Centrica posts fall in annual profit on lower energy prices

15th Feb 2024 07:02

(Sharecast News) - British Gas owner Centrica posted a fall in annual profits on the back of "sharply lower" commodity prices.

Adjusted operating profit for the year to December 2023 came in at £2.72bn from £3.3bn. The full-year dividend was up 33% to 4p a share.

Oil and gas firms cashed in after Russia's unprovoked invasion of Ukraine two years ago sent prices rocketing, meaning consumers faced crippling increased in household energy bills.

The "astonishingly high" profit still angered campaigners with Unite union general secretary Sharon Graham reminding the firm that energy bills were still "nearly double what they were three years ago".

"There is no point beating around the bush: The only way to stop households and businesses being ripped off by the profiteers in our energy supply chain is public ownership."

"It is an absolutely affordable option that would protect the national interest. Our politicians need to decide whose side they are on and make the right choices."

On a pre-tax basis the company swung to a pre-tax profit of £6.47bn from a £383m loss a year earlier driven by its British Gas energy unit.

"As you would expect, sharply lower commodity prices and reduced volatility will naturally lower earnings in comparison to 2023 as we return to a more normalised environment," said chief executive Chris O'Shea.

Bad debts charge increased to £541m from £297m in 2022. The company came in for scathing criticism last year after debt collection agency Arvato force-fitted prepayment meters using warrants to gain entry to the homes of vulnerable customers its agents.

suspended its work with Arvato, while magistrates were accused of rubber-stamping applications for the warrants after reports emerged that a handful of courts were batch-processing hundreds of warrants in just minutes.

Reporting by Frank Prenesti for Sharecast.com