Preliminary results for the year ended 31 December 2009

Centrica Preliminary results for the year ended 31 December 2009

Operating and financial overview:

• 2009 a transformational year for Centrica:
  • increased UK gas and oil reserves by 50% through acquisition of Venture Production
  • established position in nuclear with 20% equity stake in British Energy
  • transformed British Gas by combining energy and services businesses
  • well-positioned for growth
• Strong performance from British Gas, benefiting from market leading price reductions and operational improvements. 550,000 additional product holdings including 164,000 additional households taking both energy and service products
• Morecambe gas production reduced by 51% to preserve future value. Strong performance from the power generation fleet. Reported I&C losses* reduced by exceptional provision
• North American business experienced challenging operating conditions. Results impacted by one-off charges of £61 million in the year. Comprehensive review completed and new management team appointed
• Acquiring equity interest in Trinidadian gas blocks, establishing first producing LNG position
• British Gas to create 1,100 new jobs in 2010 to capitalise on emerging energy efficiency market
• EPS* unchanged at 21.7 pence per share despite 22% increase in average shares in issue
• Dividend up 5% to 12.8 pence per share, delivering sustained real dividend growth

 

Statutory results:

• Operating profit^‡: £1,175m (2008: £661m)
• Earnings: £856m (2008: loss of £136m)
• Basic earnings per ordinary share: 16.5p (2008: loss of 3.3p)
• Operating profit^‡ includes net exceptional charges of £568 million (2008: nil)

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.

* including joint ventures and associates stated gross of interest and taxation, and before other costs and depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements
^ as above, except after other costs and joint ventures and associates stated net of interest and taxation
‡ from continuing operations
¥ restated to capitalise borrowing costs on adoption of IAS 23 (Amendment) and change in British Gas Services Limited’s revenue recognition policy, as explained in note 3, and to present the European Energy segment, with the exception of the Group’s operations in Germany, as a discontinued operation, as explained in note 21