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ROYAL DUTCH SHELL PLC - 2nd Quarter and Half Year 2016 unaudited results

ROYAL DUTCH SHELL PLC

2ND QUARTER AND HALF YEAR 2016 UNAUDITED RESULTS

SUMMARY OF UNAUDITED RESULTS

        Quarters                      $ million                  Half year

Q2 2016 Q1 2016  Q2   %1                                      2016    2015   %
                2015

  1,175     484 3,986 -71 Income attributable to               1,659  8,416 -80
                          shareholders

  (936)     330 (625)     Current cost of supplies (CCS)       (606)  (294)
                          adjustment for Downstream2

    239     814 3,361 -93 CCS earnings attributable to         1,053  8,122 -87
                          shareholders3

  (806)   (739) (399)     Identified items2,4                (1,545)    624

  1,045   1,553 3,760 -72 CCS earnings attributable to         2,598  7,498 -65
                          shareholders excluding identified
                          items

        Of which:

    868     994 1,403     Integrated Gas                       1,862  2,894

(1,325) (1,437) (469)     Upstream                           (2,762)  (664)

  1,816   2,010 2,961     Downstream                           3,826  5,607

  (314)    (14) (135)     Corporate and Non-controlling        (328)  (339)
                          interest

  2,292     661 6,050 -62 Cash flow from operating             2,953 13,156 -78
                          activities

   0.03    0.11  0.53 -94 Basic CCS earnings per share ($)      0.14   1.29 -89

   0.06    0.22  1.06     Basic CCS earnings per ADS ($)        0.28   2.58

   0.13    0.22  0.60 -78 Basic CCS earnings per share excl.    0.34   1.19 -71
                          identified items4 ($)

   0.26    0.44  1.20     Basic CCS earnings per ADS excl.      0.68   2.38
                          identified items4 ($)

   0.47    0.47  0.47   - Dividend per share ($)                0.94   0.94   -

   0.94    0.94  0.94   - Dividend per ADS ($)                  1.88   1.88   -

 1. Q2 on Q2 change
 2. Attributable to shareholders
 3. CCS earnings are defined in Note 3 and CCS earnings attributable to
    shareholders in Definition A.
 4. See page 5 and Definition C. Comparative information has been restated.

  * Following the acquisition on February 15, 2016, BG Group plc ("BG") has
    been consolidated within Royal Dutch Shell's results.
  * Royal Dutch Shell's second quarter 2016 CCS earnings attributable to
    shareholders were $0.2 billion compared with $3.4 billion for the same
    quarter a year ago.
  * Second quarter 2016 CCS earnings attributable to shareholders excluding
    identified items were $1.0 billion compared with $3.8 billion for the
    second quarter 2015, a decrease of 72%.
  * Compared with the second quarter 2015, CCS earnings attributable to
    shareholders excluding identified items were impacted by the decline in
    oil, gas and LNG prices, the depreciation step-up resulting from the BG
    acquisition, weaker refining industry conditions, and increased taxation.
    Earnings benefited from increased production volumes from BG assets.
  * Second quarter 2016 basic CCS earnings per share excluding identified items
    decreased by 78% versus the second quarter 2015.
  * Cash flow from operating activities for the second quarter 2016 was $2.3
    billion, which included negative working capital movements of $2.5 billion.
  * Total dividends distributed to shareholders in the quarter were $3.7
    billion, of which $1.2 billion were settled by issuing 50.5 million A
    shares under the Scrip Dividend Programme.
  * Gearing at the end of the second quarter 2016 was 28.1% versus 12.7% at the
    end of the second quarter 2015. This increase mainly reflects the impact of
    the acquisition of BG.
  * A second quarter 2016 dividend has been announced of $0.47 per ordinary
    share and $0.94 per American Depositary Share ("ADS").

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

"Downstream and Integrated Gas businesses contributed strongly to the results,
alongside Shell's self-help programme. However, lower oil prices continue to be
a significant challenge across the business, particularly in the Upstream.

We are managing the company through the down-cycle by reducing costs, by
delivering on lower and more predictable investment levels, executing our asset
sales plans and starting up profitable new projects. At the same time,
integration of Shell and BG is making strong progress, and our operating
performance continues to further improve.

We are making significant and lasting changes to Shell's working practices and
cost structure. Shell is firmly on track to deliver a $40 billion underlying
operating cost run rate at the end of 2016.

Looking through the cycle, our investment plans and portfolio actions are
focused firmly on reshaping Shell into a world-class investment case through
stronger, sustained and growing free cash flow per share."

SUMMARY OF CCS EARNINGS EXCLUDING IDENTIFIED ITEMS

         Quarters                      $ million                 Half year

Q2 2016 Q1 2016  Q2    %1                                     2016   2015   %
                2015

    239     814 3,361  -93 CCS earnings attributable to        1,053 8,122  -87
                           shareholders

                           Of which:

    982     905 1,335  -26 Integrated Gas                      1,887 2,474  -24

(1,974) (1,350) (561) -252 Upstream                          (3,324)   839 -496

  1,717   1,700 2,746  -37 Downstream                          3,417 5,260  -35

  1,490   1,294 2,243  -34 Oil Products                        2,784 4,357  -36

    227     406   503  -55 Chemicals                             633   903  -30

  (486)   (441) (159) -206 Corporate and Non-controlling       (927) (451) -106
                           interest

  (806)   (739) (399)      Identified items2                 (1,545)   624

                           Of which:

    114    (89)  (68)      Integrated Gas                         25 (420)

  (649)      87  (92)      Upstream                            (562) 1,503

   (99)   (310) (215)      Downstream                          (409) (347)

   (78)   (339) (155)      Oil Products                        (417) (278)

   (21)      29  (60)      Chemicals                               8  (69)

  (172)   (427)  (24)      Corporate and Non-controlling       (599) (112)
                           interest

  1,045   1,553 3,760  -72 CCS earnings attributable to        2,598 7,498  -65
                           shareholders excluding identified
                           items

                           Of which:

    868     994 1,403  -38 Integrated Gas                      1,862 2,894  -36

(1,325) (1,437) (469) -183 Upstream                          (2,762) (664) -316

  1,816   2,010 2,961  -39 Downstream                          3,826 5,607  -32

  1,568   1,633 2,398  -35 Oil Products                        3,201 4,635  -31

    248     377   563  -56 Chemicals                             625   972  -36

  (314)    (14) (135) -133 Corporate and Non-controlling       (328) (339)   +3
                           interest

 1. Q2 on Q2 change
 2. See page 5. Comparative information has been restated.

SECOND QUARTER 2016 PORTFOLIO DEVELOPMENTS

Integrated Gas

During the quarter, Mahanagar Gas Limited (MGL), a joint venture between BG
Asia Pacific Holdings (a Shell subsidiary) and GAIL (India) Limited, completed
an initial public offering (IPO) for 25% of the equity for a total of around
$154 million (Shell share $77 million). The IPO was an obligation under the
original approval/ licensing permits granted by the Government of India's
Foreign Investment Promotion Board in 1994. Immediately prior to the IPO, the
Government of Maharashtra increased its interest to 10% as a result of the
conversion of the Compulsory Convertible Debentures resulting in a dilution for
each of Shell and GAIL to 45%. After completion of both transactions, Shell and
GAIL each hold a 32.5% interest in MGL (previously 49.75% each), with a 10%
interest held by the Government of Maharashtra (previously 0.5%) and 25% held
by public shareholders (previously 0%).

During the quarter, the M?ui joint venture (Shell interest 83.75%) completed
the sale of the M?ui onshore natural gas pipeline in New Zealand, to
infrastructure funds managed by First State Investments for a consideration of
$0.2 billion.

In July, the LNG Canada joint venture announced that the joint venture
participants - Shell, PetroChina, Mitsubishi Corporation and Kogas - decided to
delay final investment decision on the LNG Canada project (Shell interest 50%)
that was planned for the end of 2016.

Also in July, Shell decided to delay final investment decision on the Lake
Charles LNG project (Shell capacity interest 100%) that was planned for 2016,
in the United States. The Lake Charles LNG project is proposed to convert the
existing Lake Charles LNG regasification facility owned by Energy Transfer to a
liquefaction facility.

Upstream

Shell had continued success in its exploration programme with 2 discoveries in
Oman and the United States. This included a notable oil discovery in the United
States with the Shell-operated Fort Sumter well (Shell interest 100%) in the
Gulf of Mexico. The initial estimated recoverable resources for the Fort Sumter
well are more than 125 million barrels of oil equivalent.

In July, the non-operated ML South development (Shell interest 35%) in Brunei
reached first production. The expected peak production from this development is
around 35 thousand barrels of oil equivalent per day ("boe/d").

Also in July, the non-operated Lula Central production system was started up
with the interconnection of the first production well to FPSO Cidade de
Saquarema (Shell interest 25%), the eighth FPSO in the Santos Basin pre-salt
offshore Brazil. FPSO Cidade de Saquarema has a processing capacity of 150
thousand barrels of oil and compressing capacity of up to 212 million standard
cubic feet of gas per day.

Downstream

During the quarter, Shell announced a final investment decision to build a
major petrochemical complex, comprising an ethylene cracker with polyethylene
derivatives unit in Pennsylvania, USA. Main construction will start
approximately 18 months from the decision date in order to manage capital
spending, with commercial production expected to begin early in the next
decade.

Shell announced that it has completed the sale of Dansk Fuels in Denmark for a
consideration of $0.3 billion. Dansk Fuels comprises retail, commercial fuels,
commercial fleet and aviation businesses, and products trading and supply
activities associated with those businesses.

In the United States, Shell Midstream Partners, L.P. acquired additional
interests in Zydeco Pipeline Company, Colonial Pipeline Company, and Bengal
Pipeline Company for $700 million from Shell Pipeline Company. The acquisition
increased Shell Midstream Partners' ownership interest in Zydeco from 62.5% to
92.5%, in Colonial from 3% to 6%, and in Bengal from 49% to 50%.

Shell also completed the sale of an additional 3.59% interest in Shell
Midstream Partners, L.P. to public investors via the issuance of an additional
12,075,000 LP units for net proceeds of $398 million.

