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Preliminary results Preliminary results for the year ended 31 December 2020 CHRIS O'SHEA , GROUP CHIEF EXECUTIVE centrica " We started a major transformation of the Company during 2020. Against the continuing uncertain backdrop caused by the Covid - 19 crisis , I am truly grateful for the efforts of all my colleagues , as we kept our customers warm , safe and supplied with energy and services and protected the business . We have made a good start to the turnaround of Centrica , with the sale of Direct Energy now complete and our significant Group restructure on track . However , our journey to transform has only just started , as we seek to restore shareholder value by improving customer experience , retention and employee engagement , while maintaining a strong balance sheet . It won't be easy , but I am confident we have the people , the brands and the market positions to deliver a successful turnaround in the coming years . " TURNAROUND OF CENTRICA STARTED Major transformation of Centrica underway . Completion of Direct Energy sale in January 2021 strengthens the balance sheet and allows an increased focus on core UK and Ireland activities . Significant restructure to simplify and modernise the Group on track . Increased focus on fixing the basics . Customer service levels broadly maintained . Customer numbers broadly unchanged over H2 compared to a 2 % drop in H1 . RESILIENT 2020 FINANCIAL PERFORMANCE • Group adjusted basic EPS of 6.5p , down 11 % . • • • • • Adjusted operating profit from continuing operations ( excluding Direct Energy ) down 31 % to £ 447m and adjusted basic EPS from continuing operations of 2.8p , down 35 % . Reflects negative impacts of Covid - 19 , warmer weather and low commodity prices . Partly offset by efficiency benefits , a strong trading and optimisation result and lower depreciation . Total exceptional charges in Group operating profit from continuing operations of £ 1,593m , including restructuring and pension strain costs of £ 274m and impairments of £ 1,319m . From continuing operations , statutory operating loss of £ 362m ( 2019 : £ 783m loss ) , statutory EPS loss of 4.7p ( 2019 : 16.8p loss ) , statutory net cash flow from operating activities down 1 % to £ 957m . BALANCE SHEET STRENGTHENED • • Total Group free cash flow up 10 % to £ 1,061m and net debt down £ 0.4bn to £ 2.8bn , reflecting a tight focus on cash expenditure and prompt and prudent actions taken in response to Covid - 19 . IAS19 pension deficit of £ 601m and technical pension deficit of £ 1.9bn on a roll - forward basis at 31 December 2020. Next triennial pensions valuation scheduled for 31 March 2021 . CREATING A MORE SUSTAINABLE AND PROFITABLE COMPANY • Significant uncertainties continue into 2021. No specific earnings or cash flow guidance provided . Strengthened balance sheet and continued tight focus on cash flow generation and expenditure leave Centrica well placed to navigate future uncertainties . Focus remains on adding shareholder value through simplifying and modernising the Group and improving the long - term quality , sustainability and level of earnings and cash flow . • Intention remains to sell Spirit Energy . Nuclear divestment process remains paused . • New climate change ambitions for Centrica to become net zero by 2045 and help our customers be net zero by 2050 are aligned to potential growth opportunities . • Intend to set out longer - term strategy in H2 2021 . Centrica plc Preliminary Results for the year ended 31 December 2020 1