Centrica records revenue of £1.3bn
British Gas parent company - Centrica - has blamed increasing commodity prices for a small fall in what are still astounding profits.
Centrica, this morning (July 28), announced revenue of £11.5bn in its interim results for the first six months to June 30, down 2% from the same period last year.
This led to an adjusted operating profit of £1.262million, down 19%, from last year’s £1,563million.
Last month British Gas put up gas prices by 18% and electricity by 16% on average.
However, the British Gas arm of Centrica actually saw profits fall by 54%, despite an increase in households buying from the firm.>
Operating profit in the UK downstream residential energy business were also less than half the unusually high levels seen in the first half of 2010 and the profitability of gas storage activities significantly reduced.
Centrica chief executive, Sam Laidlaw, said: “Global events have resulted in a steep increase in commodity prices, with UK wholesale gas prices 30% higher than last winter.
“In this challenging market, the resilience of our integrated business model has enabled Centrica to continue to perform well.
“We are focused on reducing costs and ensuring disciplined deployment of capital, to maintain our competitive position and drive long-term shareholder returns.”
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