TIDMRDSA TIDMRDSB 
 
 
 
   SHELL SETS OUT A COMPELLING INVESTMENT CASE 
 
   The Hague, October 29, 2020 - Shell today announced a cash allocation 
framework that will enable it to reduce debt, increase distributions to 
shareholders, and allow for disciplined growth as it reshapes its 
business for the future of energy. Ongoing work to reshape Shell's 
portfolio is expected to deliver continued cash generation to grow its 
low-carbon businesses as well as to increase shareholder distributions, 
making a compelling investment case. 
 
   In confirming its progressive dividend policy, Shell announces a 
dividend per share growth by around 4% to 16.65 US cents for the third 
quarter 2020 and annually thereafter, subject to Board approval. 
 
   The cash allocation framework includes a target to reduce net debt to 
$65 billion (from $73.5 billion as of September 30, 2020) -- and, on 
achieving this milestone, a target to distribute a total of 20-30% of 
cash flow from operations to shareholders. Increased shareholder 
distributions will be achieved through a combination of Shell's 
progressive dividend and share buybacks. Remaining cash will be 
allocated to disciplined and measured capex growth and further debt 
reduction, targeting AA credit metrics through the cycle. 
 
   Shell's decisive steps this year have significantly strengthened its 
financial resilience, allowing the acceleration of strategic plans and 
providing clarity on cash priorities. These actions support Shell's 
ambition to become a net-zero energy emissions business by 2050 or 
sooner, in step with society and its customers. 
 
   "Our sector-leading cash flows will enable us to grow our businesses of 
the future while increasing shareholder distributions, making us a 
compelling investment case," said Royal Dutch Shell Chief Executive 
Officer, Ben van Beurden. 
 
   "We must continue to strengthen the financial resilience of our 
portfolio as we make the transition to become a net-zero emissions 
energy business. Our decisive actions taken earlier in the year have 
solidified our operational and cash delivery. The strength of our 
performance gives us the confidence to lay out our strategic direction, 
resume dividend growth and to provide clarity on the cash allocation 
framework, with clear parameters to increase shareholder distributions." 
 
   Chair of the Board of Royal Dutch Shell, Chad Holliday commented: "The 
Board has reviewed Shell's recent performance and its plans to grow its 
businesses of the future, and we are confident that Shell can 
sustainably grow its shareholder distributions as well as invest for 
growth. 
 
   As a result, the Board has decided to increase the dividend per share to 
16.65 US cents for the third quarter 2020. The Board has additionally 
approved a cash allocation framework for Shell which, on reducing its 
net debt to $65 billion, will target total shareholder distributions of 
20-30% of cash flow from operations." 
 
   Shell will continue with its strong capital discipline, including annual 
Cash capex of between $19 and $22 billion in the near term and a focus 
on reducing net debt. Shell will continue its relentless high grading of 
the portfolio with expected divestment proceeds of $4 billion a year on 
average. 
 
   LEADING ENERGY TRANSITION STRATEGY AND A STRONG PORTFOLIO 
 
   Shell will reshape its portfolio of assets and products to meet the 
cleaner energy needs of its customers in the coming decades. The key 
elements of Shell's strategic direction include: 
 
   --Ambition to be a net-zero emissions energy business by 2050 or sooner, 
in step with society and its customers. 
 
   --Grow its leading marketing business, further develop the integrated 
power business and commercialise hydrogen and biofuels to support 
customers' efforts to achieve net-zero emissions. 
 
   --Transform the Refining portfolio from the current fourteen sites into 
six high-value energy and chemicals parks, integrated with Chemicals. 
Growth in Chemicals will pivot to more performance chemicals and 
recycled feedstocks. 
 
   --Extend leadership in liquefied natural gas (LNG) to enable 
decarbonisation of key markets and sectors. 
 
   --Focus on value over volume by simplifying Upstream to nine significant 
core positions, generating more than 80% of Upstream cash flow from 
operations. 
 
   --Enhanced value delivery through Trading and Optimisation. 
 
   A comprehensive strategy update, with details on the future shape of the 
Shell portfolio, actions to deliver the net-zero ambition, and a full 
financial outlook will be presented on February 11, 2021. 
 
   Page 1 
 
   NOTES TO EDITOR 
 
   --Our nine core Upstream positions are: Brazil, Brunei, Gulf of Mexico 
(US/Mexico GoM), Kazakhstan, Malaysia, Nigeria, Oman, Permian and UK 
North Sea. 
 
