Centrica breaks through billion pound profit barrier

25th Feb 2010 07:01

British Gas owner Centrica bounced back through the billion pound profit barrier and announced a 5% dividend rise.Profit on a continuing basis was up 15% to £1.104bn in the year ended 31 December (2008: £964m). The increase resulted primarily from a lower tax charge of £531m (2008: £1.026bn). Revenue rose to £21.96bn compared with £20.87bn last time.The board is proposing a final dividend of 9.14 pence per share, bringing the full year dividend to 12.8 pence per share, up from 12.20p in 2008.The market expected the group to post a rise in turnover to £20,489m and a full year dividend of around 12.60p.'The outlook for 2010 is positive and we are trading in line with expectations, with strong downstream performance offsetting the impact of low gas prices on our upstream businesses,' said chief executive Sam Laidlaw.'Whilst the final outturn will depend on a number of factors, including commodity prices, production volumes and downstream consumption levels, we have confidence in the robustness of our business model and in the forward momentum we have created.'Centrica also announced this morning that it has signed an agreement to acquire equity interests in Trinidadian gas blocks for $380m.'This acquisition provides Centrica with its first producing Liquefied Natural Gas (LNG) position and significant development opportunities for future, long-term LNG supplies,' the group said.