GlobeNewswire Inc | Feb 4, 2021 02:00AM EST

February 04, 2021





ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITED RESULTS





SUMMARY OF UNAUDITED RESULTSQuarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 % Reference 2020 2019 % Income/(loss)(4,014) 489 965 -516 attributable (21,680) 15,842 -237 to shareholders CCS earnings(4,478) 177 871 -614 attributable Note 2 (19,922) 15,270 -230 to shareholders393 955 2,931 -87 Adjusted A 4,846 16,462 -71 Earnings Cash flow from6,287 10,403 10,267 -39 operating 34,105 42,178 -19 activities Cash flow from(5,406) (2,833) (4,862) investing (13,277) (15,779) activities882 7,571 5,405 Free cash flow G 20,828 26,399 5,503 3,737 6,883 Cash capital C 17,827 23,919 expenditure Underlying8,544 7,854 9,993 -15 operating F 32,502 36,993 -12 expenses(6.8)% (4.9)% 6.7% ROACE (Net D (6.8)% 6.7% income basis) ROACE (CCS basis2.9% 3.9% 6.9% excluding D 2.9% 6.9% identified items)75,386 73,463 79,093 Net debt E 75,386 79,093 32.2% 31.4% 29.3% Gearing E 32.2% 29.3% Total production3,371 3,081 3,763 -10 available for 3,386 3,665 -8 sale (thousand boe/d)(0.52) 0.06 0.12 -533 Basic earnings (2.78) 1.97 -241 per share ($) Adjusted0.05 0.12 0.37 -86 Earnings per B 0.62 2.04 -70 share ($)0.1665 0.1665 0.47 -65 Dividend per 0.6530 1.88 -65 share ($)

1. Q4 on Q4 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 amounted to a loss of $4.0 billion for the fourth quarter 2020, which included post-tax impairment charges of $2.7 billion and charges of $1.1 billion mainly due to onerous contract provisions. Fourth quarter 2020 results reflected lower realised prices for oil and LNG as well as lower production volumes and realised refining margins compared with the fourth quarter 2019. This was partly offset by lower operating expenses and higher chemicals margins.



Cost of supplies adjustment attributable to Royal Dutch Shell plc shareholders for the fourth quarter 2020 was negative $0.5 billion.



Adjusted Earnings were $0.4 billion for the fourth quarter 2020, reflecting lower realised prices for oil and LNG as well as lower production volumes and realised refining margins compared with the fourth quarter 2019. This was partly offset by lower operating expenses and higher chemicals margins.



Cash flow from operating activities for the fourth quarter 2020 was $6.3 billion, which included cash outflows from commodity derivatives of $0.9 billion and negative working capital movements of $0.3billion. Cash flow from investing activities for the quarter was an outflow of $5.4 billion, driven mainly by capital expenditure.



Net debt was $75.4 billion at the end of the fourth quarter 2020, compared with $73.5 billion at the end of the third quarter 2020, mainly driven by lower free cash flow generation and by lease additions, partly offset by favourable foreign currency exchange translation differences. Gearing was 32.2% at the end of the fourth quarter 2020, compared with 31.4% at the end of the third quarter 2020, mainly driven by increased net debt and reduced earnings, partly offset by favourable foreign currency exchange translation differences and a reduction in pensions deficit.



Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $1.3billion. The Board expects that the first quarter 2021 interim dividend will be US$0.1735 per share, an increase of ~4% over the US dollar dividend for the fourth quarter 2020.











ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





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

1. Not incorporated by reference.



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FOURTH QUARTER 2020 PORTFOLIO DEVELOPMENTS



Integrated Gas

During the quarter, QGC Common Facilities Company Pty Ltd, a wholly-owned subsidiary of Shell, announced that it has agreed to the sale of a 26.25% interest in the Queensland Curtis LNG Common Facilities to Global Infrastructure Partners Australia for US$2.5 billion. The transaction is subject to regulatory approval in Australia and customary conditions and is expected to complete in the first half of 2021.



Upstream

In January 2021, Shell completed the sale of its 30% interest in Oil Mining Lease 17 in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Limited, a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, for a consideration of $533 million. A total of $453 million was paid by completion with the balance to be paid over an agreed period.





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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





PERFORMANCE BY SEGMENT





INTEGRATED GAS Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 % 2020 2019 %20 (151) 1,897 -99 Segment (6,278) 8,628 -173 earnings Of which:(1,089) (920) (89) Identified (10,661) (326) items (Reference A)1,109 768 1,986 -44 Adjusted 4,383 8,955 -51 Earnings Cash flow from2,203 2,323 3,457 -36 operating 11,175 15,311 -27 activities Cash flow from operating activities2,195 2,396 4,017 -45 excluding 10,814 14,828 -27 working capital movements (Reference H) Cash capital1,664 1,020 1,323 expenditure 4,301 4,299 (Reference C) Liquids production156 143 161 -3 available for 153 156 -2 sale (thousand b/d) Natural gas production4,555 4,067 4,578 0 available for 4,396 4,442 -1 sale (million scf/d) Total production942 844 950 -1 available for 911 922 -1 sale (thousand boe/d) LNG liquefaction8.21 7.80 9.21 -11 volumes 33.25 35.55 -6 (million tonnes) LNG sales16.89 17.13 20.09 -16 volumes 69.67 74.45 -6 (million tonnes)

1. Q4 on Q4 change.



Fourth quarter segment earnings were $20 million. This included a net charge of $519 million due to the fair value accounting of commodity derivatives and a charge of $481 million related to onerous contract provisions. These net charges are part of identified items (see Reference A).

