UK gas group's profits rocket by 44%
British gas group BG today said soaring oil and gas prices and volumes had helped it to a 44% rise in profits.
BG said higher prices and production in its core exploration and production arm and strong performances in liquefied natural gas and transmission and distribution had lifted its total operating profits to £483m (€707m) in the first quarter.
Operating profits in its core exploration and production division increased by 47% to £387m (€566.8m).
Exports from the group’s activities in the giant Karachaganak oil and gas field in north-west Kazakhstan and production rises in the Scarab Saffron gas fields in Egypt helped BG boost volumes by 7% to 43.7 million barrels of oil equivalent.
Price rises also contributed, with the average price of a barrel of oil lifting by 42% to £25.35 against the same period last year. The average realised price of a produced therm of gas rose by 9% to £17.48.
The increase in profits came despite higher exploration charges and the impact of the weaker US dollar.
BG said it also reflected an 80% rise in total operating profits in its liquid natural gas operations to £27m (€39.5m).
Chief executive Frank Chapman said strong underlying growth had driven the increase.
“BG has made an excellent start to the year,” he said.
