Profits on AP Moeller-Maersk�s North Sea oil and gas business more than tripled in the latest financial year, providing further justification of the Danish giant�s decision to make a big investment in the mature province in 2005.

Profits on AP Moeller-Maersk's North Sea oil and gas business more than tripled in the latest financial year, providing further justification of the Danish giant's decision to make a big investment in the mature province in 2005.

Accounts for Maersk Oil North Sea show the business increased operating profits from $57m (£29.4m) in 2006 to $178m (£92m) in calendar 2007, when players active off the UK cashed in on big increases in oil prices.

Directors highlighted the fact that Maersk started production from the Dumbarton field last January. In their report they also drew attention to the fact that the average price realised by Maersk jumped to $69.9 per barrel, from $61.29 in 2006.

Oil prices increased faster than gas prices last year.

Turnover increased more slowly, rising 47%, to £562m.

This reflects the fact that a large share of oil and gas firms' costs relate to expensive production infrastructure and are fixed, meaning increases in output and prices flow to the bottom line.

The latest success is likely to have been relished by directors of AP Moeller-Maersk, which surprised sector watchers by splashing out £1.65bn to buy the bulk of Kerr-McGee's North Sea interests in August 2005. These included interests in 10 large fields, some smaller finds and an exploration portfolio.

The oil-to-shipping combine said it would make Aberdeen the centre of an expanding North Sea business.

In the two full years since the deal was completed, Maersk Oil North Sea UK has posted total pre-tax profits of £122m.

With oil prices currently well up on last year's levels, despite recent falls, the company can look forward to plenty more this year.

When the deal was announced a Danish expert said AP Moeller-Maersk paid what appeared to be the high price of $10.70 a barrel for the reserves it was buying. Eivind Kolding, chief financial officer, told The Herald the deal made sense both financially and strategically.

Oklahoma-based Kerr McGee also sold a basket of gas interests to Centrica, for £317m, to help cut debt. Centrica said the purchase of non-operated interests in fields including Brae was part of a plan to protect itself against further energy price rises.

The utility sparked a furore last month by announcing plans to increase gas prices by 35% citing increased prices in wholesale gas markets.

AP Moeller-Maersk is in a closed period ahead of publication of results on the Copenhagen Stock Exchange.