By Cassie Werber

LONDON--U.K. residential gas use rose 18% at the start of 2013 due to the freezing temperatures, said major utility Centrica PLC (CNA.LN) Monday, adding it would use any profit made during the exceptionally cold weather to keep its prices competitive.

Centrica's interim management statement said that full-year earnings growth was "expected to be in line with market expectations."

The statement also underlined Centrica's plans to continue aligning the company's U.K. and U.S. gas businesses. The company has announced two major U.S. acquisitions relating to gas export from the U.S. to the U.K. in the last few weeks.

"As a result of the unusual period of extended cold weather, average residential gas consumption was 18% higher in the first four months of 2013 than in the same period in 2012, and average residential electricity consumption was 3% higher," Centrica's statement said.

Centrica said "any benefit arising from the exceptionally cold weather will be used to maintain our price competitiveness" because, it said, the utility recognized "the economic pressures facing many of our customers." Utilities companies in the U.K. have previously been criticized for passing on costs to consumers and making large profits in times of financial hardship.

The company said it had increased its tally of residential U.K. accounts by 28,000 in the first four months of 2013, as well as introducing tools to help customers check tariffs, and installing over 1 million "smart meters" designed to make keeping tabs on energy usage easier.

The U.K. government has called for all energy companies to begin a large-scale roll-out of smart meter technology, and on Friday extended its deadline for completion of the project by one year, from 2019 to 2020.

In a statement that mentioned "challenging economic conditions" more than once, Centrica said the number of U.K. businesses it supplied with energy had fallen since the start of the year because "continuing competitive market conditions are putting some pressure on margins."

In terms of production, Centrica predicted a global rise to around 75 million barrels of oil equivalent in 2013, up from 67 million in 2012, and said it expected to benefit from higher gas prices.

Monday's statement also reiterated Centrica's plan to bring together its U.K. and U.S. businesses via import and export deals.

In March, Centrica announced the first deal clearly intended to bring gas from North America to the U.K., via a contract to import U.S. liquefied natural gas from a Louisiana plant owned by Cheniere Energy Partners LP.

Today's statement said: "The contract is an important step in delivering our new strategy, as we look to link our positions across the gas value chain and invest in new sources of gas on both sides of the Atlantic, where we see attractive opportunities."

In April, Centrica also agreed to buy a part of Suncor Energy Inc.'s (SU) Canadian oil and gas assets in partnership with Qatar Petroleum. In February, it announced a 500 million pound ($767.6 million) share buyback, using funds earmarked for building new nuclear plants in the U.K.

Today's statement said that, to date, the group has re-purchased 18.7 million shares for a total cost of GBP66.5 million.

Shares at 0743 GMT up 2.7 pence, or 0.72%, at 380.20 pence in an overall steady market.

Write to Cassie Werber, cassie.werber@dowjones.com

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