KEY FEATURES OF THE SECOND QUARTER 2016

  * Second quarter 2016 CCS earnings attributable to shareholders were $239
    million, 93% lower than for the same quarter a year ago.
  * Second quarter 2016 CCS earnings attributable to shareholders excluding
    identified items were $1,045 million compared with $3,760 million for the
    second quarter 2015, a decrease of 72%.
  * Basic CCS earnings per share for the second quarter 2016 decreased by 94%
    versus the same quarter a year ago.
  * Basic CCS earnings per share excluding identified items for the second
    quarter 2016 decreased by 78% versus the same quarter a year ago.
  * Cash flow from operating activities for the second quarter 2016 was $2.3
    billion, which included negative working capital movements of $2.5 billion,
    compared with $6.1 billion for the same quarter last year.
  * Capital investment (see Definition C) for the second quarter 2016 was $6.3
    billion. Half year 2016 capital investment was $65.3 billion, which
    included $52.9 billion related to the acquisition of BG. Organic capital
    investment for the full year 2016 is expected to be $29 billion, compared
    with combined capital investment of $47 billion in 2014.
  * Divestments (see Definition D) for the second quarter 2016 were $1.0
    billion.
  * Operating expenses (see Definition G) for the second quarter 2016 increased
    by $1.7 billion versus the same quarter a year ago, and included $1.4
    billion related to redundancy and restructuring charges and $0.4 billion
    related to a provision for onerous contracts. Compared with the second
    quarter 2015, operating expenses excluding identified items decreased by
    $0.9 billion before the increase of $1.0 billion due to the consolidation
    of BG. Operating expenses are trending towards an underlying run rate of
    $40 billion by the end of 2016.
  * Total dividends distributed to shareholders in the second quarter 2016 were
    $3.7 billion, of which $1.2 billion were settled by issuing 50.5 million A
    shares under the Scrip Dividend Programme.
  * Return on average capital employed on a reported income basis (see
    Definition E) was a negative -1.4% at the end of the second quarter 2016
    compared with 6.3% at the end of the second quarter 2015. Return on average
    capital employed on a CCS basis excluding identified items was 2.5% at the
    end of the second quarter 2016 compared with 7.6% at the end of the second
    quarter 2015.
  * Gearing (see Definition F) was 28.1% at the end of the second quarter 2016
    versus 12.7% at the end of the second quarter 2015. This increase mainly
    reflects the impact of the BG acquisition including 1.6% related to the
    recognition of associated finance leases in the first quarter of 2016.
  * Global liquids realisations were 29% lower and global natural gas
    realisations were 28% lower than for the same quarter a year ago.
  * Oil and gas production for the second quarter 2016 was 3,508 thousand boe/
    d, an increase of 28% compared with the second quarter 2015. The impact of
    BG on the second quarter 2016 production was an increase of 768 thousand
    boe/d. Excluding the impact of divestments, curtailment and underground
    storage utilisation at NAM in the Netherlands, a Malaysia PSC expiry, PSC
    price effects, the Woodside accounting change (see page 12), and security
    impacts in Nigeria, second quarter 2016 production increased by 30%
    compared with the same period last year, or 2% excluding BG.
  * LNG liquefaction volumes of 7.57 million tonnes for the second quarter
    2016, of which BG contributed 2.42 million tonnes, were 39% higher than for
    the same quarter a year ago.
  * LNG sales volumes of 14.25 million tonnes for the second quarter 2016 were
    52% higher than for the same quarter a year ago, mainly reflecting Shell's
    enlarged portfolio after the acquisition of BG.
  * Oil products sales volumes for the second quarter 2016 were 1% higher than
    for the second quarter 2015.
  * Chemicals sales volumes for the second quarter 2016 decreased by 2%
    compared with the same quarter a year ago.
  * Supplementary financial and operational disclosure for this quarter is
    available at www.shell.com/investor.

SUMMARY OF IDENTIFIED ITEMS

With effect from 2016, identified items include the impact of exchange rate
movements on certain deferred tax balances, as set out in Definition B. The
comparative information in this Report has been restated following this change.

CCS earnings attributable to shareholders for the second quarter 2016 reflected
the following items, which in aggregate amounted to a net charge of $806
million (compared with a net charge of $399 million for the second quarter
2015), as summarised below:

  * Integrated Gas earnings included a net gain of $114 million, primarily
    reflecting the impact of some $580 million following a change in accounting
    classification for Woodside (see page 12), from an associate to an
    investment in securities. As a consequence, SEC proved reserves of 103
    million boe at December 31, 2015, have been de-booked and production
    decreases by 25 thousand boe/d. Earnings were also impacted by divestment
    gains of some $200 million. This was partly offset by redundancy and
    restructuring charges of some $250 million, a charge of some $220 million
    related to the impact of the weakening Australian dollar on a deferred tax
    position, and a net charge on fair value accounting of certain commodity
    derivatives and gas contracts of some $190 million. Integrated Gas earnings
    for the second quarter 2015 included a net charge of $68 million.
  * Upstream earnings included a net charge of $649 million, primarily
    reflecting redundancy and restructuring charges of some $570 million, other
    items including a provision for onerous contracts of some $240 million,
    impairments of some $140 million and a net charge on fair value accounting
    of certain commodity derivatives and gas contracts of some $80 million.
    These charges were partly offset by a gain of some $360 million related to
    the impact of the strengthening Brazilian real on a deferred tax position.
    Upstream earnings for the second quarter 2015 included a net charge of $92
    million.
  * Downstream earnings included a net charge of $99 million, primarily
    reflecting redundancy and restructuring charges of some $250 million and
    impairment charges of some $50 million, partly offset by other tax-related
    credits of some $150 million. Downstream earnings for the second quarter
    2015 included a net charge of $215 million.
  * Corporate results and Non-controlling interest included a net charge of
    $172 million, mainly reflecting the impact of the strengthening Brazilian
    real on deferred tax positions related to financing of the Upstream
    business. Earnings for the second quarter 2015 included a net charge of $24
    million.

Identified items for the first quarter 2016 and 2015 can be found on page 27.

EARNINGS BY SEGMENT

INTEGRATED GAS

       Quarters                       $ million                   Half year

 Q2     Q1    Q2   %1                                           2016  2015   %
2016   2016  2015

  868    994 1,403 -38 Integrated Gas earnings excluding        1,862 2,894 -36
                       identified items

  982    905 1,335 -26 Integrated Gas earnings                  1,887 2,474 -24

2,730  2,657 1,444 +89 Integrated Gas cash flow from operating  5,387 3,978 +35
                       activities

1,153  1,051 1,313 -12 Integrated Gas capital investment        2,204 2,614 -16
                       excluding BG acquisition impact

    - 21,773     -     Integrated Gas BG-related capital       21,773     -
                       investment

  219    224   199 +10 Liquids production available for sale      222   200 +11
                       (thousand b/d)

3,831  3,532 2,350 +63 Natural gas production available for     3,682 2,398 +54
                       sale (million scf/d)

  880    833   604 +46 Total production available for sale        856   613 +40
                       (thousand boe/d)

 7.57   7.04  5.46 +39 LNG liquefaction volumes (million        14.61 11.63 +26
                       tonnes)

14.25  12.29  9.40 +52 LNG sales volumes (million tonnes)       26.54 19.21 +38

 1. Q2 on Q2 change

Second quarter Integrated Gas earnings excluding identified items were $868
million compared with $1,403 million a year ago. Identified items were a net
gain of $114 million, compared with a net charge of $68 million for the second
quarter 2015 (see page 5).

Compared with the second quarter 2015, earnings excluding identified items were
impacted by the decline in oil and LNG prices, and increased depreciation
including a step-up resulting from the BG acquisition. The consolidation of BG
resulted in higher operating expenses. This was partly offset by higher LNG and
liquids production volumes, related to the contribution of BG assets.

Second quarter 2016 production was 880 thousand boe/d compared with 604
thousand boe/d a year ago. Liquids production increased by 10% and natural gas
production increased by 63% compared with the second quarter 2015.

LNG liquefaction volumes of 7.57 million tonnes increased by 39% compared with
the same quarter a year ago, mainly reflecting the impact of the acquisition of
BG, including an increase associated with Queensland Curtis LNG in Australia
and Atlantic LNG in Trinidad and Tobago.

LNG sales volumes of 14.25 million tonnes increased by 52% compared with the
same quarter a year ago, mainly reflecting Shell's enlarged portfolio after the
acquisition of BG.

Half year Integrated Gas earnings excluding identified items were $1,862
million compared with $2,894 million for the first half year 2015. Identified
items were a net gain of $25 million, compared with a net charge of $420
million for the first half year 2015 (see page 5).

Compared with the first half year 2015, Integrated Gas earnings excluding
identified items were impacted by the decline in oil and LNG prices and the
Malaysia LNG Dua JVA expiry. The consolidation of BG resulted in higher
operating expenses and a step-up in depreciation. This was partly offset by
increased production volumes mainly as a result of the contribution of BG
assets and higher uptime at Pearl GTL in Qatar, and lower well write-offs.

Half year 2016 production was 856 thousand boe/d compared with 613 thousand boe
/d for the same period a year ago. Liquids production increased by 11% and
natural gas production increased by 54% compared with the first half year 2015.

LNG liquefaction volumes of 14.61 million tonnes were 26% higher than for the
first half year 2015, mainly reflecting the impact of the acquisition of BG,
including an increase associated with Queensland Curtis LNG in Australia,
partly offset by lower feedgas availability and the expiry of the Malaysia LNG
Dua JVA.

LNG sales volumes of 26.54 million tonnes increased by 38% compared with the
first half year 2015, mainly reflecting Shell's enlarged portfolio after the
acquisition of BG.

