Centrica Plc · LSE:CNA
Centrica — H1 2023 Earnings Presentation
28 slides from Centrica's earnings presentation, Jul 27, 2023
Slide 1: Interim results for the period ended 30 June 2023
Interim results for the period ended 30 June 2023 27th July 2023
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Centrica shares or other securities. This presentation contains certain forward-looking statements with respect to the financial condition, results, operations and busi
Slide 3: Strong Performance From Our Balanced Portfolio
Strong Performance From Our Balanced First Half Financials Portfolio SECTION 01 Strong Performance From Our Balanced Portfolio Chris O’Shea Group Chief Executive 3
Slide 4: Strong performance from our balanced portfolio
Strong Performance From Our Balanced First Half Financials Portfolio Strong performance from our balanced portfolio Good operational performance across the Group – Investing in operations and customer service in Retail – Strong Optimisation performance – Good volumes and asset availability in Infr
Slide 5: First Half Financials
Strong Performance From Our Balanced First Half Financials Portfolio First Half Financials Russell O’Brien Group Chief Financial Officer 5
Slide 6: Strong financial performance in the first half of 2023
Strong Performance From Our Balanced First Half Financials Portfolio Strong financial performance in the first half of 2023 £2.1bn 25.8p £1.4bn £3.1bn 1.33p H1 2022: £1.3bn H1 2022: 11.0p H1 2022: £0.6m Dec 2022: £1.2bn H1 2022: 1.0p Group adjusted Adjusted basic EPS Group free cash flow Group adjus
Slide 7: Operating profit growth across every pillar
Strong Performance From Our Balanced First Half Financials Portfolio Operating profit growth across every pillar Six months ended 30 June (£m) 2022 2023 Retail 138 962 British Gas Services & Solutions 7 20 British Gas Energy 98 969 Bord Gáis Energy 33 (27) Optimisation 298 471 Energy Marketing & Tra
Slide 8: Robust free cash flow generation…
Strong Performance From Our Balanced First Half Financials Portfolio Robust free cash flow generation… Six months ended 30 June (£m) 2022 2023 EBITDA 1,660 2,304 Tax (367) (402) Dividends received - 60 Working capital / other (438) (360) Decommissioning spend (43) (86) Capex (excl. Spirit Norway) (1
Slide 9: …including material working capital movements
Strong Performance From Our Balanced First Half Financials Portfolio …including material working capital movements Six months ended 30 June (£m) 2022 2023 EBITDA 1,660 2,304 2023 Tax (367) (402) British Gas Energy (1,555) Dividends received - 60 EM&T 765 Working capital / other (438) (360) Centrica
Slide 10: An increase in closing net cash
Strong Performance From Our Balanced First Half Financials Portfolio An increase in closing net cash Six months ended 30 June (£m) 2022 2023 Six months ended 30 June (£m) 2022 2023 EBITDA 1,660 2,304 Free cash flow 643 1,377 Tax (367) (402) Interest (117) (3) Dividends received - 60 Pension deficit
Slide 11: A strong investment grade balance sheet
Strong Performance From Our Balanced First Half Financials Portfolio A strong investment grade balance sheet Assets/(Liabilities) (£bn) 4 2 Balance sheet strength and strong investment grade credit ratings … 0 0.8 (2) (1.3) …allowing us to buy energy for our customers in advance as a responsible sup
Slide 12: Outlook
Strong Performance From Our Balanced First Half Financials Portfolio Outlook 2023 EPS and FCF expected to be Spirit and Nuclear hedging positions heavily H1 weighted External uncertainties remain H2 2023 2024 2025 – Weather, commodity prices, economy, Volume Average Volume Average Volume Average
Slide 13: H1 2023 Appendix
centrica H1 2023 Appendix
Slide 14: Fixing the foundations in British Gas Services & Solutions
Strong Performance From Our Balanced First Half Financials Portfolio Fixing the foundations in British Gas Services & Solutions Reducing reschedule rate Reducing absence rate Higher Engineer NPS 15% 70 12% 9% 11% 66 64 7% 6% 6% 60 3% 2020 2021 2022 2023 H1 2020 2021 2022 2023 H1 2020 2021 2022 2023
Slide 15: Transforming customer experience in British Gas Energy
Strong Performance From Our Balanced First Half Financials Portfolio Transforming customer experience in British Gas Energy Maintaining and growing our leading Continued good progress on Transformed customer experience with our market share customer migration new platform British Gas Energy Resident
