2nd Quarter 2006 Results

• Second quarter 2006 cashflow from operating activities was $7.8 billion compared to $6.3 billion a year ago. Excluding working capital movements and taxation effects, cashflow from operating activities was $11.9 billion compared to $8.7 billion a year ago.

• Royal Dutch Shell’s second quarter dividend has been announced at euro 0.25 per share, an increase of 9% from year-ago levels.

• $2.5 billion, or 1.1% of Royal Dutch Shell shares were bought back for cancellation during the quarter.

Chief Executive Jeroen van der Veer commented: “These results are underpinned by overall good operational performance and not simply high energy prices”.

“We are delivering our strategy, with ambitious growth plans upstream, and selective investment downstream. We plan to open up some 20 billion barrels of oil equivalent resources by the end of this decade. We are making steady progress on our projects, and building our portfolio for the future”.

• Gas & Power segment earnings increased substantially versus a year ago, driven by LNG prices and marketing and a 15% increase in LNG volumes from new train start-ups in Nigeria and Oman. Second quarter 2005 earnings included $226 million of charges mainly related to divestments.

• In Oil Products, higher earnings, due to stronger refining margins and increased trading profits, were partially offset by the impact of reduced refinery utilisation mainly in Europe and lower retail marketing margins. In Chemicals, margin realisations were unchanged compared to a year ago despite rising feedstock costs.

• Gearing (see note 6) was 13.6% versus, on a comparable Royal Dutch Shell basis, 13.0% at the end of the second quarter 2005. Total cash returned to shareholders in the quarter was $4.6 billion.

• Capital investment for the second quarter 2006 was $6.7 billion, excluding the minority share of Sakhalin of $0.4 billion and including the $2.2 billion oil sands acquisition of BlackRock Ventures Inc. in Canada by Shell Canada.

• The industry continues to face significant cost pressures. Capital spending plans for 2006 and 2007 are unchanged at respectively around $19 billion, and some $21 billion (excluding the minority share of Sakhalin). An additional $2.9 billion has been spent year to date on portfolio opportunities including the BlackRock Ventures Inc. acquisition. Some $0.7 billion of proceeds were realised from divestments, predominantly in Downstream.

Van der Veer commented “We are making good progress on our projects in Downstream. We have taken the final investment decision on the expansion of our petrochemicals capacity at Bukom in Singapore, which is Shell’s largest refinery. The Motiva joint venture continues to study the opportunity to expand our refining capacity at Port Arthur, to create one of the largest refineries in the United States”.

“In Upstream, we are making progress on two important unconventional projects. These will become major industrial complexes, in gas-to-liquids in Qatar and in Canada’s oil sands.”

“We have taken the final investment decision on the Pearl GTL project which will produce 1.6 billion cubic feet of gas per day to deliver approximately 120 thousand barrels of oil equivalent per day of condensate and generate 140 thousand barrels per day of clean liquid hydrocarbon products. We continue to study the opportunity to expand the oil sands activities at the Athabasca Oil Sands Project and expect Shell Canada to make a decision shortly. With over 20 years of production capacity, these are true long-life assets, which will underpin the group for decades to come”.

Van der Veer concluded “We are making major investments, which are measured in the tens of billions, to create new energy capacity for our customers, and to create long-term value for our shareholders.”

Basic earnings per share (see notes 1 and 9)

Diluted earnings per share (see notes 1 and 9)

These included charges in Corporate and in other segments including minority interests, the effects of Canadian tax rate changes on deferred tax and the restructuring of employee retirement plans in France as detailed below and as summarised in the table:

• Exploration & Production second quarter 2006 earnings included a combined net income of $304 million including Canadian tax revisions and income related to the mark-to-market valuation of certain UK gas contracts ($147 million).

• Oil Products second quarter 2006 earnings included net charges of $65 million related to French employee retirement plans and the Canadian tax rate change.

• Chemicals second quarter 2006 earnings included net charges of $30 million related to French employee retirement plans and the Canadian tax rate change.

