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Q3 2005 Results. 27 October 2005. Disclaimer statement.

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Q3 2005 results l.jpg

Q3 2005 Results

27 October 2005


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Disclaimer statement

The following presentation contains forward-looking statements that are subject to risk factors associated with the oil, gas, power, chemicals and renewables businesses. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a variety of variables which could cause actual results, trends or reserves replacement to differ materially, including, but not limited to: price fluctuations and crude oil, natural gas and refined products, changes in demand for Shell Group’s products, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, risks associated with the identification of suitable potential acquisition properties and targets and the successful negotiation and consummation of transactions, the risk of doing business in developing countries and countries subject to international sanctions, legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2004 (as amended) for a description of certain important factors, risks and uncertainties that may affect the Shell Group's businesses. Neither Royal Dutch Shell plc nor any member of the Shell Group undertakes any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or other information.

Cautionary Note to US Investors:

The United States Securities and Exchange Commission (‘SEC’) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “expected producible resources” and “amount of reserves we expect to produce”, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.


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Q3 2005: Highlights

  • EP – Building resource base, strong unit earnings

  • GP – Projects delivered, growing LNG position

  • Downstream – Strong refining, trading and chemicals; excellent cash generation

  • 2004 – 2006 divestment target achieved

  • $15 bln+ return to shareholders in 2005


Slide5 l.jpg

Dividend per share €0.23

Strong performance across the business

Q3 2005$ billion

Q3 2004$ billion

Incomeup 68%

CCS* earnings up 68%

Cash from operations** up 34%

Divestment proceeds

Capital investment***

9.0

7.4

10.5

4.3

3.7

5.4

4.4

7.8

0.8

3.2

* CCS for Oil Products segment only

** excluding working capital and taxation accrued/paid

*** excluding minority interest in Sakhalin


Hurricane l.jpg
Hurricane

Yellowhammer

NEW ORLEANS

HOUSTON

Fairway

Port Arthur

Convent

MP 252

Norco

Tahoe

Deer Park

Ram-Powell

Cognac

NaKika

WD 143

Mars

Hickory

WC 565

Cougar

Mensa

Enchilada

BZ A19

Ursa

Boxer

Popeye

Brutus

Bullwinkle

Katrina

Auger

Holstein

NPI 975

Rita

Hubs

Satellites

Scale 100 miles


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Oil prices and industry margins

Crude Oil Prices

Refining Margins

Cracker Margins

$/bbl

$/bbl

$/t

20

600

65

60

500

16

55

400

12

50

300

45

8

200

40

4

100

35

30

0

0

2004

2004

2005

2005

2005

2004

2004

2005

2005

2005

2004

2004

2005

2005

2005

Q3

Q4

Q1

Q2

Q3

Q3

Q4

Q1

Q2

Q3

Q3

Q4

Q1

Q2

Q3

WTI

US Ethane

ANS USWC coking

Brent

W Europe Naptha

WTS USGC coking

Rotterdam

Singapore


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EP: Increasing unit earnings

Good earnings growth

Strong unit earnings

Exploration success

Production in line with previous guidance

12

60%

10

50%

8

40%

30%

6

4

20%

2

10%

0

0%

Q3 04

Q4 04

Q1 05

Q2 05

Q3 05

EP Unit earnings adjusted for non operating items

Cumulative unit earnings percentage growth

Oil realisations percentage growth


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GP: Growing the position

LNG Capacity (Shell Share*) - mtpa

Olokola T2

35

Strong earnings

LNG volumes up 2%

On target for 14% annual capacity increase to 2009

NLNG 4/5, Qalhat delivered in line with expectation

Olokola T1

Nigeria 7/8

30

Persia T2

Persia T1

25

QatarGas 4

Gorgon T2

Gorgon T1

20

Nigeria

15

Oman

Sakhalin

10

NWS

5

Malaysia

Brunei

0

2010-13

estimate

2009

* Sakhalin at 55% Shell Share


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Downstream macro environment Q3/05 vs Q2/05

Europe

Ref.

Mkt.

USGC

Asia Pacific

USWC

Ref.

Ref.

Ref.

Mkt.

Mkt.

Mkt.

Africa

US Mid-West

Ref.

Ref.

Latin

America

Mkt.

Mkt.

Ref.

<  $2.0/bbl

Ref.: Industry Marker Margins

Mkt.

Mkt.: Marketing Margins

(Gasoline Margins in US)

>  $2.0/bbl


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Oil Products: delivery continues

Oil Productsglobal adjusted unit CCS earnings per barrel*

CCS earnings over $1.7 bln

Highly competitive unit earnings

Refinery intake volumes down 7%

Marketing volumes down 4%

Strong refining and trading performance

Retail margins under pressure

Shell

3.0

Competitor range

2.5

2.0

1.5

1.0

0.5

0.0

2002

2003

2004

Q3

05

*Annual + rolling 4 quarters since 2004


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Oil Products: excellent cash generation

Q3 2005 Cash In $bln

Q3 2005 Cash Out $bln

0.2

$0.6 bln

Divestments

Capital Investment

0.7

0.6

4.1

DACF

3.1

3.0

0.6

Working capital

1.2

Q3 2004

Q3 2005

Q3 2004

Q3 2005

Cash surplus $0.6 bln


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Chemicals: strong cash generation

Asset utilisation rates

86%

  • Earnings of $0.3 bln

  • Cash from operations $0.5 bln*

  • Asset utilisation 78% impacted by USGC hurricanes

84%

82%

80%

78%

76%

2003

2004

Q105

Q205

Q305

USGC hurricane impact

*Excluding working capital


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Focus on cash

Q3 2005 Cash In $15.0 bln

Q3 2005 Cash Out $11.7 bln

$3.3 bln excess cash generated

Divestments

4.3

Other

0.4

Working Capital*

3.8

Dividends

1.9

DACF

10.7

Buybacks

1.9

Capital Investment**

3.7

* Net working capital and taxation accrued/paid ** Shell share


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Divestment target delivered

$ bln

15.0

2004-2006

divestment target

13.7

12.0

Q1 04

Q2 04

Q3 04

Q4 04

Q1 05

Q2 05

Q2 05

Target achieved ahead of schedule


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Looking ahead

  • Production outlook

    • Including hurricane impact 2005 around 3.5 mln boe/d, 2006 in lower half of 3.5 to 3.8 mln boe/d range

    • 2009 outlook unchanged 3.8 to 4.0 mln boe/d

  • Capital investment remains at $15 bln for 2005

    • 2006 under review

  • Reaffirm commitment to return surplus cash to shareholders

    • $5 bln in 2005

    • Purchase of Royal Dutch shares incremental

    • Over $15 bln cash to shareholders in 2005


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