Shell Q1 profit jumps on oil rise, beast forecast

Energy Reuters

LONDON (Reuters) - Royal Dutch Shell <RDSa.L> posted a 22 percent rise in first-quarter profit, thanks to higher oil prices and fatter refining margins.

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Europe's largest oil and gas company by market value said on Thursday current cost of supply (CCS) net income rose to $6.9 billion in the first three months of the year.

Stripping out one-offs, the result was $6.29 billion, compared with a forecast for $5.87 billion in a Reuters poll.

Brent crude was 38 percent higher in the first quarter compared to the 2010 period, while global refining benchmarks tripled.

Rival BP <BP.L> posted a 2 percent fall in replacement cost net profit on Wednesday, on the back of an 11 percent fall in production after selling assets to pay for the Gulf of Mexico oil spill.

Italian rival Eni <ENI.MI> reported a 6 percent rise in replacement cost profit, although the result was muted by the weak dollar and a fall in output due to the conflict in Libya.

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Industry leader Exxon Mobil <XOM.N> was due to announce first-quarter earnings on Thursday and was expected to post a 59 percent jump in net income, according to I/B/E/S estimates.

Replacement cost and CCS net income strips out unrealized gains related to changes in the value of oil inventories and so is comparable to net income under U.S. GAAP.

(Reporting by Tom Bergin; Editing by Dan Lalor)

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