24th Jul 2025 10:31
(Alliance News) - Centrica PLC on Thursday reported a slowdown in the first half of 2025, partly due to weather conditions, but raised the interim dividend as planned.
The Windsor, England-based energy company and British Gas owner swung to a pretax loss of GBP43 million from a profit of GBP1.36 billion the year prior. Adjusted operating profit was GBP549 million, down from GBP1.04 billion in 2024.
British Gas Residential posted an adjusted operating profit of GBP133 million in the first half, down from GBP156 million a year earlier, due to "unseasonably warm weather conditions", the firm said.
Revenue declined to GBP10.12 billion in the first six months of 2025, from GBP10.54 billion on-year.
Earnings before interest, tax, depreciation and amortisation fell to GBP900 million from GBP1.44 billion. Nonetheless, Centrica said the results supported expectations for Ebitda of GBP1.6 billion by the end of 2028.
The firm reiterated annual guidance announced back in May, and declared an interim dividend of 1.83 pence per share, 22% ahead of 1.50p the previous year. For the full year, Centrica is targeting a total dividend of 5.5p per share, up from 4.5p in 2024.
Overall profit is still expected to be weighted towards the first half. Adjusted operating profit, or AOP, for the Retail Energy Supply and Optimisation divisions is expected within medium-term sustainable ranges.
However, Centrica Energy is expected at the bottom of AOP guidance "with profitability heavily weighted to the second half" assuming market conditions normalise. In the first half of 2025, Centrica Energy's AOP shrunk to GBP65 million from GBP232 million. The division's medium term target is for AOP between GBP250 million and GBP350 million.
Chief Executive Chris O'Shea commented: "I'm pleased with the progress we've made in some areas during the first half despite a challenging backdrop."
"We're accelerating our efforts to make Centrica a leaner, more agile organisation, transforming the way we do business, allowing us to deliver on our full potential," he added.
O'Shea noted the firm's investment in the Sizewell C nuclear plant, which is jointly owned with the UK government. Centrica on Wednesday reported that it has committed GBP1.3 billion in funding to the project, in exchange for a 15.1% equity stake.
The nuclear buy-in is part of a GBP4 billion investment scheme. Of this amount, the firm said it has already allocated around 65%, with GBP1.7 billion going into "assets with regulated or contracted earnings" such as the Sizewell C.
According to Centrica, predicted returns from Sizewell C underpin its goal for Ebitda of GBP1.6 billion by the end of 2028, the mid-point of a GBP1.3 billion to GBP1.9 billion target range.
Centrica shares were 0.2% lower at 158.40 pence on Thursday morning in London.
By Holly Munks, Alliance News reporter
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