Compared with the fourth quarter 2019, Integrated Gas Adjusted Earnings of $1,109 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 $2,203 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation, as well as dividends received. This was partly offset by cash outflows from commodity derivatives of $289 million.



Compared with the fourth quarter 2019, total oil and gas production decreased by 1% mainly due to more maintenance activities and field decline, partly offset by the transfer of the Rashpetco operations in Egypt from the Upstream segment and PSC effects. LNG liquefaction volumes decreased mainly as a result of feedgas constraints and maintenance activities.



Full year segment earnings amounted to a loss of $6,278 million. This included a post-tax impairment charge of $9,282million mainly related to the Queensland Curtis LNG and Prelude floating LNG operations in Australia. Also included were a net charge of $969 million due to the fair value accounting of commodity derivatives and a charge of $607 million related to onerous contract provisions. These charges are part of identified items (see Reference A).

Compared with the full year 2019, Integrated Gas Adjusted Earnings of $4,383 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 full year 2020 was $11,175 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation and well write-offs.



Compared with the full year 2019, total oil and gas production decreased by 1% mainly due to more maintenance activities and lower wells performance, partly offset by the transfer of the Rashpetco operations in Egypt from the Upstream segment and field ramp-ups. LNG liquefaction volumes decreased mainly as a result of lower feedgas availability, more maintenance and cargo timing.



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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







UPSTREAM Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 % 2020 2019 %(2,091) (1,110) (855) -145 Segment (10,785) 3,855 -380 earnings Of which: Identified(1,344) (226) (1,564) items (7,933) (598) (Reference A)(748) (884) 709 -205 Adjusted (2,852) 4,452 -164 Earnings Cash flow2,010 2,101 3,995 -50 from 10,037 19,085 -47 operating activities Cash flow from operating activities2,890 2,629 4,834 -40 excluding 9,784 19,946 -51 working capital movements (Reference H) Cash capital1,654 1,245 2,768 expenditure 7,296 10,205 (Reference C) Liquids production1,537 1,520 1,716 -10 available 1,599 1,668 -4 for sale (thousand b /d) Natural gas production4,837 3,960 6,027 -20 available 4,785 5,935 -19 for sale (million scf/d) Total production2,371 2,203 2,755 -14 available 2,424 2,691 -10 for sale (thousand boe/d)

1.Q4 on Q4 change.



Fourth quarter segment earnings amounted to a loss of $2,091 million. This included a post-tax impairment charge of $1,272 million mainly related to partial impairment of the Appomattox asset in the US Gulf of Mexico. This charge is part of identified items (see Reference A).

Compared with the fourth quarter 2019, Upstream Adjusted Earnings were a loss of $748 million, reflecting lower oil and gas prices, lower production volumes mainly driven by hurricanes affecting US Gulf of Mexico production and OPEC+ restrictions, and unfavourable deferred tax movements. These were partly offset by lower well write-offs, and lower operating expenses.



Cash flow from operating activities for the quarter was $2,010 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation.



Compared with the fourth quarter 2019, total production decreased by 14%, mainly due to the impact of more maintenance activities, hurricanes in the US Gulf of Mexico, the impact of divestments, OPEC+ restrictions, and lower production in the NAM joint venture. New fields and ramp-ups offset the impact of field declines.



Full year segment earnings amounted to a loss of $10,785 million. This included a post-tax impairment charge of $6,447million mainly related to offshore assets in the US Gulf of Mexico, Brazil, Nigeria and Europe, and unconventional assets in North America. Also included was a net charge of $782million related to the impact of the weakening Brazilian real on a deferred tax position. These net charges are part of identified items (see Reference A).

Compared with the full year 2019, Upstream Adjusted Earnings amounted to a loss of $2,852 million, primarily reflecting lower realised oil and gas prices, and lower production volumes.



Cash flow from operating activities for the full year 2020 was $10,037 million, primarily driven by Adjusted Earnings before non-cash expenses including depreciation.



Compared with the full year 2019, total production decreased by 10%, mainly due to the impact of divestments, lower production in the NAM joint venture, OPEC+ restrictions and higher maintenance. New fields and ramp-ups, mainly in Brazil, offset the impact of field declines.





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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







OIL PRODUCTS Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 % 2020 2019 %(1,775) 2,092 1,183 -250 Segment (494) 6,139 -108 earnings Of which: Identified(2,315) 411 (318) items (6,489) (93) (Reference A)540 1,680 1,501 -64 Adjusted 5,995 6,231 -4 Earnings Of which: (287) 55 531 -154 Refining & 1,425 1,526 -7 Trading828 1,626 971 -15 Marketing 4,570 4,705 -3 Cash flow1,198 5,131 2,538 -53 from 10,845 6,345 +71 operating activities Cash flow from operating activities782 3,476 3,120 -75 excluding 7,041 10,738 -34 working capital movements (Reference H) Cash capital1,310 832 1,628 expenditure 3,328 4,908 (Reference C) Refinery processing1,940 1,972 2,438 -20 intake 2,063 2,564 -20 (thousand b /d) Oil Products4,781 4,740 6,435 -26 sales 4,710 6,561 -28 volumes (thousand b /d)

1.Q4 on Q4 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 5,256 thousand b/d in the fourth quarter 2020 on a comparable basis with 2019.



Fourth quarter segment earnings were a loss of $1,775 million. This included a post-tax impairment charge of $1,325 million, mainly related to assets in the Netherlands and in Singapore, and the shutdown of the Convent Refinery in the USA. The shutdown of the Convent Refinery also led to further post-tax charges of $661 million, related to provisions for onerous contracts, and redundancy and restructuring. Also included was a net charge of $352 million due to the fair value accounting of commodity derivatives. These charges are part of identified items (see Reference A).

