Royal Dutch/Shell continues strong performance

The Royal Dutch/Shell Group of Companies today reported strong second quarter
results for 2003 with net income of $2.8 billion, a rise of 28% - bringing net
income for the half-year to $8.2 billion, a rise of 82%. Adjusted CCS earnings
for the quarter rose 51% to $3.3 billion.

Sir Philip Watts, Chairman of The "Shell" Transport and Trading Company,
p.l.c., said:

"Our portfolio and our people have again produced excellent results. This
strong performance - building on the achievements of 2002 - confirms that our
strategy is working well. We are continuously upgrading our portfolio so that
it provides both resilience in uncertain times and a great platform for growing
shareholder value."

Highlights from the half-year include:

Strong earnings     * Adjusted current cost of supplies (CCS) earnings were    
and returns           $7.3 billion, up 73%. Reported ROACE over 12 months was  
                      17%, and underlying performance improvements to enhance  
                      ROACE are on track.                                      
                                                                               
Cashflow            * Strong cash flow of $14 billion from operations and      
                      divestments supported both incremental upstream          
                      investment - such as increasing interests in Kazakhstan -
                      and prudent balance sheet management.                    
                                                                               
Cash to             * The Group's interim dividends have been increased by over
shareholders          15% in US$ terms, at current exchange rates. On this     
                      basis the total dividend payout in 2003 will be some $1.4
                      billion higher than in 2000.                             
                                                                               
                    * There will be no further share buybacks for cancellation 
                      this year. Balance sheet management and attractive       
                      incremental investment opportunities will continue to    
                      take priority.                                           
                                                                               
Capital             * The planned $12 billion investment programme for 2003 is 
investment            on track. Investing in incremental upstream opportunities
                      in line with our strategy is expected to bring total     
                      investment for the year to around $14 billion.           
                                                                               
Synergies           * Synergies from all 2002 acquisitions are ahead of        
delivered             schedule. $660 million pre-tax had been delivered by     
                      mid-2003.                                                
                                                                               
US downstream       * US downstream performance improved for the second        
improvements          consecutive quarter. The US economy remains unsettled but
                      progress is encouraging.                                 
                                                                               
Major projects      * In Canada, the Athabasca Oil Sands Project is now        
                      operational, ramping up to full production, when it will 
                      add over 90,000 barrels a day to Group production. Value 
                      is enhanced by the integration with the Scotford         
                      Refinery.                                                
                                                                               
                    * In Russia, Sakhalin II Phase 2 integrated oil and gas    
                      project was given the green light in May. Building on    
                      Shell's unique capabilities, it will provide a long-term 
                      income stream for shareholders, add significantly to     
                      reserves and opens new sales opportunities.              

Portfolio           * Progress on divestments and portfolio upgrading          
upgrading             continues. Divestment proceeds for the year to date total
                      $2.3 billion. Additional announced divestments with an   
                      expected value of over $1 billion have either been       
                      completed in July or are in progress.                    

Concluding, Sir Philip said: "We are doing what we said we would do, and I am
confident we will continue to be highly competitive within the industry."

An interview with Sir Philip Watts in video/audio and text will be available
from 11.30 on 24th July 2003 on: http://www.shell.com and on http://
www.cantos.com

 



END