Arab Today, arab today energy group centrica posts tumbling profits
Last Updated : GMT 13:50:10
Arab Today, arab today
Arab Today, arab today

Energy group Centrica posts tumbling profits

Arab Today, arab today

Arab Today, arab today Energy group Centrica posts tumbling profits

London - AFP

Utility Centrica said Thursday that first-half net profits plunged 66 percent on the back of higher wholesale energy and non-commodity costs, and lower consumption. The London-listed firm, which owns domestic energy supplier British Gas, was also hit after the government ramped up taxation on energy companies operating in the North Sea earlier this year. Earnings after taxation collapsed to £468 million in the six months to June, compared with £1.25 billion in the same part of last year, Centrica said in a results statement. Revenues slid two percent to £11.51 billion. \"Global events have resulted in a steep increase in commodity prices, with UK wholesale gas prices 30 percent higher than last winter,\" said Chief Executive Sam Laidlaw in the earnings release. \"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.\" Adjusted operating profit, or earnings before interest and taxation, slid 19 percent to £1.26 billion. That was in line with market expectations for £1.3 billion. Centrica added that British Gas saw adjusted operating earnings nosedive 54 percent to £270 million. However, its upstream gas exploration and production arm -- which is boosted by higher wholesale energy prices -- posted a 14-percent jump in profits to £414 million. The company came under fire from consumer pressure groups over the profits announcement, which came just weeks after it lifted domestic energy tariffs at British Gas. Centrica stoked further criticism by lifting its interim shareholder dividend by 12 percent to 4.29 pence per share. \"Centrica seem to win whether wholesale costs are high or low,\" said Audrey Gallacher, director of energy at independent lobby group Consumer Focus. \"Retail profits margins may have been reduced by recent increases in wholesale prices -- but as they (Centrica) are also major gas and electricity wholesalers, they can still make healthy profits at the other end.\" \"Given Centrica profits remain strong, consumers are bound to question whether recent large price hikes were necessary.\" But Centrica also revealed on Thursday that British Gas was selling energy at a loss since April. Gas usage plunged 18 percent and electricity consumption by three percent in the first half, as the unit was hit by warmer winter weather. Earlier this month, the division said it would lift domestic gas and electricity prices by an average of 18 percent and 16 percent respectively from August 18. The move, which will affect about nine million customers, was blamed on rocketing wholesale energy prices. The results were meanwhile published one day after energy regulator Ofgem slapped British Gas with a hefty £2.5-million fine for failing to properly deal with customer complaints.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today energy group centrica posts tumbling profits Arab Today, arab today energy group centrica posts tumbling profits

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares

GMT 16:50 2017 Wednesday ,22 February

Yahoo salvages Verizon deal
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday