Centrica Plc (CNA.L) the parent company of British Gas, said Monday that it continues to expect full year profitability to be lower than the prior year as the 2008 result included non-recurring revenue from the sale of reservoir cushion gas.
According to Centrica, British Gas Residential has had a strong start to the year, ahead of the same period in 2008. The benefit of unusually high demand due to cold weather and falling wholesale commodity prices enabled British Gas to lead retail prices downwards in February 2009, with a 10% reduction in residential gas prices.
The Group said that the trading conditions remain challenging in North America, with low wholesale energy prices leading to reduced profitability in upstream and wholesaling business, and lower margins in Texas retail business in the first quarter owing to higher-priced forward-purchased commodity.
The company currently expects after tax earnings to be ahead of 2008. The Group net interest charge for the full year is forecast to be in excess of £150 million due to the impact of the fall in interest rates on the cash on deposit.
Overall, the outlook for Group earnings for the existing business for the full year continues to be in line with expectations.
In a separate communiqué, EDF Group and Centrica plc announced that they have reached a definitive agreement whereby Centrica will invest in EDF's nuclear business in the UK. Centrica will invest £2.3 billion for a 20% stake in Lake Acquisitions.
In the same release, EDF said it will buy Centrica's 51% stake in Belgium's SPE for EUR 1.3 billion. EDF and Centrica will also form an 80-20 joint venture to pursue a planned program to build nuclear power stations in the U.K.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.