Centrica : 2026 Interim Results Announcement

About this update from Centrica Plc

Centrica plc interim results For the six months ended 30 June 2026 Investor presentation Centrica will hold its 2026 Interim Results presentation for analysts and institutional investors at 9.30am (UK) on Thursday 23 July 2026. There will be a live webcast of the presentation and slides. Please register to view the webcast at: https://secure.emincote.com/clients/centrica/results/2026-interim-results Enquiries Investors and Analysts Media [email protected] [email protected] +44 (0)1784 843000 Unless otherwise stated, all references to the Company shall mean Centrica plc, and references to the Group shall mean Centrica plc and all of its subsidiary undertakings and equity-accounted associate/ joint venture undertakings. This announcement does not offer investment advice, and does contain forward-looking statements. The Disclaimer relating to the Interim results is included on page 73. Published 7am on 23 July 2026. BUILDING A STRONGER, HIGHER QUALITY CENTRICA Solid H1 performance with EBITDA of £737m and EPS of 6.8p; YoY decline driven predominantly by Spirit Energy asset disposals and production outages. Progress building our regulated and contracted Infrastructure portfolio with Severn CCGT acquisition, ongoing ramp-up in the Meter Asset Provider, Sizewell B CfD and nuclear life extensions. Transformation programme (i) ramping up, with investment of £92m in H1. Interim dividend increased by 9% to 2.0p. Long-term targets unchanged - £2.0bn adjusted EBITDA and doubling (ii) EPS by 2030. " Our journey to create a higher quality, more valuable Centrica continued during the first half of 2026. Our operational foundations are strong, commercial performance is improving, and we continue to progress our transformation programme as we drive efficiency through the organisation. Volatility across energy markets has created challenges in some parts of our business, and some of our delivery has been slower than we would like. However, we have continued to invest with discipline to strengthen our portfolio and support long-term growth, making progress pivoting the Group towards more stable and predictable earnings. There is still much more to do, and by remaining nimble and bold, we can deliver our ambitious long-term targets. " Chris O'Shea | Group Chief Executive SOLID FINANCIAL PERFORMANCE Six months ended 30 June 2026 2025 2026 2025 Adjusted measures (iii) Statutory measures EBITDA Operating profit (AOP) Basic earnings per share (EPS) Free cash flow Capital investment Net cash £737m £497m 6.8p (£570m) (£698m) £709m £900m £549m Operating profit/(loss) 7.0p Basic earnings per share (EPS) £244m Net operating cash flow (£244m) Net cash from investing activities £2,491m Interim dividend per share £710m 11.7p £27m (£512m) 2.0p (£69m) (5.1p) £294m £13m 1.83p More information on page 5. Versus 2025. Adjusted performance measures are non-IFRS, corresponding IFRS measures are also shown to facilitate comparison. See notes 3, 4, 9 10 and 12 to the Financial Statements and pages 68 to 72 for an explanation of the use of adjusted performance measures. Adjusted EBITDA of £0.7bn (H1 2025: £0.9bn) and AOP of £0.5bn (H1 2025: £0.5bn), with: Retail adjusted EBITDA of £0.3bn (H1 2025: £0.3bn) reflecting improved commercial performance and favourable price effects partially offset by higher bad debt and transformation investment in Home, and a more normalised Business result. Optimisation adjusted EBITDA of £0.1bn (H1 2025: £0.1bn) reflecting improved Gas and Power Trading performance, offset by limited optimisation opportunities and phasing of revenue in LNG. Infrastructure adjusted EBITDA of £0.4bn (H1 2025: £0.5bn) reflecting the impact of Spirit Energy disposals and outages, and lower realised prices in Nuclear, partly offset by Rough indigenous gas sales, and growing profits from rateable assets. Net finance cost of £38m (H1 2025: £26m income) due to lower interest income on cash balances. Adjusted basic EPS of 6.8p (H1 2025: 7.0p); interim dividend per share of 2.0p (H1 2025: 1.83p). Statutory operating profit of £0.7bn (H1 2025: £0.1bn loss) including £0.2bn (H1 2025: £0.6bn loss) from a net gain on re-measurements of derivative energy contracts and reversal of impairments. Statutory basic EPS of 11.7p profit (H1 2025: 5.1p loss). Free cash outflow of £0.6bn (H1 2025: £0.2bn inflow), with capital investment of £0.7bn (H1 2025: £0.2bn), including the acquisition of the Severn Combined Cycle Gas Turbine ("CCGT") and strong capital deployment in the Meter Asset Provider ("MAP"). Statutory net operating cashflow of £27m (H1 2025: £294m) including £126m of margin cash and collateral inflow (H1 2025: £22m outflow), with total margin cash held of £62m (H1 2025: £61m posted) at 30 June. Closing adjusted net cash of £0.7bn (FY 2025: £1.5bn). STRATEGIC HIGHLIGHTS We delivered further strategic progress during the first half of 2026. By building a portfolio with more stable earnings and focusing on our strategic value levers - operational excellence, commercial innovation and investing for value - further supported by ongoing ramp-up of our transformation programme, we are creating a fundamentally stronger, higher quality Centrica. Operational excellence supporting commercial innovation and greater efficiency Focus on driving commercial innovation across Retail; Progressing new sales channels, including the digital first British Gas membership scheme, launched in May 2025, now with 1m+ members and 15% conversion to paid products. Focus on value creation from profitable customers; average fixed price margin per UK energy customer up 10% compared to the end of the year, against a slight fall in Retail customers. Strong customer satisfaction (Net Promoter Scores ("NPS")) and lower complaints per customer across Retail, supporting an "Excellent" 4.4 star British Gas Trustpilot score (H1 2025: 4.3 stars), and lower inbound customer contact. Transformation programme and changing customer behaviour supporting more efficient operations. c.1,300 proposed role reductions underway; c.14% reduction in customer operations workforce. 3% reduction in operating costs excluding bad debt and depreciation. Investing for value Acquisition of the 850MW Severn CCGT for net consideration of £367m completed, adding further large-scale dispatchable power generation to our portfolio, underpinned by contracted capacity market revenues. Strong progress in our MAP, with 728k meters installed in H1 2026 (capital investment £133m) and 2.3m meters under management at the end of the period, generating run-rate EBITDA of c.£60m per annum; unrivalled installation pipeline locks in predictable long term growth. Sizewell B life extension to 2055 announced in July 2026, supported by a £70.50/MWh Contract for Difference ("CfD") starting in 2035, further pivoting our infrastructure portfolio towards long-term predictable earnings. Life extensions were confirmed in July 2026 for the Heysham 1 and Hartlepool nuclear stations from March 2028 to March 2030. Rateable Infrastructure portfolio (MAP, Grain LNG and Sizewell C) adjusted EBITDA of £88m in H1 2026. On-track for around £175m for the full year. Progressing long-term options including X-energy advanced modular reactors, behind the meter solutions, including potential data centre opportunities, and Morecambe Net Zero. 2026 OUTLOOK For 2026, subject to the usual uncertainties, we currently expect: Retail to be towards the lower end of £500m-£800m adjusted EBITDA guidance range. Optimisation to deliver adjusted EBITDA of around £250m. Infrastructure to generate adjusted EBITDA of £650m-£750m. MAP, Sizewell C and Grain LNG contribution to be around £175m adjusted EBITDA. Net interest expense to be around £100m. Group earnings to be weighted to the first half of the year. Capital investment to be around £1.1bn. Adjusted EBITDA summary (£m) H1 2026 H1 2025 FY 2025 Retail 346 338 574 Optimisation 87 93 196 Retail and Optimisation 433 431 770 Infrastructure 355 505 728 Colleague profit share and MAP consolidation adjustment (51) (36) (81) Adjusted EBITDA 737 900 1,417 A wide range of outcomes is possible for Centrica Energy in 2027, and our planning assumptions at this stage reflect our expected views on market volatility as well as measures taken to reduce some of our exposures. We therefore expect Centrica Energy EBITDA in 2027 to be around the levels delivered in 2025 and our 2026 guidance. This will be kept under review and updated as appropriate. There is no change to the £300-400m medium-term EBITDA guidance range for Centrica Energy which underpins the end-2028 and 2030 Group EBITDA targets. GROUP OVERVIEW GROUP PERFORMANCE METRICS Six months ended 30 June 2026 2025 Change Total recordable injury frequency rate (per 200,000 hours worked) 0.57 0.61 (7%) Total Retail customers ('000) (closing) (i) 10,291 10,373 (1%) Group direct headcount (closing) 21,529 21,881 (2%) Group colleague engagement (ii) 76 79 (3pt) All 2025 comparators are as at 31 December 2025. Includes Home Energy Supply and Home Services households and Business customer sites. Now expressed as a score out of 100 following change of provider. No change to underlying result (FY 2025 previously reported as 7.9). Structural trends such as growing electrification, rising grid intermittency and complexity, and increasing consumer engagement are driving demand for low-carbon baseload power, flexible generation, storage, and more innovative, integrated energy solutions. Our unique portfolio is positioned at the intersection of these trends, combining physical assets and customer relationships with leading optimisation capabilities and data-led insight. Details of business unit performance can be found in the business unit reviews on pages 8 to 13. Transformation programme ramping up Our technology-led transformation programme continues to ramp up, with investment of £75m included within adjusted EBITDA and a further £17m included within capital investment in the first half of 2026. We remain on-track to deliver our ambition to hold operating costs, excluding bad debt and depreciation, broadly flat in nominal terms from 2025 through to the end of the decade, delivering a £0.5bn underlying cost reduction, which will fully absorb inflation and incremental costs supporting top-line growth. We anticipate costs to achieve the programme of around £0.6bn, around £0.4bn of operating costs and £0.2bn of capital investment. Spending in the first half was consistent with our plan. All costs are included within business performance rather than exceptional items, ensuring our colleagues are focused on the value proposition of any transformation initiative. Streamlining and re-platforming key technology architecture, notably across Retail and in our Group support functions is a focus area. We continue to actively address the root causes of customer contact and simplify journeys, supported by the targeted deployment of AI tools, leading to record levels of customer satisfaction in UK Home Energy Supply, with an NPS of +37, 4pts higher than December 2025. Customer complaints have also fallen 0.4ppts compared with the first half of 2025, and we have seen a further improvement in our Trustpilot score to "Excellent", 4.4 stars (FY 2025: 4.3 stars). Average contact per customer has fallen by 20% year-on-year, while around 90% of customers are now using digital self-serve channels, up 2ppts compared to last year. In response to these structural changes in customer behaviour, we have been managing resource levels through natural attrition. In addition, we have announced a proposed reduction of around 500 contact-based roles across our customer operations team, alongside additional reductions in offshore outsource support. Combined, these initiatives support a c.14% reduction in our total customer operations workforce. Following a structural reorganisation in 2025, we have also announced proposed role