. Royal Dutch Shell’s fourth quarter 2009 earnings, on a current cost of supplies (CCS) basis, were $1.2 billion compared to $4.8 billion a year ago. Basic CCS earnings per share decreased by 76% versus the same quarter a year ago.
. Fourth quarter 2009 CCS earnings, excluding identified items (see page 5), were $2.8 billion compared to $3.9 billion in the fourth quarter 2008.
. Full year 2009 earnings, on a current cost of supplies (CCS) basis, were $9.8 billion compared to $31.4 billion a year ago. Basic CCS earnings per share decreased by 69% versus a year ago.
. Cash flow from operating activities for the fourth quarter 2009 was $5.7 billion.
. Net capital investment for the quarter was $7.2 billion. Total dividends paid to shareholders during the fourth quarter 2009 were $2.6 billion.
Gearing at the end of the fourth quarter 2009 was 15.5%.
. A fourth quarter 2009 dividend has been announced of $0.42 per share, an increase of 5% over the US dollar dividend per share for the same period in 2008.
.The first quarter 2010 dividend is expected to be declared at $0.42 per share.

Summary OF unaudited results
Quarters $ million Full Year
Q4 2009 Q3 2009 Q4 2008 %1 2009 2008 %

2,536 1,543 4,663 Upstream 8,354 26,506
(1,762) 1,292 561 Downstream 258 5,309
403 155 (439) Corporate and Minority interest 1,192 (449)
1,177 2,990 4,785 -75 CCS earnings 9,804 31,366 -69
784 257 (7,595) Estimated CCS adjustment for Downstream (see Note 2) 2,714 (5,089)
1,961 3,247 (2,810) - Income attributable to shareholders 12,518 26,277 -52

0.19 0.49 0.78 -76 Basic CCS earnings per share ($) 1.60 5.09 -69
0.13 0.04 (1.22) Estimated CCS adjustment per share ($) 0.44 (0.82)
0.32 0.53 (0.44) - Basic earnings per share ($) 2.04 4.27 -52

5,660 7,350 10,287 -45 Cash flow from operating activities 21,488 43,918 -51

0.92 1.20 1.68 -45 Cash flow from operating activities per share ($) 3.51 7.13 -51

0.42 0.42 0.40 +5 Dividend per share ($) 1.68 1.60 +5
1 Q4 on Q4 change

Royal Dutch Shell Chief Executive Officer Peter Voser commented:

“Our fourth quarter 2009 results were impacted by the weak global economy. Oil prices have increased compared to a year ago, but gas prices and refining margins have declined sharply, because of weaker demand and high industry inventory levels. We are not assuming that there will be a quick recovery, and the outlook for 2010 is uncertain.

Our strategy is on track, although the near-term industry outlook does remain challenging. We are taking steps to improve our performance, to bridge the company, and our shareholders, into a period of significant growth in the coming years.

We are making good progress on our plans to raise Shell’s competitive performance. The Transition 2009 programme, which was launched in mid-2009, is now completed. We have reduced complexity in the company, and our new organisation, announced in July 2009, is now fully up and running. Our Upstream organisation is simpler and our new Projects & Technology organisation makes for better technical integration on bigger projects and a sharper innovation focus along the value chain.

These changes, combined with our global Downstream organisation, and continued streamlining in the corporate functions, have created a powerful platform for future performance. We’re seeing a new way of working in Shell, with increased empowerment and accountability for our people.

As a result of our actions in 2009, some 5,000 employees will leave Shell, a reduction of 10% in the impacted areas. We have reduced underlying operating costs by some $1 billion in the fourth quarter 2009, and by over $2 billion in 2009 compared to 2008.

Downstream is facing some tough times. There is a significant overhang of industry refining capacity, exacerbated by the economic downturn. That’s why we have initiatives underway to refocus Shell’s Downstream footprint into fewer, more profitable markets with growth potential, through disposals and selective growth investment.

In 2009, Shell sold some $1.2 billion of non-core Downstream assets, bringing the five year total to $11 billion, and in early 2010 announced plans to close the 130 thousand barrels per day (b/d) Montreal East refinery in Canada. Asset sales will continue in 2010, with some 560 thousand b/d of refining capacity, 15% of Shell’s total, and selected marketing positions, under review.

Cost focus is now embedded in our day-to-day operations. For 2010, we are targeting a further underlying cost reduction of at least $1 billion, and a reduction of some 1,000 employees. Much of this will come from Downstream and ongoing cost initiatives in the corporate functions.

I am pleased with the portfolio progress in 2009. We had successful start-ups of Sakhalin II in Russia and BC-10 in Brazil, and these projects, plus Ormen Lange in Norway have completed their production ramp-ups. We have taken final investment decisions on two substantial new projects; Gorgon LNG in Australia, and Caesar/Tonga in the deep water Gulf of Mexico, and launched a front-end engineering and design study for floating LNG for the Prelude gas field in Australia. Exploration and appraisal performance in 2009 has been strong, with particularly good results in North America tight gas and Western Australia gas. I see exciting opportunities for the medium-term.”