UPSTREAM

         Quarters                      $ million                 Half year

Q2 2016 Q1 2016  Q2    %1                                     2016   2015   %
                2015

(1,325) (1,437) (469) -183 Upstream earnings excluding       (2,762) (664) -316
                           identified items

(1,974) (1,350) (561) -252 Upstream earnings                 (3,324)   839 -496

  (297)     448   648 -146 Upstream cash flow from operating     151 2,243  -93
                           activities

  3,700   3,907 4,603  -20 Upstream capital investment         7,607 9,245  -18
                           excluding BG acquisition impact

      -  31,131     -      Upstream BG-related capital        31,131     -
                           investment

  1,526   1,557 1,233  +24 Liquids production available for    1,541 1,287  +20
                           sale (thousand b/d)

  6,395   7,373 5,184  +23 Natural gas production available    6,884 6,075  +13
                           for sale (million scf/d)

  2,628   2,828 2,127  +24 Total production available for      2,728 2,335  +17
                           sale (thousand boe/d)

 1. Q2 on Q2 change

Second quarter Upstream earnings excluding identified items were a loss of
$1,325 million compared with a loss of $469 million a year ago. Identified
items were a net charge of $649 million compared with a net charge of $92
million for the second quarter 2015 (see page 5).

Compared with the second quarter 2015, earnings excluding identified items were
impacted by the decline in oil and gas prices and depreciation step-up
resulting from the BG acquisition. This was partly offset by increased
production volumes, mainly from BG assets and improved operational performance.
Operating expenses and exploration expenses were lower, as steps taken by the
company to reduce these costs more than offset the increases due to the
consolidation of BG.

Second quarter 2016 production was 2,628 thousand boe/d compared with 2,127
thousand boe/d a year ago. Liquids production increased by 24% and natural gas
production increased by 23% compared with the second quarter 2015, driven by
the impact of BG.

New field start-ups and the continuing ramp-up of existing fields, in
particular the Corrib gas field in Ireland, and Erha North ph2 in Nigeria,
contributed some 53 thousand boe/d to production compared with the second
quarter 2015.

Half year Upstream earnings excluding identified items were a loss of $2,762
million compared with a loss of $664 million for the same period a year ago.
Identified items were a net charge of $562 million compared with a net gain of
$1,503 million for the first half year 2015 (see page 5).

Compared with the first half year 2015, earnings excluding identified items
were impacted by the decline in oil and gas prices, and increased depreciation
mainly related to a step-up resulting from the BG acquisition. This was partly
offset by increased production volumes mainly from BG assets. Exploration
expense and operating expenses were lower, as steps taken by the company to
reduce these costs more than offset the increases due to the consolidation of
BG.

Half year 2016 production was 2,728 thousand boe/d compared with 2,335 thousand
boe/d for the same period last year. Liquids production increased by 20% and
natural gas production increased by 13% compared with the first half year 2015.

New field start-ups and the continuing ramp-up of existing fields, in
particular Erha North ph2 in Nigeria, the Corrib gas field in Ireland, and
North American shales, contributed some 58 thousand boe/d to production
compared with the first half year 2015.

DOWNSTREAM

        Quarters                        $ million                  Half year

  Q2   Q1 2016   Q2   %1                                        2016  2015   %
 2016           2015

 1,816   2,010  2,961 -39 Downstream earnings excluding         3,826 5,607  -32
                          identified items2

                          Of which:

 1,568   1,633  2,398 -35 Oil Products                          3,201 4,635  -31

   248     377    563 -56 Chemicals                               625   972  -36

 1,717   1,700  2,746 -37 Downstream earnings2                  3,417 5,260  -35

   571 (1,434)  3,816 -85 Downstream cash flow from operating   (863) 5,370 -116
                          activities

 1,389   1,092  1,085 +28 Downstream capital investment         2,481 1,934  +28

 2,648   2,645  2,944 -10 Refinery processing intake (thousand  2,646 2,908   -9
                          b/d)

 6,595   6,225  6,531  +1 Oil products sales volumes (thousand  6,410 6,423    -
                          b/d)

 4,248   4,050  4,326  -2 Chemicals sales volumes (thousand     8,298 8,518   -3
                          tonnes)

 1. Q2 on Q2 change
 2. Earnings are presented on a CCS basis

Second quarter Downstream earnings excluding identified items were $1,816
million compared with $2,961 million for the second quarter 2015. Identified
items were a net charge of $99 million, compared with a net charge of $215
million for the second quarter 2015 (see page 5).

Compared with the second quarter 2015, Downstream earnings excluding identified
items were mainly impacted by weaker refining industry conditions, increased
taxation, and lower Chemicals margins. Downstream earnings benefited from lower
costs, including the impact of favourable exchange rate effects and
divestments.

Oil Products

  * Refining & Trading earnings excluding identified items were $459 million in
    the second quarter 2016 compared with $1,313 million for the same period
    last year. Second quarter 2016 earnings were impacted by lower realised
    refining margins, reflecting the weaker global refining industry conditions
    due to oversupply and high inventory levels, and weaker operating
    performance, and increased taxation.

Refinery intake volumes were 10% lower compared with the same quarter last
year. Excluding portfolio impacts, refinery intake volumes were 9% lower
compared with the same period a year ago. Refinery availability decreased to
89% compared with 95% in the second quarter 2015, mainly as a result of
increased maintenance.

  * Marketing earnings excluding identified items were $1,109 million in the
    second quarter 2016 compared with $1,085 million for the same period a year
    ago. Second quarter 2016 earnings benefited from lower costs and stronger
    underlying unit margins, offsetting the impact of adverse exchange rate
    effects and divestments.

Oil products sales volumes increased by 1% compared with the same period a year
ago, reflecting higher trading volumes partly offset by lower marketing
volumes.

Chemicals

  * Chemicals earnings excluding identified items were $248 million in the
    second quarter 2016 compared with $563 million for the same period last
    year. Second quarter 2016 earnings were mainly impacted by weaker base
    chemicals industry conditions in the United States and the impact of unit
    shutdowns at the Bukom chemical site in Singapore, partly offset by
    recovery at the Moerdijk chemical site in the Netherlands.

Chemicals sales volumes decreased by 2% compared with the same quarter last
year, mainly as a result of weaker intermediates demand and reduced
availability driven by unit shutdowns at Bukom, partly offset by recovery at
Moerdijk. Chemicals manufacturing plant availability decreased to 85% from 86%
in the second quarter 2015, mainly reflecting unit shutdowns at Bukom, partly
offset by recovery at Moerdijk.

Half year Downstream earnings excluding identified items were $3,826 million
compared with $5,607 million for the same period a year ago. Identified items
were a net charge of $409 million, compared with a net charge of $347 million
for the first half year 2015 (see page 5).

Compared with the first half year 2015, Downstream earnings excluding
identified items were mainly impacted by weaker refining industry conditions,
increased taxation, and lower Chemicals margins. Downstream earnings benefited
from lower costs, including the impact of favourable exchange rate effects and
divestments.

Oil Products

  * Refining & Trading earnings excluding identified items were $1,121 million
    in the first half year 2016 compared with $2,575 million for the same
    period last year. Half year 2016 earnings were impacted by lower realised
    refining margins, reflecting the weaker global refining industry conditions
    due to oversupply and high inventory levels, and weaker operating
    performance.

Refinery intake volumes were 9% lower compared with the first half year 2015.
Excluding portfolio impacts, refinery intake volumes were 7% lower compared
with the same period a year ago. Refinery availability decreased to 89%
compared with 95% for the first half year 2015, mainly as a result of increased
maintenance.

  * Marketing earnings excluding identified items were $2,080 million in the
    first half year 2016 compared with $2,060 million for the same period a
    year ago. Half year 2016 earnings benefited from stronger underlying unit
    margins and lower costs, offsetting the impact of adverse exchange rate
    effects and divestments. Earnings were impacted by increased taxation.

Oil products sales volumes were in line with the first half year 2015.

Chemicals

  * Chemicals earnings excluding identified items were $625 million in the
    first half year 2016 compared with $972 million for the same period last
    year. Half year 2016 earnings were primarily impacted by weaker base
    chemicals industry conditions in the US and the impact of unit shutdowns at
    the Bukom chemical site in Singapore, partly offset by recovery at the
    Moerdijk chemical site in the Netherlands.

Half year Chemicals sales volumes decreased by 3% compared with the same period
last year, mainly as a result of weaker intermediates demand and reduced
availability driven by unit shutdowns at Bukom, partly offset by recovery at
Moerdijk. Chemicals manufacturing plant availability increased to 86% from 85%
in the first half year 2015, mainly reflecting recovery at Moerdijk, partly
offset by unit shutdowns at Bukom.

CORPORATE AND NON-CONTROLLING INTEREST

     Quarters                         $ million                      Half year

 Q2    Q1    Q2                                                     2016  2015
2016  2016  2015

(314)  (14) (135) Corporate and Non-controlling interest earnings   (328) (339)
                  excl. identified items

                  Of which:

(234)    69  (41) Corporate                                         (165) (124)

 (80)  (83)  (94) Non-controlling interest                          (163) (215)

(486) (441) (159) Corporate and Non-controlling interest earnings   (927) (451)


Second quarter Corporate results and Non-controlling interest excluding
identified items were a loss of $314 million, compared with a loss of $135
million for the same period last year. Identified items for the second quarter
2016 were a net charge of $172 million, and earnings for the second quarter
2015 included a net charge of $24 million (see page 5).

Compared with the second quarter 2015, Corporate results excluding identified
items mainly reflected higher net interest expense and adverse exchange rate
effects, partly offset by higher tax credits.

Half year Corporate results and Non-controlling interest excluding identified
items were a loss of $328 million, compared with a loss of $339 million for the
same period last year. Identified items for the first half year 2016 were a net
charge of $599 million, and earnings for the first half year 2015 included a
net charge of $112 million (see page 5).

Compared with the first half year 2015, Corporate results excluding identified
items mainly reflected favourable exchange rate effects, offset by higher net
interest expense and costs, and lower tax credits.

OUTLOOK FOR THE THIRD QUARTER 2016

Compared with the third quarter 2015, Integrated Gas earnings are expected to
be negatively impacted by a reduction of some 15 thousand boe/d associated with
the impact of maintenance.

Compared with the third quarter 2015, Upstream earnings are expected to be
negatively impacted by a reduction of some 35 thousand boe/d associated with
sabotage incidents and repairs in Nigeria. Earnings could be further impacted
if the security conditions continue to deteriorate.

Refinery availability is expected to marginally increase in the third quarter
2016 as a result of lower planned maintenance compared with the same period a
year ago. Chemicals manufacturing plant availability is expected to increase in
the third quarter 2016 driven by the planned restart of the Bukom chemical site
in Singapore compared with the third quarter 2015, which was heavily impacted
by unit shutdowns at the Moerdijk chemical site in the Netherlands.

