Shell posts record profits thanks to war build-up

Energy giant Shell posted record profits today after seeing oil prices soar in the run-up to war in Iraq.

Underlying profits in the first three months of the year almost doubled to $3.91bn (€3.486bn) – a record for any quarter.

The figures comes in just ahead of the figure posted by rival BP for the same period on Tuesday.

The group pointed to a surging oil prices which leapt 48% compared to the same period last year to an average of 31.5 dollars a barrel during the three months.

World prices were forced higher by uncertainty in the build-up to war in Iraq as well as the effects of tensions in Nigeria’s oil-rich Niger delta.

Natural gas prices were also up “significantly” during the period and refining margins were boosted by a tightening of the global balance between supply and demand.