The Royal Dutch Shell has reported Wednesday that its net income for 2010's first quarter soared up to 57 percent or $5.99 billion, as the oil company pointed to stable oil prices, production growth and earning good returns on instituted cost cutting

According to the Australian Associated Press (AAP), Shell's oil production saw a six percent increase in the first part of 2009 to 3.59 million barrels of oil per day, with an amassed revenue of $93.96 billion.

Chief executive Peter Voser said in a statement that oil prices remained strong while demands for petrochemicals increased in 2010. Most other areas of operation remained under pressure, as he added that the company is still focused on cash flow growth as supported by new projects and manageable overheads.

Shell has been relying on new capacity guidance amidst the financial crisis following an accounting glitch that compelled the company to revise actual reserve numbers, as it saw its output gradually declining for about a decade, though the oil giant is confident that production will be boosted by more than 10 percent come 2012.

The company's new project in the Gulf of Mexico went online this quarter and is currently pumping 100,000 barrels per day, with other fresh sites in Russia and Brazil producing a combined 120,000 barrels per day.

Shell admitted though that more than half of its total production earnings are hurting from low natural gas prices but refinery earnings surged to $US1.33 billion, which includes a $638.04 million buffer from a rise in inventory value as oil prices rise coming from the pump station and going to refineries.

The company's refinery division posted better numbers this March quarter as it registered $1.92 billion loss, which is 26 percent better from the December 2009 quarter.

Shell, Europe's biggest oil company, is looking to divest 15 percent of its refinery stations in its aim to soften losses from the business, while the company announced in March that 100,000 workers will be affected by further cost-cutting measures in reaching the goal of reducing operational cost by $US1 billion this year.