4th Quarter and full year 2006 unaudited results

• Full year 2006 CCS earnings were $25.4 billion. Excluding the 2005 gain of $1.7 billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands, full year 2006 CCS earnings per share increased by 25% versus a year ago.

• Fourth quarter 2006 dividend has been announced of euro 0.25 per share, an increase of 9% from year-ago levels.

• From 2007 onwards the Group will declare its dividends in US dollars rather than in euros. The first quarter 2007 dividend is expected to be declared at $0.36 per share, an increase of 14% compared to the first quarter dividend of 2006.

• $1.4 billion or 0.6% of Royal Dutch Shell shares were bought back for cancellation during the quarter bringing the total for 2006 to $8.2 billion or 3.7% of the shares.

Chief Executive Jeroen van der Veer commented “In 2006, we saw good operational and financial performance in Shell. Our exploration strategy is paying off. Hydrocarbon production was underpinned by the production re-start from the Mars platform in the USA, growth in LNG and deep water Nigeria. However onshore Nigeria we continue to have major security related concerns. Downstream continued to deliver very competitive results. We increased our reserves, and took important investment decisions on projects in gas to liquids, deep water, unconventional oil and downstream. We have agreed to partner with Gazprom in Sakhalin II, and are progressing with the proposal to acquire the minority shareholding in Shell Canada”.

Summary unaudited results

• Fourth quarter 2006 CCS earnings were $6,015 million or 11% higher than the same quarter a year ago.

• Full year 2006 reported income of $25,442 million and similar to 2005 reported income.

• Full year 2006 CCS earnings were $25,365 million and increased by 21% versus 2005 excluding the 2005 divestment gain of $1.7 billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands. Higher Upstream earnings in Exploration & Production and Gas & Power reflected higher price realisations, increased marketing opportunities and increased liquefied natural gas (LNG) volumes partly offset by higher costs. Downstream Oil Products earnings of $7.0 billion reflected a strong trading performance and higher lubricants earnings offset by lower refining earnings. Also in Downstream, Chemicals earnings reflected lower margins offset by the start up of the Nanhai petrochemicals complex in China and lower charges and provisions than in 2005.

• Return on average capital employed on a reported income basis (see note 4) was 23.4% for 2006.

• When final volumes are reported in the Annual Report 2006, it is expected that additions to total world-wide proved SEC oil and gas reserves and provable mining reserves (oil sands) will total around 2 billion boe in 2006 (* see note 10). Production totalled some 1.3 billion boe in 2006, including 0.03 billion boe of oil sands production, so that the Reserves Replacement Ratio (see note 10) for 2006 is expected to be around 150% including oil sands. The movement of reserves related to the Sakhalin II project were not material in 2006. Year-end pricing effects amount to a decrease of between 50 to 70 million boe and impact the Reserves Replacement Ratio by 4% to 6% points. The net impact of acquisitions and disposals in 2006 was an increase of 60 to 70 million boe. No impacts are included for the offer to buy out the minority shareholding of Shell Canada or the expected dilution to a 27.5% stake in Sakhalin II. Neither of these transactions have closed and any impacts are anticipated in 2007. For additional information see note 10.

• Full year 2006 Exploration & Production segment earnings were $15,195 million compared with $14,238 million in 2005 (which included a gain of $1.7 billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands). Earnings reflected higher oil prices, partly offset by lower production volumes, higher operating costs reflecting industry conditions and increased pre-development activity levels and lower USA gas prices.

• Full year 2006 Gas & Power segment earnings were $2,650 million, compared to $1,573 million a year ago. The increase in earnings reflected 14% growth in LNG sales volumes, higher realised LNG prices and strong LNG and natural gas marketing and trading performance.

• Full year 2006 Oil Products CCS earnings were $7,027 million compared to $7,532 million in 2005, and reflected lower refining earnings partly offset by higher trading profits and increased lubricants earnings. Also in Downstream, full year 2006 Chemicals CCS earnings were $1,095 million compared to $782 million in 2005. Chemicals earnings reflected lower margins offset by the start up of the Nanhai petrochemicals complex in China and lower charges and provisions than in 2005.

