Oil price helps BG double profit

Record oil and gas prices have fuelled BG's profits

Shares in BG Group have risen more than 9%, after the energy exploration giant beat expectations by more than doubling its fourth-quarter earnings.

Soaring oil and gas prices saw pre-tax pre-exceptional profits rise to a record £504m ($879m), up from £236m in the final three months of 2004.

However, BG said that profits would still have risen 32% even if gas and oil prices had stayed stable.

It cited operational improvements and a 21% rise in production.

"These are very strong results, and the long term outlook has been increased - yet again," said Neill Morton, oil analyst at Man Securities.

Shares in BG Group jumped by 57.5 pence, or 9.3%, to 675p by the close of trade on the London Stock Exchange on Thursday.