Compared with the fourth quarter 2019, Oil Products Adjusted Earnings of $540 million for the quarter reflected lower realised refining margins due to a weaker macroeconomic environment and the COVID-19 pandemic, and lower contributions from trading and optimisation. This was partly offset by lower operating expenses, and favourable deferred tax movements.



Cash flow from operating activities for the fourth quarter 2020 was $1,198 million, primarily driven by Adjusted Earnings before depreciation, as well as positive working capital movements of $416 million, offset by cash outflows for commodity derivatives of $784 million.



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 the impact of COVID-19 with lower Refining & Trading and Marketing sales volumes, compared with the fourth quarter 2019.



Refining & Trading Adjusted Earnings reflected lower realised refining margins, and lower contributions from trading and optimisation. This was partly offset by favourable deferred tax movements and lower operating expenses, compared with the fourth quarter 2019.

Marketing Adjusted Earnings reflected lower marketing sales volumes and unfavourable deferred tax movements, partly offset by strong retail and global commercial margins, and lower operating expenses, compared with the fourth 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 72% compared with 78% in the fourth quarter 2019, mainly due to lower demand and economic optimisation of the plants, as well as the shutdown of the Convent Refinery.



Full year segment earnings were a loss of $494 million. This included a post-tax impairment charge of $5,530 million, as a result of revised medium- and long-term price outlook assumptions in response to changes to the energy market demand and supply fundamentals as well as the macroeconomic conditions and the COVID-19 pandemic, and the shutdown of the Convent Refinery in the USA. This shutdown also led to further post-tax charges of $661 million, related to provisions for onerous contracts, and redundancy and restructuring. Segment earnings also included further redundancy and



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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





restructuring costs of $223 million and a net charge of $101 million due to the fair value accounting of commodity derivatives. These net charges are part of identified items (see Reference A).

Compared with the full year 2019, Oil Products Adjusted Earnings of $5,995 million reflected lower realised refining margins and lower marketing sales volumes due to the weak macroeconomic environment and the COVID-19 pandemic. These were partly offset by lower operating expenses, contributions from crude and oil products trading and optimisation, and favourable deferred tax movements.



Cash flow from operating activities for the full year 2020 was $10,845 million, primarily driven by Adjusted Earnings before depreciation and positive working capital movements. This was partly offset by cost-of-sales adjustments for the full year 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 full year 2019.



Refining & Trading Adjusted Earnings reflected lower realised refining margins, partly offset by lower operating expenses, contributions from crude and oil products trading and optimisation as well as favourable deferred tax movements, compared with the full year 2019.



Marketing Adjusted Earnings reflected lower marketing sales volumes due to the COVID-19 pandemic, partly offset by strong retail and global commercial margins, and lower operating expenses, compared with the full year 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 full year 2019, mainly due to lower demand and economic optimisation of the plants.



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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







CHEMICALS Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 % 2020 2019 %367 131 (78) +570 Segment 808 479 +69 earnings Of which: Identified(14) (96) (13) items (154) (263) (Reference A)381 227 (65) +685 Adjusted 962 741 +30 Earnings Cash flow774 335 (44) +1854 from 1,664 1,394 +19 operating activities Cash flow from operating activities775 488 338 +129 excluding 1,756 1,721 +2 working capital movements (Reference H) Cash capital830 595 1,023 expenditure 2,640 4,090 (Reference C) Chemicals sales3,718 3,823 3,454 +8 volumes 15,036 15,223 -1 (thousand tonnes)

1.Q4 on Q4 change.

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



Fourth quarter segment earnings were $367 million, which reflected higher realised margins in base chemicals and intermediates from a stronger price environment, compared with the fourth quarter 2019. There were no significant identified items during the quarter.

Cash flow from operating activities for the quarter was $774 million, primarily driven by Adjusted Earnings before depreciation and dividends received from joint ventures.



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 in the fourth quarter 2020 was 79% compared with 71% in the fourth quarter 2019, mainly due to improved site availability, with a higher level of maintenance activities in 2019.



Full year segment earnings were $808 million, which reflected higher realised margins from a stronger price environment in the fourth quarter, partly offset by lower volumes due to the COVID-19 pandemic compared with the full year 2019. Segment earnings included a charge of $104 million due to a legal provision and redundancy and restructuring costs of $38 million. These net charges are part of identified items (see Reference A).



Compared with the full year 2019, Chemicals Adjusted Earnings of $962 million reflected higher realised margins from a stronger price environment in the fourth quarter, partly offset by lower volumes due to the COVID-19 pandemic.



Cash flow from operating activities for the full year 2020 was an inflow of $1,664 million, primarily driven by Adjusted Earnings before depreciation. This was partly offset by cost-of-sales adjustments for the full year 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 80% compared with 76% in the full year 2019, mainly due to higher maintenance activities in Asia and Europe in 2019, and the impact of strike actions in the Netherlands in 2019.







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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







CORPORATE Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019(954) (739) (1,151) Segment earnings (2,952) (3,273) (118) 52 (76) Of which: Identified items 460 109 (Reference A)(836) (792) (1,075) Adjusted Earnings (3,412) (3,383) 102 514 321 Cash flow from operating 384 44 activities Cash flow from operating(17) (33) (9) activities excluding working 101 (274) capital movements (Reference H)

Fourth quarter segment earnings were an expense of $954 million. This included a loss of $124 million from the deferred tax impact of the strengthening Brazilian real on financing positions, which is part of identified items (see Reference A).

Adjusted Earnings were an expense of $836 million, reflecting favourable currency exchange rate effects and lower net interest expense, compared with the fourth quarter 2019.



