Centrica making £5,000 Profit Per Minute - 23/02/2012

Electricity and gas provider Centrica has announced an increase in its full-year profits for 2011.

The firm, which owns British Gas, revealed its 2011 profits were up to £2.4 billion or £5,000 per minute.

Profits from its domestic energy sales were down but its upstream division that generates electricity and extracts gas was massively up.

The firm blamed the impact of higher wholesale prices and warmer weather for the decline in domestic energy sales, noting the average consumer bill was £37 lower in 2011 than in 2010.

Chief executive of Centrica Sam Laidlaw was quoted by the BBC as saying: "2011 was a tough year, both for Centrica and our customers."

The firm added it has been able to remain in profit overall due to its strong operations in North America and the gas and electricity price increases it announced in August 2011, the news provider said.

A breakdown of its costs revealed more than 80 per cent of customers' bills are due to factors beyond the company's control, Centrica said, with 56 per cent of gas expenses coming from wholesale prices, while it made five per cent profit on both gas and electricity charges.

Looking forward, Centrica estimated wholesale gas prices are expected to continue rising, with expenses predicted to be 15 per cent higher by next winter.

It is not the first of the Big Six gas and electricity suppliers to reveal its full-year results for 2011, with EDF stating last week it increased its profits to £1.6 billion, despite a drop in earnings as customers used less fuel.

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