Interim results for the period ended 30 June 2010

Interim results for the period ended 30 June 2010

Operating and financial overview:

  • Strong first half performance:
    • includes first time contributions from Venture, British Energy and newly commissioned Langage power station
    • strong downstream performance, with the impact of reduced retail prices offset by lower commodity costs and higher volumes in one of the coldest winters on record
    • 2010 results expected to be heavily weighted towards the first half and in line with current market expectations for the full year
  • 223,000 residential energy customer accounts added following industry-leading price reduction
  • Maintained high levels of service during record level of winter callouts
  • Continued growth in business energy supply
  • Higher upstream production and generation volumes offset by lower gas and power prices
  • Encouraging progress in North American business, with underlying operating profit* up 25%∂

 

Statutory results:

  • Operating profit‡: £2,117m (2009: £509m)
  • Earnings: £1,386m (2009: £218m)
  • Basic earnings per ordinary share: 26.8p (2009: 4.0p)

A definition of the profit measures used throughout these results is provided in the Group Financial Review. A reconciliation between operating profit and adjusted operating profit is provided in note 6(b) and a reconciliation between the earnings measures is provided in note 11.

Earnings and operating profit numbers are stated, throughout the commentary, before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements where applicable – see note 3 for definitions. The Directors believe this measure assists with better understanding the underlying performance of the Group. Exceptional items and certain re-measurements are described in note 7.

All current financial results listed are for the period ended 30 June 2010. All references to ‘the prior period’, ‘the prior year’, ‘2009’ and ‘last year’ mean the period ended 30 June 2009 unless otherwise specified.