Energy giant Royal Dutch/Shell today posted a 28% increase in first quarter net profits to $5.548 billion, as soaring oil prices outweighed declining production.
Oil and gas output fell 5.3% to 3.847 million barrels a day during the three months to March, Shell said. Earnings at the group's Exploration and Production division increased 9% to $2.955 billion.
CEO Jeroen van der Veer reassured investors regarding the position of the group, which acknowledged last year that it had overstated its proven reserves. 'Our programme to reshape the portfolio continues at a good pace,' van der Veer said.
'We remain on track with our timetable for the unification of Royal Dutch and Shell Transport under one company, Royal Dutch Shell,' he added.
Shell admitted on a number of occasions last year that it had overstated its proven reserves, and that senior executives were aware of problems long before they were made public.
In a bid to clean up its image and restore investor confidence, the world's third-biggest oil group by market capitalisation announced plans last October to merge its Dutch and British holding companies.
Some investors had blamed the reserves crisis on what they saw as Shell's complicated structure. At present, Royal Dutch Petroleum holds 60% of the group and Shell Transport and Trading, the UK arm, 40%.
Shell's profits rise came in the wake of British energy giant BP's 29% surge in first-quarter net profits, also owing to roaring oil prices, soaring to £5.491 billion.
Oil prices broke historic records on April 4 this year, reaching $58.28 a barrel in New York and $57.65 in London.
