The huge profits being made by energy companies due to high oil and gas prices will be in the news again this week.

Following on from bumper results from other North Sea producers, British Gas owner Centrica is expected to post record annual profits of around £3billion on Thursday.

This follows the recent row over debt collectors breaking into the homes of hard-up customers to install pre-payment meters.

There were reports at the weekend that Centrica chief executive Chris O'Shea could make another apology for the actions of debt collectors when he presents the results.

Mr O'Shea is also likely to come under pressure to scale back a potential multi-million pound pay and incentive package.

He is said to be in line for a salary and bonus bonanza of up to £4.26million, linked to Centrica's performance.

Spirit Energy stake

As well as British Gas, Centrica interests include oil & gas exploration and production assets. The company has a 69% stake in the Spirit Energy business and the Rough field.

Meanwhile, the new head of Offshore Energies UK says that, despite record-breaking profits, Britain's energy sector is struggling in the face of increasing taxes and a supply-chain crunch.

Chief executive David Whitehouse echoed cautions from the wider industry that increased taxes and an unpredictable fiscal regime risked driving away investment in the supply chain and energy transition.

Mr Whitehouse took on the role leading the trade body in January, succeeding Deirdre Michie.

In light of the large profits posted by oil and gas producers in recent weeks, Energy Voice says both Labour and the Liberal Democrats have called for a "proper windfall tax" to be imposed to help struggling households.

Yet Mr Whitehouse pointed out that the majority of earnings of offshore operators were not being made from UK production - and that a lack of investor confidence would hinder further investment.

Sector suffering

"Despite the headlines of major operators recording record global profits, it is clear that our sector in the UK is suffering. The profits that are hitting the headlines are not being made in the UK," he explained.

"We had a slowdown in activity due to Covid and have now been hit by tax changes that undermine investor confidence at a critical point for the sector.

"Without continuing to attract investment, our supply chain will contract and operators will move capital and expertise elsewhere.

"Under these circumstances, it's hard to envisage a successful transition. We need to fix that."

FTSE 100

The UK's top share index, the FTSE 100, was up six points at 7,889 shortly after opening this morning, following Friday’s 28-point loss.

No FTSE 350 companies are due to report today.

Brent crude futures were down 0.91% at $85.60 a barrel.

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