The Board of Royal Dutch Shell plc (“RDS”) today announced an interim dividend in respect of the third quarter of 2010 of US$0.42 per A ordinary share (“A Share”) and B ordinary share (“B Share”), equal to the US dollar dividend for the same quarter last year.
Beginning with this third quarter interim dividend for 2010, RDS provides eligible shareholders with a choice to receive dividends in cash or in shares via a Scrip Dividend Programme (“the Programme”).
Details relating to the third quarter 2010 interim dividend
It is expected that cash dividends on the B Shares will be paid via the Dividend Access Mechanism from UK-sourced income of the Shell Group.
|Per ordinary share||Q3 2010|
|RDS A shares (US$)||0.42|
|RDS B shares (US$)||0.42|
Dividends declared on A Shares will be paid by default in euro, although holders of A Shares will be able to elect to receive dividends in pounds sterling.
Dividends declared on B Shares will be paid, by default, in pounds sterling, although holders of B Shares will be able to elect to receive dividends in euro.
The pounds sterling and euro equivalent dividend payments will be announced on December 3, 2010.
|Per ADS||Q3 2010|
|RDS A ADSs (US$)||0.84|
|RDS B ADSs (US$)||0.84|
Dividends declared on American Depository Shares (“ADSs”) will be paid, by default, in US dollars.
ADS stands for an American Depositary Share. ADR stands for an American Depositary Receipt. An ADR is a certificate that evidences ADSs. ADSs are listed on the NYSE under the symbols RDS.A and RDS.B. Each ADS represents two ordinary shares, two A Shares in the case of RDS.A or two B Shares in the case of RDS.B. In many cases the terms ADR and ADS are used interchangeably.
Scrip dividend programme launched
Beginning with its third quarter interim dividend for 2010, RDS provides shareholders with a choice to receive dividends in cash or in shares via a Scrip Dividend Programme (the “Programme”).
Under the Programme shareholders can increase their shareholding in RDS by choosing to receive new shares instead of cash dividends if declared by RDS. Only new A Shares will be issued under the Programme, including to shareholders who currently hold B Shares.
Joining the Programme may offer a tax advantage in some countries compared with receiving cash dividends. In particular, dividends paid out as shares will not be subject to Dutch dividend withholding tax (currently 15 per cent) and will not generally be taxed on receipt by a UK shareholder or a Dutch corporate shareholder.
Shareholders who elect to join the Programme will increase the number of shares held in RDS without having to buy existing shares in the market, thereby avoiding associated dealing costs.
Shareholders who do not join the Programme will continue to receive in cash any dividends declared by RDS.
For further information on the Programme, including how to join if you are eligible, please refer to the appropriate publication available on www.shell.com/scrip.
Dividend timetable for the third quarter 2010 interim dividend
|3rd quarter 2010|
|Announcement date||October 28, 2010|
|Ex-dividend date||November 3, 2010|
|Record date||November 5, 2010|
|Scrip reference share price announcement date||November 10, 2010|
|Closing of scrip election and currency election (*)||November 26, 2010|
|Pounds sterling and euro equivalents announcement date||December 3, 2010|
|Payment date||December 17, 2010|
* A different scrip election date may apply to registered and non registered ADS holders. Registered ADS holders can contact The Bank of New York Mellon for the election deadline that applies. Non registered ADS holders can contact their broker, financial intermediary, bank or financial institution for the election deadline that applies.
Both a different scrip and currency election date may apply to shareholders holding shares in a securities account with a bank or financial institution ultimately holding through Euroclear Nederland. Please contact your broker, financial intermediary, bank or financial institution where you hold your securities account for the election deadline that applies.
Dividend reinvestment plans withdrawn
Following the introduction of the Scrip Dividend Programme, the Dividend Reinvestment Plans previously provided by Equiniti and Royal Bank of Scotland N.V. have been withdrawn; the dividend reinvestment feature of the plan provided by The Bank of New York Mellon has likewise been withdrawn.
Shareholders who participated in one of these Dividend Reinvestment Plans will in most cases not automatically be enrolled in the Scrip Dividend Programme and will in most cases need to elect to join.
For full information on the Scrip Dividend Programme, please refer to the appropriate publication available on www.shell.com/scrip.
Shareholders who do not join the Scrip Dividend Programme will continue to receive in cash any dividends declared by RDS.
Taxation cash dividends
Cash dividends on A Shares will be subject to the deduction of Netherlands dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Provided certain conditions are met, shareholders in receipt of A Share cash dividends may also be entitled to a non-payable dividend tax credit in the United Kingdom.
Shareholders resident in the United Kingdom, receiving cash dividends on B Shares through the Dividend Access Mechanism, are entitled to a tax credit. This tax credit is not repayable. Non-residents may also be entitled to a tax credit, if double tax arrangements between the United Kingdom and their country of residence so provide, or if they are eligible for relief given to non-residents with certain special connections with the United Kingdom or to nationals of states in the European Economic Area.
The amount of tax credit is 10/90ths of the cash dividend, the tax credit referable to the third quarter 2010 interim dividend of US$0.42 is US$0.05 per ordinary share and the dividend and tax credit together amount to US$0.47. The pounds sterling and euro equivalents will be announced on December 3, 2010.
Royal Dutch Shell plc
The Hague, October 28, 2010