Preliminary Results for the year ended 31 December 2012

Centrica - Preliminary Results for the year ended 31 December 2012

Operating and financial overview

Strong performance allows us to contribute our fair share

  • Adjusted earnings up 5% to £1,406 million; 27.1 pence adjusted basic earnings per share
  • After a warm 2011, cooler weather saw average domestic gas consumption increase by 12%
  • Centrica Energy and Direct Energy benefiting from enhanced scale; adjusted operating profit in the UK up by 2%, adjusted operating profit from non-UK operations up by 78%
  • Adjusted Group tax charge of £1.1 billion, £773 million relating to the UK; 44% Group effective tax rate
  • Share repurchase of £500 million announced and full year dividend up 6% to 16.4 pence per share, benefiting over 700,000 individual shareholders and pension funds

Refreshed strategic priorities to reflect changing market conditions

  • Vision to be the leading integrated energy company, with customers at our core
  • New leadership structure, to implement our refreshed strategic priorities:
    • Innovate to drive growth and service excellence
    • Integrate our natural gas business, linked to our core markets
    • Increase our returns through efficiency and continued capital discipline
  • Build on our distinctive capabilities downstream, with North America a more material part of the Group
  • Optimise and develop our upstream gas portfolio, investing where we see attractive value

Helping our customers in difficult times

  • Clear and simple bill design and tariffs; helping customers to understand why external costs are rising and how to find the best tariff for them, with our personalised tariff checker product
  • 5 star customer service rating from Consumer Focus
  • 400,000 customers to receive £130 Warm Home Discount
  • British Gas residential energy returned to customer account growth in the early weeks of 2013, following 1% decline in 2012
  • Added over 200,000 residential customer accounts in Direct Energy; innovative offerings and high levels of customer service

Securing sustainable and affordable energy supplies

  • £2.7 billion invested in 2012
  • Construction of £1.4 billion North Sea Cygnus gas field started, creating 4,000 UK jobs and producing gas for 1.5 million UK homes
  • First power from Lincs offshore wind farm, will supply electricity for 200,000 UK homes; first production from three gas fields in last 12 months; York and Rhyl first gas expected in coming weeks
  • Positive results from exploration drilling at Rodriguez and Whitehaven in early 2013, following lower levels of drilling success in 2012
  • Commitments to secure gas and power for the UK totalling more than £50 billion

 

Unless otherwise stated, all references to operating profit or loss, taxation and earnings numbers throughout the announcement are adjusted figures, as reconciled to their statutory equivalents in the Group Financial Review on pages 9 and 10. Statutory earnings for the year are £1,273 million.

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