As crude oil prices continue to soar, International Oil Companies (IOCs), and indigenous firms in Nigeria recorded significant profit during the first quarter of 2018.

Sharply climbing oil prices and years of cutting cost when they were low, are rewarding some of the world’s largest oil producers with profits not seen when crude was trading as low as $30 a barrel.

Brent crude oil prices has risen from $30 a barrel two years ago to as high as $72.62 a barrels. West Texas Intermediate (WTI) has also reached $67.16 a barrel during the trading hours of Wednesday.

This is however positively influencing the financial report of the oil companies, which are now recovering from several years of losses. For example, in the first quarter (Q1) of 2018, the Exploration & Production segment of Italy’s Eni, reported an adjusted operating profit of €2,085million, an increase of 47 per cent over same period a year earlier.

This improvement, according to Agip, reflected an on-going recovery in crude oil prices, narrowing differentials between the Brent benchmark and Eni’s crudes, which determined a 26 per cent rise in Eni’s average realisations in dollar terms, and production growth.

Also, Nigeria’s Oando Energy Resources (OER), recorded a net profit of N8.6billion ($23.8million) compared with N5.8billion ($16.2million) in the comparative period of Q1 2017.

The increase in Oando’s net income year-on-year, was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities.

Royal Dutch Shell Q1 2018 earnings excluding identified items were $2.4billion, more than double Q1 2017, and on a 4-quarter rolling basis the earnings were $6.5billion, with a return on average capital employed of 7.4 per cent .

Commenting on the results, the Chief Executive Officer, Eni, Claudio Descalzi, said: “In the first quarter of 2018, Eni achieved excellent economic and financial results, over and above the rising price of oil. As the Brent price in euros rose eight per cent relative to the first quarter of 2017. Also, Eni’s adjusted operating profit increased by 30 per cent, while operational cash generation at replacement cost grew by 22 per cent.

Commenting on Oando’s results, Group Chief Executive, Oando Plc, Wale Tinubu, said: “I am pleased to announce that the Company has maintained the momentum of 2017 by posting a profit of N4.1billion in our first quarter ended March 31, 2018 unaudited financials. Our first quarter performance was characterised by a stable operating environment, continued incline in crude oil prices, and the highest level of compliance by member countries of the OPEC Accord.”

Royal Dutch Shell Chief Executive Officer, Ben van Beurden, said: “the company’s strong earnings this quarter were underpinned by higher oil and gas prices, the continued growth and very good performance of our integrated gas business, and improved profitability in our upstream business.”