Centrica PLC (LSE:CNA) described its first half as ‘broadly as expected’ and chief executive Chris O’Shea said that progress continues to be made towards the simplification of the company.
In financial results for the six months ended June 30 the British Gas owner said operating profit (adjusted, from continuing operations) was broadly flat at £262mln and earnings per share (adjusted basic EPS from continuing operations) was 1.7p.
The divestment of the Direct Energy unit, for US$608mln, resulted in a post-tax exceptional profit from continuing operations of £248mln.
The company noted higher consumption in the reporting period due to colder than normal weather, adding higher commodity pricing benefitted upstream. It added that these boosts were offset by the ongoing impact of Coronavirus (COVID-19), industrial action in British Gas Services, and trading losses including a legacy gas contract.
Cash flow from continuing operations amounted to £524mln, up 4%, and net debt was reduced to £100mln from £3bn since the start of the period.
“Although there is still a lot to achieve, our turnaround remains on track, our balance sheet has been significantly strengthened and the recent changes in colleague terms and conditions will enable us to better serve the needs of our customers,” O’Shea said in the results statement.
“We will continue to strengthen our foundations, as we help our customers on the path to net zero."