Energy suppliers Centric expected to post record profits - 26/07/2010
Energy suppliers Centrica, the parent company of British Gas, are expected to post record profits later this week.
Analysts predict Centrica will post a 95 per cent increase in profits for the first half of this year - largely attributed to the coldest winter in 30 years.
According to Citigroup, British Gas' profits from selling domestic gas and electricity to households will hit £583 million - up from £300 million last year, with a further £132 million generated by the company's business gas and electricity division.
Meanwhile, Goldman Sachs predicts that British Gas' underlying profits will be closer to a 50 per cent increase over the last two quarters, with the company's residential business posting a record £624 million profit.
Despite the expectation that British Gas will post such substantial profits, the company is unlikely to yield to calls to reduce household bills, arguing that its margins will soon feel the pressure of rising wholesale gas prices.
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