LONDON (Dow Jones) - Royal Dutch Shell on Thursday unveiled a 68% third- quarter profit due to a 49% increase for the price of oil and gas that it sold, as well as the sale of pipeline assets.

Shell (RDSA)(RDSB) said third-quarter profit climbed to $9.03 billion, with revenue up 8% to $76.4 billion .

Royal Dutch Shell said third-quarter cost of current supplies earnings, which analysts focus on as it strips out the effect of energy prices on oil and gas not yet sold, rose 68% to $7.37 billion .

The oil giant noted that its third quarter was boosted by $1.57 billion by the sale of its Gasunie pipeline assets as well as mark-to-market valuation of U.K. gas contracts that boosted the quarter's profit by $104 million .

Stripping out those gains, its earnings of $5.8 billion were at the top end of expectations, lifting London-listed shares by 2%.

BP, the only European oil company bigger than Shell which on Monday produced a 16% rise in adjusted profit, fell 0.9% in London .

In Shell's main division, exploration and production, earnings excluding gains rose 27%, due to oil and gas prices that were 49% higher than a year ago.

The profit rise came despite weaker production, at 3.21 million barrels of oil equivalent a day, down from 3.6 million in the year ago quarter with 160,000 barrels a day decline coming from the impact of hurricanes.

Shell's hard-hit Mars platform is due to resume production in the second half of 2006, the company said.

But it added that insurance will cover a "significant" amount of the $350 million in hurricane damages it foresees for 2005 and 2006.

The end of a Middle Eastern production sharing contract, lower entitlements due to the higher prices and the impact of divestments also hurt production.

Shell is expecting to buy back $5 billion in shares for all of 2005, and said it would pay a dividend of 0.23 euros a share, unchanged from the second quarter.

Shell said 2005 production is seen at around 3.5 million barrels a day, while 2006 production is seen in the lower half of the 3.5 million to 3.8 million barrel a day range, though Shell held to 2009 targets.

Shell also said it would spend $15 billion on capital expenditure during 2005, meeting expectations.

(END) Dow Jones Newswires

10-27-05 0515ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.