THE International Energy Group expects to continue to invest some £8-10m. a year in further expansion

of its UK gas transportation network. The Guernsey-based group saw a profit increase of 55% to £3.7m. last year, according to its financial results for 2003.

The profits of its UK business represented a significant contribution to the group’s overall operating profit for the year of £10.9m., a 14% increase on the previous year.

Turnover increased from £47.9m. to £55.3m.

Chairman Tom Scott revealed that 22,000 new connections were made in the UK last year, taking the group’s total to 108,000, with a further 60,000 on order.

A ﾀ5m. acquisition of additional LPG networks in Portugal has increased the group’s customer base there to 55,000, with 20,000 further connections ordered.

Growth is also expected in the Isle of Man, where a £10m. scheme to introduce natural gas, involving the conversion of 23,000 customer appliances, has been completed. It is expected to stimulate an increase in business users.

Mr Scott said that the group had achieved growth in spite of warm weather, ongoing fluctuations in oil and gas costs and continuing political uncertainty in the Middle East.

‘I remain confident, not only in the near-term but also the longer-term growth prospects for the group and its ability to continue to build upon another successful year’s achievements from its secure financial base.’

Earnings per share increased by 16% from 10.5p to 12.15p per share. The IEG board is recommending a final dividend increase to 4.5p per share, making a record total for 2003 of 7.525p per share.