Centrica has released interim results for the period ended 30 June 2013.

Highlights from their report:

• Adjusted earnings up 2% to £767 million; 14.8 pence adjusted basic earnings per share
• Total adjusted tax charge rises 21% to £690 million; effective tax rate of 47%, up from 43%
• British Gas Residential operating profit marginally higher than in 2012, with significantly higher environmental and commodity costs offsetting the impact of increased consumption due to prolonged cold weather
• Full year British Gas Residential operating profit expected to be broadly in line with 2012
• Challenging market conditions in UK business energy; implementing new systems to help improve service and reduce costs
• Direct Energy benefiting from enhanced scale downstream, offsetting pressure on margins from rising commodity prices
• Higher international upstream gas and oil production and profitability; continued good nuclear performance; UK gas-fired generation loss making in weak market conditions

 Outlook

Overall the business performed well in the first half of 2013, with earnings up slightly on the same period in 2012, and subject to weather conditions, commodity prices and asset performance, we remain on track to deliver earnings growth in line with expectations for the full year.

Further out, they expect continued organic profit growth in North America and in UK home services, while they will continue to benefit from the integration of previous acquisitions. Weak spark spreads will continue to make their UK gas-fired power stations loss making, and reduced seasonal gas price spreads will impact the profitability of their UK gas storage activities. However across the Group they continue to focus on delivering further improvement in service levels, developing their industry leading propositions and digital platform, and maintaining tight cost control.

They have a strong balance sheet and a range of investment options. However they will maintain capital discipline, only investing where they see appropriate returns – further strengthening the business for the benefit of customers and shareholders alike.

Read the full report at Centrica website.

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Press release, July 31, 2013; Image: centrica