Oil giants Shell and BP record combined profits of £7 billion

OIL giants Royal Dutch Shell and BP made combined profits in excess of £7 billion during the first three months of this year, figures showed today.

Shell reported first quarter profits of 7.7 billion US dollars (£3.92 billion) for the three months to March 31, while BP posted 6.59 billion dollars (£3.32 billion).

The figures have been buoyed by rising oil prices and come at a time when motorists are paying on average almost £5 a gallon at the petrol forecourt.

The figures from both firms were well ahead of the equivalent periods last year – 12% higher for Shell and up 48% for BP – while the figures were also much stronger than forecasts in the City.

Average oil prices in excess of 90 US dollars a barrel have boosted the firms' exploration and production arms and offset tougher conditions in refining and marketing.

Shell made a surplus of 27.6 billion US dollars (£13.9bn) in 2007, equivalent to more than £1.5 million an hour.

At the time of its annual results, the Anglo-Dutch company said the profits figure was matched by the amount of money it spent on securing new energy sources.

The company says most of its money comes from exploration and production, rather than from selling petrol on UK forecourts.

BP's profits fell by a more than fifth to 17.29 billion US dollars (£18.76bn) last year as problems with its US refineries continued to dog the business.