• Gearing (see note 6) was 14.8% at the end of 2006 versus, on a comparable Royal Dutch Shell basis, 13.6% at the end of 2005.

• Total cash returned to shareholders in 2006 was $16.3 billion in the form of dividends and share repurchases.

• Full year 2006 cash flow from operating activities was $31.7 billion compared to $30.1 billion in 2005. Excluding working capital movements and taxation effects, cash flow from operating activities was $39.5 billion compared to $35.6 billion a year ago (see note 8).

• Capital investment for 2006 was $23.1 billion, excluding the minority share of Sakhalin of $1.8 billion. This includes $3.0 billion of acquisitions mainly related to the acquisition by Shell Canada of BlackRock Ventures Inc. in Canada. Some $1.7 billion of proceeds were realised from divestments, predominantly in Downstream, so that net capital investment for the year was $21.4 billion.

• In Russia, Shell, Gazprom, Mitsui and Mitsubishi have signed a protocol to bring Gazprom into the Sakhalin Energy Investment Company Ltd. (SEIC) as a leading shareholder. It is expected that the agreements will be completed in 2007. Under the terms of the protocol, Gazprom will acquire a 50% stake plus one share in SEIC for a total cash purchase price of $7.45 billion. The current SEIC partners will each dilute their stakes by 50% to accommodate this transaction, with each receiving a proportionate share of the purchase price. Shell will retain a 27.5% stake, with Mitsui and Mitsubishi holding 12.5% and 10% stakes, respectively. Gazprom and the existing SEIC shareholders will enter into an Area of Mutual Interest arrangement, which will cover both future Sakhalin area oil and gas exploration and production opportunities, and building of Sakhalin II into a regional oil and LNG hub. Furthermore, the Sakhalin II shareholders reached agreement with the Ministry of Industry and Energy as the authorised state body for the supervision of Production Sharing Agreements of the Government of the Russian Federation, regarding the amended budget of Sakhalin II and cost recovery. The Production Sharing Agreement for the Sakhalin II project will continue. The Sakhalin II amended project budget for phase 2 is expected to be approved by the SEIC Supervisory Board.

• Royal Dutch Shell plc announced in January 2007 that it has reached agreement with and obtained the recommendation of the Board of Directors of Shell Canada on a revised offer to acquire all of the outstanding common shares of Shell Canada not owned by Royal Dutch Shell at a cash price of C$45.00 per share. This offer would value Shell Canada’s fully diluted minority share capital at approximately C$8.7 billion. Royal Dutch Shell currently owns 78% of the common shares of Shell Canada.

Diluted earnings per share (see notes 1, 2 and 9)

• Exploration & Production fourth quarter 2006 earnings included a net income of $387 million, reflecting both divestment gains from assets in the UK and Norway and a gain of $276 million related to the mark-to-market valuation of certain UK gas contracts, partly offset by tax effects and pension costs.

• Oil Products fourth quarter 2006 earnings included net income of $103 million reflecting tax effects partly offset by pension costs.

• Chemicals fourth quarter 2006 earnings included net charges of $83 million from legal costs and pension costs partly offset by tax effects.

• Corporate included $108 million of net tax credits.

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 6 and onwards.

Upstream

Exploration & Production

Fourth Quarter Exploration & Production segment earnings were $3,710 million compared to $3,561 million a year ago.

Fourth quarter 2006 earnings included a net income of $387 million including both divestment gains from assets in the UK and Norway, and a gain of $276 million, related to the mark-to-market valuation of certain UK gas contracts partly offset by tax effects and pension costs. The fourth quarter 2005 included a net gain of $152 million mainly from tax credits partially offset by mark-to-market charges in the UK. Excluding these effects earnings were 3% lower than a year ago.

Earnings reflected higher production volumes and oil prices partly offset by higher operating costs reflecting industry conditions and increased pre-development activity levels and lower USA gas prices.

