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Centrica (LSE:CAN) has reported a slump in its annual profits as the company lost its position as Britain’s largest gas and electricity provider for the first time.
The company, which owns British Gas, reported adjusted earnings of £2.3 billion for last year, down by a third from 2023 when its profits reached £3.5 billion after a £500 million windfall from the energy regulator.
British Gas was helped to a profit of £751 million in 2023 when regulator Ofgem allowed all suppliers to recover the unexpected costs of the energy crisis by adjusting the energy price cap.
Centrica’s operating profit slumped to £297 million in 2024, but the company said that excluding the impact of the one-off Ofgem allowance meant its performance was “relatively comparable” to the year before.
The company’s customer base remained relatively steady despite rising competition in the market. However, almost four decades since its privatisation, the company was toppled from its position as the country’s largest energy supplier by Octopus Energy.
Octopus grew its share of the market to 23.7% of households in Great Britain by the end of last year, while British Gas had 23.1%.
Centrica’s chief executive, Chris O’Shea, said it was “a good year” for the company after it improved operations and ramped up investment.
He said: “This has resulted in happier customers and more innovative propositions, but there is so much more we can do. Looking ahead, I want to see Centrica continue to focus on the areas that make the biggest difference.
“We are investing in the energy transition, ensuring our customers have the energy they need, when they need it at a price they can afford.”
Centrica’s shares were up 10% in early trading on Thursday.