Full year segment earnings were an expense of $2,952 million. This included gains of $454million from the deferred tax impact of the weakening Brazilian real on financing positions, which is part of identified items (see Reference A).

Adjusted Earnings were an expense of $3,412 million, reflecting adverse currency exchange rate effects and lower interest expense, compared with the full year 2019.





PRELIMINARY RESERVES UPDATE



When final volumes are reported in the 2020 Annual Report and Accounts and 2020 Form 20-F, Shell expects that SEC proved oil and gas reserves reductions before taking into account production will be approximately 0.7 billion boe, and that 2020 production will be approximately 1.3 billion boe. As a result, total proved reserves on an SEC basis are expected to be approximately 9.1 billion boe. Acquisitions and divestments of 2020 reserves are expected to account for a net reduction of approximately 0.1 billion boe.

The proved Reserves Replacement Ratio on an SEC basis is expected to be -53% for the year and 23% for the 3-year average. Excluding the impact of acquisitions and divestments, the proved Reserves Replacement Ratio is expected to be -46% for the year and 34% for the 3-year average.

Further information will be provided in the 2020 Annual Report and Accounts and 2020 Form 20-F, which are expected to be filed in March 2021.



OUTLOOK FOR THE FIRST QUARTER 2021

As a result of the COVID-19 pandemic, there continues to be significant uncertainty in the macroeconomic conditions with an expected negative impact on demand for oil, gas and related products. The first quarter 2021 outlook provides ranges for operational and financial metrics based on current expectations, but these are subject to change in the light of 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 900 - 950 thousand boe/d. LNG liquefaction volumes are expected to be approximately 8.0 - 8.6 million tonnes.



Upstream production is expected to be approximately 2,400 - 2,600 thousand boe/d.



Refinery utilisation is expected to be approximately 73% - 81%.

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 80% - 88%.

Chemicals sales volumes are expected to be approximately 3,600 - 3,900 thousand tonnes.



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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





Corporate Adjusted Earnings are expected to be a net expense of approximately $600 - $700million in the first quarter 2021 and a net expense of approximately $2,400 - $2,800million for the full year 2021, mainly representing a decrease in expected interest expense when compared to the full year 2020. This excludes the impact of currency exchange rate effects.



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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





FORTHCOMING EVENTS

The Shell Strategy Day is scheduled to take place on February 11, 2021.



The LNG Outlook and Integrated Gas Strategy is scheduled for February 25, 2021.



The ESG Update is scheduled to take place on April 15, 2021.



The Pre-AGM Engagement is scheduled for May (TBD), 2021.



The Annual General Meeting is scheduled to take place on May 18, 2021.



The Upstream Investor Day is scheduled to take place on May 26, 2021.



First quarter 2021 results and dividends are scheduled to be announced on April 29, 2021. Second quarter and half year 2021 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.

From the first quarter 2021 onwards, the Quarterly Update Note will be published up to one calendar week after the end of each quarter.







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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





CONSOLIDATED STATEMENT OF INCOME Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 201943,989 44,021 84,006 Revenue 180,543 344,877 Share of profit629 461 719 of joint ventures 1,783 3,604 and associates411 234 340 Interest and 869 3,625 other income45,028 44,717 85,066 Total revenue and 183,196 352,106 other income28,511 27,276 60,570 Purchases 117,093 252,983 Production and6,701 5,496 7,247 manufacturing 24,001 26,438 expenses Selling,2,751 2,366 2,831 distribution and 9,881 10,493 administrative expenses199 233 306 Research and 907 962 development508 222 965 Exploration 1,747 2,354 Depreciation,9,573 7,689 9,238 depletion and 52,444 28,701 amortisation908 992 1,118 Interest expense 4,089 4,690 49,152 44,275 82,275 Total expenditure 210,162 326,621 (4,124) 442 2,791 Income/(loss) (26,966) 25,485 before taxation(168) (104) 1,702 Taxation charge/ (5,433) 9,053 (credit)(3,956) 546 1,089 Income/(loss) for (21,534) 16,432 the period Income/(loss)58 57 124 attributable to 146 590 non-controlling interest Income/(loss)(4,014) 489 965 attributable to (21,680) 15,842 Royal Dutch Shell plc shareholders(0.52) 0.06 0.12 Basic earnings (2.78) 1.97 per share ($)(0.52) 0.06 0.12 Diluted earnings (2.78) 1.95 per share ($)

1.See Note 2 Segment information.

2.See Note 7 Other notes to the Condensed Consolidated Financial Statements.

3.See Note 3 Earnings per share.





CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019(3,956) 546 1,089 Income/(loss) for the period (21,534) 16,432 Other comprehensive income/ (loss) net of tax: Items that may be reclassified to income in later periods:2,280 1,246 1,467 ? Currency translation 1,179 344 differences3 5 (2) ? Debt instruments 23 29 remeasurements54 75 (120) ? Cash flow hedging gains/ (160) (276) (losses)(170) (153) (15) ? Net investment hedging gains (423) 9 /(losses)3 (59) (45) ? Deferred cost of hedging 100 66 ? Share of other comprehensive39 (51) 24 income/(loss) of joint (42) (76) ventures and associates2,208 1,063 1,310 Total 678 96 Items that are not reclassified to income in later periods:1,045 (580) 2,553 ? Retirement benefits (2,702) (2,102) remeasurements88 36 (5) ? Equity instruments 64 (30) remeasurements ? Share of other comprehensive6 45 6 income/(loss) of joint 119 2 ventures and associates1,140 (499) 2,554 Total (2,519) (2,130) 3,347 564 3,863 Other comprehensive income/ (1,842) (2,034) (loss) for the period(609) 1,111 4,952 Comprehensive income/(loss) (23,375) 14,398 for the period Comprehensive income/(loss)134 82 143 attributable to 136 625 non-controlling interest Comprehensive income/(loss)(743) 1,029 4,809 attributable to Royal Dutch (23,512) 13,773 Shell plc shareholders



