Energy company Centrica, Windsor, England, will use proceeds from the sale of its North American business to help plug its pensions deficit.
A financial update Friday said Centrica's pensions deficit was £2.4 billion ($3 billion) on a technical provisions basis as of June 30, up 50% from a deficit of £1.6 billion as of Dec. 31. Plan assets were £9.8 billion as of June 30.
The technical provisions deficit will be partially eliminated using the proceeds of an agreed £2.9 billion cash deal to sell Direct Energy to NRG Energy, the update said.
The firm's U.K. plans — the Centrica Engineers Pension Scheme, the Centrica Pension Plan and the Centrica Pension Scheme — make up the significant majority of the group's defined benefit obligations, the update said.
The increase in the deficit was partially offset by an 8.7% increase in the value of plan assets over the six months, an increase in inflation and previously agreed deficit contributions. Details on contributions could not immediately be learned.