Centrica FY adjusted EPS seen at top end of expectations

Energy services business Centrica said on Tuesday it expected full-year adjusted earnings per share to be at the top end of analyst expectations after a strong performance in the first four months of 2022.

In its British gas services and solutions unit, Centrica stated it had seen some supply chain disruption and higher inflation impacting both its cost base and customer demand and cautioned that it expects said headwinds to continue to, at least partially, offset underlying operational progress for the duration of the current period of high inflation.

However, Centrica added that volumes from its nuclear and gas production assets in the UK had been strong and that its energy marketing and trading business had both secured increased volumes of gas and renewable energy.

"Significant uncertainties remain over the balance of the year, including the impacts of weather, commodity prices movements, asset performance, and the potential for increased bad debt charges given the current inflationary pressures in the UK," said Centrica.

The FTSE 250-listed firm will publish its interim results on 28 July alongside an update on its business priorities and financial framework.

Reporting by Iain Gilbert at Sharecast.com