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British Gas parent Centrica PLC on Thursday reported a swing to half-year loss due but declared a dividend.
Pretax loss in the half-year to June 30 stood at £1.18 billion compared to a profit of £907 million a year ago. This was despite revenue surging 49% to £10.32 billion from £6.92 billion.
Outstripping this revenue growth was cost of sales, soaring 90% to £9.05 billion from £4.76 billion. Operating costs widened to £875 million from £483 million.
Further, the cost of re-measurement and settlement of derivative energy contracts surged to £1.54 billion from £640 million.
Loss per share stood at 14.7 pence, versus a profit of 23.2p a year ago.
Centrica's adjusted operating profit increased five-fold to £1.34 billion from £262 million a year prior.
Net cash flow fell 70% to £165 million from £558 million.
The energy company declared a 1.0 pence per share interim dividend, versus none a year ago. ‘We intend to retain our historic policy of paying roughly a third of the full year dividend as an interim,’ the firm explained.
The firm said its full-year outlook remains positive: ‘The strong operational and financial performance in first half of 2022 leaves the business well placed as we head into the second half 2022. We will continue to invest in and drive operational improvements, particularly given the uncertain economic environment.’
It added: ‘We can see significant cash swings, particularly in times of volatile energy markets and economic uncertainty.’
Centrica shares fell 3.3% to 87.97 pence each in London on Thursday morning.
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