Liquids realisations were 4% higher than a year ago, in line with marker crudes Brent (+5%) and WTI (flat). Outside the USA gas realisations increased by 3% and in the USA gas realisations decreased by 45%.

Fourth quarter 2006 production was 3,645 thousand boe per day compared to 3,500 thousand boe per day a year ago. Production benefited by 103 thousand boe per day due to the resolution of contractual issues impacting the full year 2006 but recorded in the fourth quarter only. This impact in the quarter was largely offset by unusually low seasonal gas demand in North West Europe. Excluding the impact of security concerns in Nigeria in 2006, PSC impacts from oil and gas prices and hurricane damage in the Gulf of Mexico in 2005, production in the fourth quarter 2006 was 5% higher than a year ago or 2% also excluding the impact of the resolution of contractual issues.

Production compared to the fourth quarter 2005 included new volumes of 278 thousand boe per day including Bonga (Shell share 55%) and Erha (Shell share 44%) in Nigeria, West Salym (Shell share 50%) in Russia, Pohokura (Shell share 48%) in New Zealand, Champion West Phase III (Shell share 50%) in Brunei and the early start up of E8 in Malaysia (Shell share 50%).

Production from Shell Petroleum Development Company’s Nigerian operations was 191 thousand boe per day (Shell share) lower than a year ago due to deferred production mainly in the Western Delta resulting from security concerns. Whilst efforts continue towards restoring safe operational conditions in the Niger Delta, no firm date can be given for the re-start of the production nor is it possible to predict the rate of ramp up to full production. Restricted access in the area continues to impact the drilling programme for the future, and the progress of new projects.

Full Year Exploration & Production segment earnings were $15,195 million compared to $14,238 million a year ago.

2006 earnings included net gains of $641 million mainly related to the mark-to-market valuation of certain UK gas contracts and divestment gains. 2005 included net gains of $1,727 million almost entirely related to the divestment of pipeline assets in the Netherlands, as various taxation credits and other divestments were almost offset by a net charge for mark-to-market valuation of certain UK gas contracts. Excluding these effects earnings were 16% higher than a year ago.

Earnings reflected higher oil prices, partly offset by 1% lower production volumes, higher operating costs reflecting industry conditions and increased pre-development activity levels and lower USA gas prices.

Liquids realisations were 19% higher than a year ago, in line with increases in marker crudes Brent of 19% and WTI of 17%. Outside the USA gas realisations increased by 15% and in the USA gas realisations decreased by 8%.

2006 production was 3,473 thousand boe per day compared to 3,518 thousand boe per day a year ago. Production benefited by 27 thousand boe per day due to the resolution of contractual issues. 2006 included negative PSC effects on production of 18 thousand boe per day from higher oil and gas prices. Excluding the impact of security concerns in Nigeria, PSC impacts from higher oil and gas prices, and hurricane damage in the Gulf of Mexico in 2005, production was around 3% higher than last year or 2% also excluding the impact of the resolution of contractual issues.

Production compared to 2005 included new volumes of 207 thousand boe per day including Bonga (Shell share 55%) and Erha (Shell share 44%) in Nigeria, West Salym (Shell share 50%) in Russia, Pohokura (Shell share 48%) in New Zealand, Champion West Phase III (Shell share 50%) in Brunei and the early start up of E8 in Malaysia (Shell share 50%). In the USA, production restarted from the Mars platform (Shell share 72%).

Production from Shell Petroleum Development Company’s Nigerian operations was 171 thousand boe per day (Shell share) lower than a year ago due to deferred production mainly in the Western Delta resulting from security concerns.

Fourth Quarter Portfolio developments:

In Brazil, Shell announced go ahead of the development of the BC-10 deepwater block (Shell share 50%) following declaration of commerciality earlier. The BC-10 development consists of multiple subsea wells and manifolds, tied back to a Floating Production, Storage and Offloading vessel with a capacity of 100 thousand barrels per day. First production is expected around the turn of the decade. Also in Brazil, Shell declared two accumulations of heavy oil to be commercially viable on Block BS-4.