reductions in our Group support functions, as we focus on driving efficiencies. In total, these announcements represent around 1,300 role reductions either delivered, or announced and currently being implemented. We also continue to focus on driving commercial growth, streamlining our focus on the most valuable customers and market segments and on new product offers and bundles aimed at sustainably growing revenue per customer. More information is included in the Retail business unit review on pages 8 to 9. Investing for value and building long-term options We continue to progress our investment programme, targeting assets that deliver (1) attractive returns, (2) regulated and contracted earnings, (3) support the energy system of the future, (4) deliver Group-wide benefits and (5) create future options. Our MAP now has over 2.3m Centrica-owned smart meters under management, including 0.7m installed in the first half of 2026, running ahead of our target, as we continue to leverage our unrivalled installation pipeline. In May 2026 we completed the acquisition of the Severn CCGT power station in South Wales from Calon Energy Group for net consideration of £367m. Commissioned in Q4 2010, Severn is one of the most efficient CCGTs in the UK, with its scale and flexibility allowing it to capture a diverse range of revenue streams, including the capacity market, provision of critical system services to the National Energy System Operator and the sale of power to the wholesale market. Severn is strategically located near growing sources of power demand, including data centre developments in South Wales, supporting long-term utilisation and revenue visibility. Severn is expected to deliver average capacity market payments of £35m per annum until 2030, and annual EBITDA of £30m-£60m from 2027, with EPS accretion from the first full year following completion. Since acquisition the station has performed strongly, supported by lower wind generation, reduced nuclear availability and higher electricity demand due to warmer weather. In Ireland, our two 100MW gas peaking plants in Athlone and Dublin are now in the final stages of preparation for commercial operations, with a total investment of around €380m (Centrica share c.80%). Plans continue to be developed for a 334MW Open Cycle Gas Turbine in Galway, with a 10-year capacity market contract at €56m per annum. The project is subject to planning approvals, with FID expected in early 2027. In July 2026, we announced a 20-year life extension at Sizewell B supported by a CfD framework. The CfD has a guaranteed strike price of £70.50/MWh from April 2035 to March 2055, based on 2025 prices and indexed to CPI inflation. The CfD supports life extension investment of approximately £800m (100% share, 2023 prices), with investment expected to be funded through operating cash flows, and no requirements for additional equity to be injected by Centrica and EDF Energy. At the neighbouring Sizewell C development project, we contributed £43m in the first half. This takes our total investment to £0.4bn, as part of our capped £1.3bn investment, underpinned by a Regulated Asset Base ("RAB") framework with a 10.8% real allowed return on equity through the full construction period, in turn supporting a 12%+ IRR. At the Heysham 1 and Hartlepool nuclear power stations we confirmed further life extensions in July 2026. Both stations are now due to close in March 2030, adding approximately 6TWh of expected incremental generation. We also continue to build our pipeline of long-term organic investment options. We continue to engage constructively with the UK Government on the future development of Rough. While we remain keen to invest in this nationally important asset, any redevelopment must be supported by a long-term regulated framework which delivers appropriate support. Our current production consent with the North Sea Transition Authority ("NSTA") expires in April 2027, and we do not currently intend to seek an extension. The announced sales of the majority of Spirit Energy's assets signals the end of our North Sea gas production. The team is now focused on producing the remaining gas at Morecambe safely and efficiently, decommissioning while minimising the environmental impact, and progressing the Morecambe Net Zero ("MNZ") project. In the first half, the NSTA confirmed that Spirit can progress into the 'Assess Phase' of its carbon storage licence which represents a major technical milestone and validation of technical integrity. The next step is securing a commitment from Government for the project at the next spending review, anticipated in 2027. Both short-term and longer-term support to enable a final investment decision are being requested so the project can plan a clear path to commercial operations. We signed a Joint Development Agreement with X-energy in September 2025 for the UK's first advanced nuclear fleet and the project continues to make progress. In March 2026 we submitted our application to the Advanced Nuclear Framework ("ANF") process which identifies and supports credible, high-potential advanced nuclear proposals. We are actively engaging with the Department of Energy Security and Net Zero ("DESNZ") on the benefits that can be delivered from a fleet of high temperature advanced gas reactors and are hopeful of a decision by this autumn. Separately, in June 2026, X-energy submitted an application for its Xe-100 High Temperature Gas-cooled Reactor to the UK's Generic Design Assessment process. Subject to acceptance, submission marks a significant milestone in efforts to deploy up to 6GW of new advanced nuclear reactors in the UK, initiating a crucial step in the UK licensing process. The assessment is expected to conclude by the end of 2029. We have also been building further strategic partnerships supporting high-efficiency, low-carbon, grid independent on-site power through our collaboration with Ceres and Delta Electronics to accelerate deployment of Solid Oxide Fuel Cell solutions to customers. Within the next 12 months, through the partnership with Delta Electronics, we plan to establish a demonstration site in the UK, with a goal of delivering rapidly deployable 'gas-to-power' solutions within the next three to five years. REGULATORY UPDATE Centrica continues to engage proactively with governments and regulators to shape frameworks that support investment in energy infrastructure that ensures energy is affordable, secure and clean. On 16 May 2026, British Gas announced that it had agreed a settlement with Ofgem in relation to Ofgem's investigation of its legacy arrangements for the installation of prepayment meters under warrant. Under the terms of the Alternative Action Agreement, British Gas agreed to pay £20m into Ofgem's Voluntary Redress Fund. In addition, British Gas is undertaking a comprehensive review of its customer records from the relevant period and, where applicable, providing redress and compensation to affected customers during the period 2018-21, in addition to the compensation already paid for the period 2022-23, and writing-off up to £70m in energy debt for vulnerable customers, a proportion of which may be used as compensation for some customers. It remains the case that no impact is expected to 2026 financial guidance as a result of this matter. Consumer energy debt across the sector is projected to rise to around £7 billion this year (source: Energy UK ). Against that backdrop, and pursuant to the settlement agreed with Ofgem, the British Gas Vulnerable Energy Customers Debt Advisory Panel, including independent experts, will support our ambition to develop industry-leading practices in the treatment of vulnerable energy customers in debt and to develop insights to help in the development of future policy in relation to vulnerable customers in debt. We welcome the Government announcement removing VAT on domestic electricity bills from October 2026, and continue to call on the Government to introduce (1) a targeted support scheme for customers on low incomes, funded by general taxation and (2) data sharing facilities between relevant Government departments and suppliers to enable better targeted support for energy customers. It is crucial that Ofgem now works closely with the Government to ensure that the necessary policy and funding decisions are in place so further support can reach customers before winter and to prevent the build-up of additional debt across the sector. In LNG and gas markets, our engagement continues to support the UK's attractiveness as a destination for global LNG flows and to reinforce security of supply. The situation in the Middle East is the latest example of gas market disruption which can cause harm to consumers and be costly for government. In this context, Centrica continues to emphasise the need for storage infrastructure to be maintained so it is available to cover disruptions in international gas markets. We continue to engage with national and EU policy makers to develop more proportionate storage filling frameworks. In Europe, the forthcoming review of security of supply arrangements is expected to consider how gas storage requirements evolve beyond their current expiry in 2027, following on from the relaxation of filling targets last year. There is now increasing focus on moving towards more targeted mechanisms such as strategic reserves rather than relying on mandatory obligations. This reflects increasing concerns around the distortive impact of existing targets and is likely to remain a key driver of gas market dynamics, reinforcing the importance of flexible supply and storage assets. FINANCIAL SUMMARY Adjusted EBITDA was £737m (H1 2025: £900m). Adjusted operating profit was £497m (H1 2025: £549m), while statutory operating profit was £710m (H1 2025: £69m loss). Six months ended 30 June (£m) Adjusted EBITDA Adjusted operating profit 2026 2025 2026 2025 Retail 346 338 281 267 Optimisation 87 93 66 73 Infrastructure 355 505 198 245 Colleague profit share (i) (14) (16) (14) (16) MAP consolidation adjustment (i) (37) (20) (34) (20) Adjusted EBITDA / Adjusted operating profit 737 900 497 549 Exceptional items and certain re-measurements 213 (618) Group operating profit/(loss) (Statutory) 710 (69) Reconciling items to Group Income statement. More details on business unit performance and the Group's financial performance can be found on pages 8 to 13 and 14 to 19 respectively. The use of adjusted non-IFRS measures provides additional useful information on business performance and underlying trends. For more information see note 3(d). RETAIL Retail consists of our leading brands serving customers across the UK and Ireland in Home and Business, including British Gas, Bord Gáis and Hive. Six months ended 30 June 2026 2025 Change Operational Home Energy Supply customers ('000) (closing) (i) 7,900 7,956 (1)% Home Services customers ('000) (closing) (i) 2,899 2,939 (1)% Business customer sites ('000) (closing) (i) 732 742 (1)% Home Energy Supply UK Touchpoint NPS (i) (ii) 37 33 4pt Home Services UK Touchpoint NPS (i) (ii) 45 43 2pt Business UK Touchpoint NPS (i) (ii) 30 37 (7)pt Home Energy Supply complaints per UK customer (%) (iii) 3.7% 4.1% (0.4)ppt Home Services complaints per UK customer (%) (iii) 2.1% 2.5% (0.4)ppt Business complaints per UK site (%) (iii) 2.5% 2.5% 0.0ppt Financial Adjusted EBITDA (£m) 346 338 2% Adjusted operating profit (£m) 281 267 5% Adjusted operating profit margin (%) 3.3% 3.1% 0.2 ppt All 2026 metrics and 2025 comparators are for the 6 months ended 30 June unless otherwise stated. 