New Delhi
Sky-high energy prices and historic inflation may have caused financial woes to ordinary Britishers but the multinational oil and gas companies are having a payday. Reportedly, British Gas giant Centrica has posted operating profits of $1.5 million in the first six months of the year, up $283 million from a year ago.
We have today announced our 2022 interim results. Our financial performance was good, against a backdrop of high and volatile commodity prices, we continue to make good progress towards the 3-point turnaround strategy. A full breakdown is available here â https://t.co/xO4we0BQUz
â Centrica plc (@centricaplc) July 28, 2022
The profits come on the heels of wholesale gas prices in the continent hitting new record highs, ever since Russia decided to invade Ukraine in February, earlier this year.
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Moreover, the company's profits were boosted by selling its assets. The British major solid its Spirit Energyâs Norwegian and Statfjord UK oil and gas assets this year to register impressive numbers.
"The increase in adjusted operating profit was primarily driven by the Upstream businesses, reflecting strong production and generation volumes and the impact of higher commodity prices." the company stated.
Reportedly, after not sharing dividends in 2020, Centrica is expected to pay a dividend of $1.2 per share to its shareholders, totalling $71.5 million.
While the company made fivefold profits, its chief executive Chris OâShea warned that the UK was about to face a difficult winter where average household winter bills could rise to $5,000.
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When asked what the company was doing to help the customers facing hardships, Chris stated:
"We are investing in our customers and colleagues, creating at least 500 additional UK-based customer service roles in British Gas Energy and 1,000 new UK engineering apprenticeships, while through the British Gas Energy Support Fund we are providing grants to help customers pay their energy bills."
The war between Ukraine and Russia has hit Europe the hardest. Up until last year, Russia supplied the European Union, which the UK was part of once, with 40 per cent of its gas needs. However, that figure has dropped drastically this year as Russia continues to use its position of leverage to hurt Europe for supporting Ukraine.
(With inputs from agencies)
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