Royal Dutch Shell’s first quarter 2008 results

by SHELL ENERGY TRADING LTD 29 Apr 12:07

The information in these quarterly results reflects the consolidated financial position and results of Royal
Dutch Shell plc (“Royal Dutch Shell”). All amounts shown throughout this report are unaudited.
Registered Office: England, Company No. 4366849, Shell Centre, London, SE1 7NA, UK
Royal Dutch Shell plc





1ST QUARTER 2008 UNAUDITED RESULTS

•
Royal Dutch Shell’s first quarter 2008 earnings, on a current cost of supplies (CCS)
basis, were $7.8 billion compared to $6.9 billion a year ago. Basic CCS earnings per share
increased by 15% versus the same quarter a year ago.
•
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.”


SUMMARY UNAUDITED RESULTS

$ million Quarters
Q1 2008 Q4 2007 Q1 2007 1


Income attributable to shareholders 9,083 8,467 7,281 +25
Less: Estimated CCS adjustment for Oil Products and
Chemicals (see note 2) 1,307 1,783 349
CCS earnings 7,776 6,684 6,932 +12


Basic earnings per share ($) 1.47 1.36 1.16 +27
Less: Estimated CCS adjustment per share ($) 0.21 0.29 0.06
Basic CCS earnings per share ($) 1.26 1.07 1.10 +15

Dividend per ordinary share ($) 0.40 0.36 0.36 +11
1
Q1 on Q1 change

Royal Dutch Shell plc 2

KEY FEATURES OF THE FIRST QUARTER 2008

•
First quarter 2008 CCS earnings were $7,776 million or 12 higher than in the same quarter a year
ago.
•
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 UNAUDITED RESULTS

$ million Quarters
Q1 2008 Q4 2007 Q1 2007 %1
Exploration & Production2 5,143 4,867 3,393
Gas & Power 948 631 803
Oil Sands2 249 82 115
Oil Products (CCS basis) 1,194 876 1,488
Chemicals (CCS basis) 201 348 480
Corporate 146 (4) 801
Minority interest (105) (116) (148)

CCS earnings 7,776 6,684 6,932 +12
1
Q1 on Q1 change
2
As from the fourth quarter 2007, the earnings of the Oil Sands operations, which were previously
reported as part of the Exploration & Production segment, are disclosed as a separate business
segment. For comparison purposes, the Exploration & Production earnings up to the third quarter
2007 have been reclassified by the amounts reported under the Oil Sands segment.