Last winter of discontent hits Centrica profits
The temperature just wasn’t right for profits at British Gas owner Centrica last winter, as group profits were walloped by an extreme polar freeze in the US, contrasting with a mild UK winter.
Operating profits at Centrica plummeted 40 per cent in the first half of 2014, down to £890m from £1.49bn over the same period last year.
The results came as industry regulator Ofgem said it expected the big six energy firms in the UK to double their profit margins over the next year.
However, Centrica hit back and expressed doubts about Ofgem’s estimates, pointing to its own results suggested British Gas customers bills would on average be seven per cent lower in 2014 compared to 2013, with British Gas profit per household expected to be 20 per cent.
Sam Laidlaw, Centrica chief executive, said: “With challenging trading conditions on both sides of the Atlantic in the first half, earnings will be lower in 2014 than in 2013.
“However, the Group is well positioned to return to growth in 2015.”
Earlier this week Centrica said its new CEO from January 2015 would be Iain Conn, who would be moving from BP.