The owner of British Gas, Centrica, has blamed “normalising” market conditions after two years of bumper results for its heavy slide in profit in the first half of this year.
Centrica—the FTSE 100 constituent that owns British Gas and looks after Scottish Gas and Bord Gáis—reported a near 50 per cent decline in adjusted operating profit for the six months to 30th June, from £2.1bn to £1bn.
Basic earnings per share dropped from 25.8p to 12.8p, and its free cash flow fell from £1,377m to £816m.
However, Its net cash position was up from £.3.1bn to £3.2bn.
The energy has provider benefited from the uplift in energy prices of the past two years.
In its full year 2022 results Centrica’s profit increased 10-fold to £2.8bn, and in 2024 it increased its dividend by a third after a second year of bumper profit.
Chris O’shea, the group’s enigmatic chief executive who has previously gone on record as saying he is paid too much, said: “Our core businesses continued to deliver in line with our expectations in the first half of 2024, against the backdrop of more normalised market conditions.
“Against the medium-term profit objectives we set out last year, we are on track to deliver two years ahead of schedule for the majority of our businesses, and we continue to ramp up our investment programme, including in innovative technologies that will support the UK and Ireland’s net zero ambitions.”
Centric also rose its dividend again from 1.3p to 1.5p and announced a £200m share buyback extension, putting its ability to hit expectations down to “strong operational performances”.
The company also announced that its current chair, Scott Wheway, would step down after nine years on the board. Centrica said he would be replaced by Kevin O’Bryne, who will take up the post when Wheway steps down on 16th December.