As a result of divestments in Denmark, Norway and France, Oil products sales
volumes are expected to decrease by some 200 thousand barrels per day compared
with the third quarter 2015.

Compared with the third quarter 2015, the BG purchase price allocation is
expected to increase depreciation by up to $0.3 billion.

Following the completion of the BG acquisition, the sensitivities to earnings
have been updated:

  * Integrated Gas - around $2 billion per annum for every $10 per barrel
    movement in Brent
  * Upstream - around $3 billion per annum for every $10 per barrel movement in
    Brent

FORTHCOMING EVENTS

Third quarter 2016 results and third quarter 2016 dividend are scheduled to be
announced on November 1, 2016. Shell will host a North America Investor Day on
November 8, 2016 in New York City.

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME

       Quarters                       $ million                   Half year

  Q2   Q1 2016   Q2                                             2016    2015
 2016           2015

58,415  48,554 72,402 Revenue1                                 106,969 138,108

   946     789  1,136 Share of profit of joint ventures and      1,735   2,541
                      associates

   910     389    412 Interest and other income                  1,299   2,147

60,271  49,732 73,950 Total revenue and other income           110,003 142,796

40,362  33,286 52,441 Purchases                                 73,648  99,866

 8,076   6,765  6,506 Production and manufacturing expenses     14,841  13,161

 3,227   3,106  3,076 Selling, distribution and administrative   6,333   5,970
                      expenses

   243     243    252 Research and development                     486     505

   535     457    964 Exploration                                  992   1,764

 6,097   6,147  4,673 Depreciation, depletion and amortisation  12,244   9,277

   770     370    466 Interest expense                           1,140     842

59,310  50,374 68,378 Total expenditure                        109,684 131,385

   961   (642)  5,572 Income/(loss) before taxation                319  11,411

 (319) (1,097)  1,458 Taxation charge/(credit)                 (1,416)   2,760

 1,280     455  4,114 Income/(loss) for the period1              1,735   8,651

   105    (29)    128 Income/(loss) attributable to                 76     235
                      non-controlling interest

 1,175     484  3,986 Income/(loss) attributable to Royal        1,659   8,416
                      Dutch Shell plc shareholders

  0.15    0.07   0.63 Basic earnings per share2                   0.22    1.34

  0.15    0.07   0.62 Diluted earnings per share2                 0.22    1.32

 1. See Note 3 "Segment information"
 2. See Note 4 "Earnings per share"




CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

            Quarters                       $ million              Half year

Q2 2016 Q1 2016   Q2                                            2016    2015
                 2015

  1,280     455  4,114 Income/(loss) for the period              1,735   8,651

                       Other comprehensive income net of tax:

                       Items that may be reclassified to
                       income in later periods:

  (434)   2,319  1,668   * Currency translation differences      1,885 (2,531)

  (128)    (12)  (129)   * Unrealised gains/(losses) on          (140)   (264)
                           securities

  (538)     324    133   * Cash flow hedging gains/(losses)      (214)     124

  (863)     136      -   * Net investment hedging gains/         (727)       -
                           (losses)1

   (77)       8   (25)   * Share of other comprehensive income    (69)    (18)
                           /(loss) of joint  ventures and
                           associates

(2,040)   2,775  1,647 Total                                       735 (2,689)

                       Items that are not reclassified to
                       income in later periods:

(2,795) (1,634)  5,496   * Retirement benefits remeasurements  (4,429)   4,180

(4,835)   1,141  7,143 Other comprehensive income/(loss) for   (3,694)   1,491
                       the period

(3,555)   1,596 11,257 Comprehensive income/(loss) for the     (1,959)  10,142
                       period

     96       4    161 Comprehensive income/(loss)                 100     224
                       attributable to non-controlling
                       interest

(3,651)   1,592 11,096 Comprehensive income/(loss)             (2,059)   9,918
                       attributable to Royal Dutch Shell plc
                       shareholders

 1. See Note 1 "Basis of preparation"

CONDENSED CONSOLIDATED BALANCE SHEET

                                                        $ million

                                            Jun 30,  Mar 31, 20161 Dec 31, 2015
                                             20161

Assets

Non-current assets

Intangible assets                             21,093        21,327        6,283

Property, plant and equipment                242,907       245,133      182,838

Joint ventures and associates2                33,850        35,654       30,150

Investments in securities2                     5,709         3,474        3,416

Deferred tax                                  15,812        15,311       11,033

Retirement benefits                            1,645         3,108        4,362

Trade and other receivables3                  11,030        11,047        8,717

                                             332,046       335,054      246,799

Current assets

Inventories                                   20,626        17,396       15,822

Trade and other receivables3,4                49,547        47,872       45,784

Cash and cash equivalents                     15,222        11,019       31,752

                                              85,395        76,287       93,358

Total assets                                 417,441       411,341      340,157

Liabilities

Non-current liabilities

Debt5                                         79,466        73,005       52,849

Trade and other payables3                      4,393         3,917        4,528

Deferred tax                                  15,904        16,677        8,976

Retirement benefits                           15,882        13,516       12,587

Decommissioning and other provisions          31,825        32,710       26,148

                                             147,470       139,825      105,088

Current liabilities

Debt                                          10,863         7,868        5,530

Trade and other payables3,4                   52,669        51,069       52,770

Taxes payable                                  8,291        10,387        8,233

Retirement benefits                              392           401          350

Decommissioning and other provisions           5,250         3,777        4,065

                                              77,465        73,502       70,948

Total liabilities                            224,935       213,327      176,036

Equity attributable to Royal Dutch Shell     190,670       196,521      162,876
plc shareholders

Non-controlling interest                       1,836         1,493        1,245

Total equity                                 192,506       198,014      164,121

Total liabilities and equity                 417,441       411,341      340,157

 1. See Note 2 "Acquisition of BG Group plc"
 2. During the second quarter 2016, management concluded that a change in
    Shell's level of involvement over Woodside's financial and operating policy
    decisions resulted in no longer having significant influence. Its
    classification was therefore changed from an associate (carrying amount:
    $2,144 million) to an investment in securities (carrying amount at fair
    value: $2,442 million). The consequential revaluation and related release
    of cumulative currency translation differences were reported in interest
    and other income in the Consolidated Statement of Income.
 3. See Note 7 "Derivative contracts"
 4. The amounts at March 31, 2016 have been reduced by $4,963 million in order
    to appropriately reflect certain contracts on a net basis which were
    previously presented gross.
 5. During the second quarter 2016, debt of $9,246 million was issued under the
    US shelf registration and EMTN programme.





CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                 Equity attributable to Royal Dutch Shell
                             plc shareholders

   $ million     Share   Shares    Other   Retained  Total     Non-     Total
                capital1 held in reserves2 earnings         controlling equity
                          trust                              interest

At January 1,        546   (584)  (17,186)  180,100 162,876       1,245 164,121
2016

Comprehensive          -       -   (3,718)    1,659 (2,059)         100 (1,959)
income/(loss)
for the period

Dividends paid         -       -         -  (7,411) (7,411)        (69) (7,480)

Scrip dividends        9       -       (9)    2,717   2,717           -   2,717

Shares issued        120       -    33,930        -  34,050           -  34,050
for the
acquisition of
BG Group plc3

Repurchases of         -       -         -        -       -           -       -
shares

Share-based            -   (168)       266      133     231           -     231
compensation4

Capital                -       -         -      266     266         560     826
contributions
from, and other
changes
in,
non-controlling
interest

At June 30,          675   (752)    13,283  177,464 190,670       1,836 192,506
2016

At January 1,        540 (1,190)  (14,365)  186,981 171,966         820 172,786
2015

Comprehensive          -       -     1,502    8,416   9,918         224  10,142
income/(loss)
for the period

Dividends paid         -       -         -  (5,957) (5,957)        (45) (6,002)

Scrip dividends        2       -       (2)      731     731           -     731

Repurchases of       (1)       -         1        1       1           -       1
shares

Share-based            -     634         -       39     673           -     673
compensation

Capital                -       -         -     (98)    (98)         222     124
contributions
from, and other
changes
in,
non-controlling
interest

At June 30,          541   (556)  (13,285)  190,087 176,787       1,221 178,008
2015

 1. See Note 5 "Share capital"
 2. See Note 6 "Other reserves"
 3. See Note 2 "Acquisition of BG Group plc"
 4. Includes a reclassification of $534 million between Shares held in trust
    and Other reserves, with no impact on total equity, in order to
    appropriately reflect the carrying amount of Shares held in trust at cost.



CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                   Quarters                      $ million            Half year

     Q2 2016         Q1 2016       Q2 2015                         2016         2015

                                              Cash flow from
                                              operating
                                              activities

            1,280           455         4,114 Income/(loss)             1,735     8,651
                                              for the period

                                              Adjustment for:

              119           753         1,753 - Current tax               872     4,700

              671           272           395 - Interest                  943       698
                                              expense (net)

            6,097         6,147         4,673 - Depreciation,          12,244     9,277
                                              depletion and
                                              amortisation

            (535)         (175)         (247) - Net (gains)/            (710)   (1,859)
                                              losses on sale
                                              of non-current
                                              assets and
                                              businesses1

          (2,474)       (3,909)       (1,588) - Decrease/             (6,383)   (1,960)
                                              (increase) in
                                              working capital

            (946)         (789)       (1,136) - Share of              (1,735)   (2,541)
                                              (profit)/loss
                                              of joint
                                              ventures and
                                              associates

              964           688         1,071 - Dividends               1,652     2,148
                                              received from
                                              joint ventures
                                              and associates

            (533)       (1,755)          (90) - Deferred tax,         (2,288)   (1,593)
                                              retirement
                                              benefits,
                                              decommissioning
                                                and other
                                              provisions

            (346)         (292)           255 - Other                   (638)       349

          4,297    1,395        9,200 Net cash from                    5,692    17,870
                                      operating activities
                                      (pre-tax)

        (2,005)    (734)      (3,150) Tax paid                       (2,739)   (4,714)

          2,292      661        6,050 Net cash from                    2,953    13,156
                                      operating activities

                                      Cash flow from
                                      investing activities

        (5,796)  (5,324)      (6,205) Capital expenditure           (11,120)  (12,420)

