Shell said second-quarter current cost of supply (CCS) net income soared thanks to a strong operating environment and a speedy restructuring of the company.

Excluding one-off gains, the result was £2.7bn.

"This is a good performance from Shell, despite today's challenging macro-economic conditions," Shell's chief executive Peter Voser said.

CCS net income strips out non-cash gains or losses related to changes in the value of fuel inventories and is comparable to net income under US accounting rules.

Europe's largest oil company by market value said production rose 5% to average 3.11 million barrels of oil equivalent per day in the quarter.

The price Shell received for its oil rose 41% in the quarter, compared with the second quarter of 2009.

The forecast-beating performance in an "uncertain" economic climate came as Shell unveiled faster than expected progress on its £2.2bn cost-saving plans, which will see 7,000 jobs go.

Earlier this week, rival firm BP revealed a £20.9bn hit from the Gulf of Mexico oil spill, which sent it crashing into the red for the first time in 18 years.

Mr Voser said the spill was a "tragedy for everyone affected".

Shell's results underline the sudden switch in momentum between the firm and its rival, triggered by the Gulf catastrophe.

Under chief executive Tony Hayward - who resigned this week - BP had closed the gap on Shell after years of under-performance, before the oil spill crisis erupted in April.

Shell lagged behind BP in its response to the economic downturn, but Mr Voser said the group is "on track for growth" after adding to its gas interests in the US.