British Gas proprietor Centrica pauses share buyback as income plunge after hotter climate

British Gas owner Centrica has paused its share buyback programme after profits plunged last year.

The FTSE 100 giant said that operating profit tumbled 45 per cent to £814 million, down from £1.5 billion the year before.

Its residential energy supply business, which supplies households with heating and hot water, saw profits fall to £163 million, from £269 million.  

 Warmer than normal weather was an £80million headwind, Centrica said, while the commodity curve also drove profits lower. 

Chief executive Chris O’Shea said: ‘The environment has been challenging, and performance has varied across the business.’

‘However, we have remained disciplined, delivering strong operational performance and achieving customer growth across all our Retail businesses simultaneously for the first time in over a decade.’

British Gas owner Centrica owns the UK’s largest gas storage site, Rough.

Profits at its business division also dropped, from £73million to £47million. 

The business will pause a share buyback to focus on investment after finishing a £2billion share repurchase programme in January.

‘Pausing the buyback enables us to prioritise investment that creates lasting value for shareholders, while continuing to deliver the reliable, affordable energy that households and businesses need,’ Centrica said.

The results follow O’Shea’s warning last week that electricity prices in the UK will surpass the levels following Russia’s invasion of Ukraine in 2030.

‘We’ve underinvested in the system for many years, and whether it’s the cost of building a new gas-fired power station or a new wind farm, the costs have gone up,’ he said.