              - (11,421)            - Acquisition of BG             (11,421)         -
                                      Group plc, net of
                                      cash and cash
                                      equivalents acquired2

          (216)    (332)        (208) Investments in joint             (548)     (617)
                                      ventures and
                                      associates

            516       46          206 Proceeds from sale of              562     2,409
                                      property, plant and
                                      equipment and
                                      businesses

             23       16          165 Proceeds from sale of               39       169
                                      joint ventures and
                                      associates

             93      136           59 Interest received                  229       115

           (70)     (37)         (80) Other                            (107)     (159)

        (5,450) (16,916)      (6,063) Net cash used in              (22,366)  (10,503)
                                      investing activities

                                      Cash flow from
                                      financing activities

          1,870      873        1,072 Net increase/                    2,743       817
                                      (decrease) in debt
                                      with maturity period
                                      within three months

                                      Other debt:

          9,472      264       10,045 - New borrowings                 9,736    10,797

          (972)  (1,969)      (2,188) - Repayments                   (2,941)   (2,818)

          (725)    (534)        (317) Interest paid                  (1,259)     (726)

            397      422          424 Change in                          819       419
                                      non-controlling
                                      interest

                                      Cash dividends paid
                                      to:

        (2,436)  (2,258)      (2,294) - Royal Dutch Shell            (4,694)   (5,226)
                                      plc shareholders

           (34)     (35)         (27) - Non-controlling                 (69)      (45)
                                      interest

              -        -            - Repurchases of shares                -     (409)

              6      (4)          (5) Shares held in trust:                2      (45)
                                      net sales/(purchases)
                                      and dividends
                                      received

          7,578  (3,241)        6,710 Net cash from/(used              4,337     2,764
                                      in) financing
                                      activities

          (217)  (1,237)          417 Currency translation           (1,454)      (43)
                                      differences relating
                                      to cash and
                                      cash equivalents

          4,203 (20,733)        7,114 Increase/(decrease)           (16,530)     5,374
                                      in cash and cash
                                      equivalents

         11,019   31,752       19,867 Cash and cash                   31,752    21,607
                                      equivalents at
                                      beginning of period

         15,222   11,019       26,981 Cash and cash                   15,222    26,981
                                      equivalents at end of
                                      period

 1. Includes the increase to fair value in the carrying amount of Woodside in
    the second quarter 2016 (see page12).
 2. See Note 2 "Acquisition of BG Group plc"


NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1.    Basis of preparation

These unaudited Condensed Consolidated Interim Financial Statements ("Interim
Statements") of Royal Dutch Shell plc ("the Company") and its subsidiaries
(collectively referred to as "Shell") have been prepared in accordance with IAS
34 Interim Financial Reporting as issued by the International Accounting
Standards Board and as adopted by the European Union, and on the basis of the
same accounting principles as, and should be read in conjunction with, the
Annual Report and Form 20-F for the year ended December 31, 2015 (pages 120 to
125) as filed with the U.S. Securities and Exchange Commission. In addition to
those accounting policies, following the acquisition of BG Group plc, Shell
accounts for net investment hedges where the effective portion of gains and
losses arising on hedging instruments that are used to hedge net investments in
foreign operations are recognised in other comprehensive income until the
related investment is disposed of.

The Directors consider it appropriate to continue to adopt the going concern
basis of accounting in preparing these Interim Statements.

The financial information presented in the 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, 2015 were published in Shell's Annual Report and a copy was delivered to
the Registrar of Companies in England and Wales. The auditors' report on those
accounts was unqualified, did not include a reference to any matters to which
the auditors 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.

2.    Acquisition of BG Group plc

On February 15, 2016, the Company acquired all the voting rights in BG by means
of a Scheme of Arrangement under Part 26 of the Act for a purchase
consideration of $54,034 million. This included cash of $19,036 million and the
fair value ($34,050 million) of 218.7 million A shares and 1,305.1 million B
shares issued in exchange for all BG shares. The fair value of the shares
issued was calculated using the market price of the Company's A and B shares of
1,545.0 and 1,538.5 pence respectively on the London Stock Exchange at its
opening of business on February 15, 2016.

BG's activities mainly comprise exploration, development, production,
liquefaction and marketing of hydrocarbons, the development and use of LNG
import facilities, and the purchase, shipping and sale of LNG and regasified
natural gas. The acquisition is expected to accelerate Shell's growth strategy
in global LNG and deep water. It is expected to add material proved oil and gas
reserves and production volumes, and provides Shell with enhanced positions in
competitive new oil and gas projects, particularly in Australia LNG and Brazil
deep water.

Goodwill of $9,024 million was recognised on the acquisition, being the excess
of the purchase consideration over the fair value of net assets acquired as set
out below. The net asset value, in line with accounting standards, is
determined by reference to oil and gas prices, as reflected in the prevailing
market view on the day of completion. Oil and gas prices are based on the
forward price curve for the first two years, and subsequent years based on the
market consensus price view.

The fair values of the net assets, and therefore the resultant goodwill, are
provisional.

FAIR VALUE OF NET ASSETS ACQUIRED (PROVISIONAL)

                                       $ million

Assets

Non-current assets

Intangible assets                          6,178

Property, plant and equipment             58,444

Joint ventures and associates              4,702

Deferred tax                               2,432

Other                                      2,181

                                          73,937

Current assets

Inventories                                  417

Trade and other receivables                4,202

Cash and cash equivalents                  6,803

                                          11,422

Total assets                              85,359

Liabilities

Non-current liabilities

Debt                                      18,949

Deferred tax                               8,393

Decommissioning and other provisions       6,401

Other                                        665

                                          34,408

Current liabilities

Debt                                       1,345

Trade and other payables                   3,926

Other                                        670

                                           5,941

Total liabilities                         40,349

Total                                     45,010

Acquisition costs of $391 million were recognised in the Consolidated Statement
of Income in production and manufacturing and selling, distribution and
administrative expenses ($47 million in 2015 and $344 million in the first
quarter 2016).

The acquired activities of BG are now significantly integrated with those of
other Shell entities and therefore it is impracticable to identify separately
either the amounts of revenue and income since the date of acquisition that BG
has contributed to the Consolidated Statement of Comprehensive Income, or the
revenue and income of Shell for the half year 2016 as though the acquisition
date of BG had been as at January 1, 2016.

3.    Segment information

Segmental reporting has been changed with effect from 2016, in line with a
change in the way Shell's businesses are managed. Shell now reports its
business through the segments Integrated Gas (previously part of Upstream),
Upstream, Downstream and Corporate. Comparative information has been
reclassified.

Integrated Gas is engaged in the liquefaction and transportation of gas, and
the conversion of natural gas to liquids to provide fuels and other products,
as well as projects with an integrated activity from producing to
commercialising gas. Upstream combines the operating segments Upstream, which
is engaged in the exploration for and extraction of crude oil, natural gas and
natural gas liquids, the transportation of oil and wind energy, and Oil Sands,
which is engaged in the extraction of bitumen from oil sands that is converted
into synthetic crude oil. These operating segments have similar economic
characteristics because their earnings are significantly dependent on crude oil
and natural gas prices and production volumes, and because their projects
generally require significant investment, are complex and generate revenues for
many years.

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.

INFORMATION BY SEGMENT

             Quarters                       $ million             Half year

Q2 2016 Q1 2016 Q2 2015                                         2016    2015

                        Third-party revenue

  5,373   5,679   4,807 Integrated Gas                          11,052  10,756

  1,711   1,922   1,489 Upstream                                 3,633   3,306

 51,315  40,929  66,082 Downstream                              92,244 123,998

     16      24      24 Corporate                                   40      48

 58,415  48,554  72,402 Total third-party revenue              106,969 138,108

                        Inter-segment revenue

    896     743   1,167 Integrated Gas1                          1,639   2,144

  6,049   5,037   7,507 Upstream1                               11,086  14,301

  1,993   1,455     271 Downstream                               3,448     633

      -       -       - Corporate                                    -       -

                        CCS earnings

    982     905   1,335 Integrated Gas                           1,887   2,474

(1,974) (1,350)   (561) Upstream                               (3,324)     839

  1,717   1,700   2,746 Downstream                               3,417   5,260

  (423)   (456)    (68) Corporate                                (879)   (239)

    302     799   3,452 Total CCS earnings2                      1,101   8,334

 1. Inter-segment revenue for the first quarter 2016 has been amended for
    Integrated Gas and Upstream to include revenue previously accounted for as
    intra-segment revenue.
 2. See pages 5 and 27 for a summary of significant items, including redundancy
    and restructuring charges, impacting segment earnings.

RECONCILIATION OF CCS EARNINGS TO INCOME FOR THE PERIOD

             Quarters                       $ million             Half year

Q2 2016 Q1 2016 Q2 2015                                         2016    2015

    302     799   3,452 Total CCS earnings                       1,101   8,334

                        Current cost of supplies adjustment:

  1,158   (398)     765 Purchases                                  760     413

  (323)     120   (219) Taxation                                 (203)   (117)

    143    (66)     116 Share of profit/(loss) of joint             77      21
                        ventures and associates

  1,280     455   4,114 Income/(loss) for the period             1,735   8,651


4.    Earnings per share

EARNINGS PER SHARE

                 Quarters                                         Half year

Q2 2016 Q1 2016 Q2 2015                                         2016    2015

  1,175     484   3,986 Income attributable to Royal Dutch       1,659   8,416
                        Shell plc shareholders ($ million)

                        Weighted average number of shares as
                        the basis for:

8,000.0 7,173.4 6,304.6 Basic earnings per share (million)     7,586.7 6,298.4

8,053.3 7,230.4 6,383.9 Diluted earnings per share (million)   7,641.8 6,380.5





5.    Share capital

ISSUED AND FULLY PAID

                                    Ordinary shares of �0.07       Sterling
                                              each             deferred shares

         Number of shares                A             B          of �1 each

At January 1, 2016                 3,990,921,569 2,440,410,614           50,000

Scrip dividends                      116,249,778             -                -

Shares issued for the acquisition    218,728,308 1,305,076,117                -
of BG Group plc1

Repurchases of shares                          -             -                -

At June 30, 2016                   4,325,899,655 3,745,486,731           50,000

At January 1, 2015                 3,907,302,393 2,440,410,614           50,000

Scrip dividends                       23,430,143             -                -

Repurchases of shares               (12,717,512)             -                -

At June 30, 2015                   3,918,015,024 2,440,410,614           50,000

 1. See Note 2 "Acquisition of BG Group plc"

NOMINAL VALUE

                                          Ordinary shares of �0.07 each

            $ million                    A             B            Total

At January 1, 2016                           340           206              546

Scrip dividends                                9             -                9

Shares issued for the acquisition             17           103              120
of BG Group plc1

Repurchases of shares                          -             -                -

At June 30, 2016                             366           309              675

At January 1, 2015                           334           206              540

Scrip dividends                                2             -                2

Repurchases of shares                        (1)             -              (1)

At June 30, 2015                             335           206              541

 1. See Note 2 "Acquisition of BG Group plc"

The total nominal value of sterling deferred shares is less than $1 million.