• In connection with the putative shareholder class actions filed in the United States District Court for the District of New Jersey relating to the 2004 recategorisation of certain hydrocarbon reserves, Shell has determined that it would be prepared to resolve that litigation for, among other terms, a payment by Shell of $500 million. Accordingly, management of the Shell Group has established a $500 million provision in respect of this litigation. No settlement has been reached in the matter (see note 10). The provision is included in the Corporate segment.

• The Canadian tax revisions also resulted in an additional income attributable to Minority interests in the second quarter 2006 of $41 million.

Summary table

These items generally relate to events with an impact of greater than $50 million on earnings and are shown to provide additional insight in the direction of the segment earnings, CCS earnings and income attributable to shareholders. Further additional comments are provided in the section ‘Earnings per industry segment’ on page 5 and onwards.

Upstream

Exploration & Production

Exploration & Production segment earnings of $3,999 million were 46% higher than a year ago ($2,745 million), mainly reflecting strong oil and gas price realisations and income tax credits, partly offset by lower volumes and higher costs.

Second quarter 2006 earnings included a combined net income of $304 million including Canadian tax revisions and income related to the mark-to-market valuation of certain UK gas contracts ($147 million). The second quarter 2005 included net charges of $149 million.

Liquids realisations were 33% higher than a year ago, in line with increases in marker crudes Brent of 35% and WTI of 33%. Outside the USA gas realisations increased by 20% and in the USA gas realisations increased by 1%.

Second quarter 2006 production was 3,253 thousand barrels of oil equivalent (boe) per day.

Production included new volumes of 190 thousand boe per day mainly from Bonga (Shell share 55%) and Erha (Shell share 44%) in Nigeria, West Salym (Shell share 50%) in Russia, Champion West Phase III (Shell share 50%) in Brunei and acquired production onshore Texas (Shell share 100%) compared to last year. In the USA production restarted from the Mars platform (Shell share 72%).

Production was impacted by the continued partial shut-in of production in Nigeria, mainly in the Western Niger Delta due to the security situation, and production deferred in the Gulf of Mexico as a result of the 2005 hurricanes. Excluding the impact of security concerns in Nigeria, hurricane damage in the Gulf of Mexico, and PSC impacts from increased oil prices, production was unchanged versus a year ago.

Production from Shell Petroleum Development Company’s Nigerian operations was 177 thousand boe per day (Shell share) lower than a year ago due to shut-in production resulting from security concerns. A similar volume remains shut-in. Also in Nigeria, deepwater production from the two new offshore Floating Production Storage and Offloading (FPSO) vessels Bonga and Erha has been ramping up and by the end of the second quarter 2006 had reached over 150 thousand boe per day (Shell share).

Following the continued security-related deferral of production in Nigeria the production outlook for the year would be around 3.4 million boe per day based on $50 per barrel oil prices and in the possible event that Nigerian volumes were deferred for the rest of 2006. At present Shell is in the early stages of the return to operations process. No firm date can be given for re-start of production nor is it possible to predict the rate of ramp up to full production.

In the UK, enactment of the announced UK tax increases that take effect from January 1, 2006, has been delayed to the third quarter 2006. The change will result in an expected one-time charge of some $300 million (including deferred tax revaluations) in the third quarter 2006. Additionally some $100 million to $150 million earnings impact (subject to oil price and operations) is expected for the third quarter 2006 and on an ongoing basis.

Portfolio developments:

In the Gulf of Mexico, the Mars platform resumed production during the quarter ahead of schedule and was almost 10% ahead of prior production rates by the end of the quarter at 145 thousand bbl of oil per day and 155 million cubic feet of gas per day (Shell share 82 thousand bbl of oil per day and 88 million cubic feet of gas per day). During the Mars recovery operation topside modifications were made to accommodate future wells and to minimise future planned shut-ins.

