British Gas owner Centrica (LSE: CNA) rewarded shareholders with a 33% dividend increase despite reporting a decline in 2023 operating profit. The company posted full-year adjusted operating profit of £2.75 billion, down from £3.31 billion in 2022.
However, Centrica returned to statutory pretax profit of £6.47 billion compared to a £383 million loss last year, aided by £3.76 billion in exceptional gains. Overall revenue was ahead 11% at £26.46 billion, supported by an earnings surge at the British Gas retail division.
At British Gas specifically, annual profit multiplied to £799 million from £94 million as regulators allowed cost recovery amid the energy crisis. But operating profit fell sharply at other units like optimisation and infrastructure.
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The total dividend was hiked 33% to 4.0 pence per share, including a 2.67 pence final payout. Centrica also continues its £1 billion share buyback, now 72% complete.
CEO Chris O’Shea touted a “strong underlying operational performance” in 2023, adding that lower 2024 commodity prices will naturally curb earnings versus last year.
Centrica shares traded up 3.7% early Thursday. The stock is up 43% over the past 12 months.
