BG Group makes $1.9bn in Q3 after profits surge

BG Group has reported a 17% increase in operating profit in the third quarter as higher commodity prices offset lower output in the UK.

The company, a major holding for a host of UK fund managers including Invesco Perpetual's Neil Woodford, saw operating profit rise from $1.7bn in the third quarter of 2010 to $1.9bn in the three months to 30 September this year.

Nine-month operating profit rose by 18% to $6.1bn, driven by an 18% jump in revenue. The company said the rise reflected the benefit of higher commodity prices which drove up realised prices.

Outages affecting production in the UK North Sea during the first nine months of the year have now been resolved, the company said.

The group also raised full-year profit guidance in its liquefied natural gas division, from between $1.9bn and $2.2bn to a new forecast of $2.4bn, due to "favourable market conditions" enabling it to sell more in higher priced areas such as Asia.

The results lifted shares, with BG Group up 3.9% to £13.78 by mid morning.