27 July 2023
Centrica saw strong operational and financial performance in the first half of 2023, benefiting from a balanced portfolio
Adjusted basic EPS of 25.8p, up from 11.0p in 2022
Closing adjusted net cash of £3.1bn compared to £1.2bn at the end of 2022.
Interim dividend up 33% to 1.33p per share.
Share buyback programme extended by £450m
Centrica outlines a
green-focused investment strategy with annualised investment building to £600m-£800m until 2028
2023 full year adjusted earnings and free cash flow expected to be heavily weighted towards H1
Strong performance from our balanced portfolio
- Adjusted operating profit (AOP) of £2.1bn (2022: £1.3bn). Adjusted basic EPS of 25.8p (2022: 11.0p).
- Statutory operating profit of £6.5bn (2022: £1.1bn loss). Statutory basic EPS of 73.0p (2022: 14.7p loss).
- £4.7bn non-cash pre-tax gain on certain re-measurements (2022: £2.5bn loss), largely reflecting the unwind of unrealised losses from UK energy supply hedging positions at the end of 2022.
- Group free cash flow of £1.4bn (2022: £0.6bn), in line with the increase in AOP.
- Statutory net cash flow from operating activities of £2.5bn (2022: £0.2bn) includes £1.1bn of margin cash and collateral inflow (2022: £0.5bn outflow).
- Closing adjusted net cash of £3.1bn compared to £1.2bn at the end of 2022.
- Interim dividend up 33% to 1.33p per share.
- Share buyback programme extended by £450m.
- 2023 full year adjusted earnings and free cash flow expected to be heavily weighted towards H1.
“Our integrated portfolio of businesses and the relentless focus from our 20,000 amazing colleagues has enabled us to deliver another strong financial performance, which includes significant one-off recovery of past costs through the UK price cap mechanism. I'm proud of the incredible work our colleagues do every day to help customers struggling with the cost-of-living crisis. We are doing more than any other UK energy company – and we will continue to be there when our customers need us.”
Chris O'Shea, Group Chief Executive
A refreshed strategy focused on creating value through the energy transition
- A balanced portfolio with leading market positions, where each business complements, de-risks and adds value to other parts of the portfolio.
- Delivering ~£800m of sustainable AOP from our Retail and Optimisation businesses, with additional material cash flows from existing Infrastructure assets over the medium term.
- Strong liquidity and a robust balance sheet, with net debt/EBITDA of <1x over the medium term.
- A green-focused investment strategy with annualised investment building to £600m-£800m until 2028, delivering average portfolio post-tax unlevered returns of 7-10%+, with further Group portfolio benefit. Expect to maintain Return on Average Capital Employed of at least 20% through the investment horizon.
- Progressive dividend policy trending to 2x earnings cover over time.
Snapshot of H1 Results
Adjusted operating profit
Interim dividend per share
Adjusted earnings per share
Group free cash flow
Adjusted net cash
Group colleague engagement