2025 comparator at 31 December 2025. Measured independently, through individual questionnaires, the customer's willingness to recommend British Gas following contact. Measured as a percentage of average customers over the period. Operational Performance We continue to build on the strong operational performance delivered across Retail in 2025. Customer satisfaction improved further, reflected in strong NPS scores, including a record high in UK Home Energy Supply of 37 (FY 2025: 33), and lower levels of complaints. British Gas achieved an "Excellent" Trustpilot score of 4.4 stars, up from 4.3 stars at the end of 2025. These improvements were supported by our focus on addressing the root causes of customer contact and investing in, and simplifying, customer journeys, supporting efficiencies in our customer operations function. For more information please see page 5. We have also continued to progress the migration of our broader customer base onto the Ignition platform, with 50% of our UK SME customers now migrated, up 6ppts in the period, While Business NPS was lower than the prior year, we saw good customer satisfaction during a period of significant operational transformation and platform migration. Having grown customers across Retail in 2025, our focus remains on pricing efficiently and sustainably, to drive long-term value. Home Energy Supply customer numbers of 7.9m at 30 June 2026 fell slightly in the period, and included 7.45m UK energy customers (FY 2025: 7.50m), although retention remained high at 91% (FY 2025: 91%). Home Services customer numbers were 2.9m at the end of the period (FY 2025: 2.9m), with customer retention also remaining strong at 87% (FY 2025: 87%), In Business, customer sites fell by 1%, against a backdrop of competitive pricing dynamics in the first half, although our focus remains on sustainably growing our Small and Medium Enterprise customer portfolio. We continue to build and refine sales channels and expand our product suite to drive deeper customer relationships. Our British Gas membership scheme is growing quickly, with over 1m members, leading to stronger customer engagement and lead generation, with conversion of around 15% to paid products. On-demand jobs continue to grow, increasing 19% in the period compared to last year, and in April we launched nationwide air conditioning installations, alongside an in-store partnership with Currys. Following optimisation of end-to-end customer journeys driven by our transformation programme, and proactively moving away from a purely seasonal focus, boiler sales increased by 11% in the period compared to 2025. This comfortably outperformed the market which contracted by 4% and included growth of 20% year on year in the warmest June on record. Financial Performance Retail adjusted EBITDA increased to £346m and adjusted operating profit increased to £281m (H1 2025: £338m and £267m respectively). Within this, there were a number of offsetting factors. Performance also included transformation investment, supporting future growth. Home Energy Supply delivered improved performance in the half. Weather was warmer than normal, as it was in the first half of 2025, partially offset by the sale of excess commodity into a higher-priced environment. The period also saw a £43m phasing benefit of regulatory costs following the cessation of the ECO scheme, having seen a similar sized benefit last year as a result of the final reconciliations of the Energy Price Guarantee scheme. While the shape of the commodity curve was not a headwind in the first half of 2026 like it was in the first half of 2025, we currently expect an under-recovery of commodity costs in the second half of 2026 given the current backwardation of the price curve, with recovery allowable in future periods under the price cap. We are also being more commercial in our pricing, with average fixed price margin per UK energy customer up 10% in the half compared to the rate at the end of 2025. Our UK residential bad debt charge of over 4% of revenue - £216m in the first half (H1 2025: £159m) -remains elevated versus historic levels. We are focussed on steps we can take to improve performance, and we continue to press Ofgem to take more proactive steps to address the non-payment of energy bills by those who are able to pay but choose not to. Business supply performance remains solid, supported by improved bad debt collection support processes, although profitability was more normalised year-on-year, as 2025 benefited from one-off procurement optimisation and pricing benefits. Home Services delivered a solid performance, with revenue growth of 5%, supported by higher smart installations and growing boiler installs. As normal, Retail adjusted EBITDA will be weighted towards the first half of the year, reflecting higher energy consumption in H1, and impacts from the shape of the commodity curve. OPTIMISATION Centrica Energy Six months ended 30 June 2026 2025 Change Operational Renewable and flexible capacity under management (GW) (i) 18.9 16.8 13% Financial Adjusted EBITDA (£m) 87 93 (6%) Adjusted operating profit (£m) 66 73 (10%) Adjusted operating profit margin (%) 2.2% 2.4% (0.2ppt) All 2026 metrics and 2025 comparators are for the 6 months ended 30 June. Including assets that have signed contracts but are not yet operational. Comparator of H1 2025 used to reflect seasonality of contracts. Operational Performance Centrica Energy continues to build a diverse portfolio of contracted physical positions, while leveraging its risk management and optimisation capabilities to add further value across the Group. Renewable Energy Trading and Optimisation ("RET&O") renewable and flexible capacity under management increased 13% year-on-year to 18.9GW, including increased battery capacity. This growth reflects continued investment in skills and technology, enabling partners to access ancillary services markets that would otherwise be unavailable to them. Gas and Power Trading delivered an improved performance in the first half, capturing value from structural volatility across asset-backed and growing algorithmic trading strategies. However, non-fundamental volatility, driven by news flow, remains a challenge and as a result we continue to manage value at risk prudently. Gas storage volumes also remain lower than historic levels given uneconomic seasonal price spreads. LNG was impacted by the Middle East crisis limiting diversion strategies and causing severe disruption to global shipping and insurance markets. In addition, we consciously delayed delivery of cargoes into the second half of 2026 to maximise value. Despite these challenges, we have continued to execute new long-term LNG deals to grow and de-risk the portfolio. In May, we expanded our offtake commitment from the first Delfin Floating LNG project for Free on Board ("FOB") LNG by 17% to 1.05mtpa. Delfin announced in June that the project had reached final investment decision, with scheduled start-up in 2030, and we have also announced an agreement to offtake 0.25mtpa on a FOB basis from Delfin's second planned floating LNG project. In June, we also signed a 10-year agreement with Peyto Exploration and Development Corporation for the purchase of the equivalent to five LNG cargoes of natural gas annually to Centrica Energy, with deliveries made at the AECO hub, and priced against European TTF, starting in 2029. Financial Performance Adjusted EBITDA was £87m and adjusted operating profit was £66m (H1 2025: £93m and £73m respectively). Within this, Gas and Power Trading had an improved first half, RET&O delivered a solid result, while LNG performance was lower than H1 2025, reflecting lower realised prices and the timing of cargo deliveries between the first and second halves of 2026. With good visibility on LNG cargo deliveries and expected performance in our other businesses, we remain confident of delivering the 2026 EBITDA guidance of around £250m. INFRASTRUCTURE Infrastructure consists of our Power, Gas and Customer Asset businesses: Power includes our investments in the UK's current operational nuclear fleet and Sizewell C, our Irish power assets, Severn CCGT, and other flexible and renewable assets; Gas includes our 50% ownership of Grain LNG, Centrica Energy Storage+ ("CES+") which is the operator of Rough, and our 69% ownership in Spirit Energy; Customer Assets is our MAP. Six months ended 30 June 2026 2025 Change Operational Power Nuclear generation (TWh) 3.2 3.6 (11)% Nuclear achieved power price (£/MWh) 78 95 (18)% Whitegate power generation (TWh) 1.2 1.0 20 % Assets in operation (GW) 2.8 1.9 47% Spirit Energy Total production volumes (mmboe) 2.9 6.8 (57)% Of which: Retained production volumes (mmboe) 1.2 2.3 (48) % Average achieved gas sales prices (p/therm) 113 111 2 % Centrica Energy Storage+ ("CES+") Volume in Rough reservoir (bcf) (ii) 11 16 (31)% Customer Assets Centrica smart meters under management ('000) (iii) 2,348 1,620 45% Financial Adjusted EBITDA (£m) 355 505 (30)% Adjusted operating profit (£m) 198 245 (19)% Capital investment (£m) (691) (219) 216 % All 2026 metrics and 2025 comparators are for the 6 months ended 30 June unless otherwise stated. Lifting and other cash production costs are total operating costs and cost of sales excluding depreciation and amortisation, dry hole costs, exploration costs and profit on disposal. Includes 11bcf (H1 2025: 13bcf) of indigenous gas, representing the remaining volume we are permitted to produce under our NSTA consent limit. 2025 comparator at 31 December 2025. Operational Performance Power Nuclear generation volumes were 11% lower than H1 2025, driven by planned outages and higher levels of unplanned outages. Longer-term nuclear generation volumes have been supported by life extensions at three of our assets, with more information available on page 6. Sizewell C is progressing well, with activity increasing across the site, and in March 2026 we injected a further £43m into the project. Our total investment to date in the project is £419m. As at the last audited accounts for the year to March 2026, Sizewell C's gross RAB was £8.4bn (100% basis), with our 15% share equating to £1.3bn. We continue to progress our longer-term advanced nuclear reactors development JV with X-energy, with more information available on page 7. The 850MW Severn CCGT power station has performed strongly since the acquisition completed in May 2026. Both units were active in the balancing market and performance was supported by lower wind generation, reduced nuclear availability and higher electricity demand due to warmer weather. In Ireland, our 445MW Whitegate CCGT also delivered a strong performance in the period, generating 1.2TWh with 99% availability. More information on the acquisition of the Severn CCGT can be found on page 6. Our two 100MW flexible natural gas peaking plants in Athlone and Dublin (Profile Park) are now in the final stages of preparation for commercial operations, with both plants expecting to have first fire in August. This is an important step towards full commercial operations, and we expect to commence revenue generation from our capacity market contracts and merchant running in Q3 of this year. We have secured an extension to the start date of the 10-year capacity market contracts to mitigate potential losses from the delays on these projects. Gas Total Spirit Energy production volumes decreased by 57% in the first half of 2026, primarily driven by the disposal of 46.25% of Spirit's interest in the Cygnus gas field in October 2025 and by outages at Morecambe which have since been resolved. We continue to work towards completion of the disposals announced in December 2025, expected in the second half of 2026, subject to regulatory approvals. More information on the disposal can be found in note 11(c). Longer-term, the focus is on progressing the exciting opportunity to transform Morecambe into a carbon storage facility through the Morecambe Net Zero project. More information can be found on page 6. At Rough, gas storage operations remained paused following suspension in 2025 due to uneconomic seasonal price spreads, and as we await further clarity on the UK Government's consultation on gas security which concluded in February 2026. Recent volatility in global energy markets continue to reinforce the importance of resilient, secure domestic gas supply