SHELL PLC
Share-based compensation -- -- -- (371) -- (371)
At March 31, 2021 37,298 154 129 535 (21,742) 16,375
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 -- -- -- -- (2,283) (2,283)
Transfer from other comprehensive income -- -- -- -- (6) (6)
Repurchases of shares -- -- 5 -- -- 5
Share-based compensation -- -- -- (374) -- (374)
At March 31, 2020 37,298 154 128 675 (26,462) 11,794
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The merger reserve and share premium reserve were established as a
consequence of Royal Dutch Shell plc becoming the single parent company
of Royal Dutch Petroleum Company and The "Shell" Transport and Trading
Company, p.l.c., now The Shell Transport and Trading Company Limited, in
2005. The merger reserve increased in 2016 following the issuance of
shares for the acquisition of BG Group plc. The capital redemption
reserve was established in connection with repurchases of shares of
Royal Dutch Shell plc. The share plan reserve is in respect of
equity-settled share-based compensation plans.
6. Derivative financial instruments and debt excluding lease liabilities
As disclosed in the Consolidated Financial Statements for the year ended
December 31, 2020, presented in the Annual Report and Accounts and Form
20-F for that year, Shell is exposed to the risks of changes in fair
value of its financial assets and liabilities. The fair values of the
financial assets and liabilities are defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Methods
and assumptions used to estimate the fair values at March 31, 2021, are
consistent with those used in the year ended December 31, 2020, though
the carrying amounts of derivative financial instruments measured using
predominantly unobservable inputs have changed since that date.
The table below provides the comparison of the fair value with the
carrying amount of debt excluding lease liabilities, disclosed in
accordance with IFRS 7 Financial Instruments: Disclosures.
DEBT EXCLUDING LEASE LIABILITIES
$ million March 31, 2021 December 31, 2020
Carrying amount 74,192 79,594
Fair value(1) 79,603 88,294
------------------------------- -------------- -----------------
1. Mainly determined from the prices quoted for these securities.
7. Other notes to the unaudited Condensed Consolidated Interim Financial
Statements
Consolidated Statement of Income
Interest and other income
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
2,455 411 76 Interest and other income
of which:
134 168 199 Interest income
Dividend income (from investments in equity
1 2 2 securities)
Net gains on sales and revaluation of non-current
2,073 162 (106) assets and businesses
Net foreign exchange (losses)/gains on financing
85 (35) (82) activities
161 113 63 Other
---------- --------- --------- -----------------------------------------------------
Depreciation, depletion and amortisation
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Depreciation, depletion and
5,896 9,573 7,093 amortisation
---------- --------- --------- --------------------------------------
Depreciation, depletion and amortisation in Q1 2021 includes $84 million
of impairments (Q4 2020: $3,318 million; Q1 2020: $749 million).
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Condensed Consolidated Balance Sheet
Retirement benefits
$ million
March 31, 2021 December 31, 2020
Non-current assets
Retirement benefits 5,845 2,474
Non-current liabilities
Retirement benefits(1) 12,348 15,605
Deficit 6,503 13,131
-------------------------- -------------- -----------------
1.As from January 1, 2021 the 'Retirement benefits' liability has been
classified under non-current liabilities (previously partly presented
within current liabilities). Prior period comparatives have been revised
by $437 million to conform with current year presentation.
The decrease in the net retirement benefit liability is mainly driven by
an increase of the market yield on high-quality corporate bonds in the
US, the UK and Eurozone, partly offset by an increase in expected
inflation in the UK and Eurozone. Amounts recognised in the balance
sheet in relation to defined benefit plans include both plan assets and
obligations that are presented on a net basis on a plan-by-plan basis.
Income taxes payable
$ million
March 31, 2021 December 31, 2020
Income taxes payable 3,372 3,111
As from January 1, 2021 taxes payable not related to income tax are
presented within 'Trade and other payables' (previously within 'Taxes
payable') and 'Taxes payable' has been renamed into 'Income taxes
payable'. Prior period comparatives have been revised by $2,895 million
to conform with current year presentation.
8. Post-Balance Sheet Events
In February 2021, an agreement was reached with publicly listed Canadian
energy company Crescent Point Energy Corp. to sell the Duvernay shale
light oil position in Alberta, Canada. The transaction completed on
April 1, 2021. The consideration received was comprised of $533 million
in cash and 50 million shares in Crescent Point Energy common stock
(TSX: CPG) valued at $208 million based on the closing price on March
31, 2021.
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ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES
A.Adjusted Earnings
The "Adjusted Earnings" measure aims to facilitate a comparative
understanding of Shell's financial performance from period to period by
removing the effects of oil price changes on inventory carrying amounts
and removing the effects of identified items. These items are in some
cases driven by external factors and may, either individually or
collectively, hinder the comparative understanding of Shell's financial
results from period to period. This measure excludes earnings
attributable to non-controlling interest.
ADJUSTED EARNINGS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Income/(loss) attributable to Royal Dutch Shell plc
5,660 (4,014) (24) shareholders
Add: Current cost of supplies adjustment attributable to
(1,314) (465) 2,780 Royal Dutch Shell plc shareholders (Note 2)
Less: Identified items attributable to Royal Dutch
1,112 (4,871) (104) Shell plc shareholders
3,234 393 2,860 Adjusted Earnings
------------------- --------- --------- ---------------------------------------------------------
Identified items
Identified items comprise: divestment gains and losses, impairments,
redundancy and restructuring, provisions for onerous contracts, fair
value accounting of commodity derivatives and certain gas contracts and
the impact of exchange rate movements on certain deferred tax balances,
and other items.
IDENTIFIED ITEMS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Identified items before tax
2,073 162 (76) Divestment gains/(losses)
(84) (3,344) (749) Impairments
(748) (372) (18) Redundancy and restructuring
-- (1,259) -- Provisions for onerous contracts
Fair value accounting of commodity derivatives and
388 (957) 968 certain gas contracts
31 (145) -- Other
1,661 (5,914) 125 Total identified items before tax
(549) 1,033 (228) Total tax impact of identified items (MORE TO FOLLOW) Dow Jones Newswires
04-29-21 0215ET
