2nd Quarter 2007 Results

• From 2007 onwards the Group is declaring its dividends in US dollars rather than in euros. A second quarter 2007 dividend has been announced of $0.36 per share, an increase of 14% over the US dollar dividend for the same period in 2006.

• $0.9 billion or 0.4% of Royal Dutch Shell shares were bought back for cancellation during the quarter.
  

Summary unaudited results

• Second quarter 2007 reported income was $8,667 million or 18% higher than in the same quarter a year ago.

• Exploration & Production segment earnings were $3,301 million compared with $3,999 million in the second quarter 2006. Earnings, when compared to the second quarter 2006, were mainly impacted by lower volumes, tax charges and higher costs, reflecting current industry conditions, partly offset by a divestment gain.

• Gas & Power segment earnings were $779 million compared to $513 million a year ago. Earnings, when compared to the same quarter in 2006, reflected higher Liquefied Natural Gas (LNG) sales volumes, LNG dividends and divestment gains which were partly offset by lower European marketing and trading results.

• Oil Products CCS earnings were $2,936 million compared to $2,065 million in 2006. Earnings benefited from higher refining margins, improved marketing margins and a divestment gain, which were partly offset by higher operating costs when compared to the second quarter of 2006.

• Chemicals CCS earnings were $494 million compared to $348 million in 2006, reflecting improved margins and higher profits from equity-accounted investments, partly offset by higher operating costs.

• Cash flow from operating activities was $8.8 billion compared to $7.8 billion in the second quarter 2006. Excluding working capital movements and taxation effects, cash flow from operating activities was $10.0 billion compared to $11.9 billion a year ago (see note 7).

• Total cash returned to shareholders in the second quarter 2007 in the form of dividends and share repurchases was $3.2 billion.

• Capital investment for the second quarter 2007 was $5.8 billion and approximately $6.3 billion of proceeds were realised from divestments.

• Return on average capital employed (ROACE), on a reported income basis (see note 3), was 22.8%.

• Gearing (see note 5) was 12% at the end of the second quarter 2007 versus 13.6 % at the end of the second quarter 2006.

• As at March 31, 2007, Royal Dutch Shell, through its affiliates, had acquired the remaining shares of Shell Canada, not already owned by the Group, at a total price of some $7.1 billion. As from the second quarter 2007, Royal Dutch Shell’s financial statements include the fully consolidated results of Shell Canada with no minority interest impact.

• On April 18, 2007, Royal Dutch Shell completed the divestment to OAO Gazprom of a 50% stake (plus 1 share) in the Sakhalin project in Russia. Royal Dutch Shell diluted its stake in the project from 55% to 27.5% for a total sale price of $4.1 billion. Royal Dutch Shell’s financial statements now include the balance sheet and income statement of Sakhalin Energy on an equity accounted basis (see note 6).
  

Diluted earnings per share (see notes 1, 2 and 8)

Summary segment earnings - continued

• Exploration & Production earnings included a net income of $153 million, reflecting a divestment gain of $226 million and a gain of $19 million related to the mark-to-market valuation of certain UK gas contracts, which were partly offset by tax charges of $92 million. Earnings for the second quarter 2006 included a combined net income of $304 million including the impacts of a Canadian tax rate change and income of $147 million related to the mark-to-market valuation of certain UK gas contracts.

• Gas & Power earnings included a gain from divestments of $247 million.

• Oil Products earnings included a divestment gain of $205 million. Earnings for the second quarter 2006 included net charges of $65 million related to employee retirement plans expenses in France partly offset by the impact of a Canadian tax rate change.

• Chemicals earnings did not include any identified items for the second quarter 2007. Earnings for the second quarter 2006 included net charges of $30 million related to employee retirement plans expenses in France partly offset by the impact of a Canadian tax rate change.

• Corporate earnings included a net income of $55 million related to the sale of property in the United Kingdom. Earnings for the second quarter 2006 included a $500 million provision in respect of 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.

• Minority interest did not include any identified items for the second quarter 2007. In the second quarter of 2006 a Canadian tax rate change occurred resulting in an additional income of $41 million attributable to Minority interest.

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 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

Second quarter Exploration & Production segment earnings were $3,301 million compared to $3,999 million a year ago.

Second quarter earnings included a net income of $153 million, reflecting a gain from a divestment of $226 million and a gain of $19 million related to the mark-to-market valuation of certain UK gas contracts, which were partly offset by tax charges of $92 million. Exploration & Production earnings for the second quarter 2006 included a combined net income of $304 million including the impacts of a Canadian tax rate change and income of $147 million related to the mark-to-market valuation of certain UK gas contracts.

Earnings, when compared to the second quarter 2006, were mainly impacted by lower volumes, tax impacts and higher costs, reflecting current industry conditions, partly offset by a divestment gain. In addition, higher depreciation charges and exploration expenses impacted earnings when compared to the second quarter 2006.

Liquids realisations were relatively flat when compared to a year ago, while marker crudes Brent and WTI were down 1% and 8%, respectively. Gas realisations were 2% lower than a year ago. Outside the USA gas realisations decreased by 4% whereas in the USA gas realisations increased by 6%.

Second quarter 2007 production was 3,178 thousand boe per day compared to 3,253 thousand boe per day a year ago. Total crude oil production (including oil sands) was up 1% and total natural gas production was down 6% when compared to the second quarter 2006. Second quarter 2007 production was impacted by lower demand in North West Europe as a consequence of the continued warm weather and lower production in Nigeria due to the security situation. In Nigeria, at the end of the quarter, 195 thousand boe per day (Shell share) of production remained shut-in due to the security situation mainly in the Western Delta. No firm date can be given for a return to full production, nor the rate of ramp-up to full production.

Production compared to the second quarter 2006 included volumes from new fields including Erha (Shell share 44%) in Nigeria, E8 and B12 (Shell share 50%) in Malaysia, Pohokura (Shell share 48%) in New Zealand, Enfield in Australia (Shell share 21%, indirect) and Changbei (Shell share 50%) in China.

Second quarter portfolio developments:

In the United Kingdom, the Group announced its intention to sell its equity interests in a number of northern North Sea assets.

The Group completed the disposal to OAO Gazprom of a 50% stake (plus 1 share) in the Sakhalin project in Russia (see note 6).

During the first half of 2007, the Group made four material exploration discoveries, with two in Australia and further discoveries in Nigeria and Malaysia. The Group also significantly increased its overall acreage position with new exploration licences in Australia and the USA.

Second quarter Gas & Power segment earnings were $779 million compared to $513 million a year ago. Second quarter 2007 earnings included a gain from divestments of $247 million. Excluding this item and compared to the same quarter in 2006, earnings were up 4%, reflecting higher LNG sales volumes and LNG dividends, which were partly offset by lower European marketing and trading results.

LNG equity sales volumes of 3.25 million tonnes were 14% higher than in the same quarter a year ago. The increase was mainly related to the Nigeria LNG venture (Shell interest 26%), as a result of increased feedgas supply.

Second quarter portfolio developments:

In South America, the Group signed an agreement for the sale of certain gas transportation and power generation assets in Bolivia and Brazil. The transaction is expected to close before year-end, pending regulatory approvals.

In the United States, the sale of the Group’s participation in Enterprise Product Partners L.P., a natural gas processing company, was concluded mainly through private placement sales.

Oil Products