Centrica profits edge up
British Gas owner Centrica reported a small increase in full-year profit as higher commodity prices and mild weather offset gains in its upstream oil and gas business.
The company, however, said it plans to deliver improved earnings growth this year, driven largely by higher oil and gas production.
Centrica, which owns Britain’s biggest household energy supplier British Gas, said adjusted operating profit rose one per cent to £2.42bn, broadly in line with consensus estimates.
Profit at the company’s downstream supply business dropped 17 per cent, hurt primarily by higher gas prices. The company said mild weather led to a 21 per cent dip in average household gas consumption and a four per cent fall in electricity use.
That was partly offset by gains in UK upstream, where higher commodity prices drove profits up 33 per cent. The company plans to increase upstream UK gas and oil production by over 25 per cent this year.