activities.Cash flows from acquisition and divestment activities are removed from Free cash flow to arrive at the Organic free cash flow, a measure used by management to evaluate the generation of free cash flow without these activities.

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Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 201910,403 2,563 12,252 Cash flow from operating 27,818 31,913 activities(2,833) (2,320) (2,130) Cash flow from investing (7,871) (10,918) activities7,571 243 10,122 Free cash flow 19,947 20,995 869 696 3,979 Less: Divestment proceeds 3,798 5,736 (Reference I) Add: Tax paid on divestments? ? 4 (reported under "Other ? 80 investing cash outflows") Add: Cash outflows related12 199 484 to inorganic capital 614 849 expenditure16,713 (254) 6,630 Organic free cash flow2 16,763 16,189

1.Cash outflows related to inorganic capital expenditure includes portfolio actions which expand Shell's activities through acquisitions and restructuring activities as reported in capital expenditure lines in the Consolidated Statement of Cash Flows.2.Free cash flow less divestment proceeds, adding back outflows related to inorganic expenditure.H.Cash flow from operating activities excluding working capital movementsWorking capital movements are defined as the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables.Cash flow from operating activities excluding working capital movements is a measure used by Shell to analyse its operating cash generation over time excluding the timing effects of changes in inventories and operating receivables and payables from period to period.



Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 201910,403 2,563 12,252 Cash flow from 27,818 31,913 operating activities405 (3,713) 813 (Increase)/decrease 6,286 (2,089) in inventories (Increase)/decrease(540) 3,959 2,644 in current 9,733 1,527 receivables1,583 (4,226) (3,289) Increase/(decrease) (11,073) (2,184) in current payables1,448 (3,980) 168 (Increase)/decrease 4,947 (2,746) in working capital Cash flow from8,955 6,543 12,083 operating activities 22,871 34,658 excluding working capital movements Of which: 2,396 2,871 4,271 Integrated Gas 8,619 10,811 2,629 548 4,597 Upstream 6,894 15,112 3,476 2,430 2,948 Oil Products 6,259 7,618 488 304 346 Chemicals 981 1,383 (33) 390 (80) Corporate 118 (265)

I.Divestment proceedsDivestment proceeds represent cash received from divestment activities in the period. Management regularly monitors this measure as a key lever to deliver sustainable cash flow.



Quarters $ million Nine MonthsQ3 2020 Q2 2020 Q3 2019 2020 2019571 211 2,932 Proceeds from sale of property, 2,395 3,754 plant and equipment and businesses159 423 922 Proceeds from sale of joint 1,129 1,567 ventures and associates139 62 126 Proceeds from sale of equity 274 414 securities869 696 3,979 Divestment proceeds 3,798 5,736



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ROYAL DUTCH SHELL PLC3RDQUARTER 2020 UNAUDITED RESULTS



CAUTIONARY STATEMENTAll amounts shown throughout this announcement are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production. The numbers presented throughout this announcement may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.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 US 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 managements 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 managements 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 Shells 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; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) 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 Shells Annual Report and Accounts and Form 20-F for the year ended December31, 2019 (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, October 29, 2020. 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 contains references to Shells 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. 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.This announcement contains inside information.October29, 2020

The information in this announcement reflects the unaudited consolidatedfinancial position and results of Royal Dutch Shell plc. Company No. 4366849,Registered Office: Shell Centre, London, SE1 7NA, England, UK.

Contacts:

- Linda M. Coulter, Company Secretary- Media: International +44 (0) 207 934 5550; USA +1 832 337 4355

LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70Classification: Inside Information



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