infrastructure. Indigenous gas production at the asset continued in the first half with 8bcf produced and 11bcf of indigenous gas remaining at the end of June 2026 for production (H1 2025: 13bcf), following an increase in the NSTA consent limit. Working alongside our JV partner, ECP, Grain LNG has successfully brought its terminal expansion into operation, reinforcing its position as Europe's largest LNG import terminal, while accelerating its transition to a standalone business with key separation milestones delivered ahead of plan. Grain LNG is also progressing development opportunities across the site, including evaluating data centres and developing behind-the-meter power generation, to support future growth and long-term value creation. Customer Assets In H1 2026 the MAP financed a further 0.7m smart meters, leveraging our unrivalled growth pipeline, bringing total smart meters under management to 2.3m, up 45% from December 2025. Financial Performance Total Infrastructure adjusted EBITDA was £355m, with adjusted operating profit of £198m (H1 2025: £505m and £245m respectively), reflecting disposals in Spirit Energy and lower achieved prices and outages in power assets, principally within Nuclear. Nuclear adjusted EBITDA was £123m (H1 2025: £193m), with adjusted operating profit of £60m (H1 2025: £107m), predominantly driven by lower achieved prices given our rateable hedging strategy, and lower generation volumes. Sizewell C adjusted EBITDA and adjusted operating profit was £15m (H1 2025: £nil). Spirit Energy adjusted EBITDA was £72m (H1 2025: £310m), with adjusted operating profit of £55m (H1 2025: £150m), predominantly reflecting lower production as a result of the part-disposal of the Cygnus gas field. Rough delivered £57m of adjusted EBITDA and adjusted operating profit (H1 2025: £25m loss and £26m loss respectively) with strong operational reliability through the period supporting unhedged indigenous gas production volumes, allowing the capture of higher commodity prices, alongside optimisation of commercial contracts and a continued focus on cost efficiency measures. Our share of Grain LNG's adjusted EBITDA was £46m and adjusted operating profit was £8m (H1 2025: £nil). MAP generated adjusted EBITDA of £27m and adjusted operating profit of £10m (H1 2025: £9m and £3m respectively), as the business continues to scale rapidly. Our current portfolio of 2.3m meters generates run rate EBITDA of around £60m per annum, which will increase further in-line with investment. Details of our forward hedging positions for Nuclear and Spirit Energy are outlined below: H2 2026 2027 Nuclear Volume hedged (TWh) 3.2 4.1 Average hedged price (£/MWh) 79 73 Production volume (i) (TWh) 6.4 - 7.0 (i) FY 2026 forecast generation volume. H2 2026 2027 Spirit Energy Volume hedged (mmths) 72 83 Average hedged price (p/th) 98 86 Production volume (i) (mmths) 340 - 365 (i) FY 2026 forecast production volume includes c.140-150mmths relating to assets held for sale. GROUP FINANCIAL REVIEW REVENUE Total Group revenue included in business performance, which includes revenue arising on contracts in the scope of IFRS 9 (see note 4(b) for further details), decreased by 12% to £10,529m (H1 2025: £11,925m). This was largely driven by lower Infrastructure revenue due to lower production and generation volumes, and lower Optimisation revenue as more gas volumes were sold internally to the downstream businesses rather than to the external market. Gross segment revenue, which includes revenue generated from the sale of products and services between segments, decreased by 5% to £12,342m (H1 2025: £12,950m). Group statutory revenue decreased by 1% to £10,181m (H1 2025: £10,124m). A table reconciling revenue measures is included in note 4(b) of the accounts. ADJUSTED EBITDA, OPERATING PROFIT, EARNINGS AND DIVIDEND Six months ended 30 June (£m) Notes 2026 2025 Business performance Exceptional items and certain re-measurements Results for the period Business performance Exceptional items and certain re-measurements Results for the period Adjusted EBITDA 4 737 900 Depreciation, amortisation and impairments of property, plant and equipment, and intangibles 4 (139) (265) Share of depreciation and amortisation of joint ventures and associates 5 (59) (50) Share of interest and taxation of joint ventures and associates 5 (42) (36) Group operating profit/(loss) 4 497 213 710 549 (618) (69) Net finance (cost)/income 7 (38) - (38) 26 - 26 Taxation on profit/(loss) 8 (144) 6 (138) (213) (3) (216) Profit/(loss) for the period 315 219 534 362 (621) (259) Less: (Profit)/loss attributable to non-controlling interests (8) 6 (2) (15) 23 8 Earnings attributable to shareholders 307 225 532 347 (598) (251) Basic earnings per share 9 6.8p 4.9p 11.7p 7.0p (12.1)p (5.1)p Interim dividend per share 10 2.0p 1.83p Adjusted EBITDA decreased to £737m (H1 2025: £900m), and adjusted operating profit decreased to £497m (H1 2025: £549m). More detail on business unit performance is provided in the Group Overview on pages 8 to 13. Statutory operating profit was £710m (H1 2025: loss of £69m), with the difference between the two measures of profit relating to a net gain on exceptional items and certain re-measurements of £213m (H1 2025: loss of £618m). Exceptional items and certain re-measurements included within operating profit Six months ended 30 June (£m) 2026 2025 Certain re-measurements 142 (432) Exceptional items 71 (186) Exceptional items and certain re-measurements 213 (618) Group operating profit in the statutory results includes a net pre-tax profit of £142m (H1 2025: £432m loss) relating to re-measurements, largely comprising of a net gain of £145m on the re-measurement of derivative energy contracts due to: The unwind of prior year derivative financial liabilities as contracts mature, resulting in a net gain of £223m (H1 2025: £296m loss). Net unrealised mark-to-market derivative losses of £78m (H1 2025: £161m loss) from market price movements on existing and new contracts. Further details can be found in note 6(a) to the accounts. An exceptional pre-tax income of £71m was recognised within the statutory Group operating profit in the first half of 2026 (H1 2025: £186m loss), comprising: A £38m write-back (H1 2025: £125m impairment) to our power assets, predominantly driven by higher forecasted power prices. A £33m write-back (H1 2025: £78m impairment) of gas field assets relating to the Morecambe field as a result of an increase to near-term forecasted gas prices. Further details on exceptional items, including the impairment accounting policy, process and sensitivities can be found in notes 6(b) and 6(c) to the accounts. Net finance cost Net finance cost was £38m (H1 2025: £26m income), principally reflecting lower investment income as a result of lower average cash balances and lower interest rates. Taxation and adjusted effective tax rate Business performance taxation on profit decreased to £144m (H1 2025: £213m). After taking account of our share of tax on joint ventures and associates, the adjusted tax charge was £166m (H1 2025: £246m). The resultant adjusted effective tax rate for the Group was 35% (H1 2025: 40%), reflecting the changing profit mix, with a lower share of profits from the highly taxed Spirit Energy. The adjusted effective tax rate calculation is shown below: Six months ended 30 June (£m) 2026 2025 Adjusted operating profit 497 549 Add: JV/associate taxation included in adjusted operating profit 22 33 Net finance (cost)/income (38) 26 Adjusted profit before taxation 481 608 Taxation on profit (144) (213) Share of JV/associate taxation (22) (33) Adjusted tax charge (166) (246) Adjusted effective tax rate (including JV/associate) 35% 40% There was no Electricity Generator Levy included in the first half results (H1 2025: £18m) due to achieved electricity prices in Nuclear being below the benchmark. To the end of period, since coming into effect on 1 January 2023, a total charge of £511m has been recognised in the Group's cost of sales and in our share of the operating profits of joint venture and associates relating to the Electricity Generator Levy. See note 3(e) for more details. Total exceptional items and certain re-measurements generated a taxation credit of £6m (H1 2025: £3m charge), principally driven by movements in deferred taxation on the Energy Profits Levy. When included with taxation on business performance, the total taxation charge for the period was £138m (H1 2025: £216m). See notes 6 and 8 for more details. Group earnings Profit for the period from business performance after taxation was £315m (H1 2025: £362m). After adjusting for non-controlling interests relating to Spirit Energy, adjusted earnings were £307m (H1 2025: £347m). Adjusted basic EPS for the period was 6.8p (H1 2025: 7.0p). After including exceptional items and certain re-measurements, the statutory profit attributable to shareholders for the period was £532m (H1 2025: £251m loss). The Group reported a statutory basic EPS of 11.7p (H1 2025: 5.1p loss). Dividend The declared interim dividend is 2.0p per share (H1 2025: 1.83p per share). In the period, cash paid to Centrica shareholders in dividends was £169m (H1 2025: £150m), consisting of the 3.67p per share final 2025 dividend, which was paid on 14 May 2026. GROUP CASH FLOW, NET CASH AND BALANCE SHEET Group cash flow Free cash flow ("FCF") is the Group's primary measure of cash flow as management believes it provides relevant information to show the cash generation of the business, after taking account of the need to maintain the Group's capital asset base. FCF was an outflow of £570m in the period (H1 2025: £244m inflow). See explanatory note on page 68 for further details and a reconciliation between statutory cash flow from operating and investing activities and free cash flow. Six months ended 30 June (£m) 2026 2025 Adjusted EBITDA (excluding share of EBITDA from joint ventures and associates) 554 722 Dividends received 40 95 Tax paid (108) (201) Working capital (375) (97) Decommissioning (59) (28) Capital investment (i) (698) (244) Disposals 76 - Exceptional cash flows - (3) Free cash flow (570) 244 Net interest (20) 49 Pension deficit payments (111) (77) Movements in margin cash 126 (22) Share buyback programme (14) (374) Dividends - Centrica shareholders (169) (150) Other cash flows affecting net debt (11) (3) Adjusted cash flow affecting net cash (769) (333) Opening adjusted net cash (as at 1 January) 1,487 2,858 Adjusted cash flow movements (769) (333) Non-cash movements (ii) (9) (34) Closing adjusted net cash 709 2,491 Capital expenditure (including small acquisitions). See page 17 for more detail. Non-cash movements includes a £12m reduction relating to new leases and the re-measurements of existing leases. Working capital was a net outflow of £375m (H1 2025: £97m outflow), principally driven by a £342m outflow in Retail with usual seasonality leading to both a lower commodity payable at half year compared to the end of December, and lower cash collection from customers compared to their consumption. There was also no repeat of the inventory withdrawal working capital benefit at Rough, with storage operations having ceased. Collateral and margin cash was a £126m inflow (H1 2025: £22m outflow). Net investment Net investment outflow for the period was £622m (H1 2025: £244m). Within this, capital investment of £698m (H1 2025: £244m) was driven by investments in Infrastructure, principally the acquisition of the Severn CCGT, further payments for Sizewell C and our Irish peaking plants, and ongoing progress in the MAP. Disposal proceeds of £76m (H1 2025: £nil) relate to the sale of Centrica Business Solutions Italia Srl and Centrica Business Solutions B.V. to Joules B.V which completed in February 2026. The table below provides a summary of total Group net investment by operating segment, which management uses to assess performance from a cash perspective, and a reconciliation of this measure to capital