25th Jul 2024 11:07
(Alliance News) - Centrica PLC on Thursday reported sharply lower half-year revenue and profit, amid a "more normalised external environment", meaning lower wholesale energy prices, but the British Gas-owner said its balance sheet allowed for a dividend increase.
The Windsor, England-based energy provider also confirmed that Chair Scott Wheway will step down this year, with Senior Independent Director Kevin O'Bryne promoted to take his place.
Centrica shares fell 9.0% to 130.25 pence on Thursday morning in London. The wider FTSE 100 index was down only 0.8%.
Centrica, which owns British Gas, reported pretax profit of GBP1.63 billion for the six months that ended June 30, down sharply from GBP6.43 billion a year before, as revenue dropped by more than a third to GBP10.54 billion from GBP16.52 billion.
Centrica said it was a "good first half result against a more normalised external environment" and in line with its own expectations.
Looking ahead to the rest of 2024, Centrica said profitability will be "heavily weighted" to the second half of the year.
However, net cash will decline the coming six months due to planned capital investments and dividend payments. Net cash was GBP3.21 billion on June 30, up from GBP3.06 billion a year before and GBP2.7 billion on December 31.
"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," added Chief Executive Chris O'Shea.
Despite the drop in half-year profit, Centrica raised its interim dividend by 13% to 1.50p from 1.33p a year before. The company also said it will extend its share buyback by another GBP200 million, to be completed by February next year.
O'Bryne will replace Wheway as Centrica chair on December 16. O'Bryne has been on the board as a non-executive director since 2019. As an executive, he was chief financial officer of supermarket chain J Sainsbury PLC. Wheway has held the Centrica chair for the past five years and has been a director for nine.
By Tom Waite, Alliance News editor
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