The group said it had achieved its goal of a return onaverage capital employed (ROACE) - a key industry performance indicator - of 14 percent based on $14 per barrel Brent crude. The group acheived the goal ahead of its 2001 target, and the return compares with a level of just 1.9 percent one year ago.

The Anglo-Dutch group reported record adjusted current costnet earnings of $3.13 billion in the first three months, up from $1.44 billion in the same period last year.

Analysts polled by Reuters had forecast net earnings on thisbasis in a range between $2.5 and $3.3 billion.

Net income in the period jumped 99 percent to $3.34 billion.

"We've had an impressive quarter by any standard, deliveringthe best earnings in our history," Chairman Mark Moody-Stuart said in a statement.