30 July 2019
"Centrica faced an exceptionally challenging environment in the first half of 2019, which impacted earnings and cash flows. We have also regrettably had to make the decision to rebase the dividend due to our changed circumstances including the UK energy price cap and increased demands on our cash flows, including additional pension contributions."
The outlook is more positive for the second half of the year and we expect this momentum to continue into 2020, while we expect to meet our cash flow and net debt targets for 2019.
Today, we have announced our intention to exit oil and gas production. This will complete our shift towards the customer, as we focus on our distinctive strengths, with an emphasis on helping our customers transition to a lower carbon future. This major refocusing of our portfolio will unlock further efficiencies enabling us to be even more cost competitive, as we focus on being a leading Energy Services and Solutions provider.
- The Group has amended the presentation of energy derivative contracts and re-presented prior period accordingly. See note 3(c) to the Financial Statements for further details.
- Includes an impact of Centrica adopting IFRS 16 from 1 January 2019 of £394m. See notes 3(a) and 12(b) for further details.