At Royal Dutch Shell plc's Annual General Meeting on May 24, 2016, 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 �185 million
(representing 2,643 million ordinary shares of �0.07 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 24, 2017, and the end of the Annual General
Meeting to be held in 2017, unless previously renewed, revoked or varied by
Royal Dutch Shell plc in a general meeting.

6.    Other reserves

OTHER RESERVES

      $ million       Merger   Share   Capital    Share   Accumulated   Total
                      reserve premium redemption  plan       other
                              reserve  reserve   reserve comprehensive
                                                            income

At January 1, 2016      3,398     154         84   1,658      (22,480) (17,186)

Other comprehensive         -       -          -       -       (3,718)  (3,718)
income/(loss)
attributable to Royal
Dutch Shell plc
shareholders

Scrip dividends           (9)       -          -       -             -      (9)

Shares issued for the  33,930       -          -       -             -   33,930
acquisition of BG
Group plc1

Repurchases of shares       -       -          -       -             -        -

Share-based                 -       -          -   (268)           534      266
compensation

At June 30, 2016       37,319     154         84   1,390      (25,664)   13,283

At January 1, 2015      3,405     154         83   1,723      (19,730) (14,365)

Other comprehensive         -       -          -       -         1,502    1,502
income/(loss)
attributable to Royal
Dutch Shell plc
shareholders

Scrip dividends           (2)       -          -       -             -      (2)

Repurchases of shares       -       -          1       -             -        1

Share-based                 -       -          -   (421)             -    (421)
compensation

At June 30, 2015        3,403     154         84   1,302      (18,228) (13,285)

 1. See Note 2 "Acquisition of BG Group plc"

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 increase in the
merger reserve in the first half year 2016 in respect of the shares issued for
the acquisition of BG represents the difference between the fair value and the
nominal value of the shares. 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.

7.    Derivative contracts

The table below provides the carrying amounts of derivatives contracts held,
disclosed in accordance with
IFRS 13 Fair Value Measurement.

DERIVATIVE CONTRACTS

               $ million                 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015

Included within:

Trade and other receivables -                   1,143        1,250          744
non-current

Trade and other receivables - current1          9,188       12,297       13,114

Trade and other payables - non-current          1,742        1,369        1,687

Trade and other payables - current1             9,493       11,026       10,757

 1. The amounts at March 31, 2016 have been reduced by $4,963 million in order
    to appropriately reflect certain contracts on a net basis which were
    previously presented gross.

As disclosed in the Consolidated Financial Statements for the year ended
December 31, 2015, presented in the Annual Report 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 June 30, 2016 are consistent with those used in the year ended December 31,
2015, and the carrying amounts of derivative contracts measured using
predominantly unobservable inputs have not changed materially since that date.

The fair value of debt excluding finance lease liabilities at June 30, 2016 was
$83,367 million (March 31, 2016: $71,903 million; December 31, 2015: $53,480
million). Fair value is determined from the prices quoted for those securities.

DEFINITIONS

A.    Earnings on a current cost of supplies basis attributable to shareholders

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. The current cost of
supplies adjustment does not impact net cash from operating activities in the
Condensed Consolidated Statement of Cash Flows. The reconciliation of CCS
earning to net income is as follows.

     Quarters                        $ million                     Half year

 Q2    Q1    Q2                                                  2016  2015
2016  2016  2015

  302   799 3,452 Earnings on a current cost of supplies basis    1,101   8,334
                  (CCS earnings)

 (63)    15  (91) Attributable to non-controlling interest         (48)   (212)

  239   814 3,361 Earnings on a current cost of supplies basis    1,053   8,122
                  attributable to Royal Dutch Shell plc
                  shareholders

  978 (344)   662 Current cost of supplies adjustment               634     317

 (42)    14  (37) Non-controlling interest                         (28)    (23)

1,175   484 3,986 Income attributable to Royal Dutch Shell plc    1,659   8,416
                  shareholders

  105  (29)   128 Non-controlling interest                           76     235

1,280   455 4,114 Income for the period                           1,735   8,651


B.    Identified items

Identified items are shown to provide additional insight into segment earnings
and income attributable to shareholders. They include the full impact on
Shell's CCS earnings of the following items: Divestment gains and losses,
impairments, fair value accounting of commodity derivatives and certain gas
contracts (see below), and redundancy and restructuring. Further items may be
identified in addition to the above.

Impacts of accounting for derivatives

In the ordinary course of business Shell enters into contracts to supply or
purchase oil and gas products as well as power and environmental products.
Derivative contracts are entered into for mitigation of resulting economic
exposures (generally price exposure) and these derivative contracts are carried
at period-end market price (fair value), with movements in fair value
recognised in income for the period. Supply and purchase contracts entered into
for operational purposes are, by contrast, recognised when the transaction
occurs (see also below); furthermore, inventory is carried at historical cost
or net realisable value, whichever is lower.

As a consequence, accounting mismatches occur because: (a) the supply or
purchase transaction is recognised in a different period; or (b) the inventory
is measured on a different basis.

In addition, certain UK gas contracts held by Upstream are, due to pricing or
delivery conditions, deemed to contain embedded derivatives or written options
and are also required to be carried at fair value even though they are entered
into for operational purposes.

The accounting impacts of the aforementioned are reported as identified items
in this Report.

Impacts of exchange rate movements on deferred tax balances

With effect from 2016, identified items include the impact on deferred tax
balances of exchange rate movements arising on:

The conversion to dollars of the local currency tax base of non-monetary assets
and liabilities, as well as losses. This primarily impacts the Integrated Gas
and Upstream segments.

The conversion of dollar-denominated inter-segment loans to local currency.
This primarily impacts the Corporate segment.

The comparative information presented in this Report has been restated for this
definition change. The following table sets out the impact of the definition
change on the identified items for the year 2015.

RESTATED IDENTIFIED ITEMS BY SEGMENT

                $ million                            Quarters

                                          Q1 2015 Q2 2015 Q3 2015 Q4 2015

Identified items as previously reported

Integrated Gas                                 15   (117)   (878)   (347)

Upstream                                    1,849   (146) (7,340)   (479)

Downstream                                  (132)   (215)   (136)     978

Corporate and Non-controlling interest      (217)       4     464   (137)

Impact of definition change

Integrated Gas                              (367)      50   (469)     227

Upstream                                    (254)      53   (292)      30

Downstream                                      -       -       -       -

Corporate and Non-controlling interest        129    (28)     155     (4)

Identified items as restated

Integrated Gas                              (352)    (67) (1,347)   (120)

Upstream                                    1,595    (93) (7,632)   (449)

Downstream                                  (132)   (215)   (136)     978

Corporate and Non-controlling interest       (88)    (24)     619   (141)


C.    Capital investment

Capital investment is a measure used to make decisions about allocating
resources and assessing performance. It is defined as the sum of capital
expenditure, acquisition of BG, exploration expense (excluding well
write-offs), new investments in joint ventures and associates, new finance
leases and other adjustments. The reconciliation of Capital expenditure to
Capital investment is as follows.

      Quarters                       $ million                    Half year

 Q2   Q1 2016   Q2                                              2016    2015
2016           2015

                     Capital investment:

1,153   22,824 1,313 Integrated Gas                             23,977   2,614

3,700   35,038 4,603 Upstream                                   38,738   9,245

1,389    1,092 1,085 Downstream                                  2,481   1,934

   42       21    49 Corporate                                      63      99

6,284   58,975 7,050 Total                                      65,259  13,892

    - (52,904)     - Capital investment related to the        (52,904)       -
                     acquisition of BG Group plc

(216)    (332) (208) Investments in joint ventures and           (548)   (617)
                     associates

(336)    (224) (643) Exploration expense, excluding              (560) (1,145)
                     exploration wells written off

    9    (414)  (18) Finance leases                              (405)    (24)

   55      223    24 Other                                         278     314

5,796    5,324 6,205 Capital expenditure                        11,120  12,420


D.    Divestments

"Divestments" is a measure used to monitor the progress of Shell's divestment
programme. This measure comprises proceeds from sale of property, plant and
equipment and businesses, joint ventures and associates, and other Integrated
Gas, Upstream and Downstream investments, adjusted onto an accruals basis, and
proceeds from sale of interests in an entity while retaining control (for
example, proceeds from sale of interest in Shell Midstream Partners, L.P.).

             Quarters                        $ million             Half year

Q2 2016 Q1 2016 Q2 2015                                           2016  2015

    516      46     206 Proceeds from sale of property, plant and   562 2,409
                        equipment and businesses

     23      16     165 Proceeds from sale of joint ventures and     39   169
                        associates

   (70)    (37)    (80) Other (in Cash flow from investing        (107) (159)
                        activities)

    398     421     298 Proceeds from sale of interests in Shell    819   298
                        Midstream Partners, L.P.

    135      39      93 Other1                                      174   129

  1,002     485     682 Total                                     1,487 2,846

 1. Mainly changes in non-current receivables included within Other (in Cash
    flow from investing activities), which are not considered to be
    divestments.


E.     Return on average capital employed

Return on average capital employed (ROACE) measures the efficiency of Shell's
utilisation of the capital that it employs and is a common measure of business
performance. In this calculation, ROACE is defined as the sum of income for the
current and previous three quarters, adjusted for after-tax interest expense,
as a percentage of the average capital employed for the same period. Capital
employed consists of total equity, current debt and non-current debt.

