Centrica surges on trading update and sale plans

The price of shares in energy firm Centrica (LON:CNA) jumped 16.84% to 47.17p (as of 15:10 BST) after it reported that statutory pre-tax losses for the six months ended 30th June narrowed by 70%. Adjusted operating profits dropped by 14% due to COVID, warm weather, and low commodity prices. The company also announced plans to dispose of its North American subsidiary to NRG Energy for $3.625 billion.

CEO Chris O’Shea commented: “Centrica delivered a resilient performance against the unprecedented backdrop of the Covid-19 crisis during the first half of the year. That is due to the response of colleagues across the Group to keep our customers warm, safe and supplied with energy and services during the pandemic. I am truly grateful for their efforts. Our mission now is to turn around the Company by putting customers at the heart of everything we do and creating a simpler, leaner, more modern and more sustainable company. The sale of Direct Energy is a fundamental step towards this, and although we have a lot more to do, we have the people, the brands and the market positions to deliver a successful turnaround“.