In Canada, Shell Canada acquired control of BlackRock Ventures Inc. (BlackRock) on June 21, 2006 and as at July 11, 2006 holds 100% of the BlackRock shares. This had no material impact on second quarter 2006 earnings. BlackRock has in situ and conventional oil activities in the Peace River, Cold Lake and Lloydminster areas of Athabasca, with oil in place estimated to be at least 18 billion barrels. In the first quarter of 2006, Royal Dutch Shell purchased in situ leases in Northern Alberta, in SURE Northern Energy. These two acquisitions together have added in excess of 48 billion barrels of oil in place, at a combined cost of some $2.6 billion. Our total oil in place in these in situ plays is now estimated to be at least 55 billion barrels. A variety of existing recovery techniques and new technologies will be assessed to maximise recovery from this in situ portfolio, as well as potential investments in dedicated upgrading capacity. In addition, we continue to study the opportunity to expand the production capacity at the Athabasca Oil Sands Project’s mining facilities, and expect the operator, Shell Canada, to make their investment decision shortly.

In Russia, the installation of the Lunskoye-A gas production platform topside was completed offshore Sakhalin. The Sakhalin 2 project is progressing in line with the 2005 schedule and budget.

In Ukraine, a Joint Activity Agreement was signed with Ukrgazvydobuvannya, a subsidiary of Naftogaz Ukrainy. Shell has farmed into eight licences in the Dniepr Donets Basin and exploration work is planned to commence this year.

Gas and Power segment earnings were $516 million compared with $11 million a year ago. Second quarter 2005 earnings included $226 million of charges mainly related to divestments. Excluding these charges, second quarter 2006 earnings were 118% higher than second quarter 2005, reflecting strong LNG results and marketing and trading earnings.

LNG results benefited from strong prices and continued volume growth. LNG sales volume was up 15% from a year ago, reflecting additional LNG capacity through Trains 4 and 5 in Nigeria LNG (Shell share 26%) and Qalhat LNG in Oman (Shell indirect share 11%). Marketing and trading earnings continue to be driven by good performance and favourable conditions in European and North American markets.

Portfolio developments:

Shell and Qatar Petroleum launched the integrated Pearl Gas to Liquids (GTL) project in Qatar. The Pearl GTL project includes the development of offshore natural gas resources, transporting and processing the gas onshore to extract liquids, and the conversion of gas into clean liquid hydrocarbon products for export. The integrated project cost is expected to be around $4 to $6 per barrel of oil equivalent of resources.

The North West Shelf Venture in Australia (Shell share, direct and indirect, 22%) delivered the first LNG cargo to China at the Guangdong LNG import terminal under a 25 year, 3.3 million tonnes per annum sales and purchase agreement.

Hubei Shuanghuan Ltd started production of synthesis gas from the first plant in China to use Shell’s coal gasification technology. Also in China, in July Shell and Shenhua Ningxia Coal Industry Ltd announced an agreement for a multi-year study on the feasibility of developing a plant to convert coal into liquids using Shell technology.

Oil Products

Second quarter 2006 segment earnings were $3,017 million compared to $2,664 million for the same period last year.

Second quarter 2006 CCS earnings were $2,065 million including net charges of $65 million related to restructuring of employee retirement plans in France, partially offset by the impact of a reduction in deferred taxes in Canada arising from reduced tax rates. Earnings in the second quarter of 2005 were $2,028 million. Higher earnings due to stronger refining margins particularly in the United States, and increased trading profits from a positive trading environment were partially offset by the impact of lower retail marketing margins and reduced refinery utilisation mainly in Europe.

Compared to the second quarter 2005, Manufacturing, Supply and Distribution, industry refining margins were significantly higher on the US Gulf coast and the US West coast. Margins were also higher in Asia Pacific while in Europe margins declined. Refinery utilisation on an Equivalent Distillation Capacity (EDC) basis was 77.3% compared to 80.4% in the second quarter of 2005, mainly due to higher levels of downtime in Europe in the second quarter of 2006. Refinery intake declined 4.8% compared to the second quarter of 2005.

