Centrica, the owner of British Gas, reported a nearly 40 percent drop in operating profits in 2025, reaching £814 million. This negative result was influenced by an exceptionally mild winter and a mass switch by customers to cheaper fixed tariffs. Despite weaker financial results and a suspension of the share buyback program, the company's CEO Chris O'Shea received a remuneration package totaling £3.6 million, sparking a wave of commentary.

Sharp Profit Drop

The group's operating profit fell by 39% to £814 million due to a mild winter and lower demand for commodities.

High Executive Bonuses

CEO Chris O'Shea received £3.6 million in remuneration, sparking emotions in the context of Centrica's weak financial results.

Share Buyback Suspension

The company decided on a pause in the buyback program, resulting in an immediate drop in share price on the stock exchange by nearly 8%.

British energy giant Centrica announced disappointing financial results for 2025. The group's adjusted operating profit fell to £814 million, a drastic decline compared to the £1.55 billion generated the previous year. The main cause of the problems was unusually warm weather, which translated into lower gas consumption by households. It is estimated that weather conditions alone cost the company £80 million in losses. Additionally, consumers, seeking savings, massively switched from variable tariffs to more favorable fixed-term contracts. The company's stock market situation deteriorated immediately after the report's publication. Centrica shares on the London exchange fell by 8 percent after management decided to suspend the share buyback program. Analysts also point to lowered forecasts for the arm involved in energy trading for 2026. Centrica originates from the privatization of British Gas carried out in 1986 by Margaret Thatcher's government, which was one of the pillars of British neoliberal policy at that time. However, the most controversy was sparked by information about management's earnings. Despite a profit drop of nearly 40 percent, CEO Chris O'Shea received a total of £3.6 million. This amount includes a base salary of £1.04 million, an annual bonus of £1.4 million, and long-term share awards worth £2.2 million. 2025 was a challenging year due to difficult market conditions and the impact of the commodity price curve. Centrica Operating Profit 2024 vs 2025: 2024: 1550, 2025: 814 3.6 mln GBP — CEO's remuneration despite profit drop British Gas Segment Results: Operating Profit: 267 mln GBP (2024) → 163 mln GBP (2025); Weather Impact: optimal conditions → loss of 80 mln GBP

Mentioned People

  • Chris O'Shea — Chief Executive of Centrica, who received high bonuses despite the company's profit drop.