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Invsting.com -- Shares of Centrica (LON:CNA) jumped more than 10% on Thursday following its full-year 2024 results, which showed a mixed performance across key business segments but showed strong shareholder returns and capital management.
The company posted an adjusted EBIT of £1.55 billion, a slight 2% miss versus consensus expectations.
The performance was weighed down by a weaker-than-anticipated showing from Centrica Energy, which reported £307 million in EBIT, falling 14% short of expectations.
Additionally, Storage EBIT was reported at just £2 million, below the £23 million consensus estimate.
However, these shortfalls were offset by a strong performance in the Retail division, which delivered £427 million in EBIT, surpassing consensus by 19%.
Earnings per share for the year stood at 19p, a modest 2% beat against estimates, while the declared dividend of 4.5p was in line with market expectations.
The company’s net cash position came in at £2.86 billion, reflecting a 12% improvement over consensus projections.
A key driver behind the stock’s jump was Centrica’s decision to extend its share buyback program. Initially set at £1.5 billion, the company has now committed an additional £500 million, bringing the total to £2 billion—equivalent to 7% of its market capitalization as of the prior day’s close.
Furthermore, Centrica signaled confidence in its cash generation by announcing plans to increase its FY25 dividend to 5.5p, up 6% from consensus estimates of 5.2p.
Centrica’s future plans include £4 billion in capital expenditures from 2024 to 2028, with £2 billion already committed. The remaining £2 billion is contingent on meeting return targets and investment criteria.
The company also anticipates shifting from a £2.9 billion net cash position in FY24 to a £1.6 billion net debt capacity by FY28, which includes a £1 billion reserve.