Centrica posts record profit of £1.5 billion

British energy supplier Centrica said today that 2005 profits rose 11 per cent after a year in which wholesale gas prices surged…

British energy supplier Centrica said today that 2005 profits rose 11 per cent after a year in which wholesale gas prices surged to record levels.

The firm, which has seen its shares rise sharply in recent months on speculation it could be a takeover target for Russian energy giant Gazprom, said operating profit for the year ended December 31st hit a record £1.51 billion.

"Market conditions are volatile but our priorities remain unchanged. Centrica may face further turbulence in the commodity markets, but the results of 2005 clearly show a strong underlying business," Centrica Chief Executive Roy Gardner said in a statement.

The company proposed a full-year dividend of 10.5 pence as it reported adjusted earnings per share up 1 per cent to 18.2 pence.

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Turnover grew 18 percent in 2005 to £13.4 billion, it said. The company said it had 11.131 million residential gas customers and 5.92 million electricity users at the year-end.

It said it had a 54 per cent share of the UK residential gas market, down from 57 per cent in 2004, and a 23 per cent share of the electricity market, unchanged on the year.

Centrica has a 36 per cent share of the UK residential energy market with its British Gas brand.