Centrica share price rises as British Gas owner reaffirms full-year targets

Group cautions on E&P output

Centrica share price rises as British Gas owner reaffirms full-year targets

Shares in Centrica (LON:CNA) have advanced in London this morning as the British Gas owner updated investors on its recent performance, reaffirming its full-year targets. The company, however, cautioned that full year production from its Spirit Energy business was now expected to be in the lower half of its targeted range.

As of 08:13 BST, Centrica’s share price had added 1.13 percent to 148.82p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.04 percent in the red at 7,721.55 points. The group’s shares lost more than 22 percent of their value over the past year, as compared with a near four-percent rise in the Footsie.

Centrica reiterates targets

Centrica updated investors on its performance this morning ahead of its annual general meeting later today, noting that it remained on track to achieve its full-year targets, including adjusted operating cash flow of between £2.1 billion and £2.3 billion. The British Gas owner also continues to expect to pay a full-year dividend of 12.0p per share.

“2018 has begun well and overall financial performance in the year to date has been good, despite high competitive intensity in all our markets,” the group’s chief executive Iain Conn commented in the statement. Centrica benefitted from the cold weather in the UK which increased energy demand.

E&P setback

Centrica, however, cautioned that in its E&P segment, full-year production from Spirit Energy was now expected to be in the lower half of the 2018 targeted range due to unplanned outages at Morecambe Bay and production issues on certain non-operated fields in Norway. The group further expects its nuclear volumes in Central Power Generation to be negatively impacted by the recently announced extended outage at one of the reactors at Hunterston B.

As of 08:55 BST, Monday, 14 May, Centrica PLC share price is 148.80p.

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