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| Profits jump at British Gas firm | Profits jump at British Gas firm |
| (40 minutes later) | |
| Energy firm Centrica has reported a sharp jump in half-year profits as its British Gas unit returned to profit. | Energy firm Centrica has reported a sharp jump in half-year profits as its British Gas unit returned to profit. |
| Centrica made operating profits of £1.25bn in the six months to 30 June, up from £692m a year ago. | Centrica made operating profits of £1.25bn in the six months to 30 June, up from £692m a year ago. |
| British Gas's residential business made profits of £533m during the period, compared with a £143m loss in 2006. | British Gas's residential business made profits of £533m during the period, compared with a £143m loss in 2006. |
| Profits were helped by higher profit margins stemming from lower wholesale gas costs. The firm made two price cuts for consumers earlier this year. | Profits were helped by higher profit margins stemming from lower wholesale gas costs. The firm made two price cuts for consumers earlier this year. |
| British Gas said the price cuts had helped to recruit 46,000 new customers in the second quarter of the year, raising total customer numbers to 15.8 million. | |
| Last year, about a million British Gas customers switched to other suppliers. | |
| 'Exceptional circumstances' | |
| However, the company added that although British Gas's performance had been "very strong" in the first half of the year, this was not expected to be repeated in the second half. | |
| "The results in the first six months have been due to exceptional circumstances and will not be repeated in the second half," said Centrica chairman Roger Carr. | |
| Profits at the British Gas business were helped by low wholesale prices during the winter, as the mild weather cut demand, while it did not cut prices for consumers until March. | |
| However, the lower wholesale costs hit Centrica's production business, with Centrica Energy's operating profits down 42% to £337m. | |
| Centrica said that wholesale gas prices were set to climb in the months ahead. | |
| "Wholesale gas prices for the coming winter are high and there is still uncertainty over the level of price volatility and customer demand due to unpredictable weather patterns." |