(Alliance News) - Centrica PLC on Thursday said its first half performance was broadly as expected as it swung to profit on rising revenue.
The Windsor, England-based energy service provider turned to a pretax profit of GBP907 million in its first half ended June 30, from a loss of GBP462 million the same period a year prior and a GBP577 million overall loss in 2020.
Revenue for the first half of 2021 rose 9.3% to GBP6.92 billion from GBP6.33 billion a year ago for the British Gas parent.
"A pre-tax exceptional profit of GBP373 million was recognised in continuing operations in [the first half of] 2021, largely relating to write backs of exploration and production assets due to the increase in near term liquid commodity prices," the company added.
First half adjusted operating profit was flat, meanwhile, at GBP262 million versus GBP264 million year-on-year.
Adjusted earnings per share were also stable at 1.7 pence in the first half, compared to 1.6p the year prior.
Centrica proposed no interim dividend, in line with a year ago, noting plans to restart payments only "when it is prudent to do so."
Following its half year results, the firm said its outlook for the remainder of 2021 was "broadly unchanged".
Factors in the firm's full year profitability include costs of GBP40 million for its Irish subsidiary, Bord Gais Energy, after a forced closure at its Whitegate power plant in Cork last December. Centrica said it expects Whitegate to come back online towards the end of 2021.
British Gas Energy's energy company obligation costs will be around GBP80 million higher in 2021 than in 2020, the company said, with the same spending level expected in 2022.
On the other hand, the firm expects to see some margin recovery in 2021, noting year-on-year restructuring cost savings of over GBP100 million plus the return of colder UK weather that could boost underlying energy consumption.
"Although there is still a lot to achieve, our turnaround remains on track, our balance sheet has been significantly strengthened and the recent changes in colleague terms and conditions will enable us to better serve the needs of our customers," said Chief Executive Chris O'Shea.
With regard to the pandemic, Centrica said restriction easing may boost energy demand from businesses. However, the energy firm remained cautious, noting that economic uncertainty and the end of some government support schemes may offset any benefits for the company.
Shares in Centrica were trading down 0.3% at 50.56p each in London on Thursday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Centrica (CNA)