expenditure disclosed in note 4(e). Six months ended 30 June (£m) 2026 2025 Retail (18) (26) Optimisation (5) (3) Infrastructure (691) (219) MAP consolidation adjustment (i) 36 20 Other (20) (16) Capital investment (ii) (698) (244) Disposals 76 - Total Group net investment (622) (244) Add back: Capitalised borrowing costs (13) (8) Capitalised depreciation (3) - Inception of new leases and movements in payables and prepayments related to capital expenditure 5 (44) Purchases of emissions allowances and renewable obligation certificates (269) (328) Capital expenditure cash outflow subsequent to transfer to held for sale Deduct: 15 - Net disposals (76) - Purchase of businesses, net of cash acquired 367 6 Investment in joint ventures and associates 43 3 Net purchase of other investments (ii) 12 5 Total Group capital expenditure (per note 4(e)) (541) (610) The MAP consolidation adjustment reduces the capital investment recognised in the MAP for the internal margin and indirect costs on smart meter installation across the Group. Capital expenditure (including small acquisitions). Group adjusted net cash The Group's adjusted net cash position as at 30 June 2026 was £709m, compared to £1,487m at 31 December 2025. The breakdown of net cash is shown below: (£m) As at 30 June 2026 As at 31 December 2025 Current and non-current borrowings, leases and interest accruals (2,783) (2,821) Derivatives (74) (71) Gross debt (2,857) (2,892) Cash and cash equivalents, net of bank overdrafts 3,454 4,272 Current and non-current securities 112 107 Adjusted net cash 709 1,487 Further details on the Group's sources of finance and net cash are included in note 12(b). Statutory cash flow Six months ended 30 June (£m) 2026 2025 Statutory cash flow from operating activities 27 294 Statutory cash flow from investing activities (512) 13 Statutory cash flow from financing activities (334) (648) Net decrease in cash and cash equivalents (819) (341) Net cash flow from operating activities decreased to a £27m inflow (H1 2025: £294m inflow), reflecting the impact of lower adjusted EBITDA and a working capital outflow in the period, partially offset by lower tax paid. Net cash outflow from investing activities increased to £512m (H1 2025: £13m inflow). Within this, total Group net investment outflows increased to £622m (H1 2025: £244m) as outlined on the previous page. Interest received decreased to £73m (H1 2025: £129m), reflecting lower average cash balances and a lower interest rate environment, while dividends received from our Nuclear associate were £40m (H1 2025: £95m). Net cash outflow from financing activities was £334m (H1 2025: £648m). Within this, cash distributions to shareholders included the 2025 final dividend payment of £169m (H1 2025: £150m) and the final payment of the Group's £2bn share buyback programme which completed in January 2026 of £14m (H1 2025: £374m). Financing interest paid increased slightly to £93m (H1 2025: £80m), while the outflow on capital lease payments was broadly flat at £50m (H1 2025: £48m). Pension deficit The Group's IAS19 net pension deficit decreased to £252m as at 30 June 2026 compared with a £295m deficit at 31 December 2025, driven by deficit payments and the effect of increased credit spreads on AA-rated corporate bonds more than offsetting a higher inflation experience and a lower return on scheme assets than projected. The technical provisions deficit is used to determine the agreed level of cash contributions into the schemes. In February 2025, we reached agreement with the pension trustees on a March 2024 technical provisions deficit of £504m, with annual deficit contributions of around £150m in 2026 and £140m in 2027. On a roll-forward basis using the same methodology, consequent assumptions and contributions paid, the technical provision deficit would be around £300m at 30 June 2026 (31 December 2025: £300m). Further details on post-retirement benefits are included in note 13. Decommissioning liabilities The decommissioning provision of £1,270m (31 December 2025: £1,302m) is predominantly the estimated pre-tax net present cost of decommissioning gas production facilities at the end of their useful lives, based on 2P reserves, price levels, and technology at the balance sheet date. As at 30 June 2026 the provision balance was £924m for Spirit Energy, £319m in relation to the Rough field and £27m in the remainder of the business. The provisions are held gross of tax, with a corresponding deferred tax asset of £534m (31 December 2025: £536m). Further details on the decommissioning provision are included in note 16. Balance sheet Net assets increased to £3,784m (31 December 2025: £3,496m), predominantly driven by items reported directly in equity including the statutory gain in the period of £534m, partially offset by a £169m reduction from the 2025 final dividend. Acquisitions, disposals and disposal groups classified as held for sale On 7 May 2026 the Group acquired 100% of the issued share capital of Severn Power Limited, which owns the Severn Combined-Cycle Gas Turbine power station, from the Calon Energy Group for net consideration of £367m. More details can be found at https://www.centrica.com/severn . On 16 December 2025 the Group announced that it has agreed to sell the remaining 15% of Spirit Energy's interest in the Cygnus gas field and all other gas producing assets in the Greater Markham Area and Southern North Sea to Serica Energy plc. The sale has a commercial effective date of 1 January 2025 with a headline consideration of £57m and the transfer of £44m of decommissioning liabilities. The Group has retained £159m of decommissioning liabilities in relation to the disposal group at the year-end date. The sale is expected to complete in the second half of 2026. On 23 December 2025 the Group signed a sale and purchase agreement to dispose of Centrica Business Solutions Italia Srl and Centrica Business Solutions B.V. to Joulz B.V. for a headline consideration of £83m. Legal completion occurred on 6 February 2026. Further details on assets purchased, acquisitions and disposals are included in note 11. EVENTS AFTER BALANCE SHEET DATE Details of events after the balance sheet date are described in note 18. RISKS AND CAPITAL MANAGEMENT The Group maintains a robust risk management framework, including the monitoring of key risk indicators and risk evolution against risk appetites. The external environment deteriorated in early 2026, as escalation in the Middle East placed significant pressure on global energy markets. Iran's closure of the Strait of Hormuz and wider regional disruption drove sharp increases in oil, gas and LNG prices. Prices have subsequently been volatile, and the Group has utilised the tools and processes developed during the 2022 Ukraine crisis to navigate the period of volatility and at times elevated market, credit and liquidity risk. Overall group liquidity remains strong with access to c.£6bn of short-term liquidity to manage energy market price shocks. Centrica also continues to strengthen its supplier risk management to mitigate the impacts of an increasingly destabilised geopolitical landscape. Economic headwinds, exacerbated by the Middle East crisis, continue to apply pressure on disposable incomes and customer purchasing behaviour, challenging customer retention and pushing sector-wide customer debt to record highs. In the face of these headwinds, our Home and Business organisational units within Retail are further increasing their focus on supporting customers. The Group is enhancing mitigation strategies to support vulnerable customers and ensure regulatory compliance, while accelerating technology transformation. Investments in AI and a Single Customer View platform are improving customer experience and strengthening cyber resilience amid increasingly sophisticated threats. Details of how the Group has managed financial risks such as liquidity and credit risk are set out in note 20. Details of the Group's capital management processes are provided under sources of finance in note 12. ACCOUNTING POLICIES The Group's accounting policies and specific accounting measures, including changes of accounting presentation and selected key sources of estimation uncertainty, are explained in notes 1, 2 and 3. Statement of Directors' Responsibilities The Directors are responsible for preparing the Interim Results for the six month period ended 30 June 2026 in accordance with applicable law, regulations and accounting standards. In preparing the condensed interim Financial Statements, the Directors are responsible for ensuring that they give a true and fair view of the state of affairs of the Group at the end of the period and the profit or loss of the Group for that period. The Directors confirm that the condensed interim Financial Statements have been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting", and that the Interim Results includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely: an indication of the important events that have occurred during the first six months and their impact on the condensed interim Financial Statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and material related party transactions in the first six months of the year and any material changes in the related party transactions described in the last annual report. A list of current Directors is maintained on the Centrica plc website which can be found at https://www.centrica.com . On behalf of the Board on 22 July 2026 Chris O'Shea Russell O'Brien Group Chief Executive Group Chief Financial Officer Independent Review Report to Centrica plc Conclusion We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprises the Group Income Statement, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Group Statement of Changes in Equity, the Group Cash Flow Statement and related notes 1 to 21. Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. Basis for Conclusion We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. As disclosed in note 2, the annual financial statements of the group are prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting". Conclusion Relating to Going Concern Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This Conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however future events or conditions may cause the entity to cease to continue as a going concern. Responsibilities of the directors The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the review of the financial information In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our Conclusion, including our Conclusion Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report. Use of our report This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed. Deloitte LLP Statutory Auditor London, United Kingdom 22 July 2026 Group Income Statement 2026 2025 Business Exceptional items and certain re- Results for the Business Exceptional items and certain re- Results for the performance measurements period performance measurements period Six months ended 30 June Notes £m £m £m £m £m £m Group revenue 4,6 10,135 (348) 9,787 11,530 (1,801) 9,729 Insurance revenue 4 394 - 394 395 - 395 Total Group revenue 10,529 (348) 10,181 11,925 (1,801) 10,124 Cost of sales before insurance service expenses (i) 6 (8,580) 2,566 (6,014) (9,959) 4,560 (5,399) Insurance service expenses recognised in cost of sales (246) - (246) (235) - (235) Re-measurement and settlement of derivative energy contracts 6 - (2,076) (2,076) - (3,191) (3,191) Gross profit/(loss) 4,6 1,703 142 1,845 1,731 (432) 1,299 Operating costs before insurance service expenses, credit losses on financial assets and exceptional items Insurance service expenses recognised in operating costs Credit losses on financial assets 14 Exceptional items 6 Operating costs (1,288) 71 (1,217) (1,274) (186) (1,460) Results relating to joint ventures and associates, net of interest and taxation 5 82 - 82 92 - 92 Group operating profit/(loss) 4 