Energy giant Royal Dutch Shell said its net profit sank by almost 10% to $9.89 billion (€7.47 billion) in the first quarter of the year.
Profit after tax for the year-earlier period had stood at $10.98 billion, the Anglo-Dutch company said in a results statement.
Revenues increased by 9% to $119.92 billion.
"We are making good progress against our targets to deliver a more competitive performance," said chief executive Peter Voser.
Shell said that adjusted net profits, stripping out movements in the value of inventories and other non-operating items, rallied by 15.7% to $7.28 billion in the first quarter or three months to March 31.
That compared with $6.29 billion last time around and beat market expectations of $6.75 billion, according to analysts.
Total oil and gas production increased by 1% to 3.552 million barrels of oil equivalent per day. Analysts were expecting output to decline by 0.6%.
"Shell's first quarter 2012 earnings increased from year-ago levels, through a combination of improved operating performance, increased upstream volumes and strong oil prices,'' CEO Voser said.
"Energy demand fundamentals are robust, but with near-term volatility in energy prices as a result of economic and political events," he said.
