Chris O'Shea, chief executive of Centrica, has declined to say whether he will waive a potential £1.6m bonus after the British Gas owner reported a record annual profit of £3.3bn, triple the previous year's figure. The surge in profits, driven by higher energy prices following Russia's invasion of Ukraine, has sparked outrage from campaigners and unions who describe the earnings as 'obscene'.
O'Shea, who waived a £1.1m bonus last year citing customer hardship, repeatedly refused to comment on his 2023 bonus during a conference call, stating it was 'too early to have a conversation' about it. His total pay package could exceed £3m, with details to be disclosed in next month's annual report.
Centrica announced it would return £750m to shareholders through dividends and share buybacks, including a £200m dividend and £300m in share repurchases, on top of a previously announced £250m buyback. This dwarfs the £51m the company has paid in UK windfall taxes since the levy was introduced.
Simon Francis of the End Fuel Poverty Coalition urged O'Shea to 'look at his conscience', highlighting the number of vulnerable customers forced onto prepayment meters by British Gas. Sharon Graham, general secretary of the Unite union, called the profits 'obscene', while Paul Nowak of the TUC demanded public ownership of energy companies.
The company's earnings were boosted by its North Sea oil and gas and nuclear power divisions, with profits from British Gas's energy supply arm falling 39% to £72m. Centrica said it expects to pay £2.5bn in windfall taxes between 2023 and 2028, and has donated £75m to support customers, surpassing the supply arm's profit.
Shares in Centrica rose 5% on Thursday, making it the top riser on the FTSE 100, which hit a new record high. The company also faced criticism over its use of prepayment meters, which it has since suspended following revelations of poor treatment of vulnerable customers by third-party contractors.