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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







CONDENSED CONSOLIDATED BALANCE SHEET$ million December 31, December 31, 2020 2019Assets Non-current assets Intangible assets 22,822 23,486 Property, plant and equipment 210,847 238,349 Joint ventures and associates 22,451 22,808 Investments in securities 3,222 2,989 Deferred tax 16,311 10,524 Retirement benefits 2,474 4,717 Trade and other receivables 7,641 8,085 Derivative financial instruments 2,805 689 288,572 311,647 Current assets Inventories 19,457 24,071 Trade and other receivables 33,625 43,414 Derivative financial instruments 5,783 7,149 Cash and cash equivalents 31,830 18,055 90,694 92,689 Total assets 379,267 404,336 Liabilities Non-current liabilities Debt 91,115 81,360 Trade and other payables 2,304 2,342 Derivative financial instruments 420 1,209 Deferred tax 10,463 14,522 Retirement benefits 15,168 13,017 Decommissioning and other provisions 27,310 21,799 146,780 134,249 Current liabilities Debt 16,899 15,064 Trade and other payables 41,677 49,208 Derivative financial instruments 5,308 5,429 Taxes payable 6,006 6,693 Retirement benefits 437 419 Decommissioning and other provisions 3,624 2,811 73,950 79,624 Total liabilities 220,729 213,873 Equity attributable to Royal Dutch Shell plc 155,310 186,476 shareholdersNon-controlling interest 3,227 3,987 Total equity 158,537 190,463 Total liabilities and equity 379,267 404,336

1.See Note 7 "Other notes to the Condensed Consolidated Financial Statements".

2.See Note 6 Derivative financial instruments and debt excluding lease liabilities.









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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







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 ? ? (1,832) (21,397) (23,229) 136 (23,092) the period?Transfer fromother ? ? 270 (270) ? ? ? comprehensiveincomeDividends ? ? ? (7,271) (7,271) (311) (7,581) Repurchases of (6) ? 6 (1,214) (1,214) ? (1,214) sharesShare-based ? 354 (143) (230) (19) ? (19) compensationOther changes innon-controlling ? ? ? 566 566 (585) (19) interestAt December 31, 651 (709) 12,752 142,616 155,310 3,227 158,537 2020At January 1, 685 (1,260) 16,615 182,610 198,650 3,888 202,538 2019Comprehensiveincome/(loss) for ? ? (2,069) 15,842 13,773 625 14,398 the periodTransfer fromother ? ? (74) 74 ? ? ? comprehensiveincomeDividends ? ? ? (15,198) (15,198) (537) (15,735) Repurchases of (28) ? 28 (10,286) (10,286) ? (10,286) sharesShare-based ? 197 (49) (613) (465) ? (465) compensationOther changes innon-controlling ? ? ? 2 2 11 13 interestAt December 31, 657 (1,063) 14,451 172,431 186,476 3,987 190,463 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.

4. Comprehensive loss for the period of $21,397 million recognised in retained earnings includes a gain of $283 million, recognised in equity, that relates to remeasurement of a share of interest in a joint venture in respect of prior years.





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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS







CONSOLIDATED STATEMENT OF CASH FLOWS Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019(4,124) 442 2,791 Income before taxation for (26,966) 25,485 the period Adjustment for: 716 814 859 ? Interest expense (net) 3,316 3,705 9,573 7,689 9,238 ? Depreciation, depletion 52,444 28,701 and amortisation199 14 496 ? Exploration well 815 1,218 write-offs ? Net (gains)/losses on(162) (103) (36) sale and revaluation of (286) (2,519) non-current assets and businesses ? Share of (profit)/loss(629) (461) (719) of joint ventures and (1,783) (3,604) associates ? Dividends received from982 468 1,318 joint ventures and 2,591 4,139 associates(1,809) 405 (546) ? (Increase)/decrease in 4,477 (2,635) inventories(107) (540) (2,448) ? (Increase)/decrease in 9,626 (921) current receivables1,579 1,583 961 ? Increase/(decrease) in (9,493) (1,223) current payables78 233 254 ? Derivative financial 977 (1,484) instruments212 152 217 ? Retirement benefits 568 (365) 771 43 (141) ? Decommissioning and 1,104 (686) other provisions(355) 265 (82) ? Other 8 (28) (638) (601) (1,894) Tax paid (3,290) (7,605) 6,287 10,403 10,267 Cash flow from operating 34,105 42,178 activities(5,206) (3,679) (6,707) Capital expenditure (16,585) (22,971) (269) (34) (112) Investments in joint (1,024) (743) ventures and associates(28) (23) (65) Investments in equity (218) (205) securities Proceeds from sale of94 571 1,049 property, plant and 2,489 4,803 equipment and businesses Proceeds from sale of111 159 1,032 joint ventures and 1,240 2,599 associates7 139 55 Proceeds from sale of 281 469 equity securities111 112 224 Interest received 532 911 622 588 918 Other investing cash 3,239 2,921 inflows(848) (665) (1,255) Other investing cash (3,232) (3,563) outflows(5,406) (2,833) (4,862) Cash flow from investing (13,277) (15,779) activities Net increase/(decrease) in(299) (176) (406) debt with maturity period (63) (308) within three months Other debt: 2,048 4,745 8,758 ? New borrowings 23,033 11,185 (4,862) (2,688) (2,731) ? Repayments (17,385) (14,292) (1,153) (831) (1,232) Interest paid (4,105) (4,649) 495 419 (124) Derivative financial 1,157 (48) instruments(2) ? 2 Change in non-controlling (42) ? interest Cash dividends paid to: (1,307) (1,236) (3,725) ? Royal Dutch Shell plc (7,424) (15,198) shareholders(69) (65) (133) ? Non-controlling interest (311) (537) ? ? (2,848) Repurchases of shares (1,702) (10,188) Shares held in trust: net(184) 1 (618) sales/(purchases) and (382) (1,174) dividends received(5,333) 169 (3,057) Cash flow from financing (7,224) (35,209) activities Currency translation567 36 289 differences relating to 172 124 cash and cash equivalents(3,884) 7,775 2,637 Increase/(decrease) in 13,775 (8,686) cash and cash equivalents35,714 27,939 15,417 Cash and cash equivalents 18,055 26,741 at beginning of period31,830 35,714 18,055 Cash and cash equivalents 31,830 18,055 at end of 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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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



