Rising oil prices push Shell's quarterly profits up 49%

REUTERS - Royal Dutch Shell Plc reported a 49 percent rise in first-quarter net profit thanks to higher oil prices and an unexpected return to production growth which helped the oil major beat all analysts’ forecasts.

Shell said current cost of supply net income was $4.90 billion in the quarter, up from $3.30 billion in the same period last year.

The strong showing suggested the turnaround plan Chief Executive Peter Voser launched on taking up his role last year is achieving its aim of reducing costs and improving operational performance.

“These are solid results,” one dealer said.

Excluding one-offs which amounted to a net gain of $75 million, the result was $4.82 billion, well ahead of an average forecast of $4.04 billion in a Reuters poll of seven analysts.

Shell said production of oil and gas rose 6 percent in the quarter compared with the same period in 2009, to 3.59 million barrels of oil equivalent per day. Analysts had predicted output would be flat.