BG Group, the UK’s third biggest oil and gas explorer, has reported a sharp rise in profits as it benefits from high energy prices and a “favourable” liquefied natural gas market.
Frank Chapman, chief executive of BG Group, said large projects to develop oil reserves offshore Brazil and LNG in Australia will help underpin future growth. Photo: PA
Shares in the company rose by 5pc in early trading after it reported pre-tax profits increased to $1.86bn (£1.2bn) from $1.3bn last year in the three months to September 30.
BG is undertaking large projects to develop oil reserves off the coast of Brazil and LNG in Australia to help underpin its future growth, which Sir Frank Chapman, chief executive, said were advancing with “material progress”.
The energy group’s LNG arm is now expected to report operating profits of more than $2.4bn, ahead of previous forecasts.
This helped BG shares climb 62p to £13.89 in early trading. They closed up 51 – 3.8pc – at £13.78.
Sir Frank said: “I am pleased with the progress we are making on delivering our key growth projects, underpinned by our strong resource base, and also on the work being undertaken to improve future production performance from existing assets.”