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Interim results centrica Interim results for the period ended 30 June 2021 CHRIS O'SHEA , GROUP CHIEF EXECUTIVE " Our first half financial performance was broadly as we expected overall , and we continue to make good progress towards the simplification of our company . Although there is still a lot to achieve , our turnaround remains on track , our balance sheet has been significantly strengthened and the recent changes in colleague terms and conditions will enable us to better serve the needs of our customers . We will continue to strengthen our foundations , as we help our customers on the path to net zero . " FIRST HALF FINANCIAL PERFORMANCE BROADLY AS EXPECTED • • • • • Adjusted operating profit from continuing operations ( excluding Direct Energy ) broadly flat at £ 262m ( 2020 : £ 264m ) and adjusted basic EPS from continuing operations of 1.7p ( 2020 : 1.6p ) . Reflects efficiencies across the Group and higher consumption due to colder weather in the energy supply businesses . Higher commodity prices starting to benefit Upstream . Offset by impacts of Covid - 19 across the Group and industrial action in British Gas Services , and a loss in Energy Marketing & Trading with increased losses from the legacy gas contract . Total Group free cash flow from continuing operations up 4 % to £ 524m , with lower capital expenditure reflecting ongoing capital discipline . Net debt down to £ 0.1bn from £ 3.0bn over H1 2021 , including the impact of proceeds received from the sale of Direct Energy in January 2021 . £ 608m post - tax exceptional profit on disposal of Direct Energy . Total post - tax exceptional profit from continuing operations of £ 248m ( 2020 : loss of £ 897m ) largely due to the write back of E & P assets . From continuing operations , statutory operating profit of £ 1,003m ( 2020 : loss of £ 338m ) and basic EPS of 12.8p ( 2020 : loss of 5.9p ) including a profit on certain remeasurements due to rising commodity prices . Statutory net cash flow from operating activities down 12 % to £ 558m . SIMPLIFYING THE PORTFOLIO AND STRENGTHENING THE BALANCE SHEET . . . Sale of Direct Energy improves the long term strength of the Group's balance sheet and allows an increased focus on core UK and Ireland activities . Making progress towards pursuing alternative Spirit Energy sale options which will simplify the sale structure to maximise value of assets and de - risk liabilities . Triennial pensions valuation process underway . Technical pension deficit on a roll - forward basis in the region of £ 1.5bn at 30 June 2021 , reduced from £ 1.9bn at 31 December 2020 . CREATING A MORE SUSTAINABLE AND PROFITABLE COMPANY • Focus remains on improving the long - term quality , sustainability and level of earnings and cash flow . Significant Group organisational restructure on track and expected to be completed in 2021 . New terms and conditions in place for UK colleagues , enabling more modern and flexible approach to serving the needs of our customers . • Over 250,000 British Gas Energy customers now on more flexible , lower cost , ‘ software as a service ' IT platform . H2 priorities remain on ' fixing the basics ' , including improving employee engagement , increasing customer satisfaction , and driving better commercial , operational and financial performance . Capital Markets Event to be held on 16 November 2021 to provide more detail on our longer term strategy and financial framework . Centrica plc Interim Results for the period ended 30 June 2021 1