Centrica has reported a “solid” financial performance in the four months to October, with energy supply customers continuing to switch away, but at a slower rate.
The update, released today (21 November), showed British Gas has lost 107,000 customers since July, compared to 178,000 in the first half of the year. Over the course of 2018, the company lost 742,000 UK energy supply accounts.
In the UK, total Centrica Consumer accounts increased by 136,000, with growth in services and home solutions.
Centrica says it continues to expect adjusted earnings to be weighted towards the second half of the year, adjusted operating cash flow to be in the lower half of the targeted £1.8-£2 billion range and year-end net debt to be within the targeted £3-£3.5 billion range.
The company now expects capital investment of around £800 million, a reduction of £100 million compared to indications in the interim results, and in-year efficiency savings of around £300 million, an increase of £50 million compared to the target.
In July chief executive Iain Conn announced he was stepping down from his role after an “exceptionally challenging” first half of 2019.
The British Gas owner saw a statutory operating loss for the six months to 30 June of £446 million compared to a £704 million profit last year.
Speaking today he said: “Our performance has been solid so far in the second half of the year and we remain on track to achieve our full year targets for both adjusted operating cash flow and net debt.
“I am encouraged by further growth in customer accounts and the recovery of business energy supply margins in North America, while we also continue to drive material levels of efficiency and maintain capital discipline.
“Our focus remains on satisfying the changing needs of our customers, providing energy supply and its optimisation, and services and solutions to enable the transition to a lower carbon future.”
The company also referenced its recent success in a judicial review challenging Ofgem’s calculation of the energy price cap.
It said: “This outcome underlines the importance of transparent and rigorous regulatory processes to ensure well-designed regulation that is in the interest of a well- functioning energy market, which in turn allows participants to operate with confidence and ultimately benefits all energy consumers.”
Centrica’s shares rose eight per cent in early trading. The company is due to release its preliminary results on 13 February 2020.