. Royal Dutch Shell’s fourth quarter 2006 CCS earnings were $6.0 billion, compared to $5.4 billion a year ago. CCS earnings per share increased by 14% versus the same quarter a year ago.
• Full year 2006 CCS earnings were $25.4 billion. Excluding the 2005 gain of $1.7billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands, full year 2006 CCS earnings per share increased by 25% versus a year ago.
• Fourth quarter 2006 dividend has been announced of €0.25 per share, an increase of 9% from year-ago levels.
• From 2007 onwards the Group will declare its dividends in US dollars rather than in euros. The first quarter 2007 dividend is expected to be declared at $0.36 per share, an increase of 14% compared to the first quarter dividend of 2006.
• $1.4 billion or 0.6% of Royal Dutch Shell shares were bought back for cancellation during the quarter bringing the total for 2006 to $8.2 billion or 3.7% of the shares.

Chief Executive Jeroen van der Veer commented “In 2006, we saw good
operational and financial performance in Shell. Our exploration strategy is paying off. Hydrocarbon production was underpinned by the production re-start from the Mars platform in the USA, growth in LNG and deep water Nigeria. However onshore Nigeria we continue to have major security related concerns. Downstream continued to deliver very competitive results. We increased our reserves, and took important investment decisions on projects in gas to liquids, deep water, unconventional oil and downstream. We have agreed to partner with Gazprom in Sakhalin II, and are progressing with the proposal to acquire the minority shareholding in Shell Canada”.

FOURTHQUARTER $ million FULL YEAR
2006 2005 % 2006 2005 %
5,283 4,368 +21 Income attributable to shareholders 25,442 25,311 +1,732 1,073
Estimated current cost of supplies (CCS) adjustment for Oil Products and Chemicals (see note 2) (77) (2,580)
6,015 5,441 +11 CCS earnings 25,365 22,731 +12
0.84 0.67 Basic earnings per share ($) 3.97 3.79
0.11 0.16 Estimated CCS adjustment per share ($) (0.01) (0.38)
0.95 0.83 Basic CCS earnings per share ($) 3.96 3.41
0.25 0.23 Dividend per ordinary share (euro) 1 1.00 0.92
1. Q1 2005 based on dividend paid by Royal Dutch Petroleum Company, adjusted for the effects of the unification.

