1st Quarter 2008 Results

• A first quarter 2008 dividend has been announced of $0.40 per share, an increase of 11% over the US dollar dividend for the same period in 2007.

• $1.1 billion or 0.5% of Royal Dutch Shell issued ordinary shares were bought back for cancellation during the quarter.

Royal Dutch Shell Chief Executive Jeroen van der Veer commented:“Good operating performance, combined with increased oil and gas prices, offset the impact of downstream conditions in the first quarter 2008. We have delivered another competitive set of earnings for Shell's shareholders. Shell has the largest capital spending programme in our industry today, to grow the company and play our part in ensuring that energy markets remain well supplied. Our strategy is on track.”

• First quarter 2008 reported income was $9,083 million or 25% higher than in the same quarter a year ago.

• Basic CCS earnings per share increased by 15% versus the same quarter a year ago.

• Total cash returned to shareholders in the form of dividends and share repurchases in the first quarter 2008 was $3.4 billion.

• Cash flow from operating activities was $16.9 billion compared to $11.2 billion in the first quarter 2007. Excluding net working capital movements, cash flow from operating activities was $14.1 billion compared to $11.6 billion a year ago.

• Capital investment for the first quarter 2008 was $8.1 billion. Net capital investment (capital investment, less divestment proceeds) for the first quarter 2008 was $7.6 billion.

• Return on average capital employed (ROACE), on a reported income basis (see note 3), was 24.5%.

• Gearing (see note 5) was 12.7% at the end of the first quarter 2008 versus 14.6% at the end of the first quarter 2007.

• Oil and gas production, including oil sands production, for the first quarter 2008 was 3,522 thousand barrels of oil equivalent per day (boe/d), compared to 3,509 thousand boe/d in the same quarter last year. Excluding the impact of divestments, Canadian royalty changes and production sharing contracts (PSC) pricing effects, first quarter 2008 production increased by 1% compared to the same quarter last year.

• Liquefied Natural Gas (LNG) equity sales volumes of 3.51 million tonnes were a record and 6% higher than in the same quarter a year ago.

• Oil Products refinery availability increased to 92% compared to 85% in the first quarter of 2007. Chemicals manufacturing plant availability was 95% compared to 91% in the first quarter 2007. Oil Sands upgrader availability was 94%, compared to 93% in the same quarter last year.

• Oil Products sales volumes in the first quarter 2008 increased by 7% compared to the same quarter last year. Chemical product sales volumes decreased by 2% compared to the first quarter 2007.

SUMMARY OF IDENTIFIED ITEMS

Earnings in the first quarter 2008 reflected the following items, which in aggregate amounted to a net charge of $77 million (compared to a net gain of $371 million in the first quarter 2007), as summarised in the table below:

• Exploration & Production earnings included a net charge of $66 million, reflecting a gain from divestments of $84 million, which was offset by a charge of $150 million related to the mark-to-market valuation of certain UK gas contracts. Earnings for the first quarter 2007 included a net gain of $104 million reflecting both a gain from divestments of $126 million and a charge of $22 million related to the mark-to-market valuation of certain UK gas contracts.

• Gas & Power earnings included a charge of $11 million related to the mark-to-market valuation impact of certain gas contracts. Earnings for the first quarter 2007 included a net gain of $39 million, reflecting gains of $110 million related to divestments and a charge of $71 million related to the mark-to-market valuation of certain gas contracts.

• Oil Products earnings for the first quarter 2007 included a charge of $176 million related to impairment of certain assets.

• Corporate earnings for the first quarter 2007 included a gain of $404 million related to the realisation of gains on the sale of the equity portfolio held by Shell insurance companies.

These items generally relate to events with an impact of greater than $50 million on Shell earnings and are shown to provide additional insight into the segment earnings, CCS earnings and income attributable to shareholders. Further additional comments on the business segments are provided in the section ‘Earnings by business segment’ on page 4 and onwards.

First quarter Exploration & Production segment earnings were $5,143 million compared to $3,393 million a year ago. Earnings included a net charge of $66 million related to identified items, compared to a net gain of $104 million in the first quarter 2007 (see page 3 for details).

Earnings, when compared to the first quarter 2007, reflected higher gas production volumes and the benefit of higher oil and gas prices on revenues, which were partly offset by lower oil production volumes mainly in the USA and Europe and by higher exploration expenses.

Global liquids realisations were 66% higher than in the first quarter 2007, following marker crudes Brent and WTI increases of 67% and 69% respectively. Global gas realisations were 25% higher than a year ago. Outside the USA gas realisations increased by 24% whereas in the USA gas realisations increased by 32%.

First quarter 2008 production (excluding oil sands bitumen production) was 3,438 thousand barrels of oil equivalent per day (boe/d) compared to 3,413 thousand boe/d a year ago. Crude oil production was down 6% and natural gas production was up 9% compared to the first quarter 2007.

Production compared to the first quarter 2007 included additional volumes principally from Ormen Lange (Shell share 17%) in Norway, West Salym (Shell share 50%) in Russia, Changbei (Shell share 50%) in China, Deimos (Shell share 71.5%) in the USA, Stybarrow (indirect Shell share 17.1%) in Australia, Chipmunk, Cliffdale and Orion (Shell share 100%) in Canada and Starling (Shell share 28%) in the United Kingdom.

