British Gas has seen its household supply earnings tumble as unseasonably warm weather across the UK and Europe hammered energy demand. The Centrica-owned supplier reported underlying earnings of £133 million for the six months to June 30, down from £156 million the previous year.
The energy giant took a £50 million hit from what it described as "unseasonably warm weather conditions across the UK and Europe, with April being the third warmest on record". Households turned down their central heating thermostats as temperatures soared, whilst lower energy prices also contributed to the decline.
Customer numbers stabilise despite challenges
Despite the earnings drop, British Gas managed to halt the exodus of customers that has plagued the company in recent years. The supplier saw a 1% rise in households served, reaching 7.5 million customers as at the end of last month.
The broader Centrica business felt the impact across its operations, with underlying earnings nearly halving to £549 million from £1.04 billion a year earlier. On a reported basis, the company swung to an operating loss of £69 million, a stark contrast to the £1.68 billion earnings posted twelve months ago.
Chief executive outlines transformation plans
Chris O'Shea, Centrica's group chief executive, acknowledged the challenging conditions but highlighted progress in key areas. "I'm pleased with the progress we've made in some areas during the first half despite a challenging backdrop," he said.
O'Shea emphasised that there was "still much more to do across the group" as the company accelerates efforts to become "a leaner, more agile organisation". The transformation includes deploying artificial technology (AI) to drive customer retention and support commercial growth, alongside simplifying operations by cutting overheads.
Nuclear investment follows results
The results come just days after Centrica announced a major investment of £1.3 billion for a 15% stake in the new Sizewell C nuclear power plant in Suffolk. O'Shea said the company was "transforming the way we do business, allowing us to deliver on our full potential".
(PA) Note: This article has been edited with the help of Artificial Intelligence.
