The stronger performance at British Gas helped Centrica's underlying earnings rise 14% to £767 million - slightly better than City expectations.
Its upstream gas and oil production business saw profits rise 28% to £682 million, buoyed by £1.2 billion of acquisitions.
The group yesterday announced a £1.4 billion investment with GDF Suez to develop a major North Sea gas field off the coast of Norfolk, creating some 4,000 jobs. It is believed to be the largest gas discovery in the southern North Sea for 25 years.
However, it said it will review the future of gas-fired plants at Peterborough and Roosecote in Cumbria because of challenging conditions. It follows its decision to close a station in King's Lynn.
The company said changes to carbon allowances will render much of its UK gas-fired generation fleet unprofitable from 2013.
Cold start to the year may have been bleak for us - but it left British gas basking in soaring profits, leading to calls for a better deal
Another energy company another rise in profits. But with significant political pressure British Gas' explanations may not win them friends