First quarter portfolio developments

In Australia, Shell reached an agreement with Woodside for the sale of various interests in North West Shelf assets, with current production of approximately 8 thousand boe/d, for some $0.3 billion.

In the USA, Shell was awarded 141 blocks and was the apparent high bidder on another 134 blocks, with high bids totalling $2.1 billion, offshore Alaska in the Chukchi Sea.

In Kazakhstan, the international members of the Kashagan consortium agreed to sell their participating interests proportionally, allowing KazMunaiGas’s stake to increase to match that of the four major shareholders. Assuming conclusion of the deal, Shell’s interest will change from 18.5% to 16.8%.

In Nigeria, Shell reached an agreement, amounting to some $0.6 billion, for the sale of offshore deepwater blocks OML 134 and OML 125, with current production of approximately 7 thousand boe/d.

First quarter Gas & Power segment earnings were $948 million compared to $803 million a year ago. First quarter 2008 earnings included a charge of $11 million related to an identified item, compared to a net gain of $39 million in the first quarter 2007 (see page 3 for details).

Earnings, when compared to the first quarter 2007, reflected strong LNG and gas to liquids (GTL) product prices, increased LNG volumes, higher income from LNG cargo diversion opportunities and continued strong operational performance.

LNG equity sales volumes of 3.51 million tonnes were 6% higher than in the same quarter a year ago. Sales were higher in all five operating LNG ventures, with the largest increase coming from Nigeria LNG (Shell interest 26%).

Marketing and trading earnings, non-LNG related, were similar to the same quarter a year ago.

First quarter portfolio developments

In China, during the first quarter, binding sales and purchase agreements were progressed with Qatargas 4 and PetroChina, leading to the long-term supply of LNG from Qatar to China, totalling 3 million tonnes per annum over 25 years. Agreements were signed on April 10, 2008.

First quarter Oil Sands segment earnings were $249 million compared to $115 million in the same quarter last year.

Earnings, when compared to the first quarter 2007, reflected the impact of higher oil prices on revenues and a refund of royalty charges, which were partly offset by lower production volumes and higher costs.

The royalty calculation methodology applicable to the Athabasca Oil Sands Project (AOSP) was revised during the quarter, allowing the inclusion of additional eligible costs to the project. Due to this revision the project cost payout timeframe for royalty calculation purposes was extended beyond July 2007 when payout of the project was initially achieved. The royalty rate for the project was revised back to 1% (from 25% since July 2007) until achievement of the project cost payout. As a consequence, the adjustment related to prior quarters' bitumen production had an impact of 12 thousand barrels per day on the first quarter 2008.

Bitumen production decreased by 13% compared to the same quarter last year. Excluding the effect of the royalty revision, net production decreased by 25% due to operational issues at the mine related to extreme cold weather conditions and unplanned maintenance at the Scotford Upgrader. Upgrader availability increased to 94% compared to 93% in the first quarter 2007.

First quarter Oil Products CCS segment earnings were $1,194 million compared to $1,488 million in the first quarter 2007. Earnings for the first quarter 2007 included a charge of $176 million related to identified items (see page 3 for details).

CCS earnings, when compared to the first quarter 2007, were mainly impacted by lower realised refining margins and higher operating costs, which were partly offset by higher marketing margins. In addition, trading contributions increased compared to those in the first quarter 2007.

Industry refining margins declined worldwide compared to the same period a year ago. Refinery availability increased to 92% compared to 85% in the first quarter of 2007 mainly due to lower planned maintenance activities.

Marketing earnings, compared to the same period a year ago, increased mainly due to higher retail, B2B and finished lubricants margins, which were partly offset by lower lubricants base oil margins.

Oil Products (marketing and trading) sales volumes increased by 7% compared to the same quarter last year. Marketing sales volumes were 1% higher than in the first quarter 2007 and excluding the impact of divestments 2% higher mainly because of increased aviation and retail sales.

First quarter portfolio developments

In France, on March 31, 2008, Shell concluded the sale of the Petit Couronne and Reichstett Vendenheim refineries, with a combined capacity of some 220 thousand barrels per day.

Also in France, on April 1, 2008, Shell concluded the sale of the Berre-l’Etang refining and petrochemical complex, with a refining capacity of 80 thousand barrels per day.

CHEMICALS
$ million	Quarters
	Q1 2008	Q4 2007	Q1 2007	%1
Segment earnings	348	501	527
Less: Estimated CCS adjustment (see note 2)	147	153	47
Segment CCS earnings	201	348	480	-58
Sales volumes (thousand tonnes)	5,459	5,633	5,567	-2
Manufacturing plant availability (%)	95	93	91
1 Q1 on Q1 change

First quarter Chemicals segment earnings were $348 million compared to $527 million for the same period last year.

First quarter Chemicals CCS segment earnings were $201 million compared to $480 million in the same quarter last year.

CCS earnings, when compared to the first quarter 2007, reflected lower margins, higher operating costs and lower income from equity-accounted investments. In addition, earnings were impacted by reduced trading contributions.

Chemicals manufacturing plant availability increased to 95%, some 4 percent-points higher than in the first quarter 2007.

Earnings, when compared to the first quarter 2007, reflected lower interest income and currency exchange rate results, reduced tax credits and higher shareholder costs.