Shell is a global group of energy and petrochemical companies
Première compagnie pétrolière européenne : exploration-distribution représente plus de 60% des profits contre 33% pour la branche raffinage-distribution

FIRST QUARTER  $ million  2006  2005  %
Income attributable to shareholders 1  6,893  6,675  +3
Estimated current cost of supplies (CCS) adjustment for Oil Products and Chemicals - see note 2  805  1,220
CCS earnings 1  6,088  5,455  +12
Cash from operating activities  7,824  8,680
Cash from operating activities excluding net working capital movements and taxation paid/accrued - see note 7  9,183  9,107
Capital investment  4,230  3,240
Upstream production (thousand boe/d) 2  3,746  3,847  -3
1 including discontinued operations – see note 3

2100% of Shell companies production plus Shell share of production of equity accounted investments
Delivering good results; building the future
CCS earnings of $6,088 million, up 12% 
First quarter results of $0.94 basic CCS earnings per share, up 15% versus first quarter 2005 
Upstream performance satisfactory, underpinned by oil and gas price increases, LNG earnings and production of 3,746 thousand barrels of oil equivalent (boe) per day, up 1% excluding hurricane and pricing effects 
Downstream earnings robust against moderated market conditions versus first quarter 2005; Chemicals earnings impacted by lower margins
First quarter dividend of euro 0.25 per share increased by 9% 
$1.5 billion or 0.7% of Royal Dutch Shell shares bought back for cancellation during the first quarter 
Chief Executive Jeroen van der Veer said: “Our overall performance was satisfactory despite a series of operational challenges in the quarter, created by external factors in Nigeria and the Gulf of Mexico. Smooth start-ups in upstream and chemicals, combined with our strengthening portfolio and project progress, underscore our confidence for the future. 

We continue to focus on delivery through operational excellence in today’s portfolio, and a disciplined approach to investments in new assets for the coming years. 

We are committed to delivering long-term competitive performance, both in terms of profitability, and payout. We have increased our dividend to euro 0.25 per share, and transacted $1.5 billion of share buy-backs in the quarter.”

Key features of the first quarter 2006
First quarter 2006 basic earnings per share for Royal Dutch Shell (see note 8) were $1.06. First quarter basic CCS earnings per share were $0.94 an increase of 15% compared to the first quarter in 2005. 
First quarter 2006 dividends have been announced of euro 0.25 per share, an increase of 9% compared to the first quarter of 2005. 
First quarter reported income of $6,893 million was 3% higher than a year ago. The effective tax rate increased and included a higher proportion of Upstream earnings. 
First quarter CCS earnings (i.e. on an estimated current cost of supplies basis for the Oil Products and Chemicals segment earnings) were $6,088 million or 12% higher compared to the first quarter 2005. 
Return on average capital employed (ROACE) on a reported income basis (see note 4) was 25.3% on a rolling four quarter basis in the first quarter 2006 compared to 22.2% in the first quarter 2005. 
Exploration & Production segment earnings of $3,743 million were 27% higher than a year ago ($2,955 million), mainly reflecting strong oil and gas price realisations, partly offset by lower volumes and higher costs. 
First quarter 2006 production was 3,746 thousand boe per day, reflecting the partial shut-in of production in Nigeria due to civil disturbances and production deferred in the Gulf of Mexico as a result of the 2005 hurricanes. Excluding the impacts of the deferred hurricane production and lower entitlements due to higher hydrocarbon prices, production was 1% higher than a year ago. In Nigeria, some 455 thousand boe per day on a 100% basis (Shell share 165 thousand boe per day) remains shut in at the end of the first quarter 2006. 
Gas & Power segment earnings were $765 million compared to $476 million a year ago, and reflected strong LNG results and higher marketing and trading earnings. LNG results benefited from strong prices, LNG marketing activities, increased dividends received and record sales volumes. 
Upstream Exploration & Production plus Gas & Power segment unit earnings, calculated as segment earnings divided by production for the quarter, are $13.37 per boe, 35% higher than in the same quarter a year ago and higher than the increase in marker crude oil and gas prices. 
Oil Products CCS earnings were $1,333 million compared to $1,880 million a year ago which included net gains of $427 million. Lower refining earnings due to lower margins and reduced utilisation were partly offset by higher income from a positive trading environment and higher marketing earnings. 
Chemicals CCS earnings were $139 million compared to $354 million for the first quarter of 2005, which included $214 million charges related to divested assets. Earnings reflected significantly lower margin realisations. 
Cash flow from operating activities, excluding net working capital movements, taxation and taxation paid, was $9,183 million, compared to $9,107 million a year ago. The share of profit of equity accounted investments was $763 million higher than the dividends received in the first quarter 2006 and impacted this quarter’s cash flow from operating activities. 
Gearing, including other commitments such as operating leases and retirement benefits, and net of cash holdings minus operational cash requirements, was 12.0% versus, on a comparable Royal Dutch Shell basis, 14.7% at the end of the first quarter in 2005. Total cash returned to shareholders was $3.4 billion. 
Capital investment for the first quarter 2006 was $3.8 billion (excluding the minority share of Sakhalin of $0.4 billion). 
Share purchases for cancellation amounted to $1.5 billion or 0.7% of shares outstanding in the first quarter of 2006.

First quarter 2006 interim dividend announcement
The Board of Royal Dutch Shell plc today announced an interim dividend in respect of the first quarter of 2006 of €0.25 per A and B share.
This dividend will be payable on June 14, 2006 to those members whose names are on the Register on May 12, 2006*.  The shares become ex-dividend on May 10, 2006.