Profits gush forth for oil giants

May 2, 2003, 10:08PM Houston Chronicle News Services

Royal/Dutch Shell Group and ChevronTexaco said Friday that first-quarter profits more than doubled, capping a week of record oil earnings, because prices surged amid war in Iraq and supply disruptions in Nigeria and Venezuela.

Shell, Europe's largest oil company by market value, said net income jumped to $5.33 billion from $2.26 billion in last year's first quarter. At ChevronTexaco, the No. 2 U.S. oil company, profit rose to $1.92 billion from $725 million. Sales climbed 53 percent at Shell and 46 percent at ChevronTexaco.

The combined first-quarter profits at the two companies and rivals Exxon Mobil and BP tripled to $17.8 billion as crude-oil prices climbed to a 12-year high and refining margins widened. Prices have since fallen by a third, signaling lower earnings to come.

In other earnings:

· UAL, the bankrupt parent of United Airlines, on Friday reported the biggest quarterly shortfall of any major U.S. air carrier as the war in Iraq discouraged travel and raised fuel costs.

The $1.3 billion net loss topped that of rival AMR Corp. parent of American Airlines, which posted a $1 billion first-quarter loss last week and narrowly averted bankruptcy for the third time.

· Cigna said a strong performance from many of its employee benefits programs helped offset health plan membership declines and maintain first-quarter net income above expectations. · Unilever posted a 2 percent rise in first quarter profit, but the maker of Lipton Tea, Hellman's Mayonnaise and Dove soap said it had missed its own sales targets after weaker-than-expected demand in the beginning of 2003.