Shell and BP Posts Rise in Q1 Profits

Oil majors Royal Dutch Shell and BP have both reported a rise in profits for the first quarter 2008, boosted by the high price of oil.

Shell made profits of US$7.8bn compared to US$6.9bn a year ago, with basic earnings per share increasing by 15 percent.

Shell's rival BP saw its profits rise 48 percent to US$6.588bn, from US$4.4bn.

The results are in stark contrast to BP's third quarter figures recorded last October, which saw a 45 percent drop in replacement cost profit to US$3,867m compared with US$6,975m in 2006 due to low oil and gas production.

"Good operating performance, combined with increased oil and gas prices, offset the impact of downstream conditions in the first quarter 2008," says Shell Chief Executive Jeroen van der Veer.

In January, Shell reported annual profits of US$27.56bn for 2007, a record for a UK-listed company.

The continuing rise in oil prices hit a new high of almost US$120 a barrel this week.

By Ozge Ibrahim