Centrica profits down during H1

Centrica profits down during H1

Increasing wholesale costs and the extreme weather conditions during the beginning of 2018 saw adjusted operating profits at Centrica fall 4% to £782 million during the first half of the year.

In the FTSE 100 firm’s consumer business, adjusted operating profits fell by as much as 20% to £430 million as a result of rising wholesale costs and extreme weather in February and March, which saw associated costs of £15 million.

Despite an 11% drop in adjusted operating cashflow, Centrica forecast it to be higher in the full year than that of 2017, in its target range of between £2.1 billion and £2.3 billion.

Iain Conn, Centrica chief executive, said: “In a first half in which we experienced rapidly rising commodity prices, extreme weather patterns, continued competitive pressures and ongoing political and regulatory uncertainty, Centrica demonstrated resilience from its portfolio of businesses.”

Meanwhile British Gas, which is owned by Centrica, has lost 340,000 customer accounts in the UK during the same period, which comes after the company announced it would increase its standard variable tariffs (SVTs) by £60 to £1,161 – an average rise of 5.5% for its typical dual fuel customer.

 

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