Falling profit threat to Centrica dividend

The owner of British Gas has been affected by tighter margins
The owner of British Gas has been affected by tighter margins
RUI VIEIRA/PA

The new boss of Centrica is facing calls to cut its dividend for the first time in almost a decade as it grapples with the oil price collapse and falling profits for household gas and electricity.

Iain Conn is preparing for a tough hearing next week when he makes his first public appearance in the City since taking charge on New Year’s Day.

Centrica, which issued four profit warnings last year, is expected to announce annual profits of £1.9 billion, a fall of 29 per cent. The energy group has been affected by tighter margins at both its generation and its consumer businesses.

In its last update before next week’s results, the owner of British Gas reiterated that it would increase the dividend for last