Centrica sees annual earnings at top end of expectations
Centrica
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17:15 20/12/24
British Gas owner Centrica said it expected annual earnings to be at the top end of expectations, driven by “significantly higher” profits at its retail division as customers struggle with soaring energy prices.
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It added that first half net cash generation was also expected to be “robust”, the company said in a trading update.
“The company's performance over the first five months of the year, across its diverse and balanced portfolio, has been strong overall,” Centrica said.
Retail adjusted operating profit in the first half of 2023 was expected to be significantly higher than in previous years, driven by a material positive impact in British Gas Energy from allowances in the UK domestic default tariff cap relating to costs incurred in prior periods, Centrica said.
“Given our current outlook, we expect 2023 full year group adjusted earnings per share to be around the top end of the range of recent sell side analyst expectations, with adjusted earnings per share heavily weighted towards the first half.”
“Working capital inflows in Energy Marketing & Trading relating to the continued cash realisation of 2022 profit are expected to be broadly offset by working capital outflows in British Gas Energy, reflecting seasonality and the changing price environment, and timing of government customer support scheme payments.”
Analysts are expecting full year adjusted earnings per share of 16.5p to 24.7p.
Reporting by Frank Prenesti for Sharecast.com