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Centrica PLC on Thursday said it expects annual results at the top end of expectations, and the British Gas owner announced a share buyback.
Centrica shares were 8.3% higher at 84.00 pence each in London on Thursday morning, the best FTSE 100 performer.
The company now expects 2022 adjusted earnings per share to come in at the top end of a 15.1p to 26.0p sell-side analyst range. Adjusted EPS from continuing operations in 2021 amounted to 4.1p.
"Volumes from our electricity generation and gas production activities have remained strong, while in October we announced the reopening of the Rough gas storage facility, all of which contributes to strengthening the UK and Ireland's security of supply. In addition, in Energy Marketing & Trading our optimisation and route to market activities continue to perform very well, playing a critical role in storing, transporting and balancing energy supply across Europe," Centrica said.
Its Retail division has come under pressure, however. Inflation and poor economic conditions have "impacted both our cost base and customer numbers in British Gas Services & Solutions". In addition, mild October weather in the UK has meant British Gas profit and volumes were lower.
"As a result, we expect adjusted operating profit in our Retail division to be lower than current expectations," Centrica warned.
Centrica announced it is investing another £25 million to help its customers with soaring energy bills. It takes the amount it has invested for bill support to £50 million this year.
In addition, it announced plans to begin a share buyback, of up to 5% of its issued share capital. At current market prices, the buyback would be worth around £250.0 million.
"We said at the time of our interim results that we would continue to make efficient use of capital, including the potential return of any surplus structural capital to shareholders," Centrica said.
Looking ahead, it added: "There are significant uncertainties that remain over the remaining two months of the year, including the impacts of weather, commodity price movements, asset performance and the potential consequences of a weak economy and high inflation on commercial performance in British Gas Services & Solutions and bad debt in our energy supply activities."
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