Royal Dutch/Shell Group has reported first-quarter profits down sharply as a result of the slide in oil prices, but pleased the stock market with a much more robust performance than many had expected.

Net income at the Anglo-Dutch group dived 23 per cent in the quarter, reflecting crude oil prices that had fallen by one third from last year. But, at $1.945 billion (£1.37 billion), profits came in higher than almost all market forecasts.

The group's shares rose strongly as some analysts hailed the figures as marking a turning point in the fortunes of the company, which has been trying to cut costs and improve the efficiency of its cash-rich balance sheet and whose stock has underperformed rivals such as Exxon and British Petroleum.