Centrica and Shell announce mind-boggling profits

Centrica-and-British-Gas--001 It’s been a few days since British Gas announced another round of energy price rises, with 18% going on to the price of gas and 16% being bunged on to the price of electricity from next month. That could well condemn thousands of customers to a miserable winter of either poverty or hypothermia or maybe even both.

But it’s okay folks, it’s all for a good cause – British Gas’ parent company Centrica has just announced operating profits of £1.3 billion in the six months to June 30th. That’s a drop of 19% on the same period last year, so you can see why they need your gas and electricity cash. They’ve got shareholders to think about!

It’s a tough old spell for British Gas itself – they’ve had a 54% fall in operating profits, chalking up a poxy profit of just £270m in that six-month period. In fact, they’ve even said that they’ve been selling gas at a LOSS since April. The poor wretches! Try to think about what those poor Centrica shareholders are going through when you’re burning your furniture in order to stay alive this winter eh?

It looks increasingly as though more energy price rises are on their way so you might want to consider locking yourself into a fixed rate deal before things get worse. Or just living in one room of your house, in a nest made from straw and wool.

SHELL - 12Meanwhile, things are going much more swimmingly at Shell – they’ve announced a 77% rise in their second-quarter profit, thanks to those pesky energy price rises. In the three months leading up to June, they made a profit of $8 billion (£4.9 billion), which we’re sure you’ll agree deserves a round of applause.

Over on Twitter, The Sun’s business reporter Steve Hawkes has been doing some Shell sums and he says: “I make Shell's quarterly profits around £30,799... a minute. Something to think about when you're filling up the car later on.” Indeed...


  • Dick
    Fight back! Write to BG and ask for a printed copy of their yearly report. Then burn it. Repeat as the weather gets colder. As an aside, amazon are killing old people by selling kindles. People reading e-books instead of real books means that there are less old printed books, meaning less available to burn. Don't they know some people buy books to burn? Two years ago, I managed to buy two carrier bags full of old damaged books from our library for a quid, then burnt the lot. We got a couple of evenings heat out of them on our multi-fuel burner. A bargain for a quid.
  • Alexis
    I don't know why one petrol station doesn't just knock 10p off their fuel? Everybody would rush to buy and they'd make loads from footfall in their shops. I know they only make 2p or so on a litre, but surely a 20% jump in sales would mean more profit overall?
  • Numpty d.
    @Alexis The word "cartel" comes to mind.
  • Dick
    @alexis. It doesn't work like that. Others would start to feel the pinch as they were getting less customers, so they would put their prices down to get customers back. Then they all start losing out as they get similar amounts of customers to before, but have lower prices so less profit, so they all have to put prices back up.
  • Kevin
    They are not making the money from the forecourt, they are making the money from the earlier stages of the process. Alexis: If they are only making 2p a litre, then dropping the price by 10p would mean the are losing 8p a litre. Unless you say only if you spend £10 in the shop maybe?

What do you think?

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