Earnings after taxation dived 45 percent to $4.51 billion (3.27 billion euros) in the three months to March, compared with $8.18 billion a year earlier, Shell revealed in a results statement.
The group took a huge impairment charge of $2.9 billion, mostly on the declining value of its refining division, but its share price rose on news of a dividend hike.
Shell added that profit on a current cost of supplies (CCS) basis or current-cost accounting -- which strips out changes to the value of oil and gas inventories -- sank 44 percent to $4.5 billion from $8.0 billion.
Oil and gas production dipped 4.0 percent to 3.25 million barrels of oil equivalent per day in the first quarter, compared with last time around. Revenues slid 2.8 percent to $109.66 billion in the quarter.
The London-listed major added it will sell its downstream refining and marketing businesses in Denmark, and would also consider the sale of its marketing assets in Norway as part of its ongoing overhaul.