Centrica’s shares surged nearly 10 per cent in early trading today after the British Gas owner surpassed earnings estimates and increased its dividend.
The FTSE 100 energy company reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of £2.3bn for the year ending 31 December, as reported by City AM.
Although this was a decrease from last year’s £3.5bn, it significantly exceeded analyst predictions of £1.6bn. Adjusted earnings per share were 19p, surpassing previous forecasts of 18.62p.
Following these results, Centrica announced on Thursday its plans to increase its dividend by 13 per cent to 4.5p and extend its existing share buyback programme by £500m. “2024 was a good year for Centrica as we made further operational improvements and ramped up our investment programme,” said CEO Chris O’Shea.
“This has resulted in happier customers and more innovative propositions, but there is so much more we can do.”
The British Gas owner also reiterated its targets for the coming years. According to its annual report, the energy behemoth aims for a £1.6bn run-rate of EBITDA by the end of 2028 and plans to raise the 2025 dividend per share to 5.5.
“Looking ahead, I want to see Centrica continue to focus on the areas that make the biggest difference,” O’Shea stated. “We are investing in the energy transition, ensuring our customers have the energy they need, when they need it at a price they can afford.
“Everything we do must deliver an appropriate return, and and our investments during 2024 demonstrate our ability to invest responsibly and profitably.”
Although the results did not disclose investment plans for Sizewell C, which many analysts had anticipated prior to Thursday, a final decision is expected by May. According to UBS, Centrica’s cash commitment is likely to be capped at £2bn for a 10 to 15 per cent stake.
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