Business Context and Reporting Period
This Form 6-K filing by Royal Dutch Shell plc (Shell) is dated August 18, 2011. The report serves as a notification regarding the Reference Share Price for the Second Quarter 2011 Scrip Dividend Programme. The dividend itself was previously announced on July 28, 2011.
Key Financial Metrics
The filing does not provide comprehensive financial statements such as revenue, profit, cash flow, margins, debt, or liquidity. It focuses exclusively on dividend mechanics and share pricing.
- Q2 2011 Dividend: $0.42 per A ordinary share and B ordinary share; $0.84 per American Depository Share (ADS).
- Q2 2011 Reference Share Price: $32.317 (US dollar equivalent of the average closing price on Euronext Amsterdam for five dealing days).
- Q2 2011 A Reference ADS Price: $65.775 (Includes UK stamp duty reserve tax and Dutch withholding tax on SDRT).
- Q2 2011 Alternative Reference ADS Price: $65.604 (Applies to holders not subject to Dutch withholding tax and all B ADS holders).
Material Changes
The filing does not contain comparative financial data or material changes in operational performance versus prior periods. It solely details the calculation parameters for the current quarter's scrip dividend.
Guidance, Outlook, and Program Details
Scrip Dividend Programme: Shareholders may elect to receive new A Shares instead of cash dividends. This option may offer tax advantages, as share dividends are not subject to Dutch dividend withholding tax (15%) and may not be taxed on receipt by UK or Dutch corporate shareholders.
Share Issuance: Only new A Shares are issued under the programme, even for shareholders currently holding B Shares. B Shareholders joining the programme must make a Scrip Dividend Election for their new A Shares if they have not done so previously.
Pricing Mechanics: The Reference Share Price is derived from Euronext Amsterdam closing prices converted to USD. The A Reference ADS Price includes a 1.5% UK stamp duty reserve tax (SDRT) and a 15% Dutch withholding tax on the SDRT.
Investor Verification Checklist
- Verify the specific tax implications of the Scrip Dividend Programme for your jurisdiction compared to cash dividends.
- Confirm whether B Shareholders have made the necessary Scrip Dividend Election for new A Shares to participate in future share issuances.
- Review the full Q2 2011 earnings release (not included in this filing) for comprehensive revenue and profit data.
- Check the current exchange rates used for the USD conversion of the Euronext Amsterdam closing prices if calculating entitlements manually.