Royal Dutch Shell Plc, Europe's biggest oil company, said first-quarter profit climbed 25 percent, boosted by record crude prices and higher natural gas.

Net income advanced to $9.08 billion, or $1.46 a share, from $7.28 billion, or $1.15, a year earlier, The Hague-based company said yesterday in a statement. Excluding inventory changes and one-time items, earnings beat analysts' estimates.

Oil touched $100 for the first time on Jan 2 and reached $111.80 a barrel in March as a falling dollar spurred investors to buy commodities, while natural gas increased 22 percent on average. The rising oil price squeezed refining profits as it outpaced gains for processed fuels such as gasoline and diesel. Crude touched a record $119.93 on Monday.

"It's remarkable, almost everything is better than expected," Herman Bots, an Amsterdam-based analyst at Theodoor Gilissen Bankiers NV, said in an interview. Bots has a "buy" rating on the stock.

Shell fell 18 percent in London trading in the first quarter, a larger drop than BP Plc and Exxon Mobil Corp in the period. BP, based in London, yesterday posted first-quarter profit of $7.62 billion. Exxon Mobil, the world's biggest oil company, announces results on tomorrow.

Twenty-three analysts recommend buying Shell, while 12 advise holding the shares and four suggest selling the stock.

The company's exploration and production division posted a 52 percent increase in profit, excluding one-time items, to $5.14 billion. Earnings at Shell's gas and power division rose 18 percent to $948 million.

Chief Executive Officer Jeroen van der Veer is betting on Canadian oil sands and a gas-to-liquids fuel venture in Qatar to counter falling production from conventional oil projects. Van der Veer said in January that Shell has to deal with state-run companies demanding better terms when negotiating energy deals and that this trend will continue.

Agencies

(China Daily 04/30/2008 page16)