Centrica extends share buyback plan by £300 mln, total now £1.5 bln

Investing.com -- Centrica (OTC:CPYYY ) plc, the parent company of British Gas, has announced a £300 million extension to its share buyback programme, bringing the total amount repurchased since November 2022 to £1.5 billion. 

This represents about 20% of the company’s issued share capital. The extended buyback is expected to be completed by the end of September 2025.

In its trading update, Centrica reported that full-year earnings are expected to align with market consensus, currently at 18.5 pence per share. 

The company flagged steady performance across its business segments, reinforcing its position in the energy market. 

Adjusted operating profits in its Retail and Optimisation segments are forecast to meet analyst expectations of £780 million. This includes an improvement in the Services & Solutions division compared to 2023.

On the infrastructure side, Centrica's adjusted operating performance is similarly anticipated to match the consensus estimate of £803 million, reflecting year-to-date performance trends and December's outlook. 

However, Centrica Energy Storage+ is expected to post a second-half loss, which management had accounted for in its projections.

The company’s capital expenditure for the full year is projected to come in at £600 million, at the lower end of its previously guided range of £600-800 million. 

Meanwhile, net cash at the year-end is expected to align with the market consensus at approximately £2.56 billion.

Going forward, Centrica anticipates its retail energy supply and optimisation businesses will operate within their medium-term sustainable adjusted profit ranges. 

British Gas Residential energy supply is expected to deliver between £150 million and £250 million in adjusted operating profit, while British Gas Services & Solutions is forecast to contribute £100 million to £200 million as it continues its financial recovery.

The company also provided guidance on its infrastructure operations, expecting adjusted operating profit in the range of £250 million to £400 million, though subject to variables such as asset performance and commodity prices. 

This outlook accounts for an anticipated operating loss of £50 million to £100 million from Centrica Energy Storage+.

Centrica's focus on shareholder returns, including the extended buyback, aligns with its broader efforts to stabilize and grow its core businesses. 

Analysts at RBC Capital Markets described the update as reflective of the company’s ongoing recovery and prudent capital management.

Source: Investing.com