Centrica – Flat Underlying Operating Profits

Centrica – Flat Underlying Operating Profits

Centrica PLC (LON:CNA) has reported a 6% increase in revenue from continuing operations to £8.2bn, while underlying operating profit fell 1% to £262m.

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Q2 2021 hedge fund letters, conferences and more

Centrica made a statutory profit of £1.4bn, reflecting exceptional items such as increased asset values and the contribution of discontinued operations.

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The group’s outlook for 2021 is broadly unchanged.

The shares were broadly flat following the announcement.

An Eventful Year For Centrica

William Ryder, Equity Analyst at Hargreaves Lansdown:

“The British Gas owner has had an eventful year. After selling Direct Energy the balance sheet is much improved, even if a decent chunk of the proceeds will need to go towards shoring up the pension deficit. Strikes also left their mark after the group imposed new contracts on staff and Covid continues to disrupt the market. However, an unusually cold winter boosted energy demand and higher prices helped power performance in Upstream. Overall, underlying operating profits were broadly flat.

There’s still a lot of work to be done at Centrica, but the group does appear to be making progress. The sale of non-core assets is sorting out the balance sheet and simplifying operations, and the organisational restructure should continue to drive efficiencies. But more will be needed if the group is to return to creating reliable value for shareholders.”

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