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Highlights
- Centrica expects 2024 full-year earnings per share in line with analyst consensus.
- The company announces a £300 million extension to its share buyback program.
- Solid operating performance across its portfolio, including the extension of the operational life of its AGR nuclear stations.
Centrica plc (LSE:CNA) is set to host a teach-in session for institutional investors and analysts today at 2.30pm (GMT), focusing on its Centrica Energy and Meter Asset Provider (MAP) businesses. A copy of the presentation will be available on the company’s website ahead of the event. In conjunction with this, Centrica has provided an update on its trading performance and strategic developments.
Centrica has made notable strategic strides in 2024, including the announcement on December 4th of extending the operational lives of its four Advanced Gas-cooled Reactor (AGR) nuclear power stations. This is a significant move in securing long-term energy supply stability.
Regarding the company’s financial outlook, Centrica expects its 2024 earnings per share to be broadly in line with analyst consensus. However, the company has acknowledged ongoing uncertainties such as weather conditions, commodity prices, and asset performance in the latter part of the year.
In terms of its segment performance, Centrica anticipates that adjusted operating profit for its Retail and Optimisation businesses will be consistent with analyst expectations, bolstered by improved results in its Services & Solutions division compared to 2023. The Infrastructure segment’s adjusted operating profit is also expected to align with consensus, despite a forecasted loss for Centrica Energy Storage+ in the second half of the year. Full-year capital expenditure is projected to be around £600 million, with closing net cash also in line with expectations.
Looking ahead to 2025, Centrica expects its Retail Energy Supply and Optimisation businesses to achieve medium-term sustainable operating profit levels. British Gas Services & Solutions is forecast to show further financial improvement as it continues its recovery toward its 2026 target. The company has also provided guidance for its Infrastructure division, expecting adjusted operating profit to fall between £250 million and £400 million, subject to asset performance and commodity prices. Notably, Centrica Energy Storage+ is expected to report an adjusted operating loss in the range of £50 million to £100 million for 2025.
Additionally, Centrica remains focused on disciplined capital allocation and has announced a £300 million extension to its ongoing share buyback program. This extension will bring the total share repurchased since November 2022 to £1.5 billion, representing approximately 20% of the company’s issued share capital. The extended buyback program is expected to be completed by the end of September 2025.
