British energy giant Royal Dutch Shell said yesterday that 2010 net profits rocketed 61 per cent to £12.421 billion, boosted by higher oil prices and rising production levels.

“Our 2010 earnings increased substantially from 2009 levels, driven by improving industry fundamentals and Shell’s production growth and cost performance,” said chief executive Peter Voser in a results statement.

“Fourth-quarter and full-year 2010 earnings were supported by higher oil prices and chemicals margins.”

Shell added that annual net profit, adjusted for the value of inventories of oil and gas, almost doubled to £11.48 billion, compared with 2009.

Production rose five per cent to 3.314 million barrels of oil equivalent to last year.

Adjusted net profits in the fourth quarter, or three months to December, leapt to £3.52 billion, from £0.74 billion in the same part of 2009.

The impressive results were published two days after crisis-hit rival BP unveiled its first annual loss in almost two decades as a result of the Gulf of Mexico oil spill disaster. BP suffered a loss of £3.02 billion in 2010.

Anglo-Dutch group Shell added yesterday that it was bolstered by cost-cutting and disposals, while it also invested £1.85 billion in exploration activities.