Centrica 1st Half Pretax Profit Increases Significantly

By Maryam Cockar 
 

British Gas owner Centrica PLC (CNA.LN) said Tuesday that pretax profit for the first half of 2018 increased significantly despite rising commodity prices, extreme weather, increased competition and political and regulatory uncertainty.

For the six months ended June 30, the energy supplier made a profit of 415 million pounds ($544.8 million) compared with GBP79 million in the same period a year earlier, when it incurred a GBP549 million charge.

Revenue increased 7% to GBP15.30 billion from GBP14.30 billion.

The FTSE 100-listed company held the interim dividend at 3.60 pence a share and said it expects to maintain the full-year dividend at 12 pence.

Centrica said for the full year it expects adjusted operating cash flow to be higher than in 2017, and within the company's targeted range of GBP2.1 billion to GBP2.3 billion, and capital expenditure to be no more than GBP1.1 billion.

The company also said it is on track to deliver GBP200 million of saving in 2018.

Chief Executive Iain Conn said Centrica is awaiting the final outcome of regulation to impose a temporary cap on all default tariffs for residential customers in the U.K., but the company has plans in place to manage this.

Centrica also said that Chief Financial Officer Jeff Bell will stand down from his position at the end of October and will leave the company in July 2019. Centrica has appointed Chris O'Shea as Group CFO and Executive Director From Nov. 1.

Write to Maryam Cockar at [e-mail]

(END) Dow Jones Newswires

July 31, 2018 02:53 ET (06:53 GMT)

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