Centrica share price jumps as group lifts earnings forecasts

on Dec 15, 2016
Updated: Oct 21, 2019

Shares in Centrica (LON:CNA) have jumped about three percent in London this morning, as the British Gas owner hiked its full-year earnings forecast. The company has benefitted from better-than-expected cost savings as it continues to battle the lower oil price environment.

As of 09:12 GMT, Centrica’s share price had spiked 3.24 percent to 226.00p, outperforming the broader London market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.29 percent lower at 6,929.49 points. The group’s shares have added a little over three percent this year, as compared with a nearly 11-percent gain in the Footsie.
Centrica announced in a statement this morning that it now expects to deliver full-year adjusted earnings per share of around 16.5p. The company explained that the improved outlook relative to the half year reflected further benefits from the cost efficiency programme and strong energy marketing and trading performance.

“Our performance in the second half of the year has been strong and we expect to exceed our 2016 targets,” the group’s chief executive Iain Conn said in the statement, adding that Centrica had “made considerable progress in reshaping our portfolio and capabilities”.
The company also expects its net debt to be lower at the end of the year, while its adjusted operating cash flow is likely to come in between £2.4 billion and £2.6 billion.
The 19 analysts offering 12-month price targets for Centrica for the Financial Times have a median target of 240.00p on the shares, with a high estimate of 293.00p and a low estimate of 175.00p. As of December 14, the consensus forecast amongst 20 polled investment analysts covering the British Gas owner advises investors to hold their position in the company.
As of 09:50 GMT, Thursday, 15 December, Centrica PLC share price is 230.90p.

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