Rising oil and gas prices sent BP’s first quarter profits up 48%.

European oil giants BP and Royal Dutch Shell today posted combined first quarter profits in excess of $14 billion (£7 billion), exceeding analysts’ expectations as the price of oil and gas soared.

BP’s profit growth was faster than Shell’s – rising 48% to a replacement cost profit of $6.6bn. Although growth was slower at Shell – going up 12% to $7.8bn, profits were still well above analysts’ expectations.

According to BP, its profits were higher than expected due mainly to “unusual factors”, comprising $400m of higher profits from gas and oil trading, $400m in lower costs, and $200m Russian tax bills which are paid with a delay.

Royal Dutch Shell Chief Executive, Jeroen van der Veer, attributed Shell’s strong results to the company’s “good operating performance”, which combined with increased oil and gas prices, “offset the impact of downstream conditions.”

He added: “We have delivered another competitive set of earnings for Shell’s shareholders. Shell has the largest capital spending programme in our industry today, to grow the company and play our part in ensuring that energy markets remain well supplied. Our strategy is on track.”

The read BP’s full results click here and to access Shell’s click here.

By Natasha Piscitelli