                  $ million                     Jun 30, 2016 Jun 30, 2015

Income for current and previous three quarters       (4,716)       13,494

Interest expense after tax                             1,139        1,033

Income before interest expense                       (3,576)       14,527

Capital employed - opening                           230,949      230,235

Capital employed - closing                           282,835      230,949

Capital employed - average                           256,892      230,592

ROACE                                                  -1.4%         6.3%

Return on average capital employed on a CCS basis excluding identified items is
defined as the sum of CCS earnings attributable to shareholders excluding
identified items for the current and previous three quarters, as a percentage
of the average capital employed for the same period.

                        $ million                            Jun 30,   Jun 30,
                                                              2016      2015

CCS earnings excluding identified items for current and         6,546    17,474
previous three quarters

Capital employed - opening                                    230,949   230,235

Capital employed - closing                                    282,835   230,949

Capital employed - average                                    256,892   230,592

ROACE on a CCS basis excluding identified items                  2.5%      7.6%

F.     Gearing

Gearing, calculated as net debt (total debt less cash and cash equivalents) as
a percentage of total capital (net debt plus total equity), is a key measure of
Shell's capital structure.

          $ million              Jun 30,     Mar 31,     Dec 31,     Jun 30,
                                  2016        2016        2015        2015

Current debt                        10,863       7,868       5,530       7,366

Non-current debt                    79,466      73,005      52,849      45,575

Less: Cash and cash               (15,222)    (11,019)    (31,752)    (26,981)
equivalents

Net debt                            75,107      69,854      26,624      25,960

Add: Total equity                  192,506     198,014     164,121     178,008

Total capital                      267,613     267,868     190,748     203,968

Gearing                              28.1%       26.1%       14.0%       12.7%


G.   Operating expenses

Operating expenses comprise production and manufacturing expenses; selling,
distribution and administrative expenses; and research and development
expenses.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting Shell are described in the Risk
Factors section of the Annual Report and Form 20-F for the year ended December
31, 2015 (pages 8 to 12) and are summarised below. There are no material
changes in those Risk Factors for the remaining 6 months of the financial year.

  * We are exposed to fluctuating prices of crude oil, natural gas, oil
    products and chemicals.
  * Our ability to deliver competitive returns and pursue commercial
    opportunities depends in part on the robustness and, ultimately, the
    accuracy of our price assumptions.
  * Our ability to achieve strategic objectives depends on how we react to
    competitive forces.
  * The acquisition of BG Group plc exposes us to integration risks and other
    challenges.
  * Following the acquisition of BG, we seek to execute divestments in the
    pursuit of our strategy. We may not be able to successfully divest these
    assets in line with our strategy.
  * Our future hydrocarbon production depends on the delivery of large and
    complex projects, as well as on our ability to replace proved oil and gas
    reserves.
  * The estimation of proved oil and gas reserves involves subjective
    judgements based on available information and the application of complex
    rules, so subsequent downward adjustments are possible.
  * We operate in more than 70 countries that have differing degrees of
    political, legal and fiscal stability. This exposes us to a wide range of
    political developments that could result in changes to contractual terms,
    laws and regulations. For example, the outcome of the United Kingdom's (UK)
    recent referendum to leave the European Union (EU) could have a material
    effect on us depending on the impact of future changes in UK and EU laws
    and regulations. In addition, we and our joint arrangements and associates
    face the risk of litigation worldwide.
  * Our operations expose us to social instability, civil unrest, terrorism,
    piracy, acts of war and risks of pandemic diseases that could have a
    material adverse effect on our business.
  * A further erosion of the business and operating environment in Nigeria
    could have a material adverse effect on us.
  * Rising climate change concerns have led and could lead to additional legal
    and/or regulatory measures which could result in project delays or
    cancellations, a decrease in demand for fossil fuels and additional
    compliance obligations, and therefore could adversely impact our costs and/
    or revenue.
  * The nature of our operations exposes us, and the communities in which we
    work, to a wide range of health, safety, security and environment risks.
  * The operation of the Groningen asset in the Netherlands continues to expose
    communities to earth tremor risks.
  * Our future performance depends on the successful development and deployment
    of new technologies and new products.
  * We are exposed to treasury and trading risks, including liquidity risk,
    interest rate risk, foreign exchange risk, commodity price risk and credit
    risk. We are affected by the global macroeconomic environment as well as
    financial and commodity market conditions.
  * We have substantial pension commitments, whose funding is subject to
    capital market risks.
  * We mainly self-insure our risk exposure. We could incur significant losses
    from different types of risks that are not covered by insurance from
    third-party insurers.
  * An erosion of our business reputation could have a material adverse effect
    on our brand, our ability to secure new resources and our licence to
    operate.
  * Many of our major projects and operations are conducted in joint
    arrangements or associates. This could reduce our degree of control, as
    well as our ability to identify and manage risks.
  * We rely heavily on information technology systems for our operations.
  * Violations of antitrust and competition laws carry fines and expose us and/
    or our employees to criminal sanctions and civil suits.
  * Violations of anti-bribery and corruption laws and anti-money laundering
    laws carry fines and expose us and/or our employees to criminal sanctions
    and civil suits.
  * Violations of data protection laws carry fines and expose us and/or our
    employees to criminal sanctions and civil suits.
  * Violations of trade controls, including sanctions, carry fines and expose
    us and our employees to criminal sanctions and civil suits.
  * The Company's Articles of Association determine the jurisdiction for
    shareholder disputes. This could limit shareholder remedies.

FIRST QUARTER 2016 PORTFOLIO DEVELOPMENTS

During the quarter, Shell completed the acquisition of BG for a purchase
consideration of $54,034 million. This includes cash of $19,036 million, and
the fair value ($34,050 million) of 1,523.8 million shares issued in exchange
for all BG shares. Following completion of the acquisition on February 15,
2016, BG was consolidated within Shell's results. For practical purposes, this
includes February and March 2016, as the impact for the first half of February
is deemed immaterial.

The consolidation of BG resulted in an increase to first quarter 2016 cash flow
from operating activities of $0.8 billion and an increase to CCS earnings
attributable to shareholders excluding identified items of $0.2 billion.

Goodwill of $9,024 million was recognised on the acquisition, being the excess
of the purchase consideration over the fair value of net assets acquired (see
Note 2).

Shell completed the United Kingdom office footprint review announced during the
final stages of the BG combination. The outcomes of the review are subject to
appropriate engagement with employees and employee representatives. The review
recommended a consolidation of all Shell's London and South East based
operations into Central London with the intention to close the Thames Valley
Park office in Reading by the end of 2016. The review also recommended that all
Aberdeen-based onshore operations move to the Shell Aberdeen Tullos office,
with BG's offices at Albyn Place closing by 2016 and the closure of Shell's
Brabazon House office in Manchester by the end of 2017.

Integrated Gas

During the quarter, first LNG production was achieved at the non-operated
Gorgon project (Shell interest 25%) on Barrow Island, offshore Australia.
Subsequent to first LNG cargo delivery, LNG production was temporarily halted
due to mechanical issues with the propane refrigerant compressor on Train 1.

In Australia, the Browse Joint Venture participants (Shell interest 27%)
decided not to progress with the development concept being studied for the
resource as it did not meet commercial requirements for a positive final
investment decision ("FID"), considering the current economic and market
environment.

In Indonesia, INPEX as operator of the Abadi field (Shell interest 35%)
received a notification from the Indonesian government authorities instructing
to re-propose a plan of development based on onshore LNG for the Abadi LNG
project. Shell and INPEX remain committed to work together with the Government
of Indonesia to ensure that the Abadi project moves forward to optimally
develop the Abadi gas reserves in a manner that benefits all.

Upstream

In Brazil, Shell announced the start of oil production from the third phase of
the deep-water Parque das Conchas BC-10 development (Shell interest 50%) in the
Campos basin.

Also in Brazil, the seventh non-operated FPSO, Cidade de Maric�, (Shell
interest 25%) reached first oil in the BM-S-11 block of the Santos Basin,
offshore Brazil. The FPSO has a production capacity of 150 thousand barrels per
day.

Shell announced that it has decided to exit the joint development of the Bab
sour gas reservoirs (Shell interest 40%) with ADNOC in the emirate of Abu
Dhabi, United Arab Emirates, and to stop further joint work on the project.
This reflects the economic climate prevailing in the energy industry.

In the United Kingdom, Shell has agreed to sell its 7.59% interest in the
Maclure oil and gas field in the North Sea for a purchase consideration of some
$24 million. Completion is subject to necessary approvals.

Shell had continued success in its exploration programme with 10 discoveries
and appraisals in Brunei, Egypt, Malaysia, Nigeria, Oman, and the United
States. This included a notable oil discovery in the United States with the
non-operated Kepler North well (Shell interest 50%) in the Gulf of Mexico, and
a notable gas discovery with the non-operated Jerun-1 well (Shell interest 30%)
in Malaysia.

Upstream divestments totalled some $38 million for the first quarter 2016 and
reflected, among others, the first tranche of the sale proceeds of the Anasuria
development in the North Sea.

Downstream

During the quarter, Shell announced a conditional agreement for the sale of its
51% shareholding in the Shell Refining Company in Malaysia for $66 million. The
transaction is expected to complete in 2016, subject to regulatory approval.

In the United States, Shell announced that it has signed a non-binding Letter
of Intent to divide the assets of Motiva Enterprises LLC. The Motiva joint
venture was formed in 1998 and has operated as a 50/50 refining and marketing
joint venture between Saudi Arabian Oil Company and Shell since 2002. In the
proposed division of assets, Shell will assume sole ownership of the Norco,
Louisiana refinery (where Shell operates a chemicals plant), the Convent,
Louisiana refinery, nine distribution terminals, and Shell branded markets in
Florida, Louisiana, and the Northeastern region. Saudi Refining Inc. will
retain the Motiva name, assume sole ownership of the Port Arthur refinery in
Texas, retain 26 distribution terminals, and have an exclusive licence to use
the Shell brand for gasoline and diesel sales in Texas, and in the majority of
the Mississippi Valley, the Southeast and Mid-Atlantic markets.

