Centrica reports boost in profits but calls for market shake-up after energy firm failures

Energy giant Centrica said it needs to see “significant change” to address underlying issues in the UK’s energy market today as it reported it had weathered the energy crisis so far, with a 112 per cent profits boost in 2021.

Centrica bosses said profits hit £948m for the year, up 112 per cent on 2020, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 38 per cent,.

The group also bolstered its balance sheet last year, closing 2021 with £0.7bn net cash compared to net debt of £3.0bn at the start of the year.

Shareholders are in line for a jump in payouts as bosses prepared to up dividend payments by 46 per cent to 4.1p per share..

Chris O’Shea, said a strong balance sheet had allowed the firm to weather the worst of the crisis and take on customers from  a spate of failed suppliers across the energy market.

“2021 financial performance was resilient, and we continue to make good progress towards the turnaround of Centrica, having materially completed our portfolio simplification,” he said.

“Our focus for 2022 is on building on the progress we have already made to drive improvements in colleague engagement and in particular customer service, while continuing to build our capabilities to help our customers on their path to net zero.”

O’Shea said the group would now focus on simplifying its portfolio with the sale of Direct Energy and the already agreed sale of Spirit Norway.

The UK’s energy market has been hit by soaring wholesale prices over winter, and the firm said it now needed to see an overhaul in market structure to prevent similar failings again.

“We believe we need to see significant change to address the underlying issues in the UK’s complex energy regulations, by simplifying and strengthening regulations to protect customers and to ensure a crisis of this sort never happens again,” Centrica said.

“We believe we need to see significant change to address the underlying issues in the UK’s complex energy regulations, by simplifying and strengthening regulations to protect customers and to ensure a crisis of this sort never happens again.”

Outlook for the group is broadly positive this year, bosses said, due to the firm’s strong balance and the risk management