By Max Clarke
Centrica plc (LSE: CNA) has delivered target performance for the 6 months ending June, posting profits in excess of £1.3bn.
Centrica’s subsidiary British Gas fared less well, with profits dropping by 54% on the back of a 30% spike in liquefied natural gas prices. Crises in the Middle East North Africa along with plummeting domestic production contributed to this spike.
“Global events have resulted in a steep increase in commodity prices, with UK wholesale gas prices 30% higher than last winter,” said Sam Laidlaw, Chief Executive. ”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.”
The news comes just a day after British Gas were handed a record £2.5million fine for mishandling complaints- a decision the energy company labelled 'disproportionate'.
Revenue across the group dipped by 2% to reach £11.5bn, delivering a 12% increase in share dividends.
The strong performance come amidst a background of falling household incomes and rising energy costs driving a sharp increase in fuel poverty and the sizeable bottom line will likely anger consumer groups.
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