British Gas owner Centrica cashes in on soaring energy prices

British gas owner Centrica has forecast a more than seven-fold increase in profits for 2022, after taking advantage of exploding energy prices.

The FTSE 100 group said it would return earnings of 30p per share for the year, equivalent to nearly £1.8bn and a huge increase on the £237m generated in 2021.

It ended 2022 with more than £1 billion in cash, well above market projections of £725 million.

Meanwhile, Centrica announced that Russell O’Brien, a former Shell executive, would take over as chief financial officer in March, replacing Kate Ringrose.

The shares jumped 3.8 percent, or 3.5p, to 95.3p.

“Higher energy prices are not bad news for everyone,” said AJ Bell investment director Russ Mold.

However, he noted that it was an “open question” about how much Centrica’s success was due to its own actions rather than the movements of global energy markets.

But the windfall could further fuel anger over huge profits from energy companies, as UK households grapple with rising bills following a spike in international fuel prices following the war in Ukraine.

“While the public freezes and depends on warm banks and food banks to make ends meet, energy companies are laughing all the way to their own banks,” said Simon Francis of the End Fuel Poverty Coalition.

He called on the government to review its unexpected taxes and “close the loopholes so that those who benefit from the energy bill crisis fund the extra support needed to keep people warm and businesses afloat.”

Centrica has come under fire for its status as the UK’s largest electricity and gas supplier.

Last February, boss Chris O’Shea waived a £1.1m bonus to assuage public anger over rising bills, and in July it faced criticism again when it reinstated its dividend after a rise in half-yearly profits.

The company has tried to mitigate the negative publicity by making a £50 million payment to help customers with living costs.