Centrica on track to hit forecasts, ups buyback plan by £300m

(Sharecast News) - British Gas owner Centrica said it expects full-year profits to match analysts' estimates as it beefed up its share buyback programme by £300m. The company said it "remains committed to its disciplined capital allocation framework", increasing the size of its buyback since November 2022 to £1.5bn.

In a trading update for the final quarter, Centrica said it has made "good strategic progress" in 2024, including the recently announced extension of the lives of its four operational advanced gas-cooled reactor nuclear power stations, along with a solid operating performance across the portfolio.

Full-year adjusted earnings per share are expected to be "broadly in line" with company-compiled consensus of 18.5p, down from 33.4p in 2023.

Adjusted profits in the Retail and Optimisation division are expected to meet forecasts, including growth from the Services and Solutions unit compared with last year. Meanwhile, adjusted profits in Infrastructure are also on track despite a second-half loss at Centrica Energy Storage+.

"The usual uncertainties remain for the balance of the year, including weather, commodity prices and asset performance," Centrica said.

Looking ahead to 2025, all Retail Energy Supply and Optimisation businesses are forecast to be in the medium-term sustainable adjusted operating profit ranges.

British Gas Services & Solutions is expected to deliver a further improved financial result compared with 2024, while Infrastructure adjusted profits are expected to be in the range of £250m-400m.