Slide 16: Group Financials
Strong Performance From Our Balanced First Half Financials Portfolio Group Financials Six months ended 30 June (£m) 2022 2023 Adjusted revenue 14,302 20,486 Adjusted gross margin 2,263 3,307 Adjusted operating costs (970) (1,292) Adjusted operating profit 1 1,342 2,083 Net finance cost (78) (36) Gro
Slide 17: Revenue
Strong Performance From Our Balanced First Half Financials Portfolio Revenue Six months ended 30 June (£m) 2022 2023 British Gas Services & Solutions 744 780 British Gas Energy 5,090 11,889 Bord Gáis Energy 784 1,037 Centrica Business Solutions 1,295 1,977 Energy Marketing & Trading 6,355 4,402 Upst
Slide 18: Adjusted gross margin
Strong Performance From Our Balanced First Half Financials Portfolio Adjusted gross margin Six months ended 30 June (£m) 2022 2023 British Gas Services & Solutions 255 287 British Gas Energy 551 1,677 Bord Gáis Energy 97 46 Centrica Business Solutions 113 178 Energy Marketing & Trading 337 474 Upstr
Slide 19: EBITDA
Strong Performance From Our Balanced First Half Financials Portfolio EBITDA Six months ended 30 June (£m) 2022 2023 British Gas Services & Solutions 29 43 British Gas Energy 139 999 Bord Gáis Energy 44 (17) Centrica Business Solutions 39 103 Energy Marketing & Trading 298 410 Upstream 1,084 746 Othe
Slide 20: Adjusted operating profit
Strong Performance From Our Balanced First Half Financials Portfolio Adjusted operating profit Six months ended 30 June (£m) 2022 2023 British Gas Services & Solutions 7 20 British Gas Energy 98 969 Residential energy supply 55 913 Business energy supply 43 56 Bord Gáis Energy 33 (27) Centrica Busin
Slide 21: Remeasurements and exceptional items
Strong Performance From Our Balanced First Half Financials Portfolio Remeasurements and exceptional items Exceptional items and statutory profit Six months ended 30 June (£m) 2023 Adjusted operating profit 2,083 Re-measurements - Energy supply 1,512 Re-measurements – Upstream and EM&T (incl. share o
Slide 22: Net investment
Strong Performance From Our Balanced First Half Financials Portfolio Net investment Six months ended 30 June (£m) 2022 2023 British Gas Services & Solutions (16) (28) British Gas Energy (6) - Bord Gáis Energy (17) (43) Centrica Business Solutions (25) (51) Energy Marketing & Trading (3) (4) Upstream
Slide 23: Free cash flow
Strong Performance From Our Balanced First Half Financials Portfolio Free cash flow Six months ended 30 June (£m) 2022 2023 British Gas Services & Solutions (54) (16) British Gas Energy (507) (556) Bord Gáis Energy 66 (135) Centrica Business Solutions 124 232 Energy Marketing & Trading 218 1,170 Ups
Slide 24: Spirit Energy – P&L and KPIs
Strong Performance From Our Balanced First Half Financials Portfolio Spirit Energy – P&L and KPIs 2022 Retained Six months ended 30 June Retained Disposed Total 2022 2023 Production Gas (mmboe) 8.6 2.8 11.4 8.6 7.8 Production Oil (mmboe) 0.7 3.5 4.2 0.7 0.5 Achieved gas price (p/th) 75 191 104 75 84
Slide 25: Continuing to deliver for customers, colleagues and communities
Strong Performance From Our Balanced First Half Financials Portfolio Continuing to deliver for customers, colleagues and communities Supporting customers Colleagues Energy Security Community • Helping customers manage their energy bills by supporting them on • Colleague engagement of 76% • Investing
Slide 26: Taking action on climate change
Strong Performance From Our Balanced First Half Financials Portfolio Taking action on climate change The CDP is a global non-profit organisation that drives companies and The ‘Taskforce on Climate-related Financial Disclosures’ (TCFD) is an governments to reduce their greenhouse gas emissions, s
Slide 27: A responsible employer
Strong Performance From Our Balanced First Half Financials Portfolio A responsible employer We secured a top score of 94% for our The CCLA again named Centrica as a leader in We are proud to have been included in The response to the Workforce Disclosure Initiative, its Mental Health Benchmark
Slide 28: Market commodity prices
Strong Performance From Our Balanced First Half Financials Portfolio Market commodity prices Average Brent oil prices Average UK NBP gas prices Average UK baseload power prices ($/bbl) (p/th) (£/MWh) $101 272p £272 $80 $80 $71 $76 114p 134p £129 £121 104p 121p £105 £109 2021 2022 2023 2024 2025 2021