1. Basis of preparation

These unaudited Condensed Consolidated Financial Statements of Royal Dutch Shell plc (the Company) and its subsidiaries (collectively referred to as Shell) have been prepared 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 Condensed Consolidated Financial 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 estimates.

Future 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 and fourth quarter 2020.



After the finalisation of the operating plan in the fourth quarter 2020, the overall deferred tax position was reviewed and deferred tax positions recognised were updated in line with the operating plan.



The refinery portfolio is expected to be transformed during the energy transition from fifteen sites into six high-value energy and chemical parks integrated with Chemicals. Further evaluation and decisions on assets resulted in the recognition of impairment charges and provisions for decommissioning & restoration, onerous contracts and restructuring in the fourth quarter 2020.







2. Segment information

With 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 fourth quarter 2020 is a reduction of $10,469 million (Q3 2020: $11,478 million, full year 2020: $46,289 million).



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INFORMATION BY SEGMENT Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019 Third-party revenue 8,010 7,684 11,006 Integrated Gas 33,287 41,323 1,576 1,670 2,604 Upstream 6,767 9,482 31,001 31,823 67,354 Oil Products 128,717 280,460 3,386 2,831 3,033 Chemicals 11,721 13,568 16 13 9 Corporate 51 45 43,989 44,021 84,006 Total third-party revenue 180,543 344,877 Inter-segment revenue 1,098 864 1,117 Integrated Gas 3,410 4,280 5,860 5,111 9,416 Upstream 21,564 35,735 1,733 1,547 1,629 Oil Products 6,213 7,819 784 715 854 Chemicals 2,850 3,917 ? ? ? Corporate ? ? CCS earnings 20 (151) 1,897 Integrated Gas (6,278) 8,628 (2,091) (1,110) (855) Upstream (10,785) 3,855 (1,775) 2,092 1,183 Oil Products (494) 6,139 367 131 (78) Chemicals 808 479 (954) (739) (1,151) Corporate (2,952) (3,273) (4,434) 222 996 Total CCS earnings (19,702) 15,827

1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Fourth quarter 2020 included income of $114 million (Q3 2020: $1,803 million income; full year 2020: $10,008 million income). This amount includes both the reversal of prior gains of $147 million (Q3 2020: $15 million losses) related to sales contracts and prior gains of $23 million (Q3 2020: $22 million gains) related to purchase contracts that were previously recognised and where physical settlement has taken place in the fourth 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 EARNINGSQuarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019 Income/(loss)(4,014) 489 965 attributable to Royal (21,680) 15,842 Dutch Shell plc shareholders Income/(loss)58 57 124 attributable to 146 590 non-controlling interest(3,956) 546 1,089 Income/(loss) for the (21,534) 16,432 period Current cost of supplies adjustment:(589) (395) (69) Purchases 2,358 (784) 133 100 13 Taxation (586) 194 Share of profit/(loss)(23) (29) (37) of joint ventures and 59 (15) associates(479) (324) (93) Current cost of 1,831 (605) supplies adjustment of which: Attributable to Royal(465) (312) (94) Dutch Shell plc 1,758 (572) shareholders Attributable to(14) (12) 1 non-controlling 74 (33) interest(4,434) 222 996 CCS earnings (19,702) 15,827 of which: CCS earnings(4,478) 177 871 attributable to Royal (19,922) 15,270 Dutch Shell plc shareholders CCS earnings44 45 125 attributable to 220 557 non-controlling interest







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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





3. Earnings per share



EARNINGS PER SHAREQuarters Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019 Income/(loss) attributable(4,014) 489 965 to Royal Dutch (21,680) 15,842 Shell plc shareholders ($ million) Weighted average number of shares used as the basis for determining: Basic earnings7,784.4 7,788.7 7,907.2 per share 7,795.6 8,058.3 (million) Diluted7,784.4 7,823.6 7,962.5 earnings per 7,795.6 8,112.5 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 December 31, 2020 4,101,239,499 3,706,183,836 345 306 651At January 1, 2019 4,471,889,296 3,745,486,731 376 309 685Repurchases of (320,101,779) (16,079,624) (27) (1) (28)sharesAt December 31, 2019 4,151,787,517 3,729,407,107 349 308 657

1.Share capital at December 31, 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) ? ? ? ? (1,832) (1,832) attributable toRoyal Dutch Shellplc shareholdersTransfer fromother ? ? ? ? 270 270 comprehensiveincomeRepurchases of ? ? 6 ? ? 6 sharesShare-based ? ? ? (143) ? (143) compensationAt December 31, 37,298 154 129 906 (25,735) 12,752 2020At January 1, 37,298 154 95 1,098 (22,030) 16,615 2019Othercomprehensiveincome/(loss) ? ? ? ? (2,069) (2,069) attributable toRoyal Dutch Shellplc shareholdersTransfer fromother ? ? ? ? (74) (74) comprehensiveincomeRepurchases of ? ? 28 ? ? 28 sharesShare-based ? ? ? (49) ? (49) compensationAt December 31, 37,298 154 123 1,049 (24,173) 14,451 2019



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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 liabilities

As 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 December 31, 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 7 Financial Instruments: Disclosures.



