SHELL PLC
UK. For periods beginning on or after January 1, 2021, Shell's (interim)
financial statements are prepared in accordance with UK-adopted
international accounting standards which were established as a result of
the UK's exit from the European Union. As applied to Shell there are no
material differences from International Financial Reporting Standards as
issued by the IASB. Except for the application of UK-adopted
international accounting standards these Interim Statements have been
prepared on the basis of the same accounting principles as those used in
the Annual Report and Accounts (pages 216 to 264) and Form 20-F (pages
164 to 211) for the year ended December 31, 2020 as filed with the
Registrar of Companies for England and Wales and the US Securities and
Exchange Commission, respectively, and should be read in conjunction
with these filings.
The financial information presented in the unaudited Interim Statements
does not constitute statutory accounts within the meaning of section
434(3) of the Companies Act 2006 ("the Act"). Statutory accounts for the
year ended December 31, 2020 were published in Shell's Annual Report and
Accounts, a copy of which was delivered to the Registrar of Companies
for England and Wales, and in Shell's Form 20-F. The auditor's report on
those accounts was unqualified, did not include a reference to any
matters to which the auditor drew attention by way of emphasis without
qualifying the report and did not contain a statement under sections
498(2) or 498(3) of the Act.
Key accounting considerations, significant judgements and estimates
Future commodity price assumptions and management's view on the future
development of refining margins represent a significant estimate and
both were subject to change in 2020, resulting in the recognition of
impairments in 2020. These assumptions continue to apply for impairment
testing purposes in the first quarter 2021.
2. Segment information
Segment earnings are presented on a current cost of supplies basis (CCS
earnings), which is the earnings measure used by the Chief Executive
Officer for the purposes of making decisions about allocating resources
and assessing performance. On this basis, the purchase price of volumes
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.
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ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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INFORMATION BY SEGMENT
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Third-party revenue
11,258 8,010 10,157 Integrated Gas
1,941 1,576 2,344 Upstream
38,382 31,001 44,297 Oil Products
4,070 3,386 3,221 Chemicals
14 16 11 Corporate
Total third-party
55,665 43,989 60,029 revenue(1)
Inter-segment revenue
1,351 1,098 891 Integrated Gas
7,254 5,860 6,476 Upstream
2,457 1,733 1,851 Oil Products
1,187 784 875 Chemicals
-- -- -- Corporate
CCS earnings
2,527 20 1,812 Integrated Gas
1,096 (2,091) (863) Upstream
650 (1,775) 2,211 Oil Products
689 367 146 Chemicals
(531) (954) (453) Corporate
4,430 (4,434) 2,854 Total CCS earnings
----------------------- --------- --------- -------------------------
1. Includes revenue from sources other than from contracts with
customers, which mainly comprises the impact of fair value accounting of
commodity derivatives. First quarter 2021 included income of $1,211
million (Q4 2020: $114 million income; Q1 2020: $6,686 million income).
This amount includes both the reversal of prior losses of $385 million
(Q4 2020: $147 million gains; Q1 2020: $317 million gains) related to
sales contracts and prior gains of $465 million (Q4 2020: $23 million
gains; Q1 2020: $76 million losses) related to purchase contracts that
were previously recognised and where physical settlement took place in
the first quarter 2021.
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Income/(loss) attributable to Royal Dutch Shell plc
5,660 (4,014) (24) shareholders
124 58 1 Income/(loss) attributable to non-controlling interest
5,784 (3,956) (23) Income/(loss) for the period
Current cost of supplies adjustment:
(1,631) (589) 3,774 Purchases
353 133 (916) Taxation
(76) (23) 19 Share of profit/(loss) of joint ventures and associates
(1,354) (479) 2,876 Current cost of supplies adjustment
of which:
(1,314) (465) 2,780 Attributable to Royal Dutch Shell plc shareholders
(39) (14) 96 Attributable to non-controlling interest
4,430 (4,434) 2,854 CCS earnings
of which:
4,345 (4,478) 2,756 CCS earnings attributable to Royal Dutch Shell plc
shareholders
85 44 97 CCS earnings attributable to non-controlling interest
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ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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3. Earnings per share
EARNINGS PER SHARE
Quarters
Q1 2021 Q4 2020 Q1 2020
Income/(loss) attributable to Royal Dutch Shell plc
5,660 (4,014) (24) shareholders ($ million)
Weighted average number of shares used as the basis for
determining:
7,782.1 7,784.4 7,819.8 Basic earnings per share (million)
7,832.3 7,784.4 7,819.8 Diluted earnings per share (million)
-------------------- --------- --------- -------------------------------------------------------
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,
2021 4,101,239,499 3,706,183,836 345 306 651
At March 31,
2021 4,101,239,499 3,706,183,836 345 306 651
At January 1,
2020 4,151,787,517 3,729,407,107 349 308 657
Repurchases of
shares (46,143,892) (15,422,859) (4) (1) (5)
At March 31,
2020 4,105,643,625 3,713,984,248 345 307 652
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1. Share capital at March 31, 2021 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, 2021 37,298 154 129 906 (25,735) 12,752
Other comprehensive income/(loss) attributable to
Royal Dutch Shell plc shareholders -- -- -- -- 3,994 3,994 (MORE TO FOLLOW) Dow Jones Newswires
04-29-21 0215ET