497 213 710 549 (618) (69) Financing costs 7 (109) - (109) (120) - (120) Investment income 7 71 - 71 146 - 146 Net finance (cost)/income 7 (38) - (38) 26 - 26 Profit/(loss) before taxation 459 213 672 575 (618) (43) Taxation on profit/(loss) 6,8 (144) 6 (138) (213) (3) (216) Profit/(loss) for the period 315 219 534 362 (621) (259) Attributable to: Owners of the parent 307 225 532 347 (598) (251) Non-controlling interests 8 (6) 2 15 (23) (8) (864) - (864) (902) - (902) (141) - (141) (141) - (141) (283) - (283) (231) - (231) - 71 71 - (186) (186) Earnings per ordinary share Pence Pence Basic 9 11.7 (5.1) Diluted 9 11.5 (5.1) Prior year final dividend per ordinary share 10 3.67 3.00 Dividend proposed per ordinary share 10 2.00 1.83 Cost of sales includes a £3 million debit (2025: £25 million credit) relating to movements in onerous contracts provisions within the certain re-measurements column. See note 6. The notes on pages 27 to 67 form part of these condensed interim Financial Statements. Centrica plc Interim Results for the period ended 30 June 2026 22 Group Statement of Comprehensive Income Six months ended 30 June 2026 £m 2025 £m Profit/(loss) for the period 534 (259) Other comprehensive income Items that will be or have been reclassified to the Group Income Statement: Impact of cash flow hedging, net of taxation 1 (5) Exchange differences on translation of foreign operations (i) (12) (7) Share of other comprehensive income of joint ventures related to cash flow hedging, net of taxation 9 - Items that will not be reclassified to the Group Income Statement: Net actuarial losses on defined benefit pension schemes, net of taxation (40) (284) Gains on revaluation of equity instruments measured at fair value through other comprehensive income, net of taxation 1 4 Share of other comprehensive loss of associates relating to defined benefit pension schemes, net of taxation (26) (2) Other comprehensive loss, net of taxation (67) (294) Total comprehensive income/(loss) for the period 467 (553) Attributable to: Owners of the parent 465 (545) Non-controlling interests 2 (8) Exchange differences on translation of foreign operations includes £12 million (2025: £7 million) of losses attributable to the equity holders of the parent, and £nil (2025: £nil) of losses attributable to non-controlling interests. The notes on pages 27 to 67 form part of these condensed interim Financial Statements. Group Statement of Changes in Equity Share Share Retained Other Non-controlling Total capital premium earnings equity Total interests equity £m £m £m £m £m £m £m 1 January 2026 313 2,394 2,977 (2,599) 3,085 411 3,496 Profit for the period Other comprehensive loss - - - - 532 - - (67) 532 (67) 2 - 534 (67) Total comprehensive income/(loss) - - 532 (67) 465 2 467 Employee share schemes and other share transactions - - (2) 22 20 - 20 Transfer of cumulative fair value reserve on disposal of investments - - 16 (16) - - - Dividends paid to equity holders (note 10) - - (169) - (169) - (169) Distributions payable to non-controlling interests - - - - - (30) (30) 30 June 2026 313 2,394 3,354 (2,660) 3,401 383 3,784 Share capital £m Share premium £m Retained earnings £m Other equity £m Total £m Non-controlling interests £m Total equity £m 1 January 2025 344 2,394 3,979 (2,295) 4,422 390 4,812 Loss for the period - - (251) - (251) (8) (259) Other comprehensive loss - - - (294) (294) - (294) Total comprehensive loss - - (251) (294) (545) (8) (553) Employee share schemes and other share transactions - - (9) 38 29 - 29 Share buyback programme - - - (453) (453) - (453) Shares cancelled in the period (14) - (326) 340 - - - Dividends paid to equity holders (note 10) - - (150) - (150) - (150) 30 June 2025 330 2,394 3,243 (2,664) 3,303 382 3,685 The notes on pages 27 to 67 form part of these condensed interim Financial Statements. Group Balance Sheet Notes 30 June 2026 £m 31 December 2025 £m Non-current assets Property, plant and equipment 2,031 1,488 Interests in joint ventures and associates 5 1,272 1,171 Other intangible assets 351 318 Goodwill 501 504 Deferred tax assets 630 659 Trade and other receivables, and contract-related assets 14 234 254 Derivative financial instruments 15 224 276 Retirement benefit assets 13 13 12 Other investments 136 121 Securities 12 109 105 5,501 4,908 Current assets Trade and other receivables, and contract-related assets 14 4,652 4,675 Other intangible assets 473 256 Inventories 396 339 Derivative financial instruments 15 840 600 Current tax assets 85 90 Securities 12 3 2 Cash and cash equivalents 12 3,474 4,307 9,923 10,269 Assets of disposal groups classified as held for sale 11 191 238 10,114 10,507 Total assets 15,615 15,415 Current liabilities Derivative financial instruments 15 (840) (693) Trade and other payables, and contract-related liabilities (5,278) (5,581) Insurance contract liabilities (132) (122) Current tax liabilities (81) (113) Provisions for other liabilities 16 (297) (318) Bank overdrafts, loans and other borrowings 12 (279) (232) (6,907) (7,059) Liabilities of disposal groups classified as held for sale 11 (163) (175) (7,070) (7,234) Non-current liabilities Deferred tax liabilities (2) (2) Derivative financial instruments 15 (421) (343) Trade and other payables, and contract-related liabilities (322) (138) Provisions for other liabilities 16 (1,227) (1,271) Retirement benefit obligations 13 (265) (307) Bank loans and other borrowings 12 (2,524) (2,624) (4,761) (4,685) Total liabilities (11,831) (11,919) Net assets 3,784 3,496 Share capital 313 313 Share premium 2,394 2,394 Retained earnings 3,354 2,977 Other equity (2,660) (2,599) Total shareholders' equity 3,401 3,085 Non-controlling interests 383 411 Total shareholders' equity and non-controlling interests 3,784 3,496 The notes on pages 27 to 67 form part of these condensed interim Financial Statements. Group Cash Flow Statement Six months ended 30 June Notes 2026 £m 2025 £m Group operating profit/(loss) including results relating to joint ventures and associates Deduct results relating to joint ventures and associates, net of interest and taxation 5 710 (82) (69) (92) Group operating profit/(loss) before results relating to joint ventures and associates 628 (161) Add back/(deduct): Depreciation and amortisation 4 126 254 (Write-backs)/impairments 4,6 (58) 214 Gain on disposals 11 (19) - Decrease in provisions (87) (106) Cash contributions to defined benefit schemes in excess of service cost income statement charge (102) (83) Employee share scheme costs 28 28 Unrealised losses arising from re-measurement of energy contracts 39 468 Operating cash flows before movements in working capital relating to business performance and payments relating to taxes, exceptional charges and operating interest 555 614 (Increase)/decrease in inventories (60) 441 Decrease in trade and other receivables and contract-related assets relating to business performance 21 622 Decrease in trade and other payables and contract-related liabilities relating to business performance (373) (1,169) Operating cash flows before payments relating to taxes, exceptional charges and operating interest 143 508 Taxes paid (108) (201) Operating interest paid 7 (8) (10) Payments relating to exceptional charges in operating costs 6 - (3) Net cash flow from operating activities 27 294 Purchase of businesses and assets, net of cash acquired 11 (367) (6) Sale of businesses 11 76 - Purchase of property, plant and equipment and intangible assets 4 (276) (230) Investments in joint ventures and associates 5 (43) (3) Dividends received from joint ventures and associates 5 40 95 Interest received 73 129 Net purchase of other investments (12) (5) Settlement of securities 12 - 40 Purchase of securities 12 (3) (7) Net cash flow from investing activities (512) 13 Payments for own shares (11) (3) Share buyback programme (14) (374) Cash inflow from borrowings 12 3 7 Financing interest paid 12 (93) (80) Cash outflow from repayment of borrowings and capital element of leases 12 (50) (48) Equity dividends paid 10 (169) (150) Net cash flow from financing activities (334) (648) Net decrease in cash and cash equivalents (819) (341) Cash and cash equivalents including overdrafts as at 1 January 4,272 5,693 Effect of foreign exchange rate changes 12 1 (59) Cash and cash equivalents including overdrafts at 30 June 12 3,454 5,293 Included in the following line of the Group Balance Sheet: Cash and cash equivalents 12 3,474 5,378 Overdrafts included within current bank overdrafts, loans and other borrowings 12 (20) (85) The notes on pages 27 to 67 form part of these condensed interim Financial Statements. Notes to the condensed interim Financial Statements Notes to the condensed interim Financial Statements provide additional information required by statute, accounting standards or Listing Rules to explain a particular feature of the condensed interim Financial Statements. These condensed interim Financial Statements should be read in conjunction with the information that was released in the Group's consolidated Financial Statements for the year ended 31 December 2025. General information Centrica plc (the 'Company') is a public company limited by shares, domiciled and incorporated in the UK, and registered in England and Wales. The address of the registered office is Millstream, Maidenhead Road, Windsor, Berkshire, SL4 5GD. The Company has its listing on the London Stock Exchange. The Company, together with its subsidiaries, comprise the 'Group'. The condensed interim Financial Statements for the six months ended 30 June 2026 included in this announcement were authorised for issue in accordance with a resolution of the Board of Directors on 22 July 2026. These condensed interim Financial Statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors on 18 February 2026 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006. The financial information contained in these condensed interim Financial Statements is unaudited. The Group Income Statement, Group Statement of Comprehensive Income, Group Statement of Changes in Equity, Group Cash Flow Statement for the interim period to 30 June 2026, the Group Balance Sheet as at 30 June 2026, and the related notes have been reviewed by the auditor and their report to the Company is set out on page 21. Basis of preparation These condensed interim Financial Statements for the six months ended 30 June 2026 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34: 'Interim financial reporting', as adopted by the United Kingdom. These condensed interim Financial Statements should be read in conjunction with the Group's consolidated Financial Statements for the year ended 31 December 2025, which were prepared in accordance with United Kingdom adopted International Accounting Standards and in conformity with the requirements of the Companies Act 2006. The Group's consolidated Financial Statements for the year ending 31 December 2026 will be prepared in accordance with the United Kingdom adopted International Accounting Standards. Preparation of condensed interim Financial Statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual amounts may differ from these estimates. In preparing these condensed interim Financial Statements, the significant judgements, estimates and assumptions made by management in applying the Group's accounting policies were consistent with those applied in the Group's consolidated Financial Statements for the year ended 31 December 2025, unless amended by the application of new accounting policies, standards or interpretations, or as a result of changes in estimation uncertainty or judgements as described in note 3. Taxes on income in the interim period are accrued using tax rates that would be applicable to expected total annual earnings for each relevant source of income. The Directors have, at the time of approving the financial statements, a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future, which reflects a period of twelve months