Key features of the fourth quarter and full year 2006
• Fourth quarter 2006 reported income was $5,283 million or 21% higher than the same quarter a year ago.
• Fourth quarter 2006 CCS earnings were $6,015 million or 11% higher than the same quarter a year ago.
• Full year 2006 reported income of $25,442 million and similar to 2005 reported income.
• Full year 2006 CCS earnings were $25,365 million and increased by 21% versus 2005 excluding the 2005 divestment gain of $1.7 billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands. Higher Upstream earnings in Exploration & Production and Gas & Power reflected higher price realisations, increased marketing opportunities and increased
liquefied natural gas (LNG) volumes partly offset by higher costs.
. Downstream Oil Products
earnings of $7.0 billion reflected a strong trading performance and higher lubricants earnings offset by lower refining earnings. Also in Downstream, Chemicals earnings reflected lower margins offset by the start up of the Nanhai petrochemicals complex in China and lower charges
and provisions than in 2005.
• Return on average capital employed on a reported income basis (see note 4) was 23.4% for 2006.
• When final volumes are reported in the Annual Report 2006, it is expected that additions to total world-wide proved SEC oil and gas reserves and provable mining reserves (oil sands) will total around 2 billion boe in 2006 (* see note 10). Production totalled some 1.3 billion boe in 2006,
including 0.03 billion boe of oil sands production, so that the Reserves Replacement Ratio (see note 10) for 2006 is expected to be around 150% including oil sands. The movement of reserves related to the Sakhalin II project were not material in 2006. Year-end pricing effects amount to a
decrease of between 50 to 70 million boe and impact the Reserves Replacement Ratio by 4% to 6% points. The net impact of acquisitions and disposals in 2006 was an increase of 60 to 70 million boe. No impacts are included for the offer to buy out the minority shareholding of Shell Canada or the expected dilution to a 27.5% stake in Sakhalin II. Neither of these transactions have closed and any impacts are anticipated in 2007. For additional information see note 10.
• Full year 2006 Exploration & Production segment earnings were $15,195 million compared with $14,238 million in 2005 (which included a gain of $1.7 billion related to the divestment of pipeline assets held through Gasunie NV in the Netherlands). Earnings reflected higher oil prices, partly offset by lower production volumes, higher operating costs reflecting industry conditions
and increased pre-development activity levels and lower USA gas prices.
• Full year 2006 Gas & Power segment earnings were $2,650 million, compared to $1,573 million a year ago. The increase in earnings reflected 14% growth in LNG sales volumes, higher realised LNG prices and strong LNG and natural gas marketing and trading performance.
• Full year 2006 Oil Products CCS earnings were $7,027 million compared to $7,532 million in 2005, and reflected lower refining earnings partly offset by higher trading profits and increased lubricants earnings. Also in Downstream, full year 2006 Chemicals CCS earnings were $1,095 million compared to $782 million in 2005. Chemicals earnings reflected lower margins offset by the start up of the Nanhai petrochemicals complex in China and lower charges and provisions than in 2005.
• Gearing (see note 6) was 14.8% at the end of 2006 versus, on a comparable Royal Dutch Shell basis, 13.6% at the end of 2005.
• Total cash returned to shareholders in 2006 was $16.3 billion in the form of dividends and share repurchases.
• Full year 2006 cash flow from operating activities was $31.7 billion compared to $30.1 billion in 2005. Excluding working capital movements and taxation effects, cash flow from operating activities was $39.5 billion compared to $35.6 billion a year ago (see note 8).
• Capital investment for 2006 was $23.1 billion, excluding the minority share of Sakhalin of $1.8 billion. This includes $3.0 billion of acquisitions mainly related to the acquisition by Shell Canada of BlackRock Ventures Inc. in Canada. Some $1.7 billion of proceeds were realised from divestments, predominantly in Downstream, so that net capital investment for the year was $21.4 billion.
• In Russia, Shell, Gazprom, Mitsui and Mitsubishi have signed a protocol to bring Gazprom into the Sakhalin Energy Investment Company Ltd. (SEIC) as a leading shareholder. It is expected that the agreements will be completed in 2007. Under the terms of the protocol, Gazprom will acquire a 50% stake plus one share in SEIC for a total cash purchase price of $7.45 billion. The current
SEIC partners will each dilute their stakes by 50% to accommodate this transaction, with each receiving a proportionate share of the purchase price. Shell will retain a 27.5% stake, with Mitsui and Mitsubishi holding 12.5% and 10% stakes, respectively. Gazprom and the existing SEIC shareholders will enter into an Area of Mutual Interest arrangement, which will cover both future
Sakhalin area oil and gas exploration and production opportunities, and building of Sakhalin II into a regional oil and LNG hub. Furthermore, the Sakhalin II shareholders reached agreement with the Ministry of Industry and Energy as the authorised state body for the supervision of Production Sharing Agreements of the Government of the Russian Federation, regarding the
amended budget of Sakhalin II and cost recovery. The Production Sharing Agreement for the Sakhalin II project will continue. The Sakhalin II amended project budget for phase 2 is expected to be approved by the SEIC Supervisory Board.
• Royal Dutch Shell plc announced in January 2007 that it has reached agreement with and obtained the recommendation of the Board of Directors of Shell Canada on a revised offer to acquire all of the outstanding common shares of Shell Canada not owned by Royal Dutch Shell at a cash price
of C$45.00 per share. This offer would value Shell Canada’s fully diluted minority share capital at approximately C$8.7 billion. Royal Dutch Shell currently owns 78% of the common shares of Shell Canada.