British Gas owner Centrica PLC (CNA.LN) said Tuesday that pretax profit for the first half of 2018 increased significantly despite rising commodity prices, extreme weather, increased competition and political and regulatory uncertainty.
For the six months ended June 30, the energy supplier made a profit of 415 million pounds ($544.8 million) compared with GBP79 million in the same period a year earlier, when it incurred a GBP549 million charge.
Revenue increased 7% to GBP15.30 billion from GBP14.30 billion.
The FTSE 100-listed company held the interim dividend at 3.60 pence a share and said it expects to maintain the full-year dividend at 12 pence.
Centrica said for the full year it expects adjusted operating cash flow to be higher than in 2017, and within the company’s targeted range of GBP2.1 billion to GBP2.3 billion, and capital expenditure to be no more than GBP1.1 billion.
The company also said it is on track to deliver GBP200 million of saving in 2018.
Chief Executive Iain Conn said Centrica is awaiting the final outcome of regulation to impose a temporary cap on all default tariffs for residential customers in the U.K., but the company has plans in place to manage this.
Centrica also said that Chief Financial Officer Jeff Bell will stand down from his position at the end of October and will leave the company in July 2019. Centrica has appointed Chris O’Shea as Group CFO and Executive Director From Nov. 1.
Provident Financial PLC (PFG.LN) said Tuesday that pretax profit for the first half of 2018 fell 53%, weighed by weakness at its home-credit division, and that it will restore its dividend for the year.
For the six months ended June 30, the doorstep lender made a profit of 34.6 million pounds ($45.4 million) compared with GBP73.3 million in the same period a year earlier.
Adjusted pretax profit, before amortization and one-of costs, declined 24% to GBP74.9 million from GBP98.6 million.
FTSE 250-listed company said that based on the good progress it has made in the first half of the year, it intends to restore its dividend at the end of this year.
The company also said it has appointed Patrick Snowball as chairman effective Sept. 21 and Interim Chairman Stuart Sinclair will retire from the board.
Provident said in the second half of the year it will focus on implementing the home-credit recovery plan and on obtaining authorization from the U.K. Financial Conduct Authority for its consumer-credit division and delivering the repayment option program in Vanquis Bank. It also said it plans to further develop its governance and culture, progress the FCA investigation at Moneybarn and continue to strengthen its funding position.
Source : MTV