In Canada, the Alberta Energy and Utilities Board and the Government of Canada approved the Muskeg River Mine expansion, an integral part of Shell Canada's Athabasca Oil Sands Project. This approval completes the major regulatory approvals required for the fully integrated 100 thousand boe per day expansion of oil sands mining and related upgrading facilities. Also in Canada, the integration of the acquired assets and operations of BlackRock into Shell Canada has been completed.

In the UK, Shell completed the sale of its 50% holding in the Auk and 43% holding in the Fulmar fields and associated infrastructure and in Norway, the sale of the Jotun field (Shell share 45%) was completed.

In the Netherlands, Energie Beheer Nederland has agreed to take a 40% financial interest from NAM (Shell share 50%) in the possible redevelopment of the Schoonebeek oilfield.

In the USA, major multi-year investment programmes were approved to further develop the onshore gas projects at Pinedale in Wyoming and in South Texas (Shell share 100%).

Fourth Quarter Gas & Power segment earnings were $582 million, compared to $530 million in the same quarter last year. Higher earnings reflected a 19% increase in LNG sales volumes, and higher realised LNG prices partially offset by dividend phasing.

LNG equity sales volumes of 3.3 million tonnes were 19% higher than the same quarter a year ago, driven by growth from Nigeria LNG (Shell share 26%) and Qalhat LNG (Shell share 11%). In addition, the LNG plants continued to achieve excellence in operational performance. Realised LNG prices improved, reflecting the increase in crude prices and continued opportunities for LNG cargo optimisation.

Full Year segment earnings were $2,650 million, compared to $1,573 million a year ago. The increase in earnings of 68% reflected growth in LNG sales volumes, higher realised LNG prices, LNG cargo optimisation and strong marketing and trading performance in Europe and North America. LNG sales volumes increased by 14% compared to 2005.

Marketing and trading earnings reflected gas storage optimisation in the USA and overall strong marketing performance across North America and Europe.

Full year 2006 LNG sales volumes of 12.1 million tonnes were an increase of 14% compared to 2005 due to the capacity growth in Nigeria and Oman. Income from LNG cargo optimisation in 2006 increased reflecting market conditions and success in accessing high value markets.

Fourth Quarter Portfolio developments:

In Qatar, Shell was appointed by Qatar Gas Transport Company Limited to manage its fleet of at least 27 new LNG carriers under a long-term deal. This new fleet of LNG vessels, currently under construction, will be put into service over the next four years servicing four of Qatar’s major LNG projects including Qatargas4 (Shell share 30%).

In China, construction was completed at Shell's first equity coal gasification plant (Shell share 50%). The Dongting plant will supply synthesis gas to a Sinopec fertilizer production facility.

In Australia, Woodside (Shell share 34%) progressed with site preparation and ordering of long lead items for the Pluto LNG development ahead of a final investment decision. The project is expected to develop a production capacity of 5 to 6 million tonnes of LNG per annum to supply to Japanese and other markets.

Oil Products

Fourth quarter segment earnings were $791 million compared to $828 million for the same period last year.

Fourth quarter CCS earnings were $1,469 million compared to $1,898 million in the fourth quarter of 2005. Earnings for the fourth quarter 2006 included net gains of $103 million reflecting tax effects partly offset by pension costs.

Lower CCS earnings reflect reduced trading profits, lower refining margins and higher operating costs. Improved refinery utilisation and higher lubricants earnings partly offset these declines.

In Manufacturing, Supply and Distribution, industry refining margins declined in all regions except the US West Coast. Refinery utilisation on an Equivalent Distillation Capacity (EDC) basis increased to 81.2 % compared to 78.9% in the fourth quarter of 2005.

In Marketing, earnings declined compared to the same period a year ago. Retail and B2B earnings were lower mainly due to weaker margins in the USA and higher operating costs. Lubricants earnings improved due to stronger margins and operating costs improvements.

