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Third quarter 2017 summary of unaudited results

Summary of unaudited results

$ million

Q3 2017 Q2 2017 Q3 2016 1 Definition Nine months
2017
Nine months
2016
%
4,087 1,545 1,375 +197 Income/(loss) attributable to shareholders 9,170 3,034 +202
3,698 1,920 1,448 +155 CCS earnings attributable to shareholders Note 2 8,999 2,501 +260
(405) (1,684) (1,344) Of which: Identified items A (2,462) (2,889)
4,103 3,604 2,792 +47 CCS earnings attributable to shareholders excluding identified items 11,461 5,390 +113
105 110 67 Add: CCS earnings attributable to non-controlling interest 324 230
4,208 3,714 2,859 +47 CCS earnings excluding identified items 11,785 5,620 +110
  Of which:
1,282 1,169 931      Integrated Gas 3,632 2,793
562 339 4      Upstream 1,441 (2,758)
2,668 2,529 2,078      Downstream 7,686 5,904
(304) (323) (154)      Corporate (974) (319)
7,582 11,285 8,492 -11 Cash flow from operating activities 28,375 11,445 +148
(3,912) 872 (5,168) Cash flow from investing activities (7,364) (27,534)
3,670 12,157 3,324 Free cash flow H 21,011 (16,089)
0.50 0.19 0.17 +194 Basic earnings per share ($) 1.12 0.39 +187
0.45 0.23 0.18 +150 Basic CCS earnings per share ($) B 1.10 0.32 +244
0.50 0.44 0.35 +43 Basic CCS earnings per share excl. identified items ($) 1.40 0.70 +100
0.47 0.47 0.47 - Dividend per share ($) 1.41 1.41 -

1  Q3 on Q3 change

Compared with the third quarter 2016, CCS earnings attributable to shareholders excluding identified items increased to $4.1 billion, reflecting higher contributions from Downstream, Upstream and Integrated Gas. Earnings benefited mainly from stronger refining and chemicals industry conditions, increased realised oil and gas prices and higher production from new fields, offsetting the impact of field declines and divestments.

Cash flow from operating activities for the third quarter 2017 of $7.6 billion included negative working capital movements of $2.5 billion, mainly due to increases in inventory value and current receivables, compared with favourable working capital movements of $0.7 billion in the third quarter 2016. Excluding working capital effects, cash flow from operations was $10.1 billion.

Total dividends distributed to shareholders in the quarter were $4.0 billion, of which $0.9 billion were settled by issuing 33.8 million A shares under the Scrip Dividend Programme.

Additional performance measures

$ million

Q3 2017 Q2 2017 Q3 2016 1 Definition Nine months
2017
Nine months
2016
%
5,742 6,766 7,705 Capital investment 2 C 17,228 72,964
1,365 9,472 219 Divestments D 10,866 1,706
3,657 3,495 3,595 +2 Total production available for sale (thousand boe/d) 3,634 3,588 +1
47.06 45.62 40.43 +16 Global liquids realised price ($/b) 47.03 36.41 +29
4.15 4.22 3.42 +21 Global natural gas realised price ($/thousand scf) 4.22 3.51 +20
9,477 9,548 9,994 -5 Operating expenses G 28,307 31,654 -11
9,197 9,339 9,245 -1 Underlying operating expenses G 27,717 28,498 -3
5.0% 4.0% 3.8% ROACE (reported income basis) E 5.0% 3.8%
4.6% 4.2% 2.8% ROACE (CCS basis excluding identified items) E 4.6% 2.8%
25.4% 25.3% 29.2% Gearing F 25.4% 29.2%

1  Q3 on Q3 change

2 Nine months 2016 included $52,904 million related to the acquisition of BG Group plc.

A, B, C, D, E, F, G, H and Note 2 - refer to the full quarterly results announcement for definitions.

Third quarter 2017 results financial documents

Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell’s three businesses all made resilient contributions to this strong set of results.

Upstream generated almost half of the $10 billion cash flow from operations excluding working capital this quarter, at an average Brent oil price of $52 per barrel, and this was complemented by good cash contributions from our growing Integrated Gas business and from Downstream.

This competitive performance is further evidence of Shell’s growing momentum, and strengthens my firm belief that our strategy is working.”

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