-- A further erosion of the business and operating environment in Nigeria could have a material adverse effect on us. -- Production from the Groningen field in the Netherlands causes earthquakes that affect local communities. -- Our future performance depends on the successful development and deployment of new technologies and new products. -- We are exposed to treasury and trading risks, including liquidity risk, interest rate risk, foreign exchange risk and credit risk. We are affected by the global macroeconomic environment as well as financial and commodity market conditions. -- We are exposed to commodity trading risks, including market and operational risks. -- We have substantial pension commitments, funding of which is subject to capital market risks and other factors. -- We mainly self-insure our risk exposure. We could incur significant losses from different types of risks that are not covered by insurance from third-party insurers. -- An erosion of our business reputation could have a material adverse effect on our brand, our ability to secure new resources or access capital markets, and on our licence to operate. -- Many of our major projects and operations are conducted in joint arrangements or associates. This could reduce our degree of control, as well as our ability to identify and manage risks. -- We rely heavily on information technology systems for our operations. -- Violations of antitrust and competition laws carry fines and expose us and/or our employees to criminal sanctions and civil suits. -- Violations of anti-bribery, tax evasion and anti-money laundering laws carry fines and expose us and/or our employees to criminal sanctions, civil suits and ancillary consequences (such as debarment and the revocation of licences). -- Violations of data protection laws carry fines and expose us and/or our employees to criminal sanctions and civil suits. -- Violations of trade compliance laws and regulations, including sanctions, carry fines and expose us and our employees to criminal sanctions and civil suits. -- The Company's Articles of Association determine the jurisdiction for shareholder disputes. This could limit shareholder remedies. Page 24 ROYAL DUTCH SHELL PLC 2(ND) QUARTER 2020 AND HALF YEAR UNAUDITED RESULTS --------------------------------------------------- FIRST QUARTER 2020 PORTFOLIO DEVELOPMENTS Integrated Gas During the quarter, Shell announced that it will not proceed with the proposed Lake Charles LNG project due to the current market conditions. Accordingly, Energy Transfer will take over as the project developer. In April, Shell took the Final Investment Decision to develop the first phase of Arrow Energy's (Shell interest 50%) Surat Gas Project in Queensland, Australia, which will bring up to 90 billion cubic feet per year of new gas to market at peak production. Oil Products During the quarter, Shell completed the sale of the Martinez refinery in the USA to PBF Energy for $1.2 billion, which includes the refinery and inventory. RESPONSIBILITY STATEMENT It is confirmed that to the best of our knowledge: (a) the Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union; (b) the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule (DTR) 4.2.7R (indication of important events during the first six months of the financial year, and their impact on the Condensed Consolidated Interim Financial Statements, and description of principal risks and uncertainties for the remaining six months of the financial year); and (c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties transactions and changes thereto). The Directors of Royal Dutch Shell plc are shown on pages 104-110 in the Annual Report and Accounts and on pages 68 to 73 in the Form 20-F for the year ended December 31, 2019 save for the following changes: Dick Boer: appointed Non-executive Director with effect from May 20, 2020. Martina Hund-Mejean: appointed Non-executive Director with effect from May 20, 2020. Gerard Kleisterlee: stepped down with effect from May 19, 2020. Roberto Setubal: stepped down with effect from May 19, 2020. Linda G. Stuntz: stepped down with effect from May 19, 2020. On behalf of the Board Ben van Beurden Jessica Uhl Chief Executive Officer Chief Financial Officer July 30, 2020 July 30, 2020 Page 25 ROYAL DUTCH SHELL PLC 2(ND) QUARTER 2020 AND HALF YEAR UNAUDITED RESULTS --------------------------------------------------- INDEPENDENT REVIEW REPORT TO ROYAL DUTCH SHELL PLC Introduction We have been engaged by Royal Dutch Shell plc to review the Condensed Consolidated Interim Financial Statements in the half-yearly financial report for the six months ended June 30, 2020, which comprise the Consolidated Statement of Income, the Consolidated Statement of Comprehensive Income, the Condensed Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Condensed Consolidated Statement of Cash Flows and Notes 1 to 7. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to Royal Dutch Shell plc in accordance with guidance contained in the International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Royal Dutch Shell plc, for our work, for this report, or for the conclusions we have formed. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. The annual Consolidated Financial Statements of Royal Dutch Shell plc and its subsidiaries are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The condensed set of financial statements included in the half-yearly financial report has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as issued by the IASB and as adopted by the EU. Our responsibility Our responsibility is to express to Royal Dutch Shell plc a conclusion on the Condensed Consolidated Interim Financial Statements in the half-yearly financial report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410 (UK and Ireland), "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the Condensed Consolidated Interim Financial Statements in the half-yearly financial report for the six months ended June 30, 2020 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as issued by the IASB and as adopted by the EU and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. Ernst & Young LLP London July 30, 2020 Page 26 ROYAL DUTCH SHELL PLC 2(ND) QUARTER 2020 AND HALF YEAR UNAUDITED RESULTS --------------------------------------------------- The maintenance and integrity of the Royal Dutch Shell plc website (www.shell.com) are the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the Condensed Consolidated Interim Financial Statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Page 27 ROYAL DUTCH SHELL PLC 2(ND) QUARTER 2020 AND HALF YEAR UNAUDITED RESULTS --------------------------------------------------- CAUTIONARY STATEMENT
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