Centrica (LON:CNA) has updated investors on its half-year performance this morning. The company has further announced plans to increase the price of electricity on the British Gas standard tariff.
Highlights from the company's results statement:
- Customer-facing businesses’ adjusted operating profit was flat in H1 2017 compared to H1 2016, with higher profit in Centrica Business offset by reduced profit in Centrica Consumer; overall adjusted operating profit down 4% to £816m reflecting lower profit from our asset businesses.
- Adjusted earnings down 11% to £449m including a higher net interest cost.
- £268m post-tax net exceptional charge, predominantly relating to an impairment of the Rough storage asset; shareholder statutory profit of £44m after taking into account re-measurements of open commodity positions.
- EBITDA up 2%; adjusted operating cash flow down 9% reflecting one-off UK Business working capital inflow in 2016; underlying adjusted operating cash flow flat vs H1 2016 and 2.6% CAGR vs H1 2015.
- Interim dividend of 3.6p, 30% of the 2016 full year dividend in line with established practice.
- On track to achieve the 2017 Group targets set out at the 2016 Preliminary Results in February
IAIN CONN, GROUP CHIEF EXECUTIVE
“Centrica delivered a solid first half financial performance despite reduced energy demand due to warm weather and strong competitive pressures, and we remain on track to achieve the 2017 targets we set out in February. We have made further significant strategic progress, continuing to reallocate resources away from our asset businesses towards our customer-facing businesses.With the announced asset disposals and the creation of a new European E&P joint venture, we expect the first phase of our portfolio transformation to be complete by the end of 2017, leaving the Group well-positioned to deliver longer-term returns and growth.”
More to follow...