Period January 1, 2009 - June 30, 2009 (unaudited)   All amounts shown throughout this report are unaudited.  

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this document "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 document refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this document, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This document 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", "intend", "may", "plan", "objectives", "outlook", "probably", "project", "will", "seek", "target", "risks", "goals", "should" 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 document, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group's products; (c) currency fluctuations; (d) drilling and production results; (e) reserve 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 potential litigation and regulatory effects arising from recategorisation of reserves; (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. All forward-looking statements contained in this document 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 factors that may affect future results are contained in Royal Dutch Shell's Annual Report and Form 20-F for the year ended December 31, 2008 (available at http://www.shell.com/investor and http://www.sec.gov/). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this document, July 30, 2009. Neither Royal Dutch Shell 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 document.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines strictly prohibit us from including in 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 http://www.sec.gov/. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

   Half-yearly financial report 2009   Business Review for the six month period ended June 30, 2009   Presented under IFRS (unaudited)                                                                    $ million                                                                  Six months                                                               ended June 30                                                              2009      2008   Income for the period                                     7,419    20,955   Attributable to minority interest                           109       316   Income attributable to Royal Dutch Shell plc shareholders 7,310    20,639    

Earnings for the first six months of 2009 were $7,310 million compared to $20,639 million for the same period last year. Lower earnings mainly reflect the macro environment impacts on the Exploration & Production and Oil Products business segments.

Exploration & Production

Segment earnings for the first six months of 2009 were $3,031 million compared to $11,024 million for the same period last year. Earnings in the first six months of 2009 included a net gain of $236 million reflecting gains from tax credits of $235 million, a gain related to a lease litigation settlement of $229 million and gains from divestments of $135 million, partly offset by a charge of $293 million related to the mark-to-market valuation of certain UK gas contracts, a charge of $51 million related to pension adjustment for inflation in USA and a charge of $19 million related to a retirement healthcare plan modification in the USA. Earnings for the same period last year included a net gain of $32 million mainly from gains from divestments of $571 million, partly offset by a charge of $462 million related to the mark-to-market valuation of certain UK gas contracts and net tax charges of $77 million.

Earnings for the first six months of 2009 mainly reflected lower oil and gas prices on revenues, lower oil and gas production volumes and higher exploration expenses and non-cash pension charges, which were partly offset by lower royalty and tax expenses.

Global liquid realisations were 53% lower than a year ago, compared to a decrease in Brent of 53% and WTI of 54%. Outside the USA, gas realisations decreased by 21% whereas in the USA, gas realisations decreased by 60% compared to a decrease in Henry Hub of 58%.

Oil and gas production (excluding oil sands bitumen production) was 3,100 thousand barrels of oil equivalent per day (boe/d), a decrease of 4% compared to 3,246 thousand boe/d for the same period last year.

Production in the first six months of 2009 compared to the same period last year was mainly impacted by field decline, OPEC restrictions, lower natural gas demand, Nigeria security issues and divestments, partly offset by production sharing contracts pricing effects, new fields start-ups and continued ramp-up of fields started up over the last 12 months.

In Nigeria, the security situation remains a significant challenge. As a consequence, the Shell Petroleum Development Company of Nigeria Ltd's onshore and shallow water oil and gas production declined from some 220 thousand boe/d (Shell share) in the first half of 2008 to approximately 130 thousand boe/d (Shell share) in the first six months of 2009.

Gas & Power

Segment earnings for the first six months of 2009 were $1,219 million to compared to $1,573 million for the same period last year. Earnings included charges of $21 million related to a pension adjustment for inflation in the USA of $14 million, a charge of $6 million related to a retirement healthcare plan modification in the USA and a charge of $1 million related to the mark-to-market valuation of certain gas contracts. In the first six months of 2008 earnings included a charge of $311 million reflecting charges related to the estimated fair value accounting of commodity derivatives relating to operational activities of $300 million and a charge of $11 million related to the mark-to-market valuation of certain gas contracts.

Excluding these items earnings compared to the same period last year reflecting lower oil prices on revenues, lower LNG sales volumes and reduced dividends received from an LNG joint venture.

In the first six months of 2009, LNG sales volumes of 5.95 million tonnes were 10% lower compared to the same period last year, mainly as a consequence of lower contributions from Nigeria LNG due to continued natural gas supply disruptions, which were partly offset by the ramp-up in sales volumes from Train 5, at the North West Shelf project, and the Sakhalin II LNG project.

Oil Sands

Segment earnings for the first six months of 2009 were $8 million compared to $600 million for the same period last year. Compared to the first six months of 2008, earnings mainly reflected the impact of significantly lower oil prices on revenues and higher operating costs.

Bitumen production was 76 thousand barrels per day (b/d) compared to 78 thousand b/d in the same period last year. Upgrader availability was 92% compared to 94% for the same period last year.

Oil Products

Segment earnings for the first six months of 2009 were $2,559 million compared to $6,906 million for the same period last year. In the first six months of 2009 earnings benefited from the impact of increasing crude prices on inventory by $1,722 million compared to a benefit of $4,637 million in the same period last year. Earnings included charges of $797 million, reflecting non-cash charges related to the estimated fair value accounting of commodity derivatives relating to operational activities of $500 million, a pension adjustment for inflation in the USA of $80 million, tax charges of $56 million, an asset impairment of $120 million and a charge of $41 million related to a retirement healthcare plan modification in the USA. In the first six months of 2008 earnings included a net charge of $269 million, reflecting non-cash charges related to fair value accounting of commodity derivatives of $450 million, a divestment gain of $167 million and a tax credit of $14 million.

After taking into account the impact of rising crude prices on our inventory, earnings reflected significantly lower refining earnings, which were partly offset by higher marketing contributions.

Industry refining margins declined worldwide compared to the same period a year ago. Refinery availability increased to 93% compared to 92% in the same period last year, mainly due to lower planned and unplanned maintenance activities.

Significantly lower refining earnings mainly reflected lower worldwide realised refining margins and reduced demand for refined products.

Marketing earnings increased from a year ago, reflecting higher retail, B2B and lubricant earnings and improved trading contributions.

Oil Products (marketing and trading) sales volumes declined by 9% compared to the same period last year. Marketing sales volumes were 5% lower than in the same period last year and, excluding the impact of divestments, 3% lower, mainly because of lower commercial fuels sales.

Chemicals

Segment results for the first six months of 2009 were a loss of $79 million compared to earnings of $505 million for the same period last year. Results in the first six months of 2009 included charges of $86 million reflecting an impairment charge of $57 million, a $19 million pension adjustment for inflation in the USA and a $10 million retirement healthcare plan modification in the USA. In the first six months of 2008 earnings included a net charge of $206 million, reflecting impairment of assets and provisions of $265 million, which was partly offset by a divestment gain of $59 million.

In the first six months of 2009 earnings benefited from the effect of increasing feedstock prices on inventory by $13 million in 2009 compared to $446 million for the same period last year. After taking into account the impact of change in feedstock prices, the loss was $92 million compared to earnings of $59 million last year, reflecting lower sales volumes, lower realised margins and non-cash pension charges, which were partly offset by higher income from equity-accounted investments and lower operating costs.

Sales volumes decreased by 19% compared to the first six months of 2008, mainly as a result of reduced global demand.