The Energy Report

Royal Dutch Shell Plc TICKER: RDS.A:NYSE; RDS.B:NYSE Visit Company Website The Shell Group (The Group) is a global group of energy and petrochemical companies with around 101,000 employees. The Group's businesses include oil and gas exploration and production, LNG, power generation, manufacturing, marketing and shipping of oil products and chemicals and renewable energy products. Shell's strategy seeks to reinforce the company's position as a leader in the oil and gas industry in order to provide a competitive shareholder return, while helping to meet global energy demand in a responsible way. Shares in the parent company, Royal Dutch Shell Plc, are traded on stock exchanges in Europe and the U.S.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Jean-Pierre Dmirdjian, Oddo Securities Corp. (2/3/12) "Royal Dutch Shell Plc management painted a bullish picture of its prospects in respect of production growth, setting a new target of 4 Mboe/d on average in 2017–18; the company is also anticipating a 30–50% increase in aggregate cash flow in 201–15, compared with the $136B recorded over the last four years. . .Shell's growth story is not over yet, and the group wishes to be seen as more than a yield stock. Granted, the group has become a veritable cash machine, but that is not to say that it plans to pay unreasonable dividends to shareholders."

Lucas Herrmann, Deutsche Bank (2/1/12) "With Royal Dutch Shell Plc's large project execution proceeding smoothly we expect the company will indicate that it intends raising the Q112 dividend by c5% to $0.44/share. . .our Buy recommendation reflects the significant build in free cash flow anticipated as the mega-projects ramp up through the course of 2012 and into 2013."

Theepan Jothilingam, Nomura Equity Research (1/31/12) "A 'light touch' strategy update on Royal Dutch Shell Plc should highlight: 1) the strength of its resource base, with 15 FIDs in 2010-11 underpinning new growth potential of 400 Kboe/d; 2) an unusually high profile exploration program; and 3) cash flow generation from Pearl GTL that is geared to high oil prices. . .2012 provides an opportunity for Shell to add significant light oil to the portfolio through drilling in the Arctic, South America and U.S. Gulf of Mexico. . .Shell continues to offer a best-in-class resource base."

Alastair Syme, Citigroup (1/31/12) "Royal Dutch Shell Plc has outperformed the European oil sector and the European market since mid-2010, a period in which the company has seen significant improvements in its profitability outlook. The long-awaited start up of Qatar GTL looks to be progressing smoothly and that, combined with other recent project starts, should underpin cash-flow growth of 7%, almost twice the sector average. . .for investors, the real fruits of this improving profitability should be seen in shareholder returns in 2012. . .we see a 6% dividend rise in FY12 and scope for some buybacks ($1–2B/year)."

Lucas Herrmann, Deutsche Bank (1/26/12) "With large project execution proceeding smoothly we expect Royal Dutch Shell Plc will indicate that it intends raising the Q112 dividend by c5% to $0.44/share. . .our Buy recommendation reflects the significant build in free cash flow anticipated as the mega-projects ramp through the course of 2012 and into 2013."

(2/1/12) RDS: New Growth Agenda

(1/17/12) RDS: Unlocking Resources

(8/1/11) RDS: Q211 Results

(8/4/10) Technical Analysis: Royal Dutch Shell

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