Interim results for the period ended 30 June 2012
OPERATING AND FINANCIAL OVERVIEW
STRONG FINANCIAL PERFORMANCE
- Adjusted earningsup 14% to £767 million; 14.8 pence adjusted basic earnings per share
- Upstream production benefiting from new investments and Norwegian expansion
- Higher UK residential energy consumption, compared to the exceptionally mild weather and unusually low levels of profitability in the first half last year
- Benefiting from enhanced scale in North America
- On track to achieve £500 million cost reduction programme to maintain competitiveness
- Tax charge of £568 million; UK tax charge of £431 million
INVESTING FOR GROWTH
- Total investment of £1.5 billion in the first six months of 2012
- Further progress in gas development projects, to bring 140mmboe of reserves into production
- Moving ahead with £1.4 billion Cygnus development; largest gas discovery in the Southern North Sea for 25 years, supporting 4,000 new jobs
- First power from £1 billion Lincs wind farm in the coming weeks, able to supply around 200,000 homes
- Awarded planning consent for 580MW Race Bank wind farm; progressing towards a final investment decision in the first quarter of 2013
DELIVERING FOR CUSTOMERS
- Launched easy to understand bill and simplified tariff structure
- Maintained position as cheapest major standard electricity supplier at average consumption
- British Gas residential energy accounts stable at 15.8 million, reflecting good service
- Industry leadership in innovation, energy efficiency and support for the vulnerable
DELIVERING FOR OUR SHAREHOLDERS
- Interim dividend up 8% to 4.62 pence per share, 30% of prior year dividend in line with established practice
“Centrica has performed well in the first half of 2012 despite challenging market conditions, although the increase in earnings must be placed in the context of unusually low levels of consumption and profits in the UK in the first half of 2011. We continue to focus on high standards of service, while ensuring that we run the business as efficiently as possible for the benefit of our customers. We have made significant investments to secure energy supplies for the UK and will continue to invest across the Group, where we see value. As a result, we have a stronger business that is delivering benefits for all our stakeholders.