Marketing sales volumes declined 3.2% compared to volumes in the fourth quarter of 2005. Excluding the impact of divested volumes (2.7%) and rationalised uneconomical B2B volumes (1.4%) volumes were some 1% higher.

Full year segment earnings were $7,125 million compared to $9,982 million for 2005.

Full year CCS earnings were $7,027 million compared to $7,532 million in 2005. Earnings in 2006 included net gains of $38 million related to tax effects partly offset by pension costs. Earnings in 2005 include $427 million net divestment gains. Lower refining earnings were partly offset by higher trading profits and increased Lubricants earnings. Higher operating costs negatively impacted earnings in 2006.

In Manufacturing, Supply and Distribution, average industry refining margins declined in Europe and Asia Pacific. Refinery utilisation on an Equivalent Distillation Capacity (EDC) basis was 79.4% after an unusually heavy planned maintenance schedule, compared to 79.6% in 2005 heavily impacted by hurricanes.

In Marketing, earnings increased compared to 2005 mainly due to higher Lubricants earnings offsetting lower retail and B2B earnings. Marketing sales volumes declined 4.0% compared to volumes in 2005 including the impact from divested volumes (2.2%) and rationalised uneconomical B2B volumes (1.1%).

Fourth quarter segment earnings were $184 million compared to a loss of $38 million for the same period last year.

Fourth quarter CCS segment earnings were $273 million and included net charges of $83 million from legal and pension costs partly offset by tax effects. This compares to earnings of $8 million in the same quarter last year, which included $84 million of net charges mainly from legal costs.

Higher earnings reflected improved margins, higher profits from equity-accounted investments and lower costs. Higher profits from equity-accounted investments included the Nanhai petrochemicals complex in China (Shell share 50%), which continued to build up operating rates and sales volumes. Overall asset utilisation in the fourth quarter was 77%, reflecting planned and extended maintenance in Europe and in the USA. This compared to 82% a year ago when operations in the USA were disrupted by the hurricanes.

Full year segment earnings were $1,064 million compared to $991 million for the same period last year.

Full year 2006 CCS earnings were $1,095 million compared to $782 million in 2005. Chemicals earnings reflected lower margins partly offset by the start up of the Nanhai petrochemicals complex in China and lower charges and provisions than in 2005. Earnings in 2006 included $113 million of net charges including legal costs and pension costs partly offset by tax effects. Earnings in 2005 included charges of $565 million mainly from the divestment of the polyolefins joint venture, Basell, and legal provisions. Excluding these effects 2006 earnings were 10% lower than a year ago reflecting lower margins partly offset by higher earnings from equity-accounted investments, including the Nanhai petrochemicals complex in China and the impact in 2005 related to hurricanes in the USA.

Asset utilisation of 81% reflected the impact of the heavy planned maintenance programme in the USA and in Europe and was comparable to asset utilisation in 2005, when operations in the USA were disrupted by hurricanes. Sales volumes were largely in line with last year, excluding product trading.

Fourth quarter Other Industry and Corporate segments results were a gain of $246 million, including net tax credits of $108 million, compared to a loss of $277 million for the same period last year. Increased currency exchange gains were partly offset by lower net interest income.

Full year Other Industry and Corporate segments results were a gain of $277 million compared to a loss of $523 million a year ago. Net interest income, currency exchange results and corporate tax improved during the year 2006. Included in 2006 were net charges of $206 million related to a legal provision partly offset by Corporate tax credits versus net charges of $148 million in 2005 mainly in the Other Industry segment.

Note

First quarter results for 2007 are expected to be announced on May 3, 2007, second quarter results for 2007 are expected to be announced on July 26, 2007 and third quarter results are expected to be announced on October 25, 2007.

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 and Form 20-F for the year ended December 31, 2005 for a description of certain important factors, risks and uncertainties that may affect Shell'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 may use certain terms in this announcement that the SEC's guidelines strictly prohibit us from including in filings with the SEC. US 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.

Earnings by industry segment (see notes 2 and 5)