DEBT EXCLUDING LEASE LIABILITIES$ million December 31, 2020 December 31, 2019Carrying amount 79,594 65,887 Fair value 88,294 71,163

1.Mainly determined from the prices quoted for these securities.





7. Other notes to the unaudited Condensed Consolidated Financial Statements

Consolidated Statement of Income

Depreciation, depletion and amortisation



Quarters $ million Full yearQ4 2020 Q3 2020 Q4 2019 2020 20199,573 7,689 9,238 Depreciation, depletion 52,444 28,701 and amortisation

Impairment losses of $3,344 million, of which $3,318 million recognised in depreciation, depletion and amortisation and $26 million recognised in share of profit of joint ventures and associates (Q3 2020: $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; full year: $28,062 million, of which $27,463 million recognised in depreciation, depletion and amortisation and $599 million recognised in share of profit of joint ventures and associates), mainly relate to impairments in Upstream ($1,688 million pre-tax and $1,272 million post-tax) and in Oil Products ($1,486 million pre-tax and $1,325 million post-tax). In Upstream, the Appomattox asset in the US Gulf of Mexico was partially impaired due to subsurface updates. The impairments in Oil Products reflect the impact of the announced transformation of the refining portfolio and mainly relate to assets in the Netherlands and in Singapore, and the shutdown of the Convent Refinery in the USA. 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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Condensed Consolidated Balance Sheet

Retirement benefits



$ million December 31, 2020 December 31, 2019Non-current assets Retirement benefits 2,474 4,717 Non-current liabilities Retirement benefits 15,168 13,017 Current liabilities Retirement benefits 437 419 Net liability 13,131 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 partly offset by returns on plan assets. Amounts recognised in the balance sheet in relation to defined benefit plans include both plan assets and obligations that are presented on a net basis on a plan-by-plan basis.



Decommissioning and other provisions



$ million December 31, 2020 December 31, 2019Non-current liabilities Decommissioning and other provisions 27,310 21,799 Current liabilities Decommissioning and other provisions 3,624 2,811

The discount rate applied at December 31, 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 December 31, 2020 December 31, 2019Non-controlling interest 3,227 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.





8. Post-Balance Sheet Events

A restructuring plan named Reshape was announced in the fourth quarter 2020. Under Reshape, between 7,000 and 9,000 job reductions are expected by the end of 2022. The impact of Reshape was communicated to employees in January 2021. Costs related to the currently announced plan will be recognised in 2021.





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ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES

A.Adjusted Earnings

The 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019 Income/(loss)(4,014) 489 965 attributable to Royal (21,680) 15,842 Dutch Shell plc shareholders Add: Current cost of supplies adjustment(465) (312) (94) attributable to Royal 1,758 (572) Dutch Shell plc shareholders (Note 2) Less: Identified items(4,871) (778) (2,060) attributable to Royal (24,767) (1,192) Dutch Shell plc shareholders393 955 2,931 Adjusted Earnings 4,846 16,462

Identified items

Identified 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 2019 Identified items before tax 162 103 128 Divestment gains/(losses) 316 2,611 (3,344) (1,636) (2,941) Impairments (28,061) (4,155) Fair value accounting of(957) 721 616 commodity derivatives and (1,151) 602 certain gas contracts(372) 25 (59) Redundancy and restructuring (883) (132) (1,404) (267) (333) Other1 (2,098) (770) (5,914) (1,055) (2,589) Total identified items (31,877) (1,844) before tax1,033 276 529 Total tax impact of 7,100 674 identified items Identified items after tax (20) 46 111 Divestment gains/(losses) 4 2,170 (2,746) (1,143) (2,240) Impairments (21,267) (3,162) Fair value accounting of(864) 532 526 commodity derivatives and (1,034) 650 certain gas contracts(267) 4 (46) Redundancy and restructuring (644) (89) 157 13 29 Impact of exchange rate (240) (69) movements on tax balances(1,141) (230) (441) Other1 (1,595) (670) (4,881) (778) (2,060) Impact on CCS earnings (24,777) (1,170) Of which: (1,089) (920) (89) Integrated Gas (10,661) (326) (1,344) (226) (1,564) Upstream (7,933) (598) (2,315) 411 (318) Oil Products (6,489) (93) (14) (96) (13) Chemicals (154) (263) (118) 52 (76) Corporate 460 109 (4,871) (778) (2,060) Impact on CCS earnings (24,767) (1,192) attributable to shareholders Impact on CCS earnings(10) ? ? attributable to (10) 22 non-controlling interest

1.Includes certain provisions for onerous contracts of post-tax $994 million (pre-tax $1,259 million) for the fourth quarter 2020, post-tax $126 million (pre-tax $133 million) for the third quarter 2020 and post-tax $1,120 million (pre-tax $1,392 million) for the full year 2020. There were no provisions for onerous contracts in 2019.