from the date of approval of the accounts, with modelled analysis extending to 31 December 2027. The going concern assessment has considered the financial impact on the Group's credit and liquidity headroom of different stress scenarios relating to the Group's Principal Risks. Severe but plausible combinations of risks have been assessed including the impact of a low commodity price environment, significant adverse weather events, geopolitical tensions, increased bad debt charges, production losses in the Group's Infrastructure business, trading and hedging underperformance and regulatory and industrial risk. The Group's strong liquidity position, coupled with its ability to deploy effective mitigating actions, ensures resilience against a volatile external risk environment. The assessment proves that the Group is able to maintain sufficient headroom under all stress-scenarios tested, underpinned by the level of undrawn committed bank facilities and available cash resources. As such, the Directors continue to believe it is appropriate to adopt the going concern basis of accounting in preparing the condensed interim Financial Statements. Further information on the Group's strong liquidity position, including its indebtedness and available committed facilities, is provided in notes 12 and 20. Accounting policies This section details new accounting policies, standards, amendments and interpretations, whether these are effective in 2026 or later years, and if and how these are expected to impact the financial position and performance of the Group. In addition, this section sets out the Group's specific accounting measures applied in the preparation of the condensed interim Financial Statements. The accounting policies applied in these condensed interim Financial Statements are consistent with those used in the preparation of the Group's consolidated Financial Statements for the year ended 31 December 2025, as described in those annual Financial Statements, with the exception of policies, standards, amendments and interpretations effective as of 1 January 2026 and other changes detailed below. New accounting policies, standards, amendments and interpretations effective or adopted in 2026 From 1 January 2026, the following amendments became effective in the Group's consolidated Financial Statements: Amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures', Amendments to the Classification and Measurement of Financial Instruments, effective from 1 January 2026; Amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures', Contracts Referencing Nature-dependent Electricity, effective from 1 January 2026; Annual improvements to IFRS: Amendments to IFRS 1 'First-time Adoption of IFRS', IFRS 7, IFRS 9, IFRS 10 'Consolidated Financial Statements' and IAS 7 'Statement of Cash Flows', effective from 1 January 2026; These amendments did not materially impact the Group's consolidated Financial Statements. Standards and amendments that are issued but not yet applied by the Group The following standards and amendments have been issued and will be applied to the Group in future periods, subject to UK endorsement: IFRS 18 'Presentation and Disclosure in Financial Statements', effective from 1 January 2027; IFRS 19 'Subsidiaries without Public Accountability: Disclosures', effective from 1 January 2027; and IFRS 20 'Regulatory Assets and Regulatory Liabilities',effective from 1 January 2029. The potential impact of IFRS 18 'Presentation and Disclosure in Financial Statements', and IFRS 20 'Regulatory Assets and Regulatory Liabilities are given below. The Group does not expect IFRS 19 to have an impact on the Group's consolidated Financial Statements. IFRS 18 'Presentation and Disclosure in Financial Statements' IFRS 18 will replace IAS 1 'Presentation of Financial Statements' and become effective on 1 January 2027. IFRS 18 will introduce new requirements on presentation and disclosure in the financial statements, with a focus on the income statement and reporting of financial performance. Income and expenses in the income statement will be classified into five categories - operating, investing, financing, income taxes and discontinued operations. Two new subtotals will be presented: 'Operating profit or loss' and 'Profit or loss before financing and income tax'. IFRS 18 will also require disclosures about management-defined performance measures in the financial statements and disclosure of information based on enhanced general requirements on aggregation and disaggregation. The Group will apply the new standard from its mandatory effective date of 1 January 2027. Retrospective application is required, and so the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18. The Group has assessed the impact of IFRS 18 and notes that the presentation of the Group's results relating to joint ventures and associates is expected to be shown within investing activities, rather than Group operating profit or loss. Additionally, the Group's investment income is expected to also be shown within investing activities, rather than Group net finance income/cost. The Group currently intends to present foreign exchange differences on intercompany balances within operating activities in line with recent IFRIC guidance. Certain other reclassifications have been identified; these are not expected to be material to the Group's financial statements (with the potential exception of the 'certain re-measurement' assessment noted below). The Group has considered the IFRS 18 guidance on aggregated and disaggregated information and is not anticipating any changes to the Group Balance Sheet. The Group is also evaluating its use of existing non-GAAP measures and their presentation within the Group Income Statement to ensure compliance with the requirements of IFRS 18. In particular, the Group is reviewing whether its current Group Income Statement presentation of 'certain re-measurements' of financial instruments in a separate column, adheres with the IFRS 18 requirement for any additional subtotals presented to be recognised and measured in accordance with IFRS. In the event that the current presentation is not compliant, the Group Income Statement will revert to a single column ('Results for Period'), with the additional 'Exceptional items and certain re-measurements' column information provided in a separate note. The Group's IFRS 18 assessment is not yet final and further changes upon its implementation may be required. 3. Accounting policies IFRS 20 'Regulatory Assets and Regulatory Liabilities' In May 2026, the IASB issued IFRS 20 'Regulatory Assets and Regulatory Liabilities', a new accounting standard addressing the financial reporting of entities subject to specified types of rate regulation. IFRS 20 introduces a comprehensive framework for recognising, measuring, presenting and disclosing regulatory assets and regulatory liabilities arising from regulatory agreements. The Standard is designed to address timing differences between when goods or services are supplied and when the related compensation is included in regulated customer rates. It supplements existing standards, including IFRS 15, by requiring entities to reflect the total allowed compensation for regulated goods and services in the period in which they are delivered. IFRS 20 is effective for annual reporting periods beginning on or after 1 January 2029, with early adoption permitted, and replaces IFRS 14 'Regulatory Deferral Accounts'. The Group is currently assessing the potential impact of IFRS 20 on its financial statements, including the applicability of the Standard to its existing and emerging regulated activities, and will consider any required changes to accounting policies and disclosures in due course. Management does not currently expect the other issued but not effective amendments or standards, or standards not discussed above to have a material impact on the consolidated Financial Statements other than IFRS 18. Restatements The Group re-evaluated its operating and reportable segments during the second half of 2025 following a change in the way the business is organised and financial information is reported. Reportable and operating segments are defined as: Retail; Optimisation; and Infrastructure These revised segments reflect the way the Group's operating results are reported to, and regularly reviewed by, the Board to make decisions about resources to be allocated to the segments and assess their performance. Further information on the reportable segments of the Group is shown in note 4. 3. Accounting policies Centrica specific accounting measures This section sets out the Group's specific accounting measures applied in the preparation of the condensed interim Financial Statements. These measures enable the users of the accounts to understand the Group's underlying and statutory business performance separately. Use of adjusted performance measures The Directors believe that reporting adjusted measures (revenue, margin, profit, earnings before interest, taxation, depreciation and amortisation (EBITDA), earnings per share and net cash/(debt)) provides additional useful information on business performance and underlying trends. These measures are used for internal performance purposes, are not defined terms under IFRS and may not be comparable with similarly titled measures reported by other companies. Management uses adjusted revenue, adjusted gross margin, adjusted operating profit and adjusted EBITDA to evaluate segment performance. They are defined as revenue/gross margin/operating profit/EBITDA before: Exceptional items; and Certain re-measurements. Exceptional items and certain re-measurements are excluded to enable the Directors to convey to the users an enhanced understanding of the Group's business performance. Segmental adjusted gross margin, adjusted operating profit and adjusted EBITDA exclude the impact of the colleague profit share because management considers it unrelated to segmental business performance. Similarly, because Segmental adjusted gross margin, adjusted operating profit and adjusted EBITDA are presented as managed by the Board, the elimination on consolidation of the internal margin and indirect costs on smart meter installation recognised in Retail and subsequently capitalised and depreciated in the meter asset provider business within Infrastructure is also excluded. See note 4 for segmental disclosures. Adjusted earnings is defined as earnings before: Exceptional items net of taxation; and Certain re-measurements net of taxation. A reconciliation of adjusted earnings and adjusted earnings per share is provided in note 9. Adjusted net cash/(debt) is used by management to assess the underlying indebtedness of the Group. Adjusted net cash/(debt) is defined as cash and cash equivalents, net of bank overdrafts, current and non-current securities, borrowings, leases, interest accruals and related derivatives. 