   --The six sites expected to form our energy and chemicals parks include: 
Deer Park (US), Norco (US), Pernis (NL), Pulau Bukom (Singapore), 
Rheinland (Germany) and Scotford (Canada). 
 
   --The chemicals-only production sites, which sit alongside the energy 
and chemicals parks are: CSPC (China- JV with CNOOC), Fife Ethylene 
Plant (Scotland - JV with Exxon), Geismar (US), Jurong Island 
(Singapore), Moerdijk (NL), and Pennsylvania Chemicals (US - under 
construction). 
 
   Page 2 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 
2020 UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
SUMMARY OF UNAUDITED RESULTS 
                    Quarters                             $ million                                     Nine Months 
    Q3 2020       Q2 2020      Q3 2019    %(1)                                Reference            2020          2019     % 
                                                  Income/(loss) 
                                                  attributable to 
      489      (18,131)        5,879      -92     shareholders                               (17,666)        14,878      -219 
                                                  CCS earnings 
                                                  attributable to 
      177      (18,377)        6,081      -97     shareholders                 Note 2        (15,443)        14,399      -207 
      955           638        4,767      -80     Adjusted Earnings(2)            A             4,453        13,530      -67 
                                                  Cash flow from operating 
   10,403         2,563       12,252      -15     activities                                   27,818        31,913      -13 
                                                  Cash flow from investing 
  (2,833)       (2,320)      (2,130)              activities                                  (7,871)      (10,918) 
    7,571           243       10,122              Free cash flow                  G            19,947        20,995 
    3,737         3,617        6,098              Cash capital expenditure        C            12,324        17,036 
                                                  Underlying operating 
    7,854         7,504        8,657       -9     expenses                        F            23,958        27,000      -11 
     (4.9)%        (2.9)%         8.6%            ROACE (Net income basis)        D              (4.9)%          8.6% 
                                                  ROACE (CCS basis 
                                                  excluding identified 
       3.9%          5.3%         8.1%            items)                          D                3.9%          8.1% 
      31.4%         32.7%        27.9%            Gearing                         E               31.4%         27.9% 
                                                  Total production 
                                                  available for sale 
    3,081         3,379        3,563      -14     (thousand boe/d)                              3,392         3,632       -7 
                                                  Basic earnings per share 
     0.06        (2.33)         0.73      -92     ($)                                          (2.27)          1.84      -223 
   0.1665          0.16         0.47      -65     Dividend per share ($)                       0.4865          1.41      -65 
---------    ----------    ---------    --------  ------------------------  -------------  ----------    ----------    -------- 
 
 
   1.     Q3 on Q3 change. 
 
   2.     Adjusted Earnings is defined as income/(loss) attributable to 
shareholders plus cost of supplies adjustment (see Note 2) and excluding 
identified items (see Reference A). 
 
   Income attributable to Royal Dutch Shell plc shareholders was $0.5 
billion for the third quarter 2020, which reflected lower realised 
prices for oil and LNG as well as lower realised refining margins and 
production volumes compared with the third quarter 2019. This was partly 
offset by lower operating expenses, well write-offs, depreciation and 
strong marketing margins. Income attributable to Royal Dutch Shell plc 
shareholders included an impairment charge of $1.1 billion, partly 
offset by gains on fair value accounting of commodity derivatives of 
$0.5 billion. 
 
   Cost of supplies adjustment attributable to Royal Dutch Shell plc 
shareholders for the third quarter 2020 was negative $0.3 billion. 
 
   Adjusted Earnings were $1.0 billion for the third quarter 2020, 
reflecting lower realised prices for oil and LNG as well as lower 
realised refining margins and production volumes compared with the third 
quarter 2019. This was partly offset by lower operating expenses, well 
write-offs, depreciation and strong marketing margins. 
 
   Cash flow from operating activities for the third quarter 2020 was $10.4 
billion, which included positive working capital movements of $1.4 
billion. Cash flow from investing activities for the quarter was an 
outflow of $2.8 billion, driven mainly by capital expenditure, partly 
offset by proceeds from divestments. 
 
   Gearing was 31.4% at the end of the third quarter 2020, compared with 
32.7% at the end of the second quarter 2020, mainly driven by strong 

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