SHELL PLC
sold during the period is based on the current cost of supplies during
the same period after making allowance for the tax effect. CCS earnings
therefore exclude the effect of changes in the oil price on inventory
carrying amounts. Sales between segments are based on prices generally
equivalent to commercially available prices.
With effect from January 1, 2020, additional contracts are classified as
held for trading purposes and consequently revenue is reported on a net
rather than gross basis. The effect on revenue for the third quarter
2020 is a reduction of $11,478 million (Q2 2020: $8,028 million, nine
months 2020: $35,819 million).
Page 17
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020
UNAUDITED RESULTS
---------------------------------------
INFORMATION BY SEGMENT
Quarters $ million Nine Months
Q3 2020 Q2 2020 Q3 2019 2020 2019
Third-party
revenue
7,684 7,436 9,735 Integrated Gas 25,277 30,316
1,670 1,177 2,231 Upstream 5,191 6,878
31,823 21,596 71,218 Oil Products 97,716 213,106
2,831 2,283 3,397 Chemicals 8,335 10,535
13 12 12 Corporate 35 36
Total third-party
44,021 32,504 86,592 revenue(1) 136,554 260,871
Inter-segment
revenue(2)
864 558 1,025 Integrated Gas 2,313 3,162
5,111 4,117 7,960 Upstream 15,704 26,319
1,547 1,082 2,059 Oil Products 4,480 6,190
715 475 1,009 Chemicals 2,065 3,062
-- -- -- Corporate -- --
CCS earnings
(151) (7,959) 2,597 Integrated Gas (6,298) 6,731
(1,110) (6,721) 1,651 Upstream (8,694) 4,709
2,092 (3,023) 2,433 Oil Products 1,281 4,956
131 164 211 Chemicals 441 556
(739) (805) (663) Corporate (1,998) (2,122)
Total CCS
222 (18,343) 6,230 earnings (15,268) 14,831
--------- ---------- --------- ----------------- ---------- ---------
1. Includes revenue from sources other than from contracts with
customers, which mainly comprises the impact of fair value accounting of
commodity derivatives. Third quarter 2020 included income of $1,803
million (Q2 2020: $1,405 million income; nine months 2020: $9,894
million income). This amount includes both the reversal of prior losses
of $15 million (Q2 2020: $686 million gains) related to sales contracts
and prior gains of $22 million (Q2 2020: $507 million losses) related to
purchase contracts that were previously recognised and where physical
settlement has taken place in the third quarter 2020.
2. Comparative information for inter-segment revenue for Upstream,
Oil Products and Chemicals has been revised to conform with reporting
segment changes applicable from January 1, 2020.
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters $ million Nine Months
Q3 2020 Q2 2020 Q3 2019 2020 2019
Income/(loss) attributable to Royal Dutch Shell plc
489 (18,131) 5,879 shareholders (17,666) 14,878
57 30 145 Income/(loss) attributable to non-controlling interest 88 466
546 (18,101) 6,024 Income/(loss) for the period (17,578) 15,344
Current cost of supplies adjustment:
(395) (432) 240 Purchases 2,947 (715)
100 98 (56) Taxation (719) 181
(29) 92 22 Share of profit/(loss) of joint ventures and associates 82 21
(324) (242) 206 Current cost of supplies adjustment 2,310 (513)
of which:
(312) (246) 202 Attributable to Royal Dutch Shell plc shareholders 2,222 (479)
(12) 4 4 Attributable to non-controlling interest 88 (34)
222 (18,343) 6,230 CCS earnings (15,268) 14,831
of which:
177 (18,377) 6,081 CCS earnings attributable to Royal Dutch Shell plc (15,443) 14,399
shareholders
45 34 149 CCS earnings attributable to non-controlling interest 176 432
------- ---------- -------- ------------------------------------------------------- ---------- --------
Page 18
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020
UNAUDITED RESULTS
---------------------------------------
3. Earnings per share
EARNINGS PER SHARE
Quarters Nine Months
Q3 2020 Q2 2020 Q3 2019 2020 2019
Income/(loss) attributable to Royal Dutch Shell plc
489 (18,131) 5,879 shareholders ($ million) (17,666) 14,878
Weighted average number of shares used as the basis
for determining:
7,788.7 7,789.8 8,017.5 Basic earnings per share (million) 7,799.4 8,097.6
7,823.6 7,789.8 8,067.6 Diluted earnings per share (million) 7,799.4 8,151.4
--------- ---------- --------- ------------------------------------------------------- ---------- ---------
4. Share capital
ISSUED AND FULLY PAID ORDINARY SHARES OF EUR0.07 EACH1
Nominal value ($
Number of shares million)
A B A B Total
At January 1,
2020 4,151,787,517 3,729,407,107 349 308 657
Repurchases of
shares (50,548,018) (23,223,271) (4) (2) (6)
At September
30, 2020 4,101,239,499 3,706,183,836 345 306 651
At January 1,
2019 4,471,889,296 3,745,486,731 376 309 685
Repurchases of
shares (227,226,527) (11,488,283) (19) (1) (20)
At September
30, 2019 4,244,662,769 3,733,998,448 357 308 665
-------------- ------------- ------------- -------- --- -----
1. Share capital at September 30, 2020 also included 50,000 issued
and fully paid sterling deferred shares of GBP1 each.
At Royal Dutch Shell plc's Annual General Meeting on May 19, 2020 the
Board was authorised to allot ordinary shares in Royal Dutch Shell plc,
and to grant rights to subscribe for, or to convert, any security into
ordinary shares in Royal Dutch Shell plc, up to an aggregate nominal
amount of EUR182.7 million (representing 2,611 million ordinary shares
of EUR0.07 each), and to list such shares or rights on any stock
exchange. This authority expires at the earlier of the close of business
on August 19, 2021, and the end of the Annual General Meeting to be held
in 2021, unless previously renewed, revoked or varied by Royal Dutch
Shell plc in a general meeting.5. Other reserves
OTHER RESERVES
Accumulated
Share Capital Share other
Merger premium redemption plan comprehensive
$ million reserve reserve reserve reserve income Total
At January 1, 2020 37,298 154 123 1,049 (24,173) 14,451
Other comprehensive income/(loss) attributable to
Royal Dutch Shell plc shareholders -- -- -- -- (5,102) (5,102)
Transfer from other comprehensive income -- -- -- -- 185 185
Repurchases of shares -- -- 6 -- -- 6
Share-based compensation -- -- -- (237) -- (237)
At September 30, 2020 37,298 154 129 812 (29,091) 9,303
At January 1, 2019 37,298 154 95 1,098 (22,030) 16,615
Other comprehensive income/(loss) attributable to (MORE TO FOLLOW) Dow Jones Newswires
10-29-20 0315ET
