Centrica slide pulls UK's FTSE from 15-year high

* Centrica (LSE: CNA.L - news) slumps on dividend cut, lower profits

* FTSE falls off earlier 15-year highs

* BAE Systems (LSE: BA.L - news) pares losses after results (Updates with detail, quote)

By Sudip Kar-Gupta and Alistair Smout

LONDON, Feb 19 (Reuters) - Britain's top equity index, the FTSE, retreated on Thursday from 15-year highs, with a drop in the share price of utility Centrica weighing on the market.

The blue-chip FTSE 100 index, which had risen to a 15-year high of 6,921.32 points on Wednesday, fell 9.69 points, or 0.1 percent to 6,888.39 points at 1515 GMT.

Centrica was the worst-performing FTSE 100 stock in percentage terms, dropping by 8.2 percent. Weak energy prices hit Centrica's annual profits and the company also disappointed investors by cutting its dividend hard.

"Centrica is another energy company that is suffering from a low oil price. Also, the fact that they've cut their dividend by such an amount will mean that some investors will now look elsewhere for better yields," said Dafydd Davies, partner at Charles Hanover Investments.

Oil prices tumbled on Thursday as U.S. inventories were expected to hit record highs, which in turn put further pressure on energy stocks such as Tullow Oil (LSE: TLW.L - news) and BP.

A dip in BAE Systems was shortlived, even after the company forecast only a modest rise in earnings for this year.

The defence firm traded up 0.5 percent, and traders said optimism over U.S. military spending next year had helped to pare losses. Aerospace and defence firm Rolls Royce (LSE: RR.L - news) also rose 3 percent after a year of underperformance.

However, Babcock fell 5.1 percent after missing out on a military contract, after Britain said it would award a logistics contract to Leidos Holdings (NYSE: LDOS - news) .

Investors also remained cautious due to lingering uncertainty over Greece.

Greece formally requested a six-month extension to its euro zone loan agreement on Thursday, offering major concessions as it raced to avoid running out of cash within weeks but immediately ran into strong objections from EU paymaster Germany.

The FTSE turned more sharply negative after the strong disapproval from Germany, and traders were cautious over the prospect of a near-term solution to the impasse over Greece's debt.

Deutsche Bank (LSE: 0H7D.L - news) said that despite the swift German rebuttal, some sort of agreement was still its baseline scenario ahead of a meeting of euro zone finance ministers tomorrow.

"Assuming an agreement is indeed reached, it is important to point out that this will only mark the very first step in what is still a long road to resolution to the Greek crisis," George Saravelos, strategist at Deutsche Bank, said.

"On the positive side, a potential 'agreement' tomorrow will provide a little breathing room to the Greek financial system."

(Editing by Mark Heinrich)