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Centrica, the company that owns British Gas, has reported record profits for the 2022 financial year.
Operating profits of £3.3bn were recorded at the company, up from £948m in 2021, and surpassing the firm’s previous highest ever yearly profit of £2.7bn, posted in 2012.
The oil and gas producer has been helped by high energy prices. Wholesale gas costs had risen to new highs in the wake of the war in Ukraine.
Supplies have been limited since Russia’s invasion and the subsequent sanctions imposed on the country.
As political pressure rose to tackle all time high profits, Centrica became subject to the 45% windfall tax on electricity generators.
The government estimated that its windfall tax will raise £14bn in 2023.
However, Centrica’s record-breaking figures have triggered renewed calls for tougher taxes on bumper profits for energy providers.
British Gas gains customers but profits drop
Despite Centrica’s announcement, the financial performance of British Gas itself was not as strong as its parent company.
Adjusted operating profit decreased to £72m in 2022 from £118m 2021 – a 39% decline.
At the same time the company had an increase in its number of residential customers. There were 7.5 million customers, up 4% from the previous year.
But because of Centrica’s wider performance, payments to shareholders in the company are to rise to 3p per share.
Dividend payments of 1p per share were restored in July after a pandemic-era pause and have now risen by 2p, upping the full-year payment.
More shares are to be bought from investors. The existing £250m share buyback programme has been expanded by an additional £300m, meaning Centrica will own 10% more of all shares currently issued.
Centrica paid £1bn in tax during the year, the accounts showed.
Operating profit rose to £724m from a loss of £38m in 2021, which the company said reflected “strong generation volumes and higher achieved prices”.
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