BG Group, the natural gas producer, today rubbished persistent takeover rumours which have seen its shares soar to record highs in recent weeks.

On presenting third-quarter results, chief executive Frank Chapman said the company was concentrating on delivering its growth strategy. “We have a very good strategy ... and all of our employees are focused on delivering that. We’re not going to use our valuable energy worrying about these rumours.”

BG has been at the centre of takeover speculation for several years but in recent weeks the chatter has become deafening, especially after the People's Bank of China took a 0.5 per cent stake in the group. Shares climbed again today, up 7.5p to 897p.

Rumours have pointed at Royal Dutch Shell, the Russian gas giant Gazprom and Brazil’s state-owned Petrobras as potential predators.

The chief executive made his comments during a discussion of the group's third quarter results, which revealed a 9 per cent fall in net profits to £357 million from £394 million a year earlier.

A 4 per cent decline in gas and oil output, largely owing to the shutdown of a major North Sea gas pipeline after it was struck by a ship, affected the group. BG lost around £50 million in net profit, or £100 million on a pre-tax basis, as a result of the pipeline disruption. The pipeline was reopened in September.

The weak dollar, in which much of BG’s oil and gas production is sold, also hit earnings.

However, a better-than-expected result from BG's liquefied natural gas unit helped make up for the upstream underperformance.

BG said the average price it would receive for its North Sea gas that is sold under long-term contracts would rise to 34p per therm in the coming year, from 31p in the previous 12 months.

BG said that it expected to boost volumes by 5 to 7 per cent over three years to 2009, and by 6 to 10 per cent over eight years to 2012.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive