Feb 1, 2018
The Board of Royal Dutch Shell plc (“RDS” or the “Company”) today announced an interim dividend in respect of the fourth quarter of 2017 of US$0.47 per A ordinary share (“A Share”) and B ordinary share (“B Share”), equal to the US dollar dividend for the same quarter last year.
On November 28, 2017, RDS announced the cancellation of its Scrip Dividend Programme with effect from the fourth quarter 2017 interim dividend. The cancellation means the fourth quarter 2017 interim dividend and future dividends will be settled entirely in cash, rather than the Company offering a share-based alternative. For further details please refer to www.shell.com/scrip.
The Board expects that the first quarter 2018 interim dividend will be US$0.47, equal to the US dollar dividend for the same quarter in the previous year. The first quarter 2018 interim dividend is scheduled to be announced on April 26, 2018.
Details relating to the fourth quarter 2017 interim dividend
It is expected that cash dividends on the B Shares will be paid via the Dividend Access Mechanism from UK-sourced income of the Shell group.
|Per ordinary share||Q4 2017|
|RDS A shares (US$)||0.47|
|RDS B shares (US$)||0.47|
Cash dividends on A Shares will be paid, by default, in euro, although holders of A Shares will be able to elect to receive dividends in pounds sterling.
Cash dividends on B Shares will be paid, by default, in pounds sterling, although holders of B Shares will be able to elect to receive dividends in euro.
The pounds sterling and euro equivalent dividend payments will be announced on March 9, 2018.
|Per ADS||Q4 2017|
|RDS A ADSs (US$)||0.94|
|RDS B ADSs (US$)||0.94|
Cash dividends 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.
Dividend timetable for the fourth quarter 2017 interim dividend
|Announcement date||February 1, 2018|
|Ex-dividend date (Note 1)||February 15, 2018|
|Record date||February 16, 2018|
|Closing of currency election (Note 2)||March 2, 2018|
|Pounds sterling and euro equivalents announcement date||March 9, 2018|
|Payment date||March 26, 2018|
As a result of the cancellation of the Scrip Dividend Programme (the “Programme”) the dividend timetables for the first, second, and third quarter 2018 interim dividends will be updated to remove the dates related to the Programme. These updated interim dividend timetables can be found on www.shell.com/dividend.
The New York Stock Exchange (NYSE), with effect from September 5, 2017, reduced the standard settlement cycle in accordance with the SEC amendments to Exchange Act Rule 15c6-1(a). Under these rules, regular settlement will occur on a T+2 basis for trades occurring on or after the SEC's implementation date of September 5, 2017.
As a result RDS A ADSs and RDS B ADSs traded on the NYSE markets will now settle in line with RDS A shares and RDS B shares traded on European markets, who moved to a T+2 settlement basis for trades in 2014, resulting in the same ex-dividend date for RDS A shares, RDS B shares, RDS A ADSs and RDS B ADSs. Record dates will not change.
A different currency election date may apply to shareholders holding shares in a securities account with a bank or financial institution ultimately holding through Euroclear Nederland. This may also apply to other shareholders who do not hold their shares either directly on the Register of Members or in the corporate sponsored nominee arrangement. Shareholders can contact their broker, financial intermediary, bank or financial institution for the election deadline that applies.
Taxation - cash dividends
Cash dividends on A Shares will be subject to the deduction of Dutch dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their particular circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. Expected from 2018, Dutch and non-Dutch resident shareholders who are exempt from corporate income tax may elect for an exemption from Dutch dividend withholding tax instead of requesting a refund if tax was withheld.
Furthermore, in April 2016, there were changes to the UK taxation of dividends. The dividend tax credit was abolished, and a new tax free dividend allowance introduced. Dividend income in excess of the allowance is taxable at the following rates: 7.5% within the basic rate band; 32.5% within the higher rate band; and 38.1% on dividend income taxable at the additional rate.
If you are uncertain as to the tax treatment of any dividends you should consult your own tax advisor.
Dividend Reinvestment Plans
Equiniti Financial Services Limited (“EFSL”), part of the same group of companies as the Company’s Registrar, Equiniti Limited, has reintroduced its Dividend Reinvestment Plan (“DRIP”) which enables RDS shareholders to elect to have their dividend payments used to purchase RDS shares of the same class as those already held by them.
The dividend reinvestment options offered by ABN AMRO Bank N.V. and The Bank of New York Mellon have also been reintroduced and shareholders interested in these options should contact the relevant provider. More information can be found at http://www.shell.com/drip.
To be eligible for the next dividend, shareholders must make a valid dividend reinvestment election before the published date for the close of elections.
Royal Dutch Shell plc
The Hague, February 1, 2018
Europe: + 31 70 377 4540
North America: +1 832 337 2034
International: +44 207 934 5550
Americas +1 832 337 4355