3. Accounting policies Exceptional items and certain re-measurements The Group reflects its underlying financial results in the business performance column of the Group Income Statement. To be able to provide users with this clear and consistent presentation, the effects of 'certain re-measurements' of financial instruments, and 'exceptional items', are reported in a different column in the Group Income Statement. The Group is an integrated energy business. This means that it utilises its knowledge and experience across the gas and power (and related commodity) value chains to make profits across the core markets in which it operates. As part of this strategy, the Group enters into a number of forward energy trades to protect and optimise the value of its underlying production, generation, storage and transportation assets and contracts (and similar capacity or offtake arrangements including Liquefied Natural Gas (LNG)), as well as to meet the future needs of its customers (downstream demand). These trades are designed to reduce the risk of holding such assets, contracts or downstream demand and are subject to strict risk limits and controls. Primarily because some of these trades include terms that permit net settlement, they are prohibited from being designated as 'own use' and so IFRS 9 'Financial Instruments' requires them to be individually fair valued. Fair value movements on these commodity derivative trades do not reflect the underlying performance of the business because they are economically related to the Group's Infrastructure assets, capacity/offtake contracts or downstream demand, which are typically not fair valued. Similarly, where downstream customer supply contracts or LNG procurement contracts have become onerous as a result of significant market price movements (and the fact any associated commodity hedges have separately been recognised at fair value under IFRS 9 and therefore the onerous supply/LNG contract assessment must reflect the reversal of those gains in subsequent periods), movements in the required provision are also reflected as a certain re-measurement in the 'Cost of sales' line item and separately disclosed in note 6. Movements in this provision do not reflect the underlying performance of the business because they are economically related to both the hedges as well as forecast future profitability of the portfolio as a whole, in the case of the supply/LNG procurement contracts. Therefore, these certain re-measurements are reported separately and are subsequently reflected in business performance when realised, which is generally when the underlying transaction or asset impacts profit or loss. This enables the Group to convey the performance of the business both with and without the impact of such items. The effects of these certain re-measurements and onerous contracts are presented within either revenue or cost of sales when recognised in business performance depending on the nature of the contract. They are managed separately from proprietary energy trading activities where trades are entered into speculatively for the purpose of making profits in their own right. These proprietary trades are included in revenue in the business performance column of the Group Income Statement. The Group's result for the period presents both realised and unrealised fair value movements on all derivative energy contracts within the 'Re-measurement and settlement of derivative energy contracts' line item. Exceptional items are those items that, in the judgement of the Directors, need to be disclosed separately by virtue of their nature, size or incidence. Again, to ensure the business performance column reflects the underlying results of the Group, these exceptional items are also reported in the separate column in the Group Income Statement. Items that may be considered exceptional in nature include disposals of businesses or significant assets, significant one-off business restructuring, debt repurchase/refinancing costs, legacy contract costs associated with business activities that have ceased, certain pension past service credits/costs, asset impairments/write-backs, and the tax effects of these items. Also tax impacts associated with legislative changes or as a result of commodity price movements may be considered as exceptional. The Group distinguishes between business performance asset impairments/write-backs and exceptional impairments/write-backs on the basis of the underlying driver of the impairment/write-back, as well as the magnitude of the impairment/write-back. Drivers that are deemed to be outside of the control of the Group (e.g. commodity price changes) give rise to exceptional impairments/ write-backs. Additionally, write-backs or impairment charges that are of a one-off nature (e.g. reserve downgrades or one-time change in intended use of an asset) and significant enough value to distort the underlying results of the business are considered to be exceptional. Other impairments/write-backs that would be expected in the normal course of business are reflected in business performance. 3. Accounting policies Critical accounting judgements and key sources of estimation uncertainty With the exception of the items noted below which have been updated during the reporting period, key areas of critical accounting judgement and estimation uncertainty that have the most significant effect on the consolidated Group Financial Statements remain as disclosed in note 3(a) and 3(b) of the Annual Report and Accounts for the year ended 31 December 2025. Critical accounting judgements Liquefied Natural Gas (LNG) contracts The Group is active in the LNG market, both procuring long-term LNG supply arrangements and transacting in shorter-term LNG cargoes. As part of its operations in the market, the Group optimises its contractual positions in order to meet customer demand for physical commodity. In response to the continuing development of the global LNG market which, consistent with prior years, is not considered to be active, the Group has reviewed its portfolio of LNG transactions and contracts. It has judged that its activities are carried out for the purpose of receipt or delivery of physical commodity in accordance with its expected purchase and sale requirements. As a result, the Group's contracts to buy and sell LNG meet the 'own-use' exemption and are outside the scope of IFRS 9 and accounted for on an accruals basis. Purchase contracts are accounted for as executory contracts under IAS 37 and sales contracts are accounted for under IFRS 15. As a consequence of this judgement, the LNG contracts are also assessed as to whether they may be onerous. The Group considers it a critical judgement as to whether any onerous contract costs arising should be presented as a certain re-measurement until such time that the physical cargoes are delivered, or within business performance. The same judgement applies to the recognition, and timing, of unrealised hedging gains or losses relating to those contracts. The onerous contract assessment ignores the portfolio of hedges associated with the LNG contracts because the hedges are separately marked to market. See notes 3(d) and 6(a) for further details on the accounting treatment of LNG onerous contracts and hedging derivatives within certain re-measurements. During the period, an additional £29 million was recognised in respect of new onerous LNG contract provisions (30 June 2025: £31 million) and a total of £26 million was utilised/reversed during the period (30 June 2025: £63 million utilisation). See note 6 for further details. Key sources of estimation uncertainty Electricity Generator Levy At the end of 2022, the Government announced the implementation of the Electricity Generator Levy (EGL), a new, temporary levy applicable to receipts that the Group realises from electricity generation in the UK from nuclear and renewable sources in the period from 1 January 2023 to 31 March 2028. It was legislated in the Finance (No 2) Act 2023. The levy applies a 45% charge on receipts generated from the production of wholesale electricity sold at an average price in excess of £75/MWh (adjusted for inflation prospectively), exceeding an annual threshold of £10 million. This levy rate will increase to 55% from 1 July 2026 and the government has indicated it intends to extend the levy application period beyond 31 March 2028. The benchmark rate for the 12 months to 31 March 2027 is £82.61/MWh. It applies to generators whose generation exceeds 50GWh annually, as well as offtake arrangements with significant minority shareholders in such generators. As at 30 June 2026, the Group's share of its Nuclear (excluding Sizewell C) associate's EGL liabilities amounted to £nil (31 December 2025: £9 million) and has also made payments on account to HMRC of £nil (31 December 2025: £10 million) in relation to its own estimated EGL liabilities for its minority shareholder Nuclear (excluding Sizewell C) offtake arrangements during the period. The Group continues to determine that the accounting for the levy falls within the scope of IAS 37 'Provisions, contingent liabilities, and contingent assets' and IFRIC 21 'Levies' on the basis that the levy represents a legislative liability imposed by the Government, calculated with reference to revenue generated. The Group recognises the levy progressively over time, as the related electricity is sold. The Group also considered the applicability of IAS 12 'Income Taxes', however the EGL is based on revenue generated, and not taxable profit and is therefore outside the scope of IAS 12. The interpretation and application of the EGL legislation is unclear in respect of the Group's minority shareholding in the Nuclear (excluding Sizewell C) offtake arrangements. As such, the extent of the levy that will ultimately be due in this regard is not yet certain, and a lower amount may eventually be determined. If this were the case, a tax deposit asset would be recorded on the Group Balance Sheet, and as a credit within cost of sales in the Group Income Statement, when it became probable that the asset would be recoverable, in accordance with the 2019 IFRIC Agenda decision on deposits relating to taxes other than income taxes. Given the current stage of discussions there is not yet sufficient evidence to support the probability of recovery and therefore no asset has been recorded at the balance sheet date. There is a key source of estimation uncertainty in relation to the amount of levy the Group owes across 2023 to 2026 of up to £155 million, related to the assessment of the proportion of generation that can be ascribed to a wholesale purchase and therefore whether a related tax deposit asset should be recorded for the recovery of payments on account made to HMRC of up to £155 million. Whilst a material change in the accounting could occur in the next financial period, ultimate resolution of this uncertainty may take a number of years. (Note that since its inception Centrica has paid over £500 million of EGL either directly or through its share of the Nuclear (excluding Sizewell C) associate's payments.) Accounting policies Credit provisions for trade and other receivables The commodity price environment during the first half of 2026 trended upwards due to geopolitical tensions between the US and Iran. Macroeconomic conditions remain challenging, with higher unemployment and low growth forecasts reducing the prospect of interest rate reductions during the second half of 2026. These impacts have been partially mitigated by the upscaling of certain field activities, although warrant activity remains suspended, adversely affecting debt performance for affected cohorts of customers. These factors result in the assessment and adequacy of credit provisions for trade and other receivables to continue to be a key source of estimation uncertainty given the resultant increase in default probability and overall loss allowance. The Group utilises a range of factors, including both internal and external, historic and forward-looking, to assess the adequacy of the Group's credit provisions. Whilst the Group utilises a matrix output model to record provision coverage, management recognises that the model does not always adequately capture scenarios where there is a delayed impact on customer payments, such as forward-looking macroeconomic challenges. In the current period, the Group has continued to assess the model and has recorded a macroeconomic credit provision of £14 million (31 December 2025: £11 million) primarily reflecting that the ability of customers to pay may not be fully reflected in the model. The assumptions included in the macroeconomic provision include the continued cost-of-living challenges and the fact that certain enforcement activity remains suspended. This results in a total credit provision for trade and other receivables at 30 June 2026 of £2,067 million (31 December 2025: £1,818 million...

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