Centrica PLC (LSE:CNA) shares fell 1.2% after the British Gas owner reported lower profits and cash flow in the first half of the year, but increased its interim dividend 22% as it felt this was a resilient performance in a challenging market.
Adjusted EBITDA of £0.9 billion was down 36% from the prior year, while adjusted operating profit roughly halved to £549 million.
A statutory operating loss of £69 million was recorded, compared to a £1.7 billion profit last year, as a £618 million net loss was recorded on derivative contract remeasurements and asset impairments.
The group returned £0.5 billion to shareholders during the half, comprising £374 million in share buybacks and £150 million in dividends.
Retail operating profit increased to £0.3 billion, supported by improved performance in British Gas Services & Solutions and energy supply. Optimisation and infrastructure profits declined due to weaker market conditions and lower commodity prices.
Free cash flow fell to £0.2 billion from £0.8 billion, which was attributed to lower EBITDA and dividends from associates, which includes Lake Acquisitions Ltd, the owner of the existing UK nuclear power station fleet.
Eaelier in the week, Centrica's bid to invest in a 15% direct stake in the Sizewell C nuclear plant was approved.
With £2.5 billion net cash at the end of June, the company increased its interim dividend by 22% to 1.83p per share and said it expects a full-year dividend of 5.5p.
CEO Chris O’Shea said: "I'm pleased with the progress we've made in some areas during the first half despite a challenging backdrop, growing our customer numbers in energy supply and completing our system migration in British Gas Residential energy.
"But there is still much more to do across the Group, including improving our commercial performance in Services & Solutions.
"That's why 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 said the investment in Sizewell C will be "good for Centrica, giving us predictable, regulated returns on our investment".
Centrica has committed to a £2.5 billion investment programme through to 2028.
The shares fell 1.9p to 156.85p.