8th May 2025 09:18
(Alliance News) - Centrica PLC on Thursday backed annual profit guidance but said the warm weather had hit its British Gas business while its Energy unit faced "challenging" markets.
In response, shares in Centrica fell 7.5% to 147.11 pence each in London on Thursday.
The Berkshire, England-based energy and services company said British Gas Residential Energy has been impacted by warmer than normal weather in the second quarter but is still expected to be within its medium-term sustainable adjusted operating profit range in 2025.
In addition, adjusted operating profit at Centrica Energy is expected to be towards the bottom of its range for the year, with profitability heavily weighted to the second half, the firm added.
This is primarily due to more "challenging" market conditions in the gas & power trading segment, Centrica noted.
Centrica said the adjusted operating profit range for financial 2025 at British Gas Residential Energy Supply is GBP150 million to GBP250 million and for Centrica Energy GBP250 million to GBP350 million.
Further, the company said Centrica Energy Storage 2025 adjusted operating loss is now expected to be at the higher end of the GBP50 million to GBP100 million range.
Centrica said "constructive" discussions are ongoing with the UK government to secure a regulatory support mechanism that "unlocks GBP2 billion of investment" to increase Rough's capacity and ultimately convert it into a hydrogen-ready storage facility.
On tariffs, Centrica said it does not currently anticipate any material impact on its business or financial results but is "closely monitoring" the impact.
Centrica also reaffirmed its intention to increase the full year 2025 dividend per share to 5.5 pence, up 22% from 4.5p the year prior.
By Jeremy Cutler, Alliance News reporter
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