Energy, Automobile, EV, Renewable News | Centrica announce Interim results for the period ended 30 June 2022

Centrica announce Interim results for the period ended 30 June 2022

by oilandgaspress

Adjusted basic EPS of 11.0p (2021: 1.7p); 10.2p excluding Spirit Energy disposed assets.
- Strong Upstream volumes against a backdrop of higher commodity prices.
- Increased commodity volatility handled well in Energy Marketing & Trading.
Statutory basic EPS loss of 14.7p (2021: profit of 23.2p) includes a £1.9bn loss on net remeasurements after taxation, reflecting the high commodity price environment.
Group total free cash flow from continuing operations of £643m (2021: £524m). Statutory net cash flow from operating activities of £165m (2021: £558m) including margin cash outflow of £519m.
2022 full year outlook remains positive.

H1 2022 net cash of £316m compared to net debt of £93m at H1 2021.
Completion of the sale of Spirit Energy Norway and the Statfjord field in May, resulting in a £0.8bn reduction in gross decommissioning liabilities.
March 2021 triennial pensions technical provisions deficit agreed in principle at £944m. £0.6bn on a roll-forward basis at 30 June 2022. Cash contributions expected to remain broadly unchanged.

Continued investment in service to stabilise operational performance and position for growth in British Gas Services & Solutions. Full financial recovery likely dependent on length of economic downturn.
Improving net promoter scores and delivering organic customer growth in British Gas Energy.

Strong Retail and Optimisation capabilities and positions leave us well positioned for growth as our core markets transition to net zero.
Opportunities to invest in the energy transition with a focus on battery storage, gas-peaking plants, solar farms, hydrogen and Carbon Capture, Utilisation and Storage (CCUS).

Strong balance sheet – maintain strong investment grade credit ratings.
Dividend – reinstate progressive dividend with a 2022 interim dividend of 1.0p per share. EPS to DPS cover ratio moving to ~2x over time.
Value accretive investments – invest for growth in lower carbon and flexible assets, to accelerate the energy transition and improve security of supply in our core markets.
Efficient use of capital – including returning surplus structural capital to shareholders.

Six months ended 30 June	2022	2021
Total Group excluding Spirit Energy disposed assets
Adjusted EBITDA	£1,175m	£427m
Adjusted operating profit	£857m	£140m
Adjusted earnings attributable to shareholders	£598m	£74m
Adjusted basic earnings per share (EPS)	10.2p	1.3p
Total Group
Adjusted EBITDA	£1,660m	£682m
Adjusted operating profit	£1,342m	£262m
Adjusted tax charge	£581m	£59m
Adjusted effective tax rate	46%	35%
Adjusted earnings attributable to shareholders	£643m	£98m
Adjusted basic EPS	11.0p	1.7p
Interim dividend per share (DPS)	1.0p	–
Group free cash flow from continuing operations	£643m	£524m
Group net cash / (debt)	£316m	(£93m)
Statutory operating (loss) / profit	(£1,099m)	£1,003m
Statutory (loss) / earnings attributable to shareholders	(£864m)	£1,351m
Statutory basic (loss) / earnings per share	(14.7p)	23.2p
Statutory net cash flow from operating activities	£165m	£558m

See notes 3, 4 and 9 to the Financial Statements and pages 69 to 73 for an explanation of the use of adjusted performance measures.

	2022	2021	Change
Total recordable injury frequency rate (per 200,000 hours worked)	1.04	1.07	(3%)
Total residential customers (‘000) ¹	10,193	10,067	1%
Group direct headcount	19,899	19,783	1%
Group employee engagement (%)	63%	55%	8ppt