The owner of British Gas, Centrica, has restarted dividend payments to shareholders in response to rising energy costs for British homes.
After three years of suspension, the business said it would pay a 1p per share interim dividend.
It comes at a time when gas prices are soaring due to Russia’s war in Ukraine.
The cost of electricity in the United Kingdom is anticipated to increase in the coming months, with one consultant predicting that annual expenses might reach $3,850 by January.
The reintroduction of dividends was announced as Centrica reported skyrocketing profits for the first half of the year.
Adjusted operating profit for the six months ending in June increased to £1.34 billion from £262 million the previous year.
Chris O’Shea, the chief executive officer, described the energy crisis as “the most difficult in living memory.”
He continued, “We are very aware of the challenging environment that many clients face, and we will continue to assist them.”
Due to a global shortage of energy resources, gas prices have increased considerably.
In addition, the wholesale price of gas has increased considerably as a result of Russia’s invasion of Ukraine.
In the past year, many of British Gas’ competitors have failed as they tried to pass on rising gas prices to customers. Since August 2021, at least thirty energy companies have ceased operations in the United Kingdom.
British Gas reported that it gained more than 200,000 consumers in the first half of the year, including 158,000 customers from the bankrupt supplier Together Energy.
During the period, an additional 46,000 clients moved to its services voluntarily.
In April, energy bills in the United Kingdom jumped by a record £700 and are certain to continue climbing. A management consulting firm, BFY, has warned that the average annual energy cost might reach £3,850 by January, which is far higher than predictions made earlier this month.
BFY stated that its prediction reflected the increase in wholesale prices over the past few weeks as a result of the continued tensions with Russia, which have prompted fears regarding winter supply.
Mr. O’Shea stated that Centrica was “protecting and supporting customers” during the crisis.
He said, “Through the British Gas Energy Support Fund, we provide grants to assist customers in paying their energy bills.”
Shell earnings surge
Shell also posted good results on Thursday, with profits of $11.5 billion (£9 billion) for the second quarter.
In addition to the $8.5 billion in shares it repurchased in the first half of 2022, the energy giant announced a $6 billion share repurchase program for the current quarter. However, it did not increase its 25 cents per share dividend.
In morning trading, shares increased by about 1 percent.
