Royal Dutch Shell has posted its highest quarterly profit for at least three years thanks to resurgent oil prices.

The oil giant reported a 42% rise in underlying quarterly profits to 5.3 billion US dollars (£3.8 billion) for the first three months of the year.

Bottom-line profits surged 69% to 5.7 billion US dollars (£4.1 billion).

The group’s results are being buoyed by resurgent oil prices, higher production and years of cost cutting.

Shell chief executive Ben van Beurden said: “Shell’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.”

He added the group was “making good progress” with its 30 billion US dollar (£21.5 billion) divestment programme, having completed 26 billion US dollars (£18.7 billion) so far.

The programme was launched in 2016 to help pay down debt taken on for its 50 billion US dollar (£36 billion) buyout of BG Group.

Oil prices have been bouncing back over the past year, helping Shell triple bottom-line profits to £8.5 billion in 2017.

Oil briefly reached above 75 US dollars a barrel this week and there are predictions it could reach 100 US dollars amid geopolitical tensions.

Shell shares fell 3% despite the profits rise as the group’s cash flow came in lower-than-expected at 9.4 billion US dollars (£6.7 billion), down from 9.5 billion US dollars (£6.8 billion) a year earlier.

There were also concerns over the outlook as Shell cautioned over a more lacklustre second quarter for some of its businesses.

Steve Clayton, manager of the Hargreaves Lansdown Select UK Income Shares fund, which holds a stake in Shell, said the figures showed Shell enjoyed a “good start to the year”.

But he added: “The outlook for the second quarter is muted though, with the group expecting lower upstream volumes, weaker refinery availability due to maintenance, and a lower pace of growth in the gas business.”

Shell reported an average oil price of 60.66 US dollars a barrel in the first quarter – up by 25% on a year earlier.

Its production lifted 2% to 3.84 million barrels a day.