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Centrica adjusted EPS increased 17%

Staff writer |
Centrica adjusted operating profit down 3% to £1,000m, with higher profit from customer-facing businesses more than offset by lower profit from upstream gas and power businesses.

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Group adjusted EPS increased 17%, reflecting a lower tax rate due to the change in operating profit mix.

British Gas operating profit increased. Higher residential energy consumption due to colder weather compared to a warm first half of 2014, falling wholesale gas costs, net lower other costs including ECO; residential energy market share broadly stable.

Two reductions in household gas bills totalling 10% this year, saving customers £72 per year on average.

Residential services impacted by challenging sales environment; new propositions to be launched in second half of 2015.

Business energy supply impacted by issues following the implementation of a new billing and CRM system; actions in place to resolve issues by the end of 2015.

Direct Energy operating profit increased significantly. Managed extreme cold weather well in residential and business energy supply, with no repeat of additional costs incurred in 2014.

Increased bundling of offerings in residential energy supply and restoration of higher margin contracts sold in prior periods now benefitting business energy supply.

Accelerated investment for future growth in solar business, resulting in an operating loss in services.

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