British Gas’s parent Centrica posts record profit as energy bills hike

Centrica, the U.K.-based electric services company and the owner of British Gas, has reportedly recorded profits for the 2022 fiscal year.

Apparently, the corporation reported operating profits of £3.3 billion (US$3.9 billion), up from £948 million (US$1.1 billion) in 2021, exceeding the previous record-setting yearly profit of the company, which was posted in 2012.

High energy costs have benefited the oil and gas producer. In the wake of the conflict in Ukraine, wholesale gas prices reached new highs.

It has also been reported that the supplies have been constrained since Russia's incursion and the ensuing sanctions put on the country.

Centrica was forced to pay the 45% windfall tax on electricity suppliers as political pressure increased to address historically high profits.

According to government estimates, the windfall tax will bring in £14 billion (US$16.8 billion) by 2023.

But Centrica's record-breaking numbers have led to new calls for stiffer taxation on energy companies' hefty earnings.

Despite Centrica's declaration, British Gas's own financial growth lagged behind that of its parent business.

Adjusted operating profit fell by 39% to £72 million (US$86.5 million) in 2022 from £118 million (US$141 million) in 2021.

The organization saw a growth in the number of residential consumers during the same period as 7.5 million customers were present, showing an increase of 4% over the previous year.

Nonetheless, payments to shareholders in the corporation will increase to 3p per share due to Centrica's overall performance.

Following a gap during the pandemic, dividend payments of 1p per share were resumed in July. Since then, the full-year payment has increased by 2p.

Additional shares will be purchased from investors. The existing £250 million (US$300 million) share repurchase program has been increased by £300 million (US$360 million), giving Centrica a 10% increase in the number of shares it now owns.

Reportedly, Centrica's financial results were disclosed on Thursday, following a period of public scrutiny of the company.

Source credit: https://news.sky.com/story/profits-triple-at-british-gas-parent-company-12812171