Centrica Reports Update On U.S. Customer Count, Margin Climate

Centrica said in a trading statement released today, in advance of an annual general meeting, that, "Overall financial performance has been good in the year to date."

"Colder than normal weather has increased energy demand and the significant commodity price volatility we have experienced has been managed well by our energy supply businesses and Energy Marketing & Trading. High levels of competitive intensity continue in our core markets, however net Consumer customer account losses in the year to date have slowed materially relative to the average of 2017. Growth continues to come through in both Connected Home and Distributed Energy and Power and we expect to reach the milestone of 1 million cumulative customers in Connected Home this week," Centrica said

Concerning the North American Consumer energy supply business, Centrica reported that energy supply accounts fell by 28,000, predominantly in the US North East, during the first four months of the year.

Centrica said that its North America Business segment has, "performed well, with strong gas optimisation performance during periods of cold weather."

"Competitive intensity remains high for both [UK and North American Business] energy supply businesses, particularly in power retail in North America where delivered unit net margins remained at low levels as indicated in the 2017 Preliminary Results announcement. However, despite these continued competitive pressures, both UK Business and North America Business are expected to deliver improved full year adjusted operating profit compared to full year 2017," Centrica said

Across all markets, Centrica added 91,000 Connected Home customers in the first four months of the year and expects to reach 1 million Connected Home customers in total this week.

Across all markets, Centrica sold 255,000 connected home products in the first four months of 2018