Centrica Shares Plunge 9% as Annual Profits Drop 40% on Lower Gas Prices

Shares of Centrica, the parent company of British Gas, plummeted by more than 9% to reach 177p following the release of its latest financial results. This significant drop marks the stock's lowest level since January 15, making it the worst performer on the FTSE 100 index. The sell-off was triggered by a 40% slump in full-year profits, which fell to £1.42 billion compared to the previous year. Management attributed the decline primarily to the sharp fall in natural gas prices, which heavily impacted energy supply and trading margins. The results highlight the volatility inherent in the energy sector as global prices stabilize following previous record highs. Investors reacted negatively to the earnings miss, which acted as a significant drag on the UK's blue-chip index during the session.