I work for Centrica, and we got alot of information regarding this, basically it was:
2007 was a year of two halves; first half saw lower wholesale energy prices allowing us to cut our energy prices, second half saw a sharp rise in wholesale prices.
Two thirds of our 2007 profit came from the first six months of the year. But by the end of 2007, British Gas Residential was loss-making due to a sharp rise in wholesale energy prices.
Our highest priority now is investing billions of pounds to secure new sources of gas and power for customers.
We will also need to invest billions more in low carbon power generation by 2020.
You don't have to except any of the above and i'm not about to defend it too much, but it is a business and Centrica took British Gas and have turned it into a viable business and sorted alot of the bad reputation it had, out. Anyway it is crazyu profit but at least we haven't had price increase then piled 80 million pounds into sponcering the 2012 olympics like E-On have!!
I have shares in Centrica
so i was pretty much on the mark with the exploration fundings
now could be a good time to top up your shares with centrica due to the recent slump in price. brokers also rating the stock as BUY.
to add a bit more balance:
Sam Laidlaw, the Centrica chief executive, plans to spend at least £1 billion a year over the next few years buying gasfields to supply its customers.
In particular, the utility giant is thought to be eyeing an offer for the Nogat fields, which were put up for sale late last year.
The move is part of the groupís plans to cut its dependence on buying gas from the wholesale market, where prices have fluctuated wildly in recent months.
Centrica came under fire last week after it emerged it had made record annual profits of £1.9 billion, a month after raising customer prices by 15%.
The company has attempted to argue that the huge profits emerged after it misjudged the movement of prices in the gas market. Centrica raised its prices after anticipating that the market price for gas would be 45p a therm in the depths of winter. In the end, the price was only 25p a therm.
Npower, owned by Germanyís RWE, announced on Friday it had seen a 40% jump in profits in its UK business to £545m.