Centrica gets a boost as British Gas profits surge

Centrica posted a jump in interim profit on Thursday as profits at British Gas surged amid rising energy prices.

In the six months to 30 June, adjusted operating profit rose to £2.1bn from £1.3bn in the same period a year earlier, while earnings per share rose to 25.8p from 11p. The group made a statutory operating profit of £6.5bn, versus a £1.1bn loss a year earlier.

Adjusted operating profits at British Gas Energy rocketed 889% to £969m amid changes to the energy price cap, which meant it was able to recover more costs.

"The increase was mainly due to one-off factors relating to the default standard variable tariff (SVT) cap which we would not expect in a normal reporting period. In total, the positive impact of recovery of prior period costs through price cap allowances in H1 2023 was approximately £500m," Centrica said.

The company proposed an interim dividend of 1.33p a share, up from 1p. It also said it was planning to extend its existing share buyback programme by £450m to £1bn, to be completed in the next 12 months.