Also in the United States, Shell completed the sale of an additional 4.66%
interest in Shell Midstream Partners, L.P. to public investors via the issuance
of an additional 13,400,000 LP units for net proceeds of $421 million.

Shell announced FID on a project to expand China National Offshore Oil
Corporation ("CNOOC") and Shell Petrochemical Company's ("CSPC") existing 50/50
joint venture in Huizhou, Guangdong Province, China. Subject to regulatory
approvals, Shell and CNOOC have agreed that CSPC will take over CNOOC's ongoing
project to build additional chemical facilities next to CSPC's petrochemical
complex. The project includes the ongoing construction of a new ethylene
cracker and ethylene derivatives units, which will increase ethylene capacity
by more than 1 million tonnes per year, about double the current capacity. It
will also include a styrene monomer and propylene oxide plant.

In May, Shell announced that it completed the sale of Dansk Fuels in Denmark
for a consideration of $0.3 billion. Dansk Fuels comprises retail, commercial
fuels, commercial fleet and aviation businesses, and products trading and
supply activities associated with those businesses.

FIRST QUARTER SUMMARY OF IDENTIFIED ITEMS

With effect from 2016, identified items include the impact of exchange rate
movements on certain deferred tax balances, as set out in Definition A. The
comparative information in this Report has been restated following this change.

CCS earnings attributable to shareholders for the first quarter 2016 reflected
the following items, which in aggregate amounted to a net charge of $739
million (compared with a net gain of $1,023 million for the first quarter
2015), as summarised below:

  * Integrated Gas earnings included a net charge of $89 million, primarily
    reflecting a gain of some $400 million related to the impact of the
    strengthening Australian dollar on a deferred tax position, offset by a net
    charge on fair value accounting of certain commodity derivatives and gas
    contracts of some $170 million, asset impairments of some $130 million, and
    other items including a litigation provision. Integrated Gas earnings for
    the first quarter 2015 included a net charge of $352 million.
  * Upstream earnings included a net gain of $87 million, primarily reflecting
    a gain of some $360 million related to the impact of the strengthening
    Brazilian real on a deferred tax position, partly offset by asset
    impairments of some $300 million. Upstream earnings for the first quarter
    2015 included a net gain of $1,595 million.
  * Downstream earnings included a net charge of $310 million, primarily
    reflecting the net impact of fair value accounting of commodity derivatives
    of some $240 million and impairments of some $190 million, partly offset by
    gains on divestments of some $130 million. Downstream earnings for the
    first quarter 2015 included a net charge of $132 million.
  * Corporate results and Non-controlling interest included a net charge of
    $427 million, mainly reflecting a charge of $266 million related to the
    payment of stamp duty in the United Kingdom for the acquisition of BG, and
    a charge of some $190 million related to the impact of the strengthening
    Brazilian real on deferred tax positions related to financing of the
    Upstream business, partly offset by $100 million for the non-controlling
    interest share of an impairment of a Downstream asset. Earnings for the
    first quarter 2015 included a net charge of $88 million.

RESPONSIBILITY STATEMENT

It is confirmed that to the best of our knowledge: (a) the Condensed
Consolidated Interim Financial Statements have been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the European Union; (b) the
interim management report includes a fair review of the information required by
Disclosure Guidance and Transparency Rule (DTR) 4.2.7R (indication of important
events during the first six months of the financial year, and their impact on
the Condensed Consolidated Interim Financial Statements, and description of
principal risks and uncertainties for the remaining six months of the financial
year); and (c) the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties transactions
and changes thereto).

The Directors of Royal Dutch Shell plc are shown on pages 62-64 in the Annual
Report and Form 20-F for the year ended December 31, 2015.

On behalf of the Board

Ben van Beurden                                                    Simon Henry

Chief Executive Officer                                          Chief
Financial Officer

July 28, 2016                                                        July 28,
2016

INDEPENDENT REVIEW REPORT TO ROYAL DUTCH SHELL PLC

Introduction

We have been engaged by Royal Dutch Shell plc to review the Condensed
Consolidated Interim Financial Statements in the half-yearly financial report
for the six months ended June 30, 2016, which comprise the Consolidated
Statement of Income, the Consolidated Statement of Comprehensive Income, the
Condensed Consolidated Balance Sheet, the Consolidated Statement of Changes in
Equity, the Condensed Consolidated Statement of Cash Flows and Notes 1 to 7. We
have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.

This report is made solely to Royal Dutch Shell plc in accordance with guidance
contained in the International Standard on Review Engagements 2410 (UK and
Ireland) "Review of Interim Financial Information Performed by the Independent
Auditor of the Entity" issued by the Auditing Practices Board. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than Royal Dutch Shell plc, for our work, for this report, or for the
conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.

The annual Consolidated Financial Statements of Royal Dutch Shell plc and its
subsidiaries are prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board (IASB) and
as adopted by the European Union (EU). The condensed set of financial
statements included in the half-yearly financial report has been prepared in
accordance with International Accounting Standard 34 Interim Financial
Reporting, as issued by the IASB and as adopted by the EU.

Our responsibility

Our responsibility is to express to Royal Dutch Shell plc a conclusion on the
Condensed Consolidated Interim Financial Statements in the half-yearly
financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK and Ireland), "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the Condensed Consolidated Interim Financial Statements in the
half-yearly financial report for the six months ended June 30, 2016 are not
prepared, in all material respects, in accordance with International Accounting
Standard 34 as issued by the IASB and as adopted by the EU and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial Conduct
Authority.

Ernst & Young LLP

London

July 28, 2016

The maintenance and integrity of the Royal Dutch Shell plc website
(www.shell.com) are the responsibility of the directors; the work carried out
by the auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes that may
have occurred to the Condensed Consolidated Interim Financial Statements since
they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.

CAUTIONARY STATEMENT

All amounts shown throughout this announcement are unaudited. All peak
production figures in Portfolio Developments are quoted at 100% expected
production.

The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate legal entities. In this announcement "Shell", "Shell
group" and "Royal Dutch Shell" are sometimes used for convenience where
references are made to Royal Dutch Shell plc and its subsidiaries in general.
Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries
in general or to those who work for them. These expressions are also used where
no useful purpose is served by identifying the particular company or companies.
''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this
announcement refer to companies over which Royal Dutch Shell plc either
directly or indirectly has control. Entities and unincorporated arrangements
over which Shell has joint control are generally referred to as "joint
ventures" and "joint operations" respectively. Entities over which Shell has
significant influence but neither control nor joint control are referred to as
"associates". The term "Shell interest" is used for convenience to indicate the
direct and/or indirect ownership interest held by Shell in a venture,
partnership or company, after exclusion of all third-party interest.

This announcement contains forward-looking statements concerning the financial
condition, results of operations and businesses of Royal Dutch Shell. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements are statements of
future expectations that are based on management's current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of Royal Dutch
Shell to market risks and statements expressing management's expectations,
beliefs, estimates, forecasts, projections and assumptions. These
forward-looking statements are identified by their use of terms and phrases
such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'',
''goals'', ''intend'', ''may'', ''objectives'', ''outlook'', ''plan'',
''probably'', ''project'', ''risks'', "schedule", ''seek'', ''should'',
''target'', ''will'' and similar terms and phrases. There are a number of
factors that could affect the future operations of Royal Dutch Shell and could
cause those results to differ materially from those expressed in the
forward-looking statements included in this announcement, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b) changes
in demand for Shell's products; (c) currency fluctuations; (d) drilling and
production results; (e) reserves estimates; (f) loss of market share and
industry competition; (g) environmental and physical risks; (h) risks
associated with the identification of suitable potential acquisition properties
and targets, and successful negotiation and completion of such transactions;
(i) the risk of doing business in developing countries and countries subject to
international sanctions; (j) legislative, fiscal and regulatory developments
including regulatory measures addressing climate change; (k) economic and
financial market conditions in various countries and regions; (l) political
risks, including the risks of expropriation and renegotiation of the terms of
contracts with governmental entities, delays or advancements in the approval of
projects and delays in the reimbursement for shared costs; and (m) changes in
trading conditions. There can be no assurance that future dividend payments
will match or exceed previous dividend payments. All forward-looking statements
contained in this announcement are expressly qualified in their entirety by the
cautionary statements contained or referred to in this section. Readers should
not place undue reliance on forward-looking statements. Additional risk factors
that may affect future results are contained in Royal Dutch Shell's Form 20-F
for the year ended December 31, 2015 (available at www.shell.com/investor and
www.sec.gov). These risk factors also expressly qualify all forward-looking
statements contained in this announcement and should be considered by the
reader. Each forward-looking statement speaks only as of the date of this
announcement, July 28, 2016. Neither Royal Dutch Shell plc nor any of its
subsidiaries undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information, future events or
other information. In light of these risks, results could differ materially
from those stated, implied or inferred from the forward-looking statements
contained in this announcement.

This Report contains references to Shell's website. These references are for
the readers' convenience only. Shell is not incorporating by reference any
information posted on www.shell.com

We may have used certain terms, such as resources, in this announcement that
the United States Securities and Exchange Commission (SEC) strictly prohibits
us from including in our filings with the SEC. U.S. investors are urged to
consider closely the disclosure in our Form 20-F, File No 1-32575, available on
the SEC website www.sec.gov. You can also obtain this form from the SEC by
calling 1-800-SEC-0330.

This announcement contains inside information.

July 28, 2016

The information in this Report reflects the unaudited consolidated financial
position and results of Royal Dutch Shell plc. The information in this Report
also represents Royal Dutch Shell plc's half-yearly financial report for the
purposes of the Disclosure Guidance and Transparency Rules of the UK Financial
Conduct Authority. As such: (1) the interim management report can be found on
pages 2 to 10 and 21 to 27; (2) the condensed set of financial statements on
pages 11 to 20; and (3) the directors' responsibility statement on page 28 and
the auditors' independent review on page 29. Company No. 4366849, Registered
Office: Shell Centre, London, SE1 7NA, England, UK.

Contacts:

- Michiel Brandjes, Company Secretary

- Investor Relations: International + 31 (0) 70 377 4540; North America +1 832
337 2034

- Media: International +44 (0) 207 934 5550; USA +1 713 241 4544



END


Source: PR Newswire (July 28, 2016 - 4:01 AM EDT)

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