Vaar Energi says unable to boost gas output in short term

Norway's Vaar Energi is currently producing as much natural gas as it can, and does not foresee a further increase in output in the short term, its chief executive told reporters on Wednesday. At the moment, the company directs as much gas as possible to the European continent, where prices are higher than in Britain, Torger Roed said.

"It's arbitrage, selling the gas where it has the most value," he added. Vaar on Wednesday posted a sharp rise in first-quarter profits and raised its full-year dividend guidance.