Centrica reinstates dividend as profits jump sharply during energy crisis


Centrica, the proprietor of British Gas, has reinstated its dividend for the primary time since 2020 after working profits elevated greater than fivefold during the energy crisis, buoyed by greater revenues from its oil, fuel and nuclear belongings.

The firm, which is the most important energy retailer within the UK, stated on Thursday that it might pay a dividend of 1p per share as working revenue jumped to £1.3bn within the first six months of the 12 months from £262mn during the identical interval in 2021.

Investors have been calling for Centrica to reinstate its dividend as chief government Chris O’Shea has helped return stability to the enterprise since taking the helm two years in the past.

But it comes at a difficult political time for the corporate, with UK customers dealing with report energy payments and a rising value of dwelling crisis as a results of hovering fuel costs.

Centrica has absorbed a lot of clients from failing suppliers within the UK who went out of enterprise.

“The past year has demonstrated the importance of well-funded, well-run energy companies,” stated O’Shea in a press release. “We’ve made significant progress de-risking the Group and building a stronger business for the benefit of all stakeholders.”

Operating profits on the British Gas Energy phase of the enterprise fell 43 per cent to £98mn, pushed largely by the necessity to purchase fuel and electrical energy for brand spanking new clients for whom it had not been in a position to hedge prematurely.

At the group degree, adjusted earnings earlier than curiosity, taxes, depreciation and amortisation — together with from oil and fuel producing belongings — elevated to £1.66bn within the first six months of the 12 months from £682mn during the identical interval in 2021. Adjusted earnings per share, which strip out the affect of the writedowns and different one-off fees, jumped to 11p from 1.7p.

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