BBC News: British Gas Owner Centrica Sees Profits Fall Steeply

Centrica, the owner of British Gas, has reported a big fall in profits after being hit by the drop in oil prices and by warmer weather. Centrica's full-year operating profits fell by 35% to £1.75bn.

Profits at British Gas's residential business fell by 23% to £439m after warmer weather meant households used less energy for heating.

Centrica said it had taken a "painful" decision to cut dividend payments to shareholders.

The company cut its full-year dividend for 2014 to 13.5p a share from 17p the year before.

Shares in Centrica ended the day 8.5% lower at 257.3p.

Centrica said two of its gas-fired power stations, Killingholme and Brigg, are to close. Both power stations - which are 20 years old - are losing money.

The firm also said it was having to cut capital investment in the North Sea by 40% between now and 2016, as its planned returns from the region were being "completely compressed".

Read the full article HERE.