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British Gas Owner Centrica Resumes Shareholder Payout As Bills Rise

July 28, 2022

British Gas owner Centrica has resumed payouts to shareholders as UK households come under pressure from rising energy bills.

The company said it was paying an interim dividend of 1p per share, after having suspended it for three years.

It comes as gas prices soar, fuelled by Russia's war in Ukraine.

UK energy bills are expected to rise again in the coming months, with one consultancy warning they could hit £3,850 a year by January.

The announcement of a resumption in dividends came as Centrica reported soaring profits for the first half of the year.

Adjusted operating profit for the six months ending in June rose to £1.34bn from £262m a year earlier.

Boss Chris O'Shea said that the results came against the backdrop of "the most challenging energy crisis in living memory".

He added: "We are very aware of the difficult environment many customers are facing and we will continue supporting them."

Gas prices have risen dramatically because of a worldwide squeeze on energy supplies.

The wholesale price of gas has also gone up further because of Russia's invasion of Ukraine.

Many of British Gas' rivals have gone bust over the past year, as they struggled to pass on soaring gas prices to customers. At least 30 energy companies have stopped trading in the UK since August 2021.

British Gas said it added more than 200,000 customers in the first half of the year, including 158,000 customers that it picked up from failed supplier Together Energy.
 
Another 46,000 customers switched to its services voluntarily over the period.

UK energy bills increased by an unprecedented £700 in April and are likely to keep rising. One management consultancy, BFY, has warned that a typical energy bill could hit £3,850 a year by January, much higher than forecasts earlier this month.

BFY said its forecast reflected the increase in wholesale prices over the past few weeks with the ongoing tensions with Russia sparking concerns over winter supplies.

Mr O'Shea said Centrica was taking measures "to protect and support customers" during the crisis.

"Through the British Gas Energy Support Fund we are providing grants to help customers pay their energy bills," he added.


Shell profits soar

Shell also reported strong results on Thursday, with second quarter profits of $11.5bn (£9bn).
 
The energy giant also announced another $6bn share buyback programme for the current quarter, on top of the $8.5bn of shares it bought back in the first half of 2022. But it did not raise its dividend of 25 cents per share.

Shares rose almost 1% in morning trading.









Source: BBC
Image source: Pixabay