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Centrica PLC on Thursday reported a slowdown in the first half of 2025, partly due to weather conditions, but raised the interim dividend as planned. The Windsor, England-based energy company and British Gas owner swung to a pretax loss of £43 million from a profit of £1.36 billion the year prior. Adjusted operating profit was £549 million, down from £1.04 billion in 2024. British Gas Residential posted an adjusted operating profit of £133 million in the first half, down from £156 million a year earlier, due to ‘unseasonably warm weather conditions’, the firm said. Revenue declined to £10.12 billion in the first six months of 2025, from £10.54 billion on-year. Earnings before interest, tax, depreciation and amortisation fell to £900 million from £1.44 billion. Nonetheless, Centrica said the results supported expectations for Ebitda of £1.6 billion by the end of 2028. The firm reiterated annual guidance announced back in May, and declared an interim dividend of 1.83 pence per share, 22% ahead of 1.50p the previous year. For the full year, Centrica is targeting a total dividend of 5.5p per share, up from 4.5p in 2024. Overall profit is still expected to be weighted towards the first half. Adjusted operating profit, or AOP, for the Retail Energy Supply and Optimisation divisions is expected within medium-term sustainable ranges. However, Centrica Energy is expected at the bottom of AOP guidance ‘with profitability heavily weighted to the second half’ assuming market conditions normalise. In the first half of 2025, Centrica Energy’s AOP shrunk to £65 million from £232 million. The division’s medium term target is for AOP between £250 million and £350 million. Chief Executive Chris O’Shea commented: ‘I’m pleased with the progress we’ve made in some areas during the first half despite a challenging backdrop.’ ‘We’re accelerating our efforts to make Centrica a leaner, more agile organisation, transforming the way we do business, allowing us to deliver on our full potential,’ he added. O’Shea noted the firm’s investment in the Sizewell C nuclear plant, which is jointly owned with the UK government. Centrica on Wednesday reported that it has committed £1.3 billion in funding to the project, in exchange for a 15.1% equity stake. The nuclear buy-in is part of a £4 billion investment scheme. Of this amount, the firm said it has already allocated around 65%, with £1.7 billion going into ‘assets with regulated or contracted earnings’ such as the Sizewell C. According to Centrica, predicted returns from Sizewell C underpin its goal for Ebitda of £1.6 billion by the end of 2028, the mid-point of a £1.3 billion to £1.9 billion target range. Centrica shares were 0.2% lower at 158.40 pence on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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