BG profits rise sharply

British energy giant BG Group today said higher commodity prices lifted profits by 92% to £1.4bn (€1.7bn) in the second quarter of its financial year.

BG also credited a 2% rise in production volumes, although this figure was impacted by one-off outages in the UK, caused by maintenance work at the Armada field and the Ineos industrial dispute at the Grangemouth refinery.

Total operating profit from liquefied natural gas increased by £279m (€35m4) to £367m (€466m), due to “favourable market conditions” in the quarter to June 30.

BG is currently eyeing Sydney-based Origin Energy as a route to expanding its presence in the region and bolstering its assets in coal-seam gas (CSG) - methane gas trapped underground in deep coal seams by water.

BG launched a hostile £6.7bn (€8.5bn) takeover last month after an agreed deal was rejected by Origin at the last minute.

It said today it planned to sell Origin’s 51% stake in New Zealand’s Contact Energy if it is successful with the takeover.