British Gas revels in freezing winter and boosts parent group Centrica

UK gas supplier Centrica (LON:CNA) has said the group’s outlook for full-year earnings remains positive following a “strong performance” from its residential brand, British Gas, with a seven per cent increase in gas usage in the first quarter due to a blisteringly cold winter.

Rob Hull
shareprices.com - Monday, May 10, 2010

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British Gas gained 200,000 new customers in the first quarter of 2010

Centrica released its first quarter interim management statement today with strong performance results.

And a positive outlook statement for end of year earnings due to “the usual variables of commodity price movement and weather plans” has encouraged investors on a day of recovery for the FTSE 100.

Centrica’s share price has already increased by 13.8p or five per cent to a day high of 289.60p before 09:30BST after opening two per cent up.

The improvement for the stock has come thanks to the positive results statement and the FTSE recovering strongly from last week’s downward spiral influenced by the euro debt and the UK government confirming a predicted hung parliament.

But with the top index over four per cent up in whole this morning, Centrica is performing favourably on the back of the interim statement.

Along with British Gas recording a seven per cent increase in gas usage in the first three months of 2010, electricity consumption was also up by two per cent.

British Gas increased its number of joint energy and services households by 50,000 and gained 200,000 new residential customers in the first quarter, helped by the firm slashing the price of standard gas prices by an average of seven per cent back in February.

The price cut did mean lower average bill costs coming from the 15.9 million customers, but the UK’s biggest energy supplier confirmed it had delivered a record operating profit of £595m for 2009 – up by £219m on 2008.

 

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