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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 balances represent 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 items represent other credits or charges that based on Shell management's assessment hinder the comparative understanding of Shell's financial results from period to period and can include items such as certain provisions for onerous contracts or litigation, the impact arising from changes in tax legislation, the impact of changes in discount rate used for provisions, as well as other credits or charges. The fourth quarter 2020 mainly reflects provisions for onerous contracts ($994 million charge post-tax) in Integrated Gas and Oil Products.

B.Adjusted Earnings per share

Adjusted Earnings per share is calculated as Adjusted Earnings (see Reference A), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 3).

C.Cash capital expenditure

Cash 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 20195,206 3,679 6,707 Capital expenditure 16,585 22,971 Investments in joint269 34 112 ventures and 1,024 743 associates28 23 65 Investments in 218 205 equity securities5,503 3,737 6,883 Cash capital 17,827 23,919 expenditure Of which: 1,664 1,020 1,323 Integrated Gas 4,301 4,299 1,654 1,245 2,768 Upstream 7,296 10,205 1,310 832 1,628 Oil Products 3,328 4,908 830 595 1,023 Chemicals 2,640 4,090 46 45 141 Corporate 262 418







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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 basis

In 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 Q4 2020 Q3 2020 Q4 2019Income - current and previous three quarters (21,534) (16,489) 16,432Interest expense after tax - current and previous 2,822 2,933 3,024three quartersIncome before interest expense - current and previous (18,712) (13,556) 19,456three quartersCapital employed ? opening 286,887 281,505 295,398Capital employed ? closing 266,551 269,397 286,887Capital employed ? average 276,719 275,451 291,142ROACE on a Net income basis (6.8)% (4.9)% 6.7%



ROACE on a CCS basis excluding identified items

In 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 Q4 2020 Q3 2020 Q4 2019CCS earnings - current and previous three quarters (19,702) (14,272) 15,827Identified items - current and previous three (24,777) (21,957) (1,170)quartersInterest expense after tax ? current and previous 2,822 2,933 3,024three quartersCCS earnings excluding identified items beforeinterest expense - current and previous three 7,898 10,618 20,021quartersCapital employed ? average 276,719 275,451 291,142ROACE on a CCS basis excluding identified items 2.9% 3.9% 6.9%

E.Gearing

Gearing 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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$ million Quarters December September December 31, 2020 30, 2020 31, 2019Current debt 16,899 17,811 15,064Non-current debt 91,115 91,245 81,360Total debt 108,014 109,056 96,424Add: Debt-related derivative financial (1,979) (564) 701instruments: net liability/(asset)Add: Collateral on debt-related derivatives: 1,181 686 23net liability/(asset)Less: Cash and cash equivalents (31,830) (35,714) (18,055)Net debt 75,386 73,463 79,093Add: Total equity 158,537 160,341 190,463Total capital 233,923 233,804 269,556Gearing 32.2 % 31.4 % 29.3 %

1.Includes lease liabilities of $28,419 million at December 31, 2020, $28,930 million at September 30, 2020, and $30,537 million at December 31, 2019.

F.Operating expenses

Operating 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 20196,701 5,496 7,247 Production and manufacturing 24,001 26,438 expenses2,751 2,366 2,831 Selling, distribution and 9,881 10,493 administrative expenses199 233 306 Research and development 907 962 9,652 8,095 10,384 Operating expenses 34,789 37,893 Of which identified items: (371) 25 (58) Redundancy and restructuring (872) (130) (charges)/reversal(737) (267) (333) (Provisions)/reversal (1,415) (639) ? ? ? Other ? (131) (1,108) (242) (391) (2,287) (900) 8,544 7,854 9,993 Underlying operating expenses 32,502 36,993

G.Free cash flow

Free 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 20196,287 10,403 10,267 Cash flow from operating 34,105 42,178 activities(5,406) (2,833) (4,862) Cash flow from investing (13,277) (15,779) activities882 7,571 5,405 Free cash flow 20,828 26,399 212 869 2,135 Less: Divestment proceeds 4,010 7,871 (Reference I) Add: Tax paid on? ? 106 divestments (reported ? 187 under "Other investing cash outflows") Add: Cash outflows related202 12 551 to inorganic capital 817 1,400 expenditure1871 6,713 3,928 Organic free cash flow2 17,634 20,116

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 movements

Working 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 20196,287 10,403 10,267 Cash flow from 34,105 42,178 operating activities(1,809) 405 (546) (Increase)/decrease 4,477 (2,635) in inventories (Increase)/decrease(107) (540) (2,448) in current 9,626 (921) receivables1,579 1,583 961 Increase/(decrease) (9,493) (1,223) in current payables(337) 1,448 (2,033) (Increase)/decrease 4,610 (4,779) in working capital Cash flow from6,624 8,955 12,300 operating activities 29,495 46,957 excluding working capital movements Of which: 2,195 2,396 4,017 Integrated Gas 10,814 14,828 2,890 2,629 4,834 Upstream 9,784 19,946 782 3,476 3,120 Oil Products 7,041 10,738 775 488 338 Chemicals 1,756 1,721 (17) (33) (9) Corporate 101 (274)

I.Divestment proceeds

Divestment 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 Full yearQ4 2020 Q3 2020 Q4 2019 2020 201994 571 1,049 Proceeds from sale of property, 2,489 4,803 plant and equipment and businesses111 159 1,032 Proceeds from sale of joint 1,240 2,599 ventures and associates7 139 55 Proceeds from sale of equity 281 469 securities212 869 2,135 Divestment proceeds 4,010 7,871





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ROYAL DUTCH SHELL PLC4TH QUARTER 2020 AND FULL YEAR UNAUDITEDRESULTS





CAUTIONARY STATEMENT

All 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, February 4, 2021. 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.

February4, 2021

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: 21380068P1DRHMJ8KU70

Classification: Inside Information





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