BG group reported a �38m increase in group third quarter operating profit to �205m ($333m).

BG said its third-quarter results had been held back from further growth by warmer-than-normal weather, which had cut some �11m off operating profits at its main unit, Transco.

Rather like slow sales of autumn and winter clothes at retailers such as Marks & Spencer, the mild September led to less gas being used for heating.

BG also warned that it has probably already found most of the cost-cutting benefits available at its regulated and price-capped Transco UK pipeline distribution business.

Shares on the up

"Transco is still performing well against the (regulatory) formula," said Chairman Richard Giordano.

Transco faces a new five-year price regime in two and a half years' time from industry regulator Ofgem.

But the group is set to benefit from the rising oil price: the group said that $1 on a barrel on crude oil was worth about $25-30m a year to group wide operating profit.

International operations, where the group has pinned its hopes for future earnings growth, showed a �7m improvement to �63m. Shares in joint ventures provided the rest.

BG International has just won an offshore Gaza gas exploration licence from Palestinian authorities to add to further exploration interests in Israeli waters.

The company's �113m interest bill, however, combined with other factors to give pre-tax profit of �78m against �51m a year ago.

Total operating profit for the nine months rose to �1.16bn, a rise of �111m.