In Marketing, earnings declined compared to the same period a year ago. Retail earnings declined due to margin compression as a result of higher product cost. B2B earnings increased mainly due to increased margins for marine, aviation fuels and bitumen. Lubricants earnings improved due to higher base oil margins. Marketing sales volumes declined 3.6% compared to volumes in the second quarter of 2005, reflecting supply constraints and including the impact of divestments (1.3%) and rationalised B2B volumes (0.5%).

Portfolio developments:

Motiva Enterprises (Shell share 50%) continued progress towards a consideration to expand the Port Arthur Refinery in the USA which would add up to 325 thousand barrels per day crude throughput bringing total throughput to up to approximately 600 thousand barrels per day. Subject to commercial conditions for an investment decision and regulatory approvals, Motiva expects to begin construction in 2007 with the brownfield expansion to come on line post 2009.

In Turkey the joint venture between Shell and Turcas Petrol A.S. comprising over 1,200 retail stations (Shell share 70%) commenced operations on July 1, 2006. The divestments of marketing and distribution assets in Colombia, Uruguay and Cameroon were completed in the second quarter 2006. In July 2006, the divestments of marketing and distribution business in Puerto Rico, Bermuda and various Pacific Islands were announced with an expected completion later this year.

Second quarter 2006 segment earnings were $446 million compared to $259 million for the same period last year.

Second quarter CCS earnings were $348 million including net charges of $30 million mainly related to restructuring of employee retirement plans in France partially offset by the impact of a reduction in deferred taxes in Canada arising from reduced tax rates. This compares to $280 million for the second quarter of 2005, which included some $80 million charges related to divested assets.

Sales volumes were 4% higher reflecting trading volume increases as well as higher sales of first line derivatives, mainly in Asia Pacific. Operating rates were 2 percentage points above those a year ago reflecting lower planned downtime as well as inventory building in preparation for a heavy planned maintenance programme in the third quarter 2006 in Europe and the USA. Earnings included a positive contribution from the Nanhai joint venture (Shell share 50%) in China reflecting the ramping up of operating rates to 90% at the end of the second quarter 2006.

Margin realisations were similar to a year ago despite rising feedstock costs for all regions.

Portfolio developments:

Shell has taken a final investment decision for the construction of a world-scale ethylene cracker and Mono-Ethylene Glycol (MEG) plant in Singapore. Construction of the 800 thousand tonnes per annum (tpa) ethylene cracker is due to begin later this year with start-up anticipated towards 2009/2010. The cracker and the new MEG plant will create an advantaged site through full integration with the 464 thousand barrels per day Bukom refinery (Shell share 100%) enabling feedstock and operating benefits. Currently Shell has more than 1 million tonnes per annum ethylene cracking capacity (Shell share 50%) in Singapore equal to some 10% of Shell’s global ethylene cracking capacity.

Second quarter Other Industry and Corporate segment results were a loss of $451 million compared to a loss of $218 million a year ago.

In Corporate a provision in respect of litigation was taken of $500 million (see note 10).

Improved net interest resulted from higher average cash levels and capitalised interest, partly offset by negative results from currency movements.

Note

Third quarter results for 2006 are expected to be announced on October 26, 2006.

In this Report “Group” is defined as Royal Dutch Shell together with all of its consolidated subsidiaries. The expressions “Shell”, “Group”, “Shell Group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to the Group or Group companies in general. Likewise, the words “we”, “us” and “our” are also used to refer to Group companies in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. The expression “Group companies” as used in this Report refers to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which the Group has significant influence but not control are referred to as “associated companies” or “associates” and companies in which the Group has joint control are referred to as “jointly controlled entities”. In this Report, associates and jointly controlled entities are also referred to as “equity accounted investments”.

This document contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ 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 Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market 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 potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions. All forward-looking statements contained in this Report 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. Each forward-looking statement speaks only as of the date of this Report. Neither Royal Dutch Shell 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 Report.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2005 for a description of certain important factors, risks and uncertainties that may affect the Company's businesses.

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 announcement, such as "barrels of oil equivalent in place" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575 and disclosure in our Forms 6-K file No 1-32575, available on the SEC’s website www.sec.gov . You can also obtain these forms from the SEC by calling 1-800-SEC-0330.