-

Centrica profits fall but shareholder payouts rise

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 …

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.

Read More News:
Gold prices remain below $2,000 ahead of key U.S. data

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.

Sign up for Investomania

Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.

No spam. Unsubscribe anytime.