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Segment Information
 6 Months Ended
Jun. 30, 2020
Operating Segments [Abstract]  
Segment Information Segment information
With effect from 2020, Shell's reporting segments consist of Integrated Gas, Upstream, Oil Products, Chemicals and Corporate, reflecting the way Shell reviews and assesses its performance. Oil Products and Chemicals businesses were previously reported under the Downstream segment. Oil sands mining activities, previously included in the Upstream segment, are reported under Oil Products. Comparative information has been reclassified.
Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.
With effect from January 1, 2020, additional contracts are classified as held for trading purposes and consequently revenue is reported on a net rather than gross basis. The effect on revenue for the second quarter 2020 is a reduction of $8,028 million (Q1 2020: $16,313 million).

INFORMATION BY SEGMENT
Quarters
 
$ million
Half year
Q2 2020
 
Q1 2020
 
Q2 2019
 
 
2020
2019
 
 
 
 
 
 
Third-party revenue




7,436

 
10,157

 
8,942

 
Integrated Gas
17,593

20,582

1,177

 
2,344

 
2,346

 
Upstream
3,521

4,647

21,596

 
44,297

 
75,837

 
Oil Products
65,893

141,888

2,283

 
3,221

 
3,406

 
Chemicals
5,504

7,138

12

 
11

 
13

 
Corporate
22

24

32,504

 
60,029

 
90,544

 
Total third-party revenue¹
92,533

174,278

 
 
 
 
 
 
Inter-segment revenue²




558

 
891

 
1,045

 
Integrated Gas
1,449

2,137

4,117

 
6,476

 
8,827

 
Upstream
10,592

18,359

1,082

 
1,851

 
1,950

 
Oil Products
2,933

4,130

475

 
875

 
1,088

 
Chemicals
1,350

2,054

—

 
—

 
—

 
Corporate
—

—

 
 
 
 
 
 
CCS earnings




(7,959
)
 
1,812

 
1,340

 
Integrated Gas
(6,147
)
4,134

(6,721
)
 
(863
)
 
1,435

 
Upstream
(7,584
)
3,059

(3,023
)
 
2,211

 
1,299

 
Oil Products
(811
)
2,523

164
 
146
 
(107)
 
Chemicals
311
345
(805
)
 
(453
)
 
(789
)
 
Corporate
(1,258
)
(1,460
)
(18,343
)
 
2,854

 
3,177

 
Total
(15,490
)
8,601

1. 
Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Second quarter 2020 included income of $1,405 million (Q1 2020: $6,686 million income; half year 2020: $8,091 million income). This amount includes both the reversal of prior gains of $686 million (Q1 2020: $317 million) related to sales contracts and prior losses of $507 million (Q1 2020: $76 million) related to purchase contracts that were previously recognised and where physical settlement has taken place in the second quarter 2020.
2. 
Comparative information for inter-segment revenue for Upstream, Oil Products and Chemicals has been revised to conform with reporting segment changes applicable from 2020. Inter-segment revenue for Integrated Gas for the half year 2019 has been revised from $1,989 million to amend for certain intra-segment transactions previously reported as inter-segment revenue.
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters
 
$ million
Half year
Q2 2020
 
Q1 2020
 
Q2 2019
 
 
2020
2019
(18,131
)
 
(24
)
 
2,998

 
Income/(loss) attributable to Royal Dutch Shell plc shareholders
(18,155
)
8,999

30

 
1

 
164

 
Income/(loss) attributable to non-controlling interest
31

320

(18,101
)
 
(23
)
 
3,162

 
Income/(loss) for the period
(18,124
)
9,319

 
 
 
 
 
 
Current cost of supplies adjustment:


(432
)
 
3,774

 
30

 
Purchases
3,342

(955
)
98

 
(916
)
 
1

 
Taxation
(819
)
237

92

 
19

 
(16
)
 
Share of profit/(loss) of joint ventures and associates
111

—

(242
)
 
2,876

 
15

 
Current cost of supplies adjustment
2,634

(719
)
 
 
 
 
 
 
of which:
 
 
(246
)
 
2,780

 
27

 
Attributable to Royal Dutch Shell plc shareholders
2,535

(681
)
4

 
96

 
(12
)
 
Attributable to non-controlling interest
100

(38
)
(18,343
)
 
2,854

 
3,177

 
CCS earnings
(15,490
)
8,601

 
 
 
 
 
 
of which:


(18,377
)
 
2,756

 
3,025

 
CCS earnings attributable to Royal Dutch Shell plc shareholders
(15,620
)
8,318

34

 
97

 
152